<div class="phx-topic abstract-wrapper"><p>Ocean carriers and marine terminals allege the International Longshoremen’s Association is violating US labor law by refusing to return to contract negotiations that haven’t been held since June.  </p></div>

Ocean carriers and marine terminals allege the International Longshoremen’s Association is violating US labor law by refusing to return to contract negotiations that haven’t been held since June.

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<div><p>Maritime employers along the US East and Gulf coasts have filed an unfair labor practice charge with the National Labor Relations Board (NLRB) in a late bid to force the International Longshoremen’s Association (ILA) back to the bargaining table. The charge filing marks a new low in the long-stalled bargaining cycle between the ILA and the United States Maritime Alliance (USMX). </p><p>USMX, which represents ocean carriers and marine terminal operators, said Thursday it filed the charge “due to the ILA’s repeated refusal to come to the table and bargain on a new master contract.” The filing, alleging violations of the...

Maritime employers along the US East and Gulf coasts have filed an unfair labor practice charge with the National Labor Relations Board (NLRB) in a late bid to force the International Longshoremen’s Association (ILA) back to the bargaining table. The charge filing marks a new low in the long-stalled bargaining cycle between the ILA and the United States Maritime Alliance (USMX). USMX, which represents ocean carriers and marine terminal operators, said Thursday it filed the charge “due to the ILA’s repeated refusal to come to the table and bargain on a new master contract.” The filing, alleging violations of the Labor Management Relations Act, seeks “immediate injunctive relief — requiring the union to resume bargaining — so that we can negotiate a deal.” The USMX’s charge filing could take months to resolve, according to a legal source, It still requires an investigation by the NLRB about the negotiations process between the two sides before it becomes a formal complaint be assigned to an administrative law judge, It is unclear when that would happen, but the move will not in any way prevent the ILA from striking at ports along the East and Gulf coasts on Oct. 1 once the current master contract covering 45,000 dockworkers across 14 ports expires. The ILA on Thursday called the NLRB complaint a “publicity stunt” by maritime employers. “USMX filing these charges four days before the expiration of the current master contract clearly illustrates what poor negotiating partners they have been,” the union said. The ILA and USMX have not held formal talks on a new master contract since June , when the union broke off negotiations following allegations that APM Terminals had violated the current master contract through automation projects it undertook at its Port of Mobile facility . Both sides remain far apart in their expectations for wage increases in a new master contract, with the ILA saying it will not sit down with USMX members until they agree to the union’s demand for a 77% hike over the life of a new six-year deal . The ILA said in a statement this week the USMX continues to offer an “unacceptable wage increase package,” which is reportedly half of the increase sought by the ILA. Contact Michael Angell at michael.angell@spglobal.com .

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Marine terminals

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USMX tries to force ILA back to contract talks with NLRB complaint

<div class="phx-topic abstract-wrapper"><p>As the war launched by the US and Israel against Iran extends into its third day, about 10% of the global container shipping fleet remains stranded inside the Persian Gulf or held up outside.</p></div>

As the war launched by the US and Israel against Iran extends into its third day, about 10% of the global container shipping fleet remains stranded inside the Persian Gulf or held up outside.

