<div class="phx-topic abstract-wrapper">With demand for its products strong, workers at Hilmar Cheese Co. keep the company plant humming sev</div>

With demand for its products strong, workers at Hilmar Cheese Co. keep the company plant humming sev

<div>With demand for its products strong, workers at Hilmar Cheese Co. keep the company plant humming seven days a week.In fact, they usually toil right through major holidays producing 90,000 pounds, or 45 tons of cheese a day.Now, the shipper is embarking on its biggest production yet: another plant that will almost double production.Two weeks ago, the Hilmar, Calif.-based cheese maker began building a sister plant next door that will boost total cheese output to 60 million pounds a year, according to John Jeter, Hilmar's chief executive officer.The 5-year-old company's present 27,000-square-foot plant makes cheddar, jack and colby cheeses.With its...

With demand for its products strong, workers at Hilmar Cheese Co. keep the company plant humming seven days a week. In fact, they usually toil right through major holidays producing 90,000 pounds, or 45 tons of cheese a day.Now, the shipper is embarking on its biggest production yet: another plant that will almost double production. Two weeks ago, the Hilmar, Calif.-based cheese maker began building a sister plant next door that will boost total cheese output to 60 million pounds a year, according to John Jeter, Hilmar's chief executive officer. The 5-year-old company's present 27,000-square-foot plant makes cheddar, jack and colby cheeses. With its new $6 million plant, the non-unionized company can produce more of those and add a new product: mozzarella. The new plant is result of a deal between Hilmar and Universal Foods Corp. two years ago, Mr. Jeter said. Milwaukee-based Universal has five cheese-making plants in the Midwest, but none in the West, according to Dick Gochnauer, president of Universal's cheese division. Universal, with its own mozzarella cheese line, wants to strengthen its presence in the West Coast market and accepted Hilmar's offer to be its production arm there, Mr. Gochnauer said. Universal also manufactures yeast, frozen potato products, food flavorings and colors and dehydrated vegetables. Under a 10-year joint venture pact, Hilmar will build and operate the new plant, while Universal provides technical support, sales and marketing, Mr. Jeter said. The new plant will need only 30 people (Hilmar's current plant employs 55), because of more advanced cheese-making equipment, said Hilmar dairy farmer Richard Clauss, the company's chairman. Mr. Clauss is one of 11 dairymen who jointly own the company. Although the new facility is expected to nearly double the privately held company's annual revenue, there will be no change in transportation, Mr. Jeter said. Each day, the plant receives 30 tanker-loads of milk. As the plant operates around the clock, deliveries are 24 hours a day, he said. The milk, which represents 85 percent of Hilmar's costs, is placed in 50,000-gallon holding tank and pasteurized. After cultures create flavor, a substance called rennet is added, curdling the milk. The curd then is pressed into 40-pound cheese blocks. Total production time is eight hours. At the new plant, mozzarella will be made into 5- and 20-pound loaves. Hilmar primarily uses two refrigerated truckload carriers for outbound shipments, destined for points in California and other Western states. But the shipper has several large customers that pick up their own freight. One of them is PFS (formerly Bell Foods Services), a division of Pepsico Inc. of White Plains, N.Y. PFS supplies Taco Bell restaurants with food products, including Hilmar cheese. The new plant should begin producing mozzarella in May 1990.

VENTURE EXPANDS HILMAR CHEESE

<div class="phx-topic abstract-wrapper">The latest data from the Intermodal Association of North America shows how railroads have lost US business to over-the-road trucking, writes analyst Larry Gross. </div>

The latest data from the Intermodal Association of North America shows how railroads have lost US business to over-the-road trucking, writes analyst Larry Gross.

