<div class="phx-topic abstract-wrapper">US truck capacity may get worse before it gets better, as electronic logging device enforcement begins this month with anywhere from 10 to 25 percent of drivers not having the required device in their cabs. Even so, shippers can use tips described here to keep their freight moving with minimal disruption.</div>

US truck capacity may get worse before it gets better, as electronic logging device enforcement begins this month with anywhere from 10 to 25 percent of drivers not having the required device in their cabs. Even so, shippers can use tips described here to keep their freight moving with minimal disruption.

<div><div><img></div>US truck capacity may get worse before it gets better, as electronic logging device enforcement begins this month with anywhere from 10 to 25 percent of drivers not having the required device in their cabs. Photo credit: Shutterstock.com.The <a>electronic logging device </a>(ELD) mandate for truck drivers that took effect Dec. 18 has affected nearly every transportation mode and every industry that uses trucks, and even some that do not, lengthening transit times and tightening available capacity just as US shippers need more trucks and faster service to meet sharper delivery demands from their customers.The Federal Motor Carrier Safety Administration mandate,...

US truck capacity may get worse before it gets better, as electronic logging device enforcement begins this month with anywhere from 10 to 25 percent of drivers not having the required device in their cabs. Photo credit: Shutterstock.com. The electronic logging device (ELD) mandate for truck drivers that took effect Dec. 18 has affected nearly every transportation mode and every industry that uses trucks, and even some that do not, lengthening transit times and tightening available capacity just as US shippers need more trucks and faster service to meet sharper delivery demands from their customers. The Federal Motor Carrier Safety Administration mandate, required by Congress in the 2012 transportation spending act, forces commercial truck drivers to stop using paper logs to record daily and weekly record of duty status (RODS) reports and use electronic devices linked directly to engines instead. It is the biggest regulatory change for trucking since the 1980s, when deregulation and the introduction of the commercial drivers license reshaped the industry. Trucking costs kept climbing during the first quarter, typically the slowest quarter of the year for truck demand, with spot rates rising by double digits year over year and truckload and less-than-truckload contract rates creeping higher. Shippers are likely to see additional rate hikes and capacity constraints in coming months as the US economy continues to grow. Full enforcement of the mandate, delayed several months as part of a “phased” implementation of the rule, began April 1. State and federal officials now can place truckers out of service for not having an ELD. That means the driver, truck, and freight will be stopped for 10 hours. Afterwards, truckers may complete their delivery or proceed to their next stop, but they will be prohibited from operating beyond that point without installing an ELD. The violation will also adversely affect trucking company Compliance, Safety, and Accountability (CSA) scores. The implications for shippers, as well as their trucking and logistics partners, are serious. Full enforcement of the ELD mandate comes just as many US retailers and vendors enter their “spring peak season.” They are already planning for the bigger peak this autumn. Q: What percentage of truck drivers are compliant with the ELD mandate? A: It depends on the source. One survey from CarriersList finds that 97 percent of fleets surveyed are in compliance with the mandate and over the last three weeks the rolling average is about 93 percent. Another survey from load board operator DAT finds that 81 percent as of mid-March had an ELD with another 9 to 10 percent claiming an exemption to the regulation. Ken Evans, CEO of ELD supplier Konexial, thinks the compliance rate is about 75 percent. That means one out of every four drivers could be placed out of service, if stopped. Evans bases his estimates on the number of units manufactured versus how many drivers operate interstate long-haul routes, rather than a driver survey. “Whenever the [crackdown] starts and carriers are actually getting $1,000-plus fines, taken out of service, and their CSA scores are hit, we’re anticipating a crushing tidal wave like the world has never seen in this industry,” he said. “The amount of manufacturing that’s happened so far is not going to be enough to deal with that wave.” Evans also said about half of the devices purchased since December have not even been activated yet and will likely only be activated when drivers hear about the first crackdown from law enforcement. Q: Who is exempt from the ELD mandate? A: Here are some types of drivers exempt from the regulation: Drivers with a commercial license who operate within 100 air miles are not subject to the mandate. Drivers of vehicles manufactured before model year 2000 (IHS Markit last year estimated there may be more than 712,000 Class 8 tractors from pre-2000 model years registered in the United States. The actual number could be higher.). Drivers using paper RODS no more than eight days out of every 30-day period. Driveaway-towaway drivers who transport empty vehicles intended for sale, lease, or repair, as long as the vehicle they are driving is part of the shipment. There are also a number of temporary waivers, delays, or exemptions in certain subsets of the trucking industry, including agricultural haulers, short-term truck rentals, movie and television production drivers, and oilfield operations. Q: What is the likely impact on daily productivity? A: For carriers just beginning to use ELDs, Zipline Logistics found transit times on average rose from 1.05 transit days to 1.22 transit days afterwards on hauls between 450 and 550 miles, an increase of 16.2 percent. This equates to about four additional hours of transit time, on average, enough to turn a seven-hour lane into an 11-hour lane, pushing drivers to the limits of their daily legal driving time. It is enough to turn a same-day haul into a next-day delivery. “That’s a pretty big impact,” said Andrew Lynch, Zipline president. “The cost to run the truck hasn’t changed, so these guys are just losing time,” and that is pushing up freight costs, he said. The impact on the shorter lanes is greater than on longer runs. “On shipments between 750 and 1,000 miles, we saw a 10 percent increase in transit days,” which measure time from departure to arrival, he said. Q: How have spot market truck rates been impacted? A: Spot market truck rates rose 37 percent in January, 30 percent in February, and 25 percent in March on a year-over-year basis, according to DAT. “We know that rates are much higher than a year ago, but our survey shows drivers still perceive themselves as driving fewer miles and making less money, especially with an ELD. So there will still be pressure on rates and it will remain that way for awhile because the individual driver is losing productivity,” said DAT analyst Peggy Dorf. In the coming months, too, DAT senior industry analyst Mark Montague expects another “price shock” heading into the busy produce and manufacturing season between now and July 4. “Rates will probably remain 20 to 25 percent higher than a year ago between now and July 4. But I wouldn’t be surprised if it jumped back over 30 percent between now and then too,” he said. For the last week in March, DAT’s national spot rates were $2.53 per mile in flatbed, $2.40 for refrigerated, and $2.15 for dry van. Truckstop.com, another load board operator, pegged the national rates at $2.59 for flatbed, $2.49 for refrigerated, and $2.32 for dry van. The Trans-Logistics Group North American Truckload Freight Rate Index, which includes contract and spot prices from 14,700 lanes, jumped 17 to 25 percent in January. Q: What has the impact been on contract rates? A: On the contract side, DAT’s data show rates are 8.3 percent higher on an annualized basis compared with 2017, although in some cases there have been