<div class="phx-topic"><p>Long Beach, Calif. — The container shipping supply chain is bracing for the ripple effects of the war launched by the US and Israel against Iran that will be felt across global trade lanes, industry executives said Monday. </p><p>As the regional conflict extends into its third day, about 10% of the global container shipping fleet remains stranded inside the Persian Gulf or held up outside the critical waterway, according to Jeremy Nixon, CEO of Ocean Network Express (ONE). </p><p>“Most of the carriers, including ONE, have had to stop all bookings to the Middle East, and it is a significant trade,” Nixon told the <i>Journal of Commerce’s</i> TPM26 conference. </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177002_0.1.jpg"></img></div><p>"All of that cargo is going to start backing up into the hubs and into the key locations in Europe and Asia,” he added. “Those vessels that have cargo for the Middle East will need to turn around and try to take some of that cargo off in places like Colombo, Fujairah and Singapore, and the hubs are going to lose some of their fluidity.” </p><p>Triene Nielsen, vice president of ocean/global at forwarder Flexport, said when a ship fails to meet its normal schedule, the ripple effects can be felt across the network with carriers trying to prioritize equipment and the movement of empty containers.  </p><p>“Those ripples are not going to come tomorrow, but they might come three, four or eight weeks from now,” she told the conference. “Even if this is mainly a Middle East situation, the equipment issues will be felt on the other trade lanes.”  </p><p>Johan Sigsgaard, executive vice president of Maersk, said just dealing with the containers already on the water was going to be a major challenge as the ships and equipment would effectively be suspended. </p><p>“What we have seen from the last couple of years when these kinds of problems occur is that the same equipment and the same ships are being used worldwide,” Sigsgaard said. “Many of the hubs today touch many trades, particularly the big ones, so depending on how long this goes on for, it will affect more trades than just the Middle East.” </p><h3>Seafarers stranded in Persian Gulf </h3><p>Maersk on Sunday said it had suspended all vessel crossings in the Strait of Hormuz, which is effectively closed due to threats from Iran to attack ships transiting the waterway. </p><p>Nixon also highlighted the human element, with around 40,000 seafarers impacted by the conflict that has trapped 350 ships inside the Persian Gulf and another 350 outside. </p><p>“Those seafarers will be very concerned,” he said. “Five tankers were attacked in the last 24 hours, one of them at anchor off Oman, and crew have been killed.” </p><p>The International Transport Workers’ Federation (ITF) and the Joint Negotiating Group (JNG) on Monday designated the Strait of Hormuz and surrounding waters a "high risk area” that requires carriers to provide enhanced protection measures for seafarers operating in or near the affected waters. </p><p><i>Contact Greg Knowler at </i><a href="greg.knowler@spglobal.com"><i>greg.knowler@spglobal.com.</i></a></p></div>

Long Beach, Calif. — The container shipping supply chain is bracing for the ripple effects of the war launched by the US and Israel against Iran that will be felt across global trade lanes, industry executives said Monday. As the regional conflict extends into its third day, about 10% of the global container shipping fleet remains stranded inside the Persian Gulf or held up outside the critical waterway, according to Jeremy Nixon, CEO of Ocean Network Express (ONE). “Most of the carriers, including ONE, have had to stop all bookings to the Middle East, and it is a significant trade,” Nixon told the Journal of Commerce’s TPM26 conference. "All of that cargo is going to start backing up into the hubs and into the key locations in Europe and Asia,” he added. “Those vessels that have cargo for the Middle East will need to turn around and try to take some of that cargo off in places like Colombo, Fujairah and Singapore, and the hubs are going to lose some of their fluidity.” Triene Nielsen, vice president of ocean/global at forwarder Flexport, said when a ship fails to meet its normal schedule, the ripple effects can be felt across the network with carriers trying to prioritize equipment and the movement of empty containers. “Those ripples are not going to come tomorrow, but they might come three, four or eight weeks from now,” she told the conference. “Even if this is mainly a Middle East situation, the equipment issues will be felt on the other trade lanes.” Johan Sigsgaard, executive vice president of Maersk, said just dealing with the containers already on the water was going to be a major challenge as the ships and equipment would effectively be suspended. “What we have seen from the last couple of years when these kinds of problems occur is that the same equipment and the same ships are being used worldwide,” Sigsgaard said. “Many of the hubs today touch many trades, particularly the big ones, so depending on how long this goes on for, it will affect more trades than just the Middle East.” Seafarers stranded in Persian Gulf Maersk on Sunday said it had suspended all vessel crossings in the Strait of Hormuz, which is effectively closed due to threats from Iran to attack ships transiting the waterway. Nixon also highlighted the human element, with around 40,000 seafarers impacted by the conflict that has trapped 350 ships inside the Persian Gulf and another 350 outside. “Those seafarers will be very concerned,” he said. “Five tankers were attacked in the last 24 hours, one of them at anchor off Oman, and crew have been killed.” The International Transport Workers’ Federation (ITF) and the Joint Negotiating Group (JNG) on Monday designated the Strait of Hormuz and surrounding waters a "high risk area” that requires carriers to provide enhanced protection measures for seafarers operating in or near the affected waters. Contact Greg Knowler at greg.knowler@spglobal.com.

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TPM26: Middle East conflict to ripple across global trade lanes: industry experts

<div class="phx-topic abstract-wrapper"><p>The global chief economist for S&amp;P Global Ratings told TPM26 the uncertainties that come with current White House policies are part of the mix when formulating economic forecasts.</p></div>

The global chief economist for S&P Global Ratings told TPM26 the uncertainties that come with current White House policies are part of the mix when formulating economic forecasts.