Feature image

<div class="phx-topic">With the IANA intermodal numbers for June and Transport Futures’ preliminary Q2 2025 truck numbers in our mailbox, we have been able to calculate intermodal market share for Q2. It doesn’t look pretty. The market share numbers from Intermodal Association of North America are for the US only. We simply have not been able to find a timely source of truckload numbers for Canada or Mexico. We track intermodal loads both originating and terminating within the US and compare these figures to Transport Futures’ estimates for US dry van and reefer truckloads moving 500 miles or further. While we typically concentrate on year-over-year changes in activity, when it comes to calculating market share, we focus on the quarter-over-quarter changes in the seasonally adjusted numbers. We use seasonally adjusted numbers because the truckload and intermodal markets have different seasonal patterns. If we used the raw, unadjusted figures, market share would fluctuate every quarter just due to normal seasonality. Our goal is to wash those seasonal fluctuations out of the equation so as to see the true underlying trend. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="eb51908a-13f3-4845-96d9-06d50831c4d2"></dynamic-object></div>The seasonally adjusted trucking numbers have been relatively flat, gaining just 0.3% from Q4 2024 to Q1 2025, and then easing back 0.4% in Q2. Looking at the intermodal numbers, intra-US intermodal activity dropped an unadjusted 4.6% from Q3 to Q4. This doesn’t sound good, but the decline was less than the normal seasonal drop. Once seasonal adjustments were applied, seasonally adjusted intermodal activity rose 1.2% from 2024 Q4 to Q1. The story was different in Q2. Unadjusted intermodal volume dropped 2.1%. But, in a normal year, Q2 is always stronger than Q1. Therefore, seasonal adjustments magnified the drop, increasing the decline in total US intermodal activity to a seasonally adjusted 7.3%. The resulting market share calculations show a large 0.7% drop in overall intermodal share from Q1 to Q2, the biggest single-quarter decline since the post-pandemic congestion crisis. A big chunk of this decline was due to the large drop in international intermodal activity, surely reflecting the push-pull effects of the tariff mayhem. Intermodal is far more sensitive to changes in international trade flows than trucking is, as trucking is dominated by the domestic US economy. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b44a76a7-5f15-47ca-9bec-f98bcde0376e"></dynamic-object></div>But the intermodal share for the domestic sector (domestic containers and trailers on freight car) also declined in Q2, for the second straight quarter. Two consecutive quarters of improvement in the second half of last year had raised hopes that a recovery was underway, but it was not to be. Domestic share dropped to 5.9%, the lowest level since 2011. No doubt the continued soft trucking conditions bear some of the blame. But North American domestic intermodal activity was only 4.2% higher in 2024 than it was in 2015, nine years prior. During this same time frame, US GDP grew 24% and US long-haul trucking increased 19%. In other words, this is a longer-term problem that won’t be solved simply by waiting for the “goldilocks” moment of optimal market conditions. In truth, intermodal market share is probably a bit lower than these figures show. A significant amount of crosstown activity occurs in interchange locations such as Chicago. This has the effect of turning what is in truth a single, long-haul move into two, separately reported, shorter, single railroad moves. We estimate that such double-counting of moves involving rubber-tire crosstown moves has inflated the total North American intermodal load count by at least five percent. All is not lost, however. New services and terminals have been recently announced. These are key to rekindling intermodal growth because the biggest determinant of intermodal competitiveness is the proximity of the intermodal terminal to where the freight originates and terminates. Additionally, there has been strong domestic intermodal growth in non-US markets, including the intra-Mexico and Mexico-US cross-border markets. But the intra-US market accounts for 86% of all North American intermodal activity moving in domestic containers and trailers. As the US so goes North American intermodal. Contact Larry Gross at <a href="mailto:lgross@intermodalindepth.com">lgross@intermodalindepth.com</a>. </div>