double-digit increases. Load-to-truck ratios are climbing sharply, particularly in the flatbed business. DAT reports the load-to-truck ratio set a new record of 101.5 loads for every one available truck in the week ending March 31. Flatbed loads rose 7 percent week over week while the number of posted trucks available dropped 8 percent. Although the ratios are not as pronounced in dry van (7.2 to 1) and refrigerated (10.4 to 1), they are also higher than a year ago. Truckstop.com’s Market Demand index is hovering at 60 and is expected to remain at these levels through April, according to the load board operator. On a year-over-year basis, the index is more than double the reading from 2017. “We are once again hitting record highs for the Market Demand Index, and we haven’t even gotten into [the second quarter] yet. Week 13 surpassed the 60 market — hitting 60.42 — and I can only expect rates will shortly follow suit,” said Noël Perry, chief economist with Truckstop.com. “We outlined a path forward for 2018 that would put us on the heels of hitting new record rates by the end of [the second quarter]. The updated chart shows that we are well surpassing that trajectory. We continue to be reminded that we are not in a ‘normal’ environment right now.” Q: How are US truckload carriers and third-party logistics providers addressing the capacity crunch? A: Some of the largest for-hire carriers are levying surcharges on some shippers on freight above and beyond the contracted allotment, treating the load essentially as a spot move. Schneider National, Covenant Transport, and Hub Group, among others, charged these fees to reposition trucks in the typically slow January and February months, a harbinger of potentially even more tight times ahead. “It’s going to be insane and if any one of my peers tells you any different, they’re kidding themselves,” said Dave Rusch, CEO of CRST International, a for-hire carrier handling dry-van, refrigerated, and flatbed freight, in a March conversation with JOC.com. However, Trinity Logistics chief operating officer Sarah Ruffcorn does not think there will be a dramatic change in conditions from Dec. 18 to March 31, other than rates going up even more. She said that ELDs, though, are making it more difficult to find drivers in its carrier network to take a load. “It makes it harder to find capacity when drivers load ‘hop’ to better paying freight. However, this is the market that we thrive in as a [third-party logistics provider],” Ruffcorn said. The lack of predictability of where the market is going could pose challenges to intermediaries working off annual contracts with shippers. C.H. Robinson Worldwide, for example, saw margins erode when purchased transportation costs rose in the latter half of the year because a majority of its business is conducted through annual contracts. Landstar System, in contrast, does a lot of spot market business, and so the company has already raised its 2018 guidance and announced truck revenue per load jumped 21 percent in the initial eight weeks of the year. Other logistics executives have said they are rebalancing their freight mix to include more spot business, thereby limiting the guesswork on how to offer an annual price to a shipper. Q: How are ocean carriers reacting to these rising costs? A: Since drayage rates are climbing at the same pace as the US domestic truckload environment, according to fleets, the ocean carriers are feeling the effects on their store-door contracts with shippers. CMA CGM , Mediterranean Shipping Company , and Hyundai Merchant Marine have or will soon institute $300 surcharges per container to beneficial cargo owners on door deliveries. CMA CGM and MSC have targeted these fees to certain markets while HMM will apply it nationwide but negotiate the exact amount on a case-by-case basis. Maersk Line increased its inland tariff on March 14, two days before the CMA CGM surcharge went into effect. Zim Integrated Shipping Services is taking a similar tactic to Maersk Line, adjusting the tariff structure on an ongoing basis. Cosco Shipping has done neither but plans to address the inland transportation costs in the ongoing contract negotiations. Privately, some trucking executives have commented that ocean carriers have undercut prices for years by booking cheap draymen willing to haul any containers. There are also draymen frustrated with the rail delays altogether and may transition into another mode of trucking, or refuse to do any hauls unless they are less than 100 air miles. “I would say 50 percent of the drivers or more are considering flipping to [over-the-road] to avoid the ramps. Owner-operators just get fed up and no longer want to do rail freight because of the time wasted at ramps. It’s a vicious circle,” said Susan Keldani, vice president of On Track Transportation in Illinois. Delays have been a problem for the truckers receiving and returning containers in railroad terminals in Chicago, Detroit, and Memphis, Tennessee, among other markets. Canadian National Railway , CSX Transportation , Union Pacific Railroad , and BNSF Railway have experienced prolonged delays since the beginning of the year. While conditions improved in March as the volumes dropped after the Lunar New Year, expect more stress on the rail networks this spring and summer. Q: What can shippers do to navigate through the ELD impact? A: If the true compliance rate is only 75 percent and not 91 percent, then the ability for a shipper to find a truck could get precarious in the coming weeks and months as the transportation community faces the stark new reality. “We will see a significant amount of carriers get shut down in April and when that happens it will create a tsunami effect that will make the last fourth quarter peak season look like we were on vacation,” warned Greg Ritter, chief customer officer with XPO Logistics, in a webinar hosted by NASSTRAC and TranzAct Technologies. “In my view, this market will last well into 2019 and even into 2020 before we see any significant changes.” Tracy Rosser, Wal-Mart’s senior vice president of transportation and supply chain, said there has been “shock in the system” since hurricanes Harvey, Irma, and Maria struck late last summer. However, he suggests shippers mitigate the shock by using better planning and forecasting. “There are a lot of suppliers that shut down at 3 p.m. and don’t ship on the weekends. Think about the capacity you can open up there. Create a drop-and-hook environment. Engage in strategic planning. There is not a lot of slack in the market right now, so unplanned volume can get pricey. Data can be your friend. Figure out where the waste is, find the root cause and work to solve those issues,” Rosser said. Those who do not use technology to maximize their supply chain speed should strongly consider doing so. “Customers are looking to maximize their value of a dollar as freight charges rise, so anything we can do, such as offer them our TMS [transportation management systems or] optimize their freight, are services that are a bigger part of the discussion in these types of markets,” Ruffcorn said. Dave Venberg, senior director of transportation and logistics with Ardent Mills, believes the best way to thrive in this market is to be proactive rather than reactive to the situation. “We want to build long-term relationships with our carriers. We want to be considered a strategic partner with the carriers we have in our portfolio, and the carriers we choose are strategic partners for us, not transaction in nature,” he said. “We’re comfortable with some transactional relationships but I don’t think that’s how you win in this environment.” The phrase “shippers of choice” has been frequently used in recent months, a way to survive the capacity crunch by standing out from other competitors during interactions with motor carriers. For example, use data to give carriers enough time to plan a haul rather than a last-minute request for capacity. Treat the drivers with respect and eliminate any unnecessary detention because drivers need to move to earn a living. Contact Ari Ashe at ari.ashe@ihsmarkit.com and follow him on Twitter: @ariashe_joc .Contact William B. Cassidy at bill.cassidy@ihsmarkit.com and follow him on Twitter: @wbcassidy_joc .