<div class="phx-topic"><p>Long Beach, California — The unpredictable nature of the Trump administration is simply a given that needs to be taken into account when generating economic forecasts, the global chief economist for S&amp;P Global Ratings said Monday.  </p><p>Dr. Paul Gruenwald, speaking at the <i>Journal of Commerce</i>’s TPM26 conference, presented a general overview of the US and world economies. He gave a cautiously optimistic presentation but said there is uncertainty and the possibility of change in many areas, in particular when it comes to US policies. </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177002_0.1.jpg"></img></div><p>“I like to say that [with] US policy, unpredictability is a feature, not a bug, in this administration,” Gruenwald said. “So that’s kind of the operating model, and we’re going to continue to work with that.” </p><p>Pointing to the US/Israeli military action against Iran, US tariffs and economic sanctions, trade uncertainty, and other periodic disruptions, Gruenwald is forecasting that US economic growth will likely be more than 2% in 2026, but with lower job creation. </p><p>“We’re going to have to think hard about the big events over the last week, the attack on Iran, higher oil prices, a stronger dollar, lower to flat treasuries. If this lasts, higher oil prices are like a tax on growth,” he said. “Obviously, the physical disruption of oil is going to have an impact. So right now, that’s a downside risk, but we will be looking to incorporate that into our scenarios as you go through this round.”  </p><p>Gruenwald said 2025 finished stronger than expected despite the uncertainty over tariffs and other trade disputes because it is difficult to change the overall direction of a $30 trillion dollar a year economy, while trading partners such as China, Canada, Mexico, and Vietnam are adjusting on the fly to the Trump administration policies. </p><p>He said because of the Trump administration’s immigration crackdown, the US economy is creating fewer jobs per month than previous administrations, but 50,000 jobs per month is adequate to maintain the current 4.3% unemployment rate. </p><p>“The labor market headline number 4.3% unemployment looks good, but if you look at it sector by sector, there’s only one sector in the US that’s adding jobs right now, that’s healthcare,” Gruenwald said. “Tech is losing jobs, manufacturing is losing jobs, government’s losing jobs. Education is kind of a wash, but we’ve got a very narrow base for our reasonably strong economy right now.”  </p><h3>Interest rate cuts likely later this year </h3><p>Gruenwald told TPM26 there is room for the Federal Reserve to cut interest rates by 50 basis points in the future, but noted there is no hurry to do that. “We’ve got a couple of cuts from the Fed coming later in the year,” he said. </p><p>Gruenwald said one of the high points in the economy that is helping to keep it relatively strong is the billions of dollars being invested by tech companies and others in artificial intelligence, which proponents believe will make the economy more efficient in the long run. </p><p>“It’s moving the macro needle in a big way,” he said. “The data centers are not just the physical construction. It’s the software, it’s the hardware, it’s the racks, it’s the servers, it’s the HVAC, it’s the cooling, it’s the water, it’s the power, it’s everything else. </p><p>“This is probably going to last for a couple of years, but when that’s finished, we are going to need these operations to deliver the returns that are currently priced in, and as Secretary Yellen said, deliver some of these productivity gains over time,” Gruenwald added. </p><p><i>Contact Dan Ronan at </i><a href="mailto:contactdanronan@gmail.com"><i>contactdanronan@gmail.com</i></a>.</p></div>