With the IANA intermodal numbers for June and Transport Futures’ preliminary Q2 2025 truck numbers in our mailbox, we have been able to calculate intermodal market share for Q2. It doesn’t look pretty. The market share numbers from Intermodal Association of North America are for the US only. We simply have not been able to find a timely source of truckload numbers for Canada or Mexico. We track intermodal loads both originating and terminating within the US and compare these figures to Transport Futures’ estimates for US dry van and reefer truckloads moving 500 miles or further. While we typically concentrate on year-over-year changes in activity, when it comes to calculating market share, we focus on the quarter-over-quarter changes in the seasonally adjusted numbers. We use seasonally adjusted numbers because the truckload and intermodal markets have different seasonal patterns. If we used the raw, unadjusted figures, market share would fluctuate every quarter just due to normal seasonality. Our goal is to wash those seasonal fluctuations out of the equation so as to see the true underlying trend. The seasonally adjusted trucking numbers have been relatively flat, gaining just 0.3% from Q4 2024 to Q1 2025, and then easing back 0.4% in Q2. Looking at the intermodal numbers, intra-US intermodal activity dropped an unadjusted 4.6% from Q3 to Q4. This doesn’t sound good, but the decline was less than the normal seasonal drop. Once seasonal adjustments were applied, seasonally adjusted intermodal activity rose 1.2% from 2024 Q4 to Q1. The story was different in Q2. Unadjusted intermodal volume dropped 2.1%. But, in a normal year, Q2 is always stronger than Q1. Therefore, seasonal adjustments magnified the drop, increasing the decline in total US intermodal activity to a seasonally adjusted 7.3%. The resulting market share calculations show a large 0.7% drop in overall intermodal share from Q1 to Q2, the biggest single-quarter decline since the post-pandemic congestion crisis. A big chunk of this decline was due to the large drop in international intermodal activity, surely reflecting the push-pull effects of the tariff mayhem. Intermodal is far more sensitive to changes in international trade flows than trucking is, as trucking is dominated by the domestic US economy. But the intermodal share for the domestic sector (domestic containers and trailers on freight car) also declined in Q2, for the second straight quarter. Two consecutive quarters of improvement in the second half of last year had raised hopes that a recovery was underway, but it was not to be. Domestic share dropped to 5.9%, the lowest level since 2011. No doubt the continued soft trucking conditions bear some of the blame. But North American domestic intermodal activity was only 4.2% higher in 2024 than it was in 2015, nine years prior. During this same time frame, US GDP grew 24% and US long-haul trucking increased 19%. In other words, this is a longer-term problem that won’t be solved simply by waiting for the “goldilocks” moment of optimal market conditions. In truth, intermodal market share is probably a bit lower than these figures show. A significant amount of crosstown activity occurs in interchange locations such as Chicago. This has the effect of turning what is in truth a single, long-haul move into two, separately reported, shorter, single railroad moves. We estimate that such double-counting of moves involving rubber-tire crosstown moves has inflated the total North American intermodal load count by at least five percent. All is not lost, however. New services and terminals have been recently announced. These are key to rekindling intermodal growth because the biggest determinant of intermodal competitiveness is the proximity of the intermodal terminal to where the freight originates and terminates. Additionally, there has been strong domestic intermodal growth in non-US markets, including the intra-Mexico and Mexico-US cross-border markets. But the intra-US market accounts for 86% of all North American intermodal activity moving in domestic containers and trailers. As the US so goes North American intermodal. Contact Larry Gross at lgross@intermodalindepth.com .