Logistics Technology News

Breakbulk News

US shipper guide to new ELD surface market

<div class="phx-topic abstract-wrapper"> Martin’s headquarters near the Los Angeles-Long Beach port complex is now integrated into SeaCube’s depot and transportation network, providing faster delivery to customers and improved regional coverage in the cold storage market.</div>

Martin’s headquarters near the Los Angeles-Long Beach port complex is now integrated into SeaCube’s depot and transportation network, providing faster delivery to customers and improved regional coverage in the cold storage market.

Feature image

<div class="phx-topic">SeaCube Cold Solutions, a national investor in refrigerated equipment, has acquired Southern California-based Martin Container, a portable cold storage container company serving the West Coast. The move comes as SeaCube aims to create a better connected and responsive cold storage network for customers across the US. Financial terms were not disclosed. Launched in 2025, New Jersey-based SeaCube provides refrigeration solutions to grocery retailers, food distributors, logistics operators, and the agricultural, pharmaceutical, restaurant and festival industries. “This acquisition enhances both scale and regional strength,” James Armstrong, SeaCube’s senior vice president, said in a statement Friday. “Martin’s long-standing reputation and operational depth complement our growing national platform...” Demand for portable cold storage continues to rise across the Southwest and Pacific Coast regions. Martin’s headquarters near the Los Angeles-Long Beach port complex is now integrated into SeaCube’s depot and transportation network, providing faster delivery to customers and improved regional coverage, according to the statement. Martin has a number of asset locations throughout California, Arizona and Nevada. “This partnership is an evolution of who we are. We’re building on our legacy by joining a company that shares our commitment to quality, innovation and customer service,” Martin Container CFO Charlie Martin said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a></div>