Long Beach, California — The unpredictable nature of the Trump administration is simply a given that needs to be taken into account when generating economic forecasts, the global chief economist for S&P Global Ratings said Monday. Dr. Paul Gruenwald, speaking at the Journal of Commerce’s TPM26 conference, presented a general overview of the US and world economies. He gave a cautiously optimistic presentation but said there is uncertainty and the possibility of change in many areas, in particular when it comes to US policies. “I like to say that [with] US policy, unpredictability is a feature, not a bug, in this administration,” Gruenwald said. “So that’s kind of the operating model, and we’re going to continue to work with that.” Pointing to the US/Israeli military action against Iran, US tariffs and economic sanctions, trade uncertainty, and other periodic disruptions, Gruenwald is forecasting that US economic growth will likely be more than 2% in 2026, but with lower job creation. “We’re going to have to think hard about the big events over the last week, the attack on Iran, higher oil prices, a stronger dollar, lower to flat treasuries. If this lasts, higher oil prices are like a tax on growth,” he said. “Obviously, the physical disruption of oil is going to have an impact. So right now, that’s a downside risk, but we will be looking to incorporate that into our scenarios as you go through this round.” Gruenwald said 2025 finished stronger than expected despite the uncertainty over tariffs and other trade disputes because it is difficult to change the overall direction of a $30 trillion dollar a year economy, while trading partners such as China, Canada, Mexico, and Vietnam are adjusting on the fly to the Trump administration policies. He said because of the Trump administration’s immigration crackdown, the US economy is creating fewer jobs per month than previous administrations, but 50,000 jobs per month is adequate to maintain the current 4.3% unemployment rate. “The labor market headline number 4.3% unemployment looks good, but if you look at it sector by sector, there’s only one sector in the US that’s adding jobs right now, that’s healthcare,” Gruenwald said. “Tech is losing jobs, manufacturing is losing jobs, government’s losing jobs. Education is kind of a wash, but we’ve got a very narrow base for our reasonably strong economy right now.” Interest rate cuts likely later this year Gruenwald told TPM26 there is room for the Federal Reserve to cut interest rates by 50 basis points in the future, but noted there is no hurry to do that. “We’ve got a couple of cuts from the Fed coming later in the year,” he said. Gruenwald said one of the high points in the economy that is helping to keep it relatively strong is the billions of dollars being invested by tech companies and others in artificial intelligence, which proponents believe will make the economy more efficient in the long run. “It’s moving the macro needle in a big way,” he said. “The data centers are not just the physical construction. It’s the software, it’s the hardware, it’s the racks, it’s the servers, it’s the HVAC, it’s the cooling, it’s the water, it’s the power, it’s everything else. “This is probably going to last for a couple of years, but when that’s finished, we are going to need these operations to deliver the returns that are currently priced in, and as Secretary Yellen said, deliver some of these productivity gains over time,” Gruenwald added. Contact Dan Ronan at contactdanronan@gmail.com .

Transport, Trade and Regulation News

Supply chain

TPM26: Unpredictability the ‘operating model’ for Trump administration: economist

<div class="phx-topic abstract-wrapper"><p>The ex-US Treasury Secretary said consumers could pull back on spending should crude oil and gasoline prices remain aloft due to the latest attacks on Iran by the US and Israel.   </p></div>

The ex-US Treasury Secretary said consumers could pull back on spending should crude oil and gasoline prices remain aloft due to the latest attacks on Iran by the US and Israel.

<div class="phx-topic"><p>Long Beach, California — The duration of US and Israeli attacks on Iran and the effect on oil prices threaten to push inflation higher and jeopardize the modest growth expected in global container shipping demand for 2026, former US Treasury Secretary Janet Yellen said Monday. </p><p>Front-month crude oil futures jumped to their highest level in more than a year Monday due to the weekend attacks on Iran. Yellen, speaking during her keynote address at the start of the <i>Journal of Commerce</i>’s TPM26 conference, said the 14 million barrels of crude that flow through the Strait of Hormuz daily have been cut to a trickle, a development that bears watching.   </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177002_0.1.jpg"></img></div><p>“The risk to the global economy will depend on how long energy flows through the Strait of Hormuz are disrupted,” Yellen, also former chairperson of the US Federal Reserve, said. “If oil prices do remain higher, then we will really need to worry about the impact on inflation over the next year and it’s likely to have negative consequences for growth.” </p><p>Container shipping demand is expected to increase 1.7% globally this year, according to a forecast from S&amp;P Global Maritime, Trade and Supply Chain, a sister company of the <i>Journal of Commerce</i>. Most of that growth will occur outside of the US, which is likely to see flat results compared with 2025.  </p><p>The US economy is demonstrating some strength, Yellen said, with a low 4.3% unemployment rate, a tapering inflation rate of 3%, and gross domestic product (GDP) expected to grow at a similar rate in the first quarter.  </p><p>However, underneath those figures, Yellen said there are signs of fragility that could upend that growth. The monthly creation of 15,000 jobs in the US in 2025 remains well below trend. She added that consumer spending growth rests largely on high earners, with the top 10% of US household incomes now accounting for half of retail spending.  </p><p>“We have a K-shaped economy and an expansion [in which] upper income households are doing well,” Yellen said. “They’re in good financial shape and driving consumer spending.” </p><h3>Fed could be cautious about new rate cuts </h3><p>The Supreme Court’s recent decision to strike down the Trump administration’s emergency tariff powers could cut the inflation rate modestly in 2026. But with oil prices having the opposite effect, the Federal Reserve may become more cautious about further interest rate cuts, Yellen said.  </p><p>The Fed’s key overnight lending rate, which currently sits between 3.5% and 3.75%, is a driver of mortgage rates and interest on other types of consumer loans. Trump has been browbeating the Fed to bring its key rates below 2% in a bid to stimulate the US economy.  </p><p>“The Fed is terribly worried that it’s not yet gotten inflation back to its target of 2%,” Yellen told TPM26. “It’s not realistic that we’re going to go back to 2% right now. I think the recent Iran situation puts the Fed even more on hold, more reluctant to cut rates.” </p><p><i>Contact Michael Angell at </i><a href="mailto:michael.angell@spglobal.com"><i>michael.angell@spglobal.com</i></a><i>.</i>  </p></div>