Surface

Rail News

Intermodal providers

North-American rail

US domestic rail intermodal market share shrinks: analyst

<div class="phx-topic abstract-wrapper">Exporters’ proclivity for rate shopping leads to choppiness in a market that is also beholden to vessels being pulled into larger ocean freight markets.</div>

Exporters’ proclivity for rate shopping leads to choppiness in a market that is also beholden to vessels being pulled into larger ocean freight markets.

<div class="phx-topic">Exporters in India are struggling with uneven container line service levels due in part to their own freight buying behavior and a complex sales structure that results in rolled cargo, blanked sailings or even Indian calls being avoided altogether. These struggles come as Indian export container bookings fell 17% week over week in the first week of August, according to data from maritime visibility and data analytics provider Dun &amp; Bradstreet, and as the Trump administration has threatened tariffs as high as 50% on Indian imports from Aug. 27. The tricky service dynamics for exporters pre-date the Trump administration’s recent ratcheting up of trade tensions with India, long touted as a market that could help US importers reduce their reliance on China. But exporters’ tendencies to shop around for rates among carriers, and the effects of a multi-layered sales structure that adds to their ocean freight costs, are long-term hurdles, a range of forwarders have told the Journal of Commerce. “Exporters here are basically not tied to specific carriers, unless they have a commodity that some carriers won’t move,” said Mrigank Singh, founder of Intoglo, an India-based forwarder, giving an example of how Cosco typically won’t move hazmat shipments, while Ocean Network Express embraces those commodities. “That essentially means they are in constant rate-shopping mode,” Singh said. “As one carrier lowers its rates, that then induces a surge of volume, and so the carrier who is in favor in a particular month gets too much volume.” That carrier invariably ends up rolling some cargo, while “out of favor” carriers don’t have enough volume and end up avoiding Indian calls, preferring to collect cargo through transshipment at Colombo instead. Blank sailings aren’t always driven by uneven export demand, noted Sarjak Sheth, chief commercial officer at Sarjak Container Lines. Many are linked to weaker import flows, carriers repositioning vessels to take advantage of high demand on other trade lanes or operational disruptions, he said. But Sheth agreed that exporters, particularly in the current market, tend to book the lowest rate they can find, and that doing so creates surges for certain carriers and lulls for others. “For example, last month all carriers raised rates, but [one carrier] kept India-US pricing slightly lower,” he said. “The result? [That carrier] saw bookings spike to 160% of their allocated capacity. They then had to hike rates sharply, which pushed some of that excess demand back to other carriers.” <h3>Protecting the core </h3>Sheth said most carriers prioritize protecting their “core customers.” He estimates approximately 20% of their top shippers provide 80% of the volume on certain trades, leaving only about 20% of capacity for spot business. “The rates don’t change much for [large-volume shippers] throughout the year once they file a contract,” he said. “This 20% buffer gives carriers some control over volume even in volatile rate environments. While rate-driven cargo shifts do happen, the big volume blocks are often locked in.” Forwarders told the Journal of Commerce that anywhere from 65% to 80% of India export volume to the US moves on contract rates, depending on the state of the market. Shippers understand these dynamics, especially as they relate to which carriers have operational control of sailings and which rely on partners to provide them allocations — which can impact service levels. When a carrier has persistently low rates and a small allocation on sailings operated by service partners, it can be seen to be the less-attractive option, as the likelihood of being rolled increases on heavy demand weeks. Exporters understandably want to avoid being shunted into “roll pools,” where they must wait for a sailing that can accommodate them. Aside from service levels, the structure of the market from a sales perspective also hurts Indian exporters’ bottom lines, the forwarders said. Container lines have struck an upbeat tone about India’s long-term trade potential, pouring additional capacity into the westbound trade lane connecting the US East Coast, with as many as six weekly calls out of Nhava Sheva and Mundra, in the normal course of events, using large-size tonnage. But in recent weeks, the slowing pace of India-US volume growth, along with the larger vessels now serving India-US trades, has put additional pressure on carrier sales teams to fill those ships. Most carriers don’t have the ability to do that, so they rely on a network of selling agents — essentially subcontractors — to fill the ships, an environment that adds pure cost to exporters if all they are doing is securing ocean capacity, Singh said. “What this translates into is the original carrier-direct rate sometimes has one, two and even three layers of margin on it, which means higher costs for the exporter,” he said. Sheth agreed: “The India-US trades do see large ships that are challenging to fill from a single operator’s sales network,” which leads to “layered selling,” he said. Those layers include business won by sales teams at the carrier itself, its master agent, a secondary agent and that secondary agent’s sub-agent. “This can add multiple margins on top of the base rate,” he said. “That definitely inflates the costs for exporters, especially when supply is tight.” <h3>Other trades dictate networks </h3>But Sheth said “it’s not always purely a supply-side problem,” adding that vessel deployment across a carrier’s or alliance’s network is tied directly to cargo demand. For example, a rush of trans-Pacific bookings prior to the planned imposition of steep US tariffs on Chinese goods on July 9 prompted carriers to reposition some of the larger ships that had been serving India trades to China-US services. “At that time, India’s own export demand was gearing up for post-July shipments, as tariffs here weren’t initially as steep, so carriers suddenly had to move India-US cargo on smaller vessels, pushing rates up sharply for US and Latin America,” he explained. “When the tariff news shifted again, demand deflated and the market started to stabilize toward a more balanced supply–demand equation.” Again, this dynamic is far from uniform or universal. When capacity is tight, it can inflate costs for exporters beyond what a base rate increase might suggest. But when capacity is plentiful, it’s not uncommon to see forwarders — even multiple layers deep in that subcontracting chain — offer rates lower than what carriers sold to the forwarders in the first place. The larger ships are also scooping up cargo from transshipment hubs, meaning they are impacted by demand from other markets, such as those in the Middle East or Pakistan, depending on the carrier’s transshipment locale of choice. At the same time, the market is still coming to terms with what higher tariffs on US imports might mean. While many importers will keep shipping even at higher levels, the tariffs will make some industries unviable, a forwarder who asked not to be identified told the Journal of Commerce. India’s automotive sector, for instance, is already supplying to plants in Mexico, but it’s unclear how country-of-origin determinations — which the Trump administration <a href="https://www.joc.com/article/trumps-vietnam-transshipment-tariff-puzzles-us-trade-community-6041482">has referred to as “transshipment rules”</a> — will impact that model if tariffs on India remain elevated. Indian seafood could also be priced out of the US market if tariffs on India stay higher than 10%, the forwarder said. “Rate chasing, vessel size and layered selling all play a role, but they’re often symptoms of a much more dynamic set of factors: import-export imbalances, tariff-driven demand swings, alliance vessel deployments and carriers’ own customer protection strategies,” Sheth said. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