SeaCube Cold Solutions, a national investor in refrigerated equipment, has acquired Southern California-based Martin Container, a portable cold storage container company serving the West Coast. The move comes as SeaCube aims to create a better connected and responsive cold storage network for customers across the US. Financial terms were not disclosed. Launched in 2025, New Jersey-based SeaCube provides refrigeration solutions to grocery retailers, food distributors, logistics operators, and the agricultural, pharmaceutical, restaurant and festival industries. “This acquisition enhances both scale and regional strength,” James Armstrong, SeaCube’s senior vice president, said in a statement Friday. “Martin’s long-standing reputation and operational depth complement our growing national platform...” Demand for portable cold storage continues to rise across the Southwest and Pacific Coast regions. Martin’s headquarters near the Los Angeles-Long Beach port complex is now integrated into SeaCube’s depot and transportation network, providing faster delivery to customers and improved regional coverage, according to the statement. Martin has a number of asset locations throughout California, Arizona and Nevada. “This partnership is an evolution of who we are. We’re building on our legacy by joining a company that shares our commitment to quality, innovation and customer service,” Martin Container CFO Charlie Martin said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com

Cool Cargo News

Supply chain

SeaCube acquires Martin Container in move to boost West Coast cold storage

<div class="phx-topic abstract-wrapper">Florida International Terminal specializes in container and general cargo handling and provides direct connectivity to major highways and rail networks, with Crowley and Mediterranean Shipping Co. its most frequent callers over the past 12 months. </div>

Florida International Terminal specializes in container and general cargo handling and provides direct connectivity to major highways and rail networks, with Crowley and Mediterranean Shipping Co. its most frequent callers over the past 12 months.

<div class="phx-topic">Hapag-Lloyd’s terminal arm will take full ownership of Florida International Terminal (FIT) at Port Everglades following an agreement with the terminal’s minority owner. The terminal is part of the portfolio Hapag-Lloyd acquired in the 2022 acquisition of terminal operator SAAM. Hanseatic Global Terminals said in a statement Friday it reached an agreement with an affiliate of Chile’s Grupo Empresas Navieras (GEN) regarding the capital structure of FIT that will make Hanseatic the sole owner of the terminal. GEN had a 30% stake in FIT, according to its 2024 annual report. Terms of the deal were not disclosed. Hanseatic, which was established in 2023 as an independent entity within Hapag-Lloyd to own and operate terminal assets, picked up its original FIT stake in <a href="https://www.joc.com/article/hapag-lloyd-makes-1-billion-latin-american-terminal-takeover-5194252">the $1 billion deal for SAAM</a>. Last year, FIT extended its concession at Port Everglades through 2035, with Hanseatic pledging to invest $25 million in capital spending for the facility, according to a February 2025 statement from Hanseatic. FIT specializes in container and general cargo handling and provides direct connectivity to major highways and rail networks, Hanseatic’s statement said. US-based carrier Crowley has been the most frequent container line to call FIT over the last 12 months, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, bringing in ships with an average capacity of about 1,000 TEUs. Mediterranean Shipping Co. is a close second, with 310 calls over the last 12 months, bringing in ships of 2,900-TEU capacity. In 2025, Port Everglades saw total containerized imports reach 346,074 TEUs, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global, a 5.5% drop from the year before. The Caribbean basin and Central and South America are its main cargo origins, accounting for 73% of the volume coming into Port Everglades. Hanseatic said in the statement it plans to grow its current terminal portfolio to cover approximately 30 ports by 2030, up from 21 currently. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

Hapag-Lloyd’s terminal arm will take full ownership of Florida International Terminal (FIT) at Port Everglades following an agreement with the terminal’s minority owner. The terminal is part of the portfolio Hapag-Lloyd acquired in the 2022 acquisition of terminal operator SAAM. Hanseatic Global Terminals said in a statement Friday it reached an agreement with an affiliate of Chile’s Grupo Empresas Navieras (GEN) regarding the capital structure of FIT that will make Hanseatic the sole owner of the terminal. GEN had a 30% stake in FIT, according to its 2024 annual report. Terms of the deal were not disclosed. Hanseatic, which was established in 2023 as an independent entity within Hapag-Lloyd to own and operate terminal assets, picked up its original FIT stake in the $1 billion deal for SAAM . Last year, FIT extended its concession at Port Everglades through 2035, with Hanseatic pledging to invest $25 million in capital spending for the facility, according to a February 2025 statement from Hanseatic. FIT specializes in container and general cargo handling and provides direct connectivity to major highways and rail networks, Hanseatic’s statement said. US-based carrier Crowley has been the most frequent container line to call FIT over the last 12 months, according to Sea-web, a sister company of the Journal of Commerce within S&P Global, bringing in ships with an average capacity of about 1,000 TEUs. Mediterranean Shipping Co. is a close second, with 310 calls over the last 12 months, bringing in ships of 2,900-TEU capacity. In 2025, Port Everglades saw total containerized imports reach 346,074 TEUs, according to PIERS, a sister company of the Journal of Commerce within S&P Global, a 5.5% drop from the year before. The Caribbean basin and Central and South America are its main cargo origins, accounting for 73% of the volume coming into Port Everglades. Hanseatic said in the statement it plans to grow its current terminal portfolio to cover approximately 30 ports by 2030, up from 21 currently. Contact Michael Angell at michael.angell@spglobal.com .