Long Beach, California — The duration of US and Israeli attacks on Iran and the effect on oil prices threaten to push inflation higher and jeopardize the modest growth expected in global container shipping demand for 2026, former US Treasury Secretary Janet Yellen said Monday. Front-month crude oil futures jumped to their highest level in more than a year Monday due to the weekend attacks on Iran. Yellen, speaking during her keynote address at the start of the Journal of Commerce’s TPM26 conference, said the 14 million barrels of crude that flow through the Strait of Hormuz daily have been cut to a trickle, a development that bears watching. “The risk to the global economy will depend on how long energy flows through the Strait of Hormuz are disrupted,” Yellen, also former chairperson of the US Federal Reserve, said. “If oil prices do remain higher, then we will really need to worry about the impact on inflation over the next year and it’s likely to have negative consequences for growth.” Container shipping demand is expected to increase 1.7% globally this year, according to a forecast from S&P Global Maritime, Trade and Supply Chain, a sister company of the Journal of Commerce. Most of that growth will occur outside of the US, which is likely to see flat results compared with 2025. The US economy is demonstrating some strength, Yellen said, with a low 4.3% unemployment rate, a tapering inflation rate of 3%, and gross domestic product (GDP) expected to grow at a similar rate in the first quarter. However, underneath those figures, Yellen said there are signs of fragility that could upend that growth. The monthly creation of 15,000 jobs in the US in 2025 remains well below trend. She added that consumer spending growth rests largely on high earners, with the top 10% of US household incomes now accounting for half of retail spending. “We have a K-shaped economy and an expansion [in which] upper income households are doing well,” Yellen said. “They’re in good financial shape and driving consumer spending.” Fed could be cautious about new rate cuts The Supreme Court’s recent decision to strike down the Trump administration’s emergency tariff powers could cut the inflation rate modestly in 2026. But with oil prices having the opposite effect, the Federal Reserve may become more cautious about further interest rate cuts, Yellen said. The Fed’s key overnight lending rate, which currently sits between 3.5% and 3.75%, is a driver of mortgage rates and interest on other types of consumer loans. Trump has been browbeating the Fed to bring its key rates below 2% in a bid to stimulate the US economy. “The Fed is terribly worried that it’s not yet gotten inflation back to its target of 2%,” Yellen told TPM26. “It’s not realistic that we’re going to go back to 2% right now. I think the recent Iran situation puts the Fed even more on hold, more reluctant to cut rates.” Contact Michael Angell at michael.angell@spglobal.com .

TPM26: Iran conflict puts new risk on US economic growth: Yellen 

<div class="phx-topic abstract-wrapper"><p>The move comes as transshipment cargo handling declines are expected at Indian ports following a recent government decision to revoke the cabotage waiver that foreign-flag carriers have enjoyed since 2018.</p></div>

The move comes as transshipment cargo handling declines are expected at Indian ports following a recent government decision to revoke the cabotage waiver that foreign-flag carriers have enjoyed since 2018.