Exporters in India are struggling with uneven container line service levels due in part to their own freight buying behavior and a complex sales structure that results in rolled cargo, blanked sailings or even Indian calls being avoided altogether. These struggles come as Indian export container bookings fell 17% week over week in the first week of August, according to data from maritime visibility and data analytics provider Dun & Bradstreet, and as the Trump administration has threatened tariffs as high as 50% on Indian imports from Aug. 27. The tricky service dynamics for exporters pre-date the Trump administration’s recent ratcheting up of trade tensions with India, long touted as a market that could help US importers reduce their reliance on China. But exporters’ tendencies to shop around for rates among carriers, and the effects of a multi-layered sales structure that adds to their ocean freight costs, are long-term hurdles, a range of forwarders have told the Journal of Commerce. “Exporters here are basically not tied to specific carriers, unless they have a commodity that some carriers won’t move,” said Mrigank Singh, founder of Intoglo, an India-based forwarder, giving an example of how Cosco typically won’t move hazmat shipments, while Ocean Network Express embraces those commodities. “That essentially means they are in constant rate-shopping mode,” Singh said. “As one carrier lowers its rates, that then induces a surge of volume, and so the carrier who is in favor in a particular month gets too much volume.” That carrier invariably ends up rolling some cargo, while “out of favor” carriers don’t have enough volume and end up avoiding Indian calls, preferring to collect cargo through transshipment at Colombo instead. Blank sailings aren’t always driven by uneven export demand, noted Sarjak Sheth, chief commercial officer at Sarjak Container Lines. Many are linked to weaker import flows, carriers repositioning vessels to take advantage of high demand on other trade lanes or operational disruptions, he said. But Sheth agreed that exporters, particularly in the current market, tend to book the lowest rate they can find, and that doing so creates surges for certain carriers and lulls for others. “For example, last month all carriers raised rates, but [one carrier] kept India-US pricing slightly lower,” he said. “The result? [That carrier] saw bookings spike to 160% of their allocated capacity. They then had to hike rates sharply, which pushed some of that excess demand back to other carriers.” Protecting the core Sheth said most carriers prioritize protecting their “core customers.” He estimates approximately 20% of their top shippers provide 80% of the volume on certain trades, leaving only about 20% of capacity for spot business. “The rates don’t change much for [large-volume shippers] throughout the year once they file a contract,” he said. “This 20% buffer gives carriers some control over volume even in volatile rate environments. While rate-driven cargo shifts do happen, the big volume blocks are often locked in.” Forwarders told the Journal of Commerce that anywhere from 65% to 80% of India export volume to the US moves on contract rates, depending on the state of the market. Shippers understand these dynamics, especially as they relate to which carriers have operational control of sailings and which rely on partners to provide them allocations — which can impact service levels. When a carrier has persistently low rates and a small allocation on sailings operated by service partners, it can be seen to be the less-attractive option, as the likelihood of being rolled increases on heavy demand weeks. Exporters understandably want to avoid being shunted into “roll pools,” where they must wait for a sailing that can accommodate them. Aside from service levels, the structure of the market from a sales perspective also hurts Indian exporters’ bottom lines, the forwarders said. Container lines have struck an upbeat tone about India’s long-term trade potential, pouring additional capacity into the westbound trade lane connecting the US East Coast, with as many as six weekly calls out of Nhava Sheva and Mundra, in the normal course of events, using large-size tonnage. But in recent weeks, the slowing pace of India-US volume growth, along with the larger vessels now serving India-US trades, has put additional pressure on carrier sales teams to fill those ships. Most carriers don’t have the ability to do that, so they rely on a network of selling agents — essentially subcontractors — to fill the ships, an environment that adds pure cost to exporters if all they are doing is securing ocean capacity, Singh said. “What this translates into is the original carrier-direct rate sometimes has one, two and even three layers of margin on it, which means higher costs for the exporter,” he said. Sheth agreed: “The India-US trades do see large ships that are challenging to fill from a single operator’s sales network,” which leads to “layered selling,” he said. Those layers include business won by sales teams at the carrier itself, its master agent, a secondary agent and that secondary agent’s sub-agent. “This can add multiple margins on top of the base rate,” he said. “That definitely inflates the costs for exporters, especially when supply is tight.” Other trades dictate networks But Sheth said “it’s not always purely a supply-side problem,” adding that vessel deployment across a carrier’s or alliance’s network is tied directly to cargo demand. For example, a rush of trans-Pacific bookings prior to the planned imposition of steep US tariffs on Chinese goods on July 9 prompted carriers to reposition some of the larger ships that had been serving India trades to China-US services. “At that time, India’s own export demand was gearing up for post-July shipments, as tariffs here weren’t initially as steep, so carriers suddenly had to move India-US cargo on smaller vessels, pushing rates up sharply for US and Latin America,” he explained. “When the tariff news shifted again, demand deflated and the market started to stabilize toward a more balanced supply–demand equation.” Again, this dynamic is far from uniform or universal. When capacity is tight, it can inflate costs for exporters beyond what a base rate increase might suggest. But when capacity is plentiful, it’s not uncommon to see forwarders — even multiple layers deep in that subcontracting chain — offer rates lower than what carriers sold to the forwarders in the first place. The larger ships are also scooping up cargo from transshipment hubs, meaning they are impacted by demand from other markets, such as those in the Middle East or Pakistan, depending on the carrier’s transshipment locale of choice. At the same time, the market is still coming to terms with what higher tariffs on US imports might mean. While many importers will keep shipping even at higher levels, the tariffs will make some industries unviable, a forwarder who asked not to be identified told the Journal of Commerce. India’s automotive sector, for instance, is already supplying to plants in Mexico, but it’s unclear how country-of-origin determinations — which the Trump administration has referred to as “transshipment rules” — will impact that model if tariffs on India remain elevated. Indian seafood could also be priced out of the US market if tariffs on India stay higher than 10%, the forwarder said. “Rate chasing, vessel size and layered selling all play a role, but they’re often symptoms of a much more dynamic set of factors: import-export imbalances, tariff-driven demand swings, alliance vessel deployments and carriers’ own customer protection strategies,” Sheth said. Contact Eric Johnson at eric.johnson@spglobal.com .