Container lines

North American ports

Hapag-Lloyd’s terminal arm takes full control of Port Everglades terminal

<div class="phx-topic abstract-wrapper">Onshore and offshore renewables projects will drive shipments of turbines and transformers, carriers in the sector say.</div>

Onshore and offshore renewables projects will drive shipments of turbines and transformers, carriers in the sector say.

<div class="phx-topic">Wind energy is on course to be the standout driver for the project cargo industry in 2026, say carriers serving engineering, procurement and construction companies in the sector. Kyriacos Panayides, managing director of multipurpose ship operator AAL Shipping, said the wind energy industry is set to add approximately 982 GW, both onshore and offshore, over the next five years, growing at about 8.8% annually. “These projects will continue to drive shipments of turbines, transformers and heavy components, translating into higher breakbulk shipping volumes,” Panayides told the Journal of Commerce.Melanie Drehkopf, COO of multipurpose vessel (MPV) operator dship Carriers, described growing activity in both the renewable and traditional energy sectors as a “major factor” in fresh green shoots of renewed stability for the sector. “Wind energy projects — offshore and onshore — continue to expand globally, driving a strong demand for the transportation of complex and oversized components,” she said. <h3>Optimism for Middle East market</h3>Panayides also gave a nod to renewables, describing project work in that sector as a “primary growth engine across Oceania, intra-Asia and Europe.” Further, sustained investment in oil, gas and construction is expected to underpin demand in the Middle East, while parts of North America show promise from growth in oil, gas and power, he said.“The Middle East and Persian Gulf remain pivotal growth corridors despite geopolitical tension, with renewed infrastructure and energy construction generating heavy-lift and breakbulk demand across ports and charter markets,” Panayides said.An executive at a third carrier who did not want to be identified said they were “most optimistic” about developments in the Middle East market, which has a strong pipeline of announced projects.Meanwhile, Indonesia’s shift from resource exports to onshore value-added manufacturing is creating a steady pipeline of inbound components, heavy equipment and specialized logistics, while India’s push for infrastructure and energy investment is increasing demand for transformers, modules and industrial equipment and boosting project cargo imports. In tandem with changes in cargo demand, shippers’ priorities are also evolving. Clients are increasingly prioritizing “flexibility and sustainability,” Drehkopf said, adding that a modernization of the MPV fleet is helping the sector adapt to shifting global requirements.Overall, market fundamentals look “encouraging,” Drehkopf said, despite the challenges of fluctuating rates and geopolitical uncertainty. “Overall, 2026 won’t be a year defined by rapid expansions, but a year of opportunities for carriers with the right technical capabilities and expertise,” she said.Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

Wind energy is on course to be the standout driver for the project cargo industry in 2026, say carriers serving engineering, procurement and construction companies in the sector. Kyriacos Panayides, managing director of multipurpose ship operator AAL Shipping, said the wind energy industry is set to add approximately 982 GW, both onshore and offshore, over the next five years, growing at about 8.8% annually. “These projects will continue to drive shipments of turbines, transformers and heavy components, translating into higher breakbulk shipping volumes,” Panayides told the Journal of Commerce. Melanie Drehkopf, COO of multipurpose vessel (MPV) operator dship Carriers, described growing activity in both the renewable and traditional energy sectors as a “major factor” in fresh green shoots of renewed stability for the sector. “Wind energy projects — offshore and onshore — continue to expand globally, driving a strong demand for the transportation of complex and oversized components,” she said. Optimism for Middle East market Panayides also gave a nod to renewables, describing project work in that sector as a “primary growth engine across Oceania, intra-Asia and Europe.” Further, sustained investment in oil, gas and construction is expected to underpin demand in the Middle East, while parts of North America show promise from growth in oil, gas and power, he said. “The Middle East and Persian Gulf remain pivotal growth corridors despite geopolitical tension, with renewed infrastructure and energy construction generating heavy-lift and breakbulk demand across ports and charter markets,” Panayides said. An executive at a third carrier who did not want to be identified said they were “most optimistic” about developments in the Middle East market, which has a strong pipeline of announced projects. Meanwhile, Indonesia’s shift from resource exports to onshore value-added manufacturing is creating a steady pipeline of inbound components, heavy equipment and specialized logistics, while India’s push for infrastructure and energy investment is increasing demand for transformers, modules and industrial equipment and boosting project cargo imports. In tandem with changes in cargo demand, shippers’ priorities are also evolving. Clients are increasingly prioritizing “flexibility and sustainability,” Drehkopf said, adding that a modernization of the MPV fleet is helping the sector adapt to shifting global requirements. Overall, market fundamentals look “encouraging,” Drehkopf said, despite the challenges of fluctuating rates and geopolitical uncertainty. “Overall, 2026 won’t be a year defined by rapid expansions, but a year of opportunities for carriers with the right technical capabilities and expertise,” she said. Contact Carly Fields at carly.fields@spglobal.com .