<div class="phx-topic"><p>Mediterranean Shipping Co. is set to implement significant capacity cuts on trades from India to North Europe and the Mediterranean as incremental regional volumes tighten, multiple industry sources told the <i>Journal of Commerce.</i>  </p><p>The Geneva-based liner serves those trades via its Himalaya Express (HEX) and IPAK services, with the latter operated in a consortium arrangement with the Shipping Corporation of India (SCI).  </p><p>Sources have confirmed that the average capacity of vessels deployed on the HEX will be slashed from 14,000 TEUs to about 9,000 TEUs, while on the IPAK, the average MSC tonnage size will decrease from 9,000 TEUs to 8,000 TEUs. The capacity rejigging is expected to kick in through March.  </p><p>Indian allocations will be proportionately adjusted downward to right-size vessel operations, sources said. A minor rotation reshuffle is also in the cards for the network, with the HEX replacing the Valencia stop in Spain with a call to Sines in Portugal, they added. </p><p>Efforts to seek comment from MSC were unsuccessful.  </p><p>The HEX has been an industry-leading, high-capacity network on the trade lane, using ultra-large vessels that have included calls in the range of 16,000 TEUs to 20,000 TEUs.  </p><h3>Cabotage policy reset expected to take place next month </h3><p>The network reconfigurations come in the wake of anticipated transshipment cargo handling declines at Indian ports following a recent government decision <a href="https://www.joc.com/article/india-advances-launch-of-state-container-line-after-cabotage-rule-rewind-6164914">to revoke the cabotage waiver</a> that foreign-flag carriers have enjoyed since 2018. The policy reset, due to take effect next month, is arguably intended to encourage Indian vessel fleet development.  </p><p>MSC has had high stakes in regional container relays through several Indian gateways, particularly out of Mundra and Vizhinjam, riding on its strategic partnerships with local terminal partner Adani Ports.  </p><p>Ironically, MSC last year reorganized the HEX berthing window in India’s Nhava Port by shifting calls from the DP World terminal to PSA International’s capacity-rich facility for greater operational flexibility in tandem with growing vessel sizes; a call there from the 24,346-TEU MSC Micol in December was one notable example.   </p><p>Meanwhile, the reversal of cabotage relaxations for foreign tonnage has stoked an old industry debate centering on trade protectionism, with representatives of the Container Shipping Lines’ Association (India) warning that the policy U-turn could undermine the hub progress Indian ports have made in recent years by refueling a shift of transshipment volumes to regional competitors, especially Colombo Port in Sri Lanka.  </p><p>“In the absence of this waiver, the proposed expansion plans in some of the ports like Mundra and Vizhinjam might not be implemented, thereby further constraining vessel calls and transshipment,” the liner group said. </p><p><i>Contact Bency Mathew at </i><a href="mailto:bencyvmathew@gmail.com"><i>bencyvmathew@gmail.com</i></a>.</p></div>

Mediterranean Shipping Co. is set to implement significant capacity cuts on trades from India to North Europe and the Mediterranean as incremental regional volumes tighten, multiple industry sources told the Journal of Commerce. The Geneva-based liner serves those trades via its Himalaya Express (HEX) and IPAK services, with the latter operated in a consortium arrangement with the Shipping Corporation of India (SCI). Sources have confirmed that the average capacity of vessels deployed on the HEX will be slashed from 14,000 TEUs to about 9,000 TEUs, while on the IPAK, the average MSC tonnage size will decrease from 9,000 TEUs to 8,000 TEUs. The capacity rejigging is expected to kick in through March. Indian allocations will be proportionately adjusted downward to right-size vessel operations, sources said. A minor rotation reshuffle is also in the cards for the network, with the HEX replacing the Valencia stop in Spain with a call to Sines in Portugal, they added. Efforts to seek comment from MSC were unsuccessful. The HEX has been an industry-leading, high-capacity network on the trade lane, using ultra-large vessels that have included calls in the range of 16,000 TEUs to 20,000 TEUs. Cabotage policy reset expected to take place next month The network reconfigurations come in the wake of anticipated transshipment cargo handling declines at Indian ports following a recent government decision to revoke the cabotage waiver that foreign-flag carriers have enjoyed since 2018. The policy reset, due to take effect next month, is arguably intended to encourage Indian vessel fleet development. MSC has had high stakes in regional container relays through several Indian gateways, particularly out of Mundra and Vizhinjam, riding on its strategic partnerships with local terminal partner Adani Ports. Ironically, MSC last year reorganized the HEX berthing window in India’s Nhava Port by shifting calls from the DP World terminal to PSA International’s capacity-rich facility for greater operational flexibility in tandem with growing vessel sizes; a call there from the 24,346-TEU MSC Micol in December was one notable example. Meanwhile, the reversal of cabotage relaxations for foreign tonnage has stoked an old industry debate centering on trade protectionism, with representatives of the Container Shipping Lines’ Association (India) warning that the policy U-turn could undermine the hub progress Indian ports have made in recent years by refueling a shift of transshipment volumes to regional competitors, especially Colombo Port in Sri Lanka. “In the absence of this waiver, the proposed expansion plans in some of the ports like Mundra and Vizhinjam might not be implemented, thereby further constraining vessel calls and transshipment,” the liner group said. Contact Bency Mathew at bencyvmathew@gmail.com .