Maritime

Forwarding

Asia-Europe

Trans-Pacific

Container lines

Exporter rate ‘shopping’ exacerbating uneven India ocean service

<div class="phx-topic abstract-wrapper">Two carriers have taken advantage of favorable market fundamentals that pair a rapidly aging fleet and a low order book. </div>

Two carriers have taken advantage of favorable market fundamentals that pair a rapidly aging fleet and a low order book.

<div class="phx-topic">Strong project cargo demand has led European multipurpose vessel operators JSI and Norden to expand their fleets, collectively adding 12 ships. JSI, formed by Jumbo Maritime, SAL Heavy Lift and Intermarine, is taking delivery of six 500-metric-ton capacity vessels from Germany’s Jüngerhans shipping group that were previously operated by BBC Chartering. Dubbed “mini-monsters” by JSI, the “compact, highly versatile, and exceptionally powerful” ships were originally built for Intermarine between 2006 and 2008 before being sold, the carrier said. The acquisitions were due to a combination of “strategic intent and opportunity” given the growth in the industrial project cargo sector, a JSI spokesperson told the Journal of Commerce. “We’re seeing growing demand from sectors such as traditional energy, public infrastructure, and industrial projects — particularly in emerging regions like Latin America, Southeast Asia, and Africa. These cargoes are becoming increasingly relevant, both in terms of volume and value, and play a key role in maintaining healthy utilization across the fleet,” the spokesperson told the Journal of Commerce. While the offshore wind sector “remains an important driver, especially for higher lifting capacities, the project cargo market is becoming more balanced,” the spokesperson added. <h3>Suited to complex cargoes </h3>The spokesperson said the “vessels are very well suited to future projects.” Demand in the 500-ton segment is sustained and upward, especially for non-wind power cargoes that do not require the more complex capabilities of larger vessels, the spokesperson said. “The fact that they were originally built for Intermarine gave us complete confidence in their performance and operating profile.” “Given the current shortage in the heavy-lift MPV segment — particularly for well-maintained 500-[metric-ton] class vessels — this was a rare and favorable opportunity that we did not want to miss,” the spokesperson added. The ships, equipped with two 250-metric-ton cranes, have a specialized design that enables them to handle particularly heavy, oversized, and sensitive project cargo — especially in ports with limited draught or insufficient infrastructure, JSI said. Five of the ships will be owned by JSI, while the sixth, Industrial Diamond, is on long-term charter to JSI. JSI took delivery of the first ship, Industrial Dolphin, previously BBC Dolphin, last month. The other vessels, Industrial Destiny, Industrial Dart, Industrial Dawn and Industrial Dream, will arrive by October. The ships will boost the JSI fleet to about 60 ships. Separately, Copenhagen, Denmark-headquartered Norden has added six MPVs to its fleet initially on vessel leases but with purchase options that can be exercised later. They comprise four newbuildings for delivery in 2027 and 2028 and two secondhand ships that were already on charter to Norden. The new lease and purchase option deals are in addition to those agreed in January and May for four 17,500-deadweight-metric-ton multipurpose vessels for delivery at the end of 2026 and in 2027, respectively.  “These new leases highlight our continued focus on strengthening our position and building a core fleet to service our customers in the multipurpose segment, which benefits from favorable supply fundamentals with a rapidly ageing fleet and low order book, coupled with a strong projected demand outlook,” Norden said in a statement. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Strong project cargo demand has led European multipurpose vessel operators JSI and Norden to expand their fleets, collectively adding 12 ships. JSI, formed by Jumbo Maritime, SAL Heavy Lift and Intermarine, is taking delivery of six 500-metric-ton capacity vessels from Germany’s Jüngerhans shipping group that were previously operated by BBC Chartering. Dubbed “mini-monsters” by JSI, the “compact, highly versatile, and exceptionally powerful” ships were originally built for Intermarine between 2006 and 2008 before being sold, the carrier said. The acquisitions were due to a combination of “strategic intent and opportunity” given the growth in the industrial project cargo sector, a JSI spokesperson told the Journal of Commerce. “We’re seeing growing demand from sectors such as traditional energy, public infrastructure, and industrial projects — particularly in emerging regions like Latin America, Southeast Asia, and Africa. These cargoes are becoming increasingly relevant, both in terms of volume and value, and play a key role in maintaining healthy utilization across the fleet,” the spokesperson told the Journal of Commerce. While the offshore wind sector “remains an important driver, especially for higher lifting capacities, the project cargo market is becoming more balanced,” the spokesperson added. Suited to complex cargoes The spokesperson said the “vessels are very well suited to future projects.” Demand in the 500-ton segment is sustained and upward, especially for non-wind power cargoes that do not require the more complex capabilities of larger vessels, the spokesperson said. “The fact that they were originally built for Intermarine gave us complete confidence in their performance and operating profile.” “Given the current shortage in the heavy-lift MPV segment — particularly for well-maintained 500-[metric-ton] class vessels — this was a rare and favorable opportunity that we did not want to miss,” the spokesperson added. The ships, equipped with two 250-metric-ton cranes, have a specialized design that enables them to handle particularly heavy, oversized, and sensitive project cargo — especially in ports with limited draught or insufficient infrastructure, JSI said. Five of the ships will be owned by JSI, while the sixth, Industrial Diamond, is on long-term charter to JSI. JSI took delivery of the first ship, Industrial Dolphin, previously BBC Dolphin, last month. The other vessels, Industrial Destiny, Industrial Dart, Industrial Dawn and Industrial Dream, will arrive by October. The ships will boost the JSI fleet to about 60 ships. Separately, Copenhagen, Denmark-headquartered Norden has added six MPVs to its fleet initially on vessel leases but with purchase options that can be exercised later. They comprise four newbuildings for delivery in 2027 and 2028 and two secondhand ships that were already on charter to Norden. The new lease and purchase option deals are in addition to those agreed in January and May for four 17,500-deadweight-metric-ton multipurpose vessels for delivery at the end of 2026 and in 2027, respectively.  “These new leases highlight our continued focus on strengthening our position and building a core fleet to service our customers in the multipurpose segment, which benefits from favorable supply fundamentals with a rapidly ageing fleet and low order book, coupled with a strong projected demand outlook,” Norden said in a statement. Contact Keith Wallis at keithwallis@hotmail.com .