Breakbulk carriers

Energy projects

Project cargo

Wind components expected to be a ‘standout’ cargo for MPVs in 2026

<div class="phx-topic abstract-wrapper">STG said the filing will reset its balance sheet and reduce debt obligations, but drayage, domestic intermodal, transloading and warehousing operations will not be affected.</div>

STG said the filing will reset its balance sheet and reduce debt obligations, but drayage, domestic intermodal, transloading and warehousing operations will not be affected.

<div class="phx-topic">STG Logistics, the US’s fourth-largest asset-based intermodal marketing company, filed for Chapter 11 bankruptcy protection in New Jersey Monday, entering a court-supervised restructuring that the company said will reduce its debt while keeping freight moving without disruption. STG will reduce funded debt by approximately $952 million, a deleveraging of about 91%, while securing commitments for up to $150 million of new capital, according to the agreement included in the bankruptcy filing. STG, which maintains a large drayage presence in the Port of New York and New Jersey, among other East Coast ports, expects to emerge from Chapter 11 in about five months. The new financing will be structured as debtor-in-possession financing, a form of court-approved bankruptcy that provides cash while STG continues day-to-day operations. The restructuring will change after STG exits bankruptcy. The financing is known as a debt-for-equity swap, under which the participating lender group will trade its debt claims for ownership of the business upon exiting bankruptcy. The new ownership group will be private equity firms Antares Capital, Fortress Investment Group and Invesco, which were part of a controversial 2024 financing transaction that triggered litigation by STG’s minority lenders. Ohio-based STG owns approximately 15,000 domestic containers, behind J.B. Hunt Transport Services, Hub Group and Schneider National. STG also operates a joint service with CSX Transportation called RailPlus, a door-to-door domestic intermodal product covering nearly 350 lanes across the US. STG owns 32 warehouses across North America and offers transloading operations for international shippers. The company runs agency-based ocean drayage operations in US ports and inland rail ramps. STG said the filing will reset its balance sheet and reduce debt obligations, but drayage, domestic intermodal, transloading and warehousing operations will not be affected. Employees and drivers will continue to be paid, as will key vendors, including rail partners such as CSX and Union Pacific Railroad. STG’s bankruptcy was anticipated as the company faces multiple lawsuits and lacks the financial resiliency of larger intermodal competitors to navigate a freight recession approaching its fourth year. S&amp;P Global, the parent company of the Journal of Commerce, lowered STG’s credit rating in July to CCC, warning that free cash flow would end 2025 at $110 million in the red and that STG could run out of money early this year. A CCC rating is considered speculative-grade credit with a high risk of default. STG hired Kirkland &amp; Ellis and PJT Partners, firms known for bankruptcy filings, credit analysts at Octus reported last month. <h3>Lawsuits affected </h3>STG’s bankruptcy will impact two legal disputes involving the company. New Jersey Attorney General Matthew Platkin sued STG Logistics in December 2023 for worker misclassification, seeking back wages and penalties for more than 300 drivers. The lawsuit centers on the rules governing who qualifies as an employee versus an independent contractor. Like California’s AB5, New Jersey applies an “ABC test” that presumes employee status unless a company can satisfy three “prongs,” a high bar in drayage and trucking models. Those prongs are that the worker is free from the control of the hiring entity, that the work is performed outside the usual course of company business and that the worker is engaged in an independently established trade or occupation. The New Jersey case would be frozen and transferred to the bankruptcy court. The bankruptcy filing comes a week after a New York state judge allowed another lawsuit by minority lenders Axos Financial and Siemens Financial Services to move forward, according to The Wall Street Journal. Axos and Siemens were lenders in STG’s 2022 financing to acquire the intermodal division of XPO Logistics. In October 2024, STG announced a $300 million financing package, but Axos and Siemens later sued, alleging the deal also functioned as a liability-management transaction that shifted collateral and other protections toward new lenders, leaving them with weaker claims in bankruptcy. The October 2024 transaction included Antares, Fortress and Invesco, according to the Journal. The New York judge described the Axos and Siemens allegations as “lender bullying,” the Journal reported. Axos and Siemens were not parties to the agreement filed with the court. The filing triggers an automatic stay to the New York case, pausing litigation against the debtor as the restructuring proceeds. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