MSC downgrades India-Europe/Med network amid transshipment cargo lift woes

<div class="phx-topic abstract-wrapper"><p>Cuts to traditional one-way service have been balanced by additional capacity in dedicated, specialized fleets.</p></div>

Cuts to traditional one-way service have been balanced by additional capacity in dedicated, specialized fleets.

<div class="phx-topic"><p>Large US truckload carriers put enough additional trucks on the road late last year to boost the <i>Journal of Commerce</i> Truckload Capacity Index (TCI) slightly, despite ongoing cuts in capacity at many companies amid rising spot rates and volatile demand. </p><p>Those trucks, however, were mostly destined for higher-paying dedicated and specialized services, not one-way truckload service. </p><p>The quarterly TCI rose sequentially from 72.4% in the third quarter to 73.5% in the fourth quarter, as the collective capacity fielded by the large carriers in the index increased 1.5%. </p><p>But carriers weren’t rushing to throw additional trucks at <a href="https://www.joc.com/article/us-truckload-pricing-remains-unsettled-despite-red-hot-december-6148317">higher spot market rates</a>. The fourth-quarter reading is still the second-lowest for the index since the fourth quarter of 2013, when the TCI dropped to 73.8% — the index’s 19-year floor until last year. </p><p>The index, which is based on average truck counts in the 2006 fourth quarter, climbed to a peak of 93.2% in the 2022 second quarter before plunging over the next three years. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="1c27408c-a4a7-4bbf-84f5-4fe3e53846e0"></dynamic-object></div><p>The latest index shows large carriers keeping a tight grip on their available capacity amid volatile supply and demand. Some truckload companies in the index group continued to shrink their fleets, while others saw chances to pursue more specialized freight. </p><p>“We made a decision to strategically restructure our one-way trucking business to be even more targeted towards specialized expedited, cross-border Mexico and engineered business,” Derek Leathers, chairman and CEO of Werner Enterprises, said Feb. 5. </p><h3>Dedicated acquisition </h3><p>Werner is moving deeper into dedicated trucking by acquiring FirstFleet, a 2,400-tractor dedicated fleet provider with $615 million in annual revenue. The deal, announced Jan. 28, will increase Werner’s dedicated trucking revenue by 50%, the company said. </p><p>“We’re not abandoning one-way, but we are a leaner, more agile version of ourselves,” Leathers told Wall Street analysts in an earning conference call. Werner reduced its number of trucks in one-way service 13.8% year over year in the fourth quarter. </p><p>The company — which is part of the <i>Journal of Commerce</i> index group — increased its dedicated truck count by less than 1% year over year in the fourth quarter, according to its earnings report. With FirstFleet, that dedicated truck count will rise 50% past 7,000. </p><p>Another TCI group carrier, Covenant Logistics, increased its fleet count slightly in the fourth quarter on a year-over-year basis, according to its earnings report. In early 2026, the company is experiencing what it called a sharp increase in shipper bid activity. </p><p>Even so, Covenant plans to sell and not replace a number of trucks.  </p><p>“We expect a modestly smaller fleet at the end of 2026 and only $40 million to $50 million of net capex for the year,” CFO James S. Grant said during a Jan. 30 earnings conference call. </p><p>Similar to larger competitor Werner, Covenant is acquiring business. In the fourth quarter, the company purchased a small truckload brokerage with two niche customer bases: state and federal disaster relief and high-service consumer packaged goods. </p><p>Truck fleet cuts and additions are occurring as executives at large truckload carriers expect tightening capacity to <a href="https://www.joc.com/article/trucking-executives-buoyed-by-market-signals-as-winter-exit-nears-6172398">flip the truck market</a> in their favor after a three-year freight downturn. Publicly-owned carriers are beginning to report low single-digit contract rate increases. </p><p>An ongoing government crackdown on truck driver English language proficiency, <a href="https://www.joc.com/article/usdot-releases-interim-final-rule-on-non-domiciled-cdl-holders-6169023">non-domiciled commercial driver’s licenses (CDLs)</a>, substandard CDL schools and electronic logging devices is expected to drive more small carriers out of the market. </p><p>Shippers are increasingly concerned about capacity and cargo security, Covenant executives said.  </p><p>“What I’m seeing people say, especially, [is] I need a high-value program, I need assets,” President M. Paul Bunn said during the earnings call.  </p><p><i>Contact William B. Cassidy at </i><a href="mailto:bill.cassidy@spglobal.com"><i>bill.cassidy@spglobal.com</i></a>.</p></div>