Breakbulk News

Project cargo

Strong project cargo demand spurs MPV fleet expansion

<div class="phx-topic abstract-wrapper">Import volumes for September through December are expected to come in each month about 20% under the comparable 2024 levels, according to the latest Global Port Tracker, with tariff-linked frontloading one of the primary reasons.</div>

Import volumes for September through December are expected to come in each month about 20% under the comparable 2024 levels, according to the latest Global Port Tracker, with tariff-linked frontloading one of the primary reasons.

<div class="phx-topic">US imports for the last four months of 2025 will show sharp year-over-year declines due to a combination of the frontloading that took place at the end of 2024 amid longshore labor concerns and this year’s early peak season driven by tariff deadlines, US retailers said Friday. The latest Global Port Tracker (GPT) from the National Retail Federation (NRF) and Hackett Associates made just minimal upgrades to import forecasts for September, October and November from projections made in July. Still, the NRF expects significant year-over-year reductions overall, with import volumes for September through December forecast to come in each month about 20% under the comparable 2024 levels <a href="https://www.joc.com/article/ila-usmx-reach-tentative-deal-that-avoids-another-port-strike-5919519">when shippers were working to move cargo ahead of a strike threat at East and Gulf coast ports.</a><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="3f082f38-731c-4471-b484-2aa37e8ab119"></dynamic-object></div>The GPT’s updated forecast for September calls for 1.83 million TEUs in US imports, down 19.4% compared with 2.27 million TEUs in 2024. October is slated for 1.82 million TEUs, down 18.7% from the year-ago period, while November (1.71 million TEUs) and December (1.72 million TEUs) are projected to be down 20.8% and 19.2%, respectively, from 2024 levels. November’s forecast calls for the lowest month for US imports since April 2023. <h3>Tariff pressure </h3>Tariff-linked frontloading is also a significant factor in the severe year-over-year declines in imports. “Friends, allies and foes are all being hit by distortions in trade flows as importers try to second-guess tariff levels by pulling forward imports before the tariffs take effect,” Hackett Associates founder Ben Hackett said. “This, in turn, will certainly lead to a downturn in trade volumes by late September because inventories for the holiday season will already be in hand.” The latest GPT increased August import expectations to 2.2 million TEUs, up 5.8% from the 2.08 million TEUs forecast in July. Meanwhile, June’s actual volume of 1.96 million TEUs was almost 5% less than projected in the prior GPT. Imports for the first half of the year were up 3.6% compared with 2024 at 12.53 million TEUs — likely driven by tariff frontloading. The NRF forecasts US imports for all of 2025 will slide to 24.1 million TEUs, down 5.6% from 25.5 million TEUs last year. “While this forecast is preliminary, it shows the impact the tariffs and the [Trump] administration’s trade policy are having on the supply chain,” said Jonathan Gold, NRF’s vice president for supply chain and customs policy. “Tariffs are beginning to drive up consumer prices, and fewer imports will eventually mean fewer goods on store shelves.” The GPT is published monthly using import data collected from 13 ports on the US East, West and Gulf coasts. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  </div>

US imports for the last four months of 2025 will show sharp year-over-year declines due to a combination of the frontloading that took place at the end of 2024 amid longshore labor concerns and this year’s early peak season driven by tariff deadlines, US retailers said Friday. The latest Global Port Tracker (GPT) from the National Retail Federation (NRF) and Hackett Associates made just minimal upgrades to import forecasts for September, October and November from projections made in July. Still, the NRF expects significant year-over-year reductions overall, with import volumes for September through December forecast to come in each month about 20% under the comparable 2024 levels when shippers were working to move cargo ahead of a strike threat at East and Gulf coast ports. The GPT’s updated forecast for September calls for 1.83 million TEUs in US imports, down 19.4% compared with 2.27 million TEUs in 2024. October is slated for 1.82 million TEUs, down 18.7% from the year-ago period, while November (1.71 million TEUs) and December (1.72 million TEUs) are projected to be down 20.8% and 19.2%, respectively, from 2024 levels. November’s forecast calls for the lowest month for US imports since April 2023. Tariff pressure Tariff-linked frontloading is also a significant factor in the severe year-over-year declines in imports. “Friends, allies and foes are all being hit by distortions in trade flows as importers try to second-guess tariff levels by pulling forward imports before the tariffs take effect,” Hackett Associates founder Ben Hackett said. “This, in turn, will certainly lead to a downturn in trade volumes by late September because inventories for the holiday season will already be in hand.” The latest GPT increased August import expectations to 2.2 million TEUs, up 5.8% from the 2.08 million TEUs forecast in July. Meanwhile, June’s actual volume of 1.96 million TEUs was almost 5% less than projected in the prior GPT. Imports for the first half of the year were up 3.6% compared with 2024 at 12.53 million TEUs — likely driven by tariff frontloading. The NRF forecasts US imports for all of 2025 will slide to 24.1 million TEUs, down 5.6% from 25.5 million TEUs last year. “While this forecast is preliminary, it shows the impact the tariffs and the [Trump] administration’s trade policy are having on the supply chain,” said Jonathan Gold, NRF’s vice president for supply chain and customs policy. “Tariffs are beginning to drive up consumer prices, and fewer imports will eventually mean fewer goods on store shelves.” The GPT is published monthly using import data collected from 13 ports on the US East, West and Gulf coasts. Contact Laura Robb at laura.robb@spglobal.com . 