STG Logistics, the US’s fourth-largest asset-based intermodal marketing company, filed for Chapter 11 bankruptcy protection in New Jersey Monday, entering a court-supervised restructuring that the company said will reduce its debt while keeping freight moving without disruption. STG will reduce funded debt by approximately $952 million, a deleveraging of about 91%, while securing commitments for up to $150 million of new capital, according to the agreement included in the bankruptcy filing. STG, which maintains a large drayage presence in the Port of New York and New Jersey, among other East Coast ports, expects to emerge from Chapter 11 in about five months. The new financing will be structured as debtor-in-possession financing, a form of court-approved bankruptcy that provides cash while STG continues day-to-day operations. The restructuring will change after STG exits bankruptcy. The financing is known as a debt-for-equity swap, under which the participating lender group will trade its debt claims for ownership of the business upon exiting bankruptcy. The new ownership group will be private equity firms Antares Capital, Fortress Investment Group and Invesco, which were part of a controversial 2024 financing transaction that triggered litigation by STG’s minority lenders. Ohio-based STG owns approximately 15,000 domestic containers, behind J.B. Hunt Transport Services, Hub Group and Schneider National. STG also operates a joint service with CSX Transportation called RailPlus, a door-to-door domestic intermodal product covering nearly 350 lanes across the US. STG owns 32 warehouses across North America and offers transloading operations for international shippers. The company runs agency-based ocean drayage operations in US ports and inland rail ramps. STG said the filing will reset its balance sheet and reduce debt obligations, but drayage, domestic intermodal, transloading and warehousing operations will not be affected. Employees and drivers will continue to be paid, as will key vendors, including rail partners such as CSX and Union Pacific Railroad. STG’s bankruptcy was anticipated as the company faces multiple lawsuits and lacks the financial resiliency of larger intermodal competitors to navigate a freight recession approaching its fourth year. S&P Global, the parent company of the Journal of Commerce, lowered STG’s credit rating in July to CCC, warning that free cash flow would end 2025 at $110 million in the red and that STG could run out of money early this year. A CCC rating is considered speculative-grade credit with a high risk of default. STG hired Kirkland & Ellis and PJT Partners, firms known for bankruptcy filings, credit analysts at Octus reported last month. Lawsuits affected STG’s bankruptcy will impact two legal disputes involving the company. New Jersey Attorney General Matthew Platkin sued STG Logistics in December 2023 for worker misclassification, seeking back wages and penalties for more than 300 drivers. The lawsuit centers on the rules governing who qualifies as an employee versus an independent contractor. Like California’s AB5, New Jersey applies an “ABC test” that presumes employee status unless a company can satisfy three “prongs,” a high bar in drayage and trucking models. Those prongs are that the worker is free from the control of the hiring entity, that the work is performed outside the usual course of company business and that the worker is engaged in an independently established trade or occupation. The New Jersey case would be frozen and transferred to the bankruptcy court. The bankruptcy filing comes a week after a New York state judge allowed another lawsuit by minority lenders Axos Financial and Siemens Financial Services to move forward, according to The Wall Street Journal. Axos and Siemens were lenders in STG’s 2022 financing to acquire the intermodal division of XPO Logistics. In October 2024, STG announced a $300 million financing package, but Axos and Siemens later sued, alleging the deal also functioned as a liability-management transaction that shifted collateral and other protections toward new lenders, leaving them with weaker claims in bankruptcy. The October 2024 transaction included Antares, Fortress and Invesco, according to the Journal. The New York judge described the Axos and Siemens allegations as “lender bullying,” the Journal reported. Axos and Siemens were not parties to the agreement filed with the court. The filing triggers an automatic stay to the New York case, pausing litigation against the debtor as the restructuring proceeds. Contact Ari Ashe at ari.ashe@spglobal.com .

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STG files Ch. 11 bankruptcy, but intermodal operations remain intact

<div class="phx-topic abstract-wrapper">Most major carriers have set net-zero goals and are investing heavily in dual-fuel vessels that support their emissions-cutting strategies despite a lack of global regulatory support.</div>

Most major carriers have set net-zero goals and are investing heavily in dual-fuel vessels that support their emissions-cutting strategies despite a lack of global regulatory support.