Large US truckload carriers put enough additional trucks on the road late last year to boost the Journal of Commerce Truckload Capacity Index (TCI) slightly, despite ongoing cuts in capacity at many companies amid rising spot rates and volatile demand. Those trucks, however, were mostly destined for higher-paying dedicated and specialized services, not one-way truckload service. The quarterly TCI rose sequentially from 72.4% in the third quarter to 73.5% in the fourth quarter, as the collective capacity fielded by the large carriers in the index increased 1.5%. But carriers weren’t rushing to throw additional trucks at higher spot market rates . The fourth-quarter reading is still the second-lowest for the index since the fourth quarter of 2013, when the TCI dropped to 73.8% — the index’s 19-year floor until last year. The index, which is based on average truck counts in the 2006 fourth quarter, climbed to a peak of 93.2% in the 2022 second quarter before plunging over the next three years. The latest index shows large carriers keeping a tight grip on their available capacity amid volatile supply and demand. Some truckload companies in the index group continued to shrink their fleets, while others saw chances to pursue more specialized freight. “We made a decision to strategically restructure our one-way trucking business to be even more targeted towards specialized expedited, cross-border Mexico and engineered business,” Derek Leathers, chairman and CEO of Werner Enterprises, said Feb. 5. Dedicated acquisition Werner is moving deeper into dedicated trucking by acquiring FirstFleet, a 2,400-tractor dedicated fleet provider with $615 million in annual revenue. The deal, announced Jan. 28, will increase Werner’s dedicated trucking revenue by 50%, the company said. “We’re not abandoning one-way, but we are a leaner, more agile version of ourselves,” Leathers told Wall Street analysts in an earning conference call. Werner reduced its number of trucks in one-way service 13.8% year over year in the fourth quarter. The company — which is part of the Journal of Commerce index group — increased its dedicated truck count by less than 1% year over year in the fourth quarter, according to its earnings report. With FirstFleet, that dedicated truck count will rise 50% past 7,000. Another TCI group carrier, Covenant Logistics, increased its fleet count slightly in the fourth quarter on a year-over-year basis, according to its earnings report. In early 2026, the company is experiencing what it called a sharp increase in shipper bid activity. Even so, Covenant plans to sell and not replace a number of trucks. “We expect a modestly smaller fleet at the end of 2026 and only $40 million to $50 million of net capex for the year,” CFO James S. Grant said during a Jan. 30 earnings conference call. Similar to larger competitor Werner, Covenant is acquiring business. In the fourth quarter, the company purchased a small truckload brokerage with two niche customer bases: state and federal disaster relief and high-service consumer packaged goods. Truck fleet cuts and additions are occurring as executives at large truckload carriers expect tightening capacity to flip the truck market in their favor after a three-year freight downturn. Publicly-owned carriers are beginning to report low single-digit contract rate increases. An ongoing government crackdown on truck driver English language proficiency, non-domiciled commercial driver’s licenses (CDLs) , substandard CDL schools and electronic logging devices is expected to drive more small carriers out of the market. Shippers are increasingly concerned about capacity and cargo security, Covenant executives said. “What I’m seeing people say, especially, [is] I need a high-value program, I need assets,” President M. Paul Bunn said during the earnings call. Contact William B. Cassidy at bill.cassidy@spglobal.com .

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