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US retailers project big year-over-year import declines to close out 2025

<div class="phx-topic abstract-wrapper">The Chinese-Polish carrier won the rate-linked relief after US regulators had expressed initial concerns this spring about the Chinese government’s supposed control over the company. </div>

The Chinese-Polish carrier won the rate-linked relief after US regulators had expressed initial concerns this spring about the Chinese government’s supposed control over the company.

<div class="phx-topic">Chinese-Polish multipurpose vessel (MPV) operator Chipolbrok has received a three-year exemption to the so-called controlled-carrier requirement from US federal maritime regulators, allowing it to change tariff rates immediately rather than wait 30 days. Chipolbrok successfully sought the exemption after being <a href="https://www.joc.com/article/fmc-to-scrutinize-chipolbrok-citing-chinese-government-control-5987599">placed on the controlled carrier list by the Federal Maritime Commission (FMC) in April</a>, arguing that having to wait 30 days before changing tariff rates would prevent it from being competitive while harming US shippers — exporters, in particular. “While most cargo moves pursuant to service contracts, as a breakbulk, bulk, and project cargo carrier, Chipolbrok’s shipments move primarily by either tariff rates or charter-party arrangements,” the MPV carrier said in its petition to the FMC for an exemption, which was granted Thursday. Typically, controlled carriers are subject to increased scrutiny to ensure government-subsidized shipping companies don’t undercut competitors to gain access to the US market or disrupt trade. Still, the FMC found that the exemption for Chipolbrok will “neither substantially reduce competition nor be detrimental to commerce.” The exemption comes after a public comment period in May that was largely supportive of Chipolbrok, with seven comments in support of the MPV operator and four comments in opposition. Chipolbrok’s initial designation as a controlled carrier came after the FMC determined the Chinese government had more control of the company than its Polish counterpart, pointing to a headquarters in China and the fact there are more subsidiary units and executives in the Chinese part of the company. The FMC also noted that Chinese-owned carrier Cosco Shipping Group provides funding and other support to Chipolbrok. Cosco Shipping Lines, a subsidiary of COSCO Shipping Group, is on the FMC’s controlled carrier list, along with its Hong Kong-based subsidiary OOCL and South Korea-based HMM. Chipolbrok has an owned fleet of 32 multipurpose vessels ranging in size up to 62,000 deadweight tons (dwt) that operate semi-liner and tramp services; it also has four 38,000-dwt ships on order for delivery starting next year. In the US, the company operates through Houston-based Chipolbrok Americas, formed in 2004. Recent shipments by Chipolbrok have included components for LNG facilities along the Gulf of Mexico. Chipolbrok representatives in the US were not immediately available for comment. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  </div>

Chinese-Polish multipurpose vessel (MPV) operator Chipolbrok has received a three-year exemption to the so-called controlled-carrier requirement from US federal maritime regulators, allowing it to change tariff rates immediately rather than wait 30 days. Chipolbrok successfully sought the exemption after being placed on the controlled carrier list by the Federal Maritime Commission (FMC) in April , arguing that having to wait 30 days before changing tariff rates would prevent it from being competitive while harming US shippers — exporters, in particular. “While most cargo moves pursuant to service contracts, as a breakbulk, bulk, and project cargo carrier, Chipolbrok’s shipments move primarily by either tariff rates or charter-party arrangements,” the MPV carrier said in its petition to the FMC for an exemption, which was granted Thursday. Typically, controlled carriers are subject to increased scrutiny to ensure government-subsidized shipping companies don’t undercut competitors to gain access to the US market or disrupt trade. Still, the FMC found that the exemption for Chipolbrok will “neither substantially reduce competition nor be detrimental to commerce.” The exemption comes after a public comment period in May that was largely supportive of Chipolbrok, with seven comments in support of the MPV operator and four comments in opposition. Chipolbrok’s initial designation as a controlled carrier came after the FMC determined the Chinese government had more control of the company than its Polish counterpart, pointing to a headquarters in China and the fact there are more subsidiary units and executives in the Chinese part of the company. The FMC also noted that Chinese-owned carrier Cosco Shipping Group provides funding and other support to Chipolbrok. Cosco Shipping Lines, a subsidiary of COSCO Shipping Group, is on the FMC’s controlled carrier list, along with its Hong Kong-based subsidiary OOCL and South Korea-based HMM. Chipolbrok has an owned fleet of 32 multipurpose vessels ranging in size up to 62,000 deadweight tons (dwt) that operate semi-liner and tramp services; it also has four 38,000-dwt ships on order for delivery starting next year. In the US, the company operates through Houston-based Chipolbrok Americas, formed in 2004. Recent shipments by Chipolbrok have included components for LNG facilities along the Gulf of Mexico. Chipolbrok representatives in the US were not immediately available for comment. Contact Laura Robb at laura.robb@spglobal.com . 

FMC grants ‘controlled-carrier’ exemption to MPV operator Chipolbrok

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: https://www.ssamarine.mx/

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