<div class="phx-topic">Dual-fuel vessels capable of running on liquefied natural gas (LNG) continue to dominate the container shipping order book despite ongoing uncertainty around global emissions-cutting regulations.  While the overall newbuilding market across all shipping segments fell to 2,403 orders, down from 4,405 in 2024, new orders in container shipping rose from 447 in 2024 to 547 in 2025, accounting for 49% of all gross tonnage and 68% of alternative-fuel new orders, according to classification society DNV. “The resilience of the alternative fuels order book in 2025 is mainly driven by cargo owners who have set their own emissions reduction goals despite [the] market slowdown and regulatory uncertainty,” Jason Stefanatos, global decarbonization director at DNV, said in a market update Monday. "We see [ocean carriers] prioritizing investments where there is a strong alignment between fuel infrastructure, regulatory certainty and commercial viability, particularly in container shipping, where LNG and methanol are supported by established supply chains and customer demand,” he added. The chance for shipping to become the first global industry to implement emissions-reducing regulations was lost in October when <a href="https://www.joc.com/article/imo-punts-on-pivotal-net-zero-shipping-regulation-6099141">US-led opposition derailed the International Maritime Organization (IMO) net-zero framework</a> at a pivotal Marine Environmental Protection Committee (MEPC) meeting in London. The net-zero framework was postponed for at least a year and possibly longer if the US continues to lobby against it. At issue is the price differential between conventional bunker fuels and greener fuels. A global price on emissions is key to narrowing the price gap, spurring demand and giving green fuel producers an incentive to invest in production. The MEPC will meet again this coming October, and although the delay may hurt the broader case for investment in the development of alternative fuels and related infrastructure, container carriers and shipowners remain firmly focused on LNG as the top green fuel of choice in newbuild vessel orders. Net-zero targets set by carriers Most of the major carriers in container shipping have set net-zero goals and are investing heavily in dual-fuel vessels that support their emissions-cutting strategies despite the regulatory uncertainty.  Data from Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, shows that just over 4 million TEUs of capacity for LNG dual-fuel ships was on order in 2025, compared to 2 million TEUs of methanol-capable vessels. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e8be4ac1-33cb-4758-93c4-1d0f92f52e7d"></dynamic-object></div>LNG as an interim alternative fuel solves multiple problems for container lines. It can reduce absolute carbon emissions by up to 20%, according to the American Bureau of Shipping, so progress toward decarbonization can be demonstrated to customers and the public. LNG is also more widely available than methanol, the supply of which is constrained and prices stubbornly high and will likely remain so due to IMO inaction on its zero-emissions framework. Maersk, for example, cited a lack of adequate supply when it <a href="https://www.joc.com/article/maersks-lng-order-hedges-bet-on-green-fuel-technology-ceo-5703200">pivoted from methanol to LNG in late 2024</a> for its next round of 50-60 vessels. DNV said in its market update that investment in fuel infrastructure was continuing at pace, with 22 LNG bunker vessels added to the orderbook alongside new bunkering vessels capable of supplying methanol and biofuel. These developments signal growing confidence in LNG supply chains and emerging multifuel capabilities, reducing operational risk and supporting the economics of alternative fuel adoption. With the IMO delay in adopting global decarbonization measures throwing interim greenhouse gas emissions targets into doubt, improving the fuel efficiency of vessels has attained even greater importance, particularly in Europe. The EU Emissions Trading System (ETS) carbon tax and maritime fuel intensity regulations will come into full effect this year, and cutting vessel emissions will directly impact a carrier’s operating costs. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Dual-fuel vessels capable of running on liquefied natural gas (LNG) continue to dominate the container shipping order book despite ongoing uncertainty around global emissions-cutting regulations.   While the overall newbuilding market across all shipping segments fell to 2,403 orders, down from 4,405 in 2024, new orders in container shipping rose from 447 in 2024 to 547 in 2025, accounting for 49% of all gross tonnage and 68% of alternative-fuel new orders, according to classification society DNV.  “The resilience of the alternative fuels order book in 2025 is mainly driven by cargo owners who have set their own emissions reduction goals despite [the] market slowdown and regulatory uncertainty,” Jason Stefanatos, global decarbonization director at DNV, said in a market update Monday.  "We see [ocean carriers] prioritizing investments where there is a strong alignment between fuel infrastructure, regulatory certainty and commercial viability, particularly in container shipping, where LNG and methanol are supported by established supply chains and customer demand,” he added.  The chance for shipping to become the first global industry to implement emissions-reducing regulations was lost in October when  US-led opposition derailed the International Maritime Organization (IMO) net-zero framework  at a pivotal Marine Environmental Protection Committee (MEPC) meeting in London. The net-zero framework was postponed for at least a year and possibly longer if the US continues to lobby against it.  At issue is the price differential between conventional bunker fuels and greener fuels. A global price on emissions is key to narrowing the price gap, spurring demand and giving green fuel producers an incentive to invest in production.  The MEPC will meet again this coming October, and although the delay may hurt the broader case for investment in the development of alternative fuels and related infrastructure, container carriers and shipowners remain firmly focused on LNG as the top green fuel of choice in newbuild vessel orders.  Net-zero targets set by carriers  Most of the major carriers in container shipping have set net-zero goals and are investing heavily in dual-fuel vessels that support their emissions-cutting strategies despite the regulatory uncertainty.   Data from Sea-web, a sister company of the Journal of Commerce within S&P Global, shows that just over 4 million TEUs of capacity for LNG dual-fuel ships was on order in 2025, compared to 2 million TEUs of methanol-capable vessels.  LNG as an interim alternative fuel solves multiple problems for container lines. It can reduce absolute carbon emissions by up to 20%, according to the American Bureau of Shipping, so progress toward decarbonization can be demonstrated to customers and the public. LNG is also more widely available than methanol, the supply of which is constrained and prices stubbornly high and will likely remain so due to IMO inaction on its zero-emissions framework. Maersk, for example, cited a lack of adequate supply when it  pivoted from methanol to LNG in late 2024  for its next round of 50-60 vessels.  DNV said in its market update that investment in fuel infrastructure was continuing at pace, with 22 LNG bunker vessels added to the orderbook alongside new bunkering vessels capable of supplying methanol and biofuel. These developments signal growing confidence in LNG supply chains and emerging multifuel capabilities, reducing operational risk and supporting the economics of alternative fuel adoption.  With the IMO delay in adopting global decarbonization measures throwing interim greenhouse gas emissions targets into doubt, improving the fuel efficiency of vessels has attained even greater importance, particularly in Europe. The EU Emissions Trading System (ETS) carbon tax and maritime fuel intensity regulations will come into full effect this year, and cutting vessel emissions will directly impact a carrier’s operating costs.  Contact Greg Knowler at  greg.knowler@spglobal.com . 

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Solid growth evident in LNG order book despite regulatory uncertainty 

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