<div class="phx-topic abstract-wrapper">Supply chain reliability is something that regularly features as a pain point in shipper discussions, and technology providers are developing visibility tools to tackle the problem.</div>

Supply chain reliability is something that regularly features as a pain point in shipper discussions, and technology providers are developing visibility tools to tackle the problem.

<div>[Editorial note: image removed/no longer available]The low quality of available data makes end-to-end visibility difficult. Photo credit: DNV GLEnd-to-end visibility remains one of the most <a>sought after services by shippers</a> in a never-ending battle to limit disruption to supply chains and avoid the damaging knock-on effects generated by delays and uncertainty.The express integrators have the <a>technology</a>, but the internal company-wide visibility used by DHL, FedEx, and UPS in the express business has been hard to replicate in the wider container supply chain where cargo value is often lower and the focus on managing cost is more intense.Many visibility products are...

[Editorial note: image removed/no longer available] The low quality of available data makes end-to-end visibility difficult. Photo credit: DNV GL End-to-end visibility remains one of the most sought after services by shippers in a never-ending battle to limit disruption to supply chains and avoid the damaging knock-on effects generated by delays and uncertainty.The express integrators have the technology , but the internal company-wide visibility used by DHL, FedEx, and UPS in the express business has been hard to replicate in the wider container supply chain where cargo value is often lower and the focus on managing cost is more intense.Many visibility products are on the market with varying levels of data provision as software companies try to address the demand, but complicating the uptake of these solutions is the diverging needs of shippers and forwarders, said Frank Knoors, managing director of Belgium-based Logit One.Logit One delivers an end-to-end visibility service and counts one of the world’s largest forwarders as one of its customers. It offers the service based on “a competitive price” per container, and Knoors believes the cost justifies itself for most shippers.“However, we have found that the shipper sometimes takes the view that he is paying his forwarder for logistics services and the forwarder should provide the visibility,” he told JOC.com. “But a lot of forwarders are asking why they should invest in the visibility service when the costs they are trying to avoid are much less than those the shipper is avoiding. It is an asymmetric situation that often leads to paralysis.”Nevertheless, Knoors said reliability remained the most important issue being faced by shippers today, and visibility was key to addressing it. He explained how the visibility needs of shippers and forwarders differed.For shippers, more visibility was important to maintain the smooth running of a production process where if the supplier of the inbound logistics was not on time, that process was disturbed and the associated costs were much higher than the logistics cost of the goods being transported to the shipper factory.Similarly, he said, when the inbound logistics was for the positioning of new products for a launch, the whole retail chain structure was planned out, and if the goods do not arrive as planned it leads to tremendous commercial costs.Knoors said visibility was of secondary importance to forwarders organising the goods flow for the shipper as they did not suffer from the consequences of delays. Forwarders have a commercial interest towards their customers and want to position themselves to be in control of the work they are executing for those shippers, and having more visibility means they can be more proactive in organising their logistics process in case something goes wrong.“Visibility is important for forwarders, but visibility is much more important for shippers than forwarders,” Knoors said.Claudio Scandella, CEO of ECU Worldwide, the market leader in less-than-containerload shipments, said intense margin pressure on service providers meant forwarders and non-vessel opearting common carriers had to become more tech enabled and to improve the operational side of the business.“The digital age provides ample opportunity to enhance services and operate in a different way, how to develop new revenue streams, how to make sure you are not just a commodity in the face of global B2C [business-to-consumer] companies,” he said.“We are developing a new customer portal that will allow customers to have much greater visibility and to extend it further, adding more and more value to our customers’ supply chains. Visibility will enable us to also provide better cost and service, be it through the online presence or through talking to the customers.”But even as software companies with new digital solutions target the supply chain, there are still many forwarders and shippers around the world that transmit their data in a non-digital form, Scandella said.“We first need to get rid of all the manual processes. We really need to automate products to get rid of all the non value-adding things done by people entering data, and use people to do the brainwork and to develop solutions because they understand the customer side,” he said.Nicolette van der Jagt, director general of CLECAT, the European association for forwarding, transport, logistics, and customs services, agreed that forwarders needed to change and keep pace with innovation. But she also highlighted the manual processes that in many cases could not be avoided.“The reality is that many people still need to pick up the phone to find out what is happening and to find solutions. If cargo is being delayed you still need some human intervention to sort out the service issues,” she said.Knoors said Logit One recently completed an analysis of the savings a shipper could realise from improving visibly over his cargo. The reduction of safety stock that could be implemented as a result of less uncertainty in the goods flow was a major cost factor for cargo owners.“If you start calculating the kind of cost to be saved, it is not 100 percent because it is difficult to make explicit statements on the amount of uncertainty that can be avoided because it is not that obvious,” he said. “We made some assumptions and it told us that for the average container from China to Europe, a shipper using the visibility service should be a able to make a cost saving of up to 100-150 euros per container. It cannot be achieved immediately but is part of a continuous improvement of the logistics processes that will come over time rather than overnight simply because a shipper is using a new visibility service.”However, achieving the kind of visibility required was difficult in that the data that are available to ensure shippers where their containers are is of a very low quality, Knoors said. For a container travelling from China to Europe by ocean, there are multiple data sources, but each is inconsistent with the other and some areas, such as transshipment, were just a black box. “The low quality of the available data is one of the biggest issues that is on the table at the moment,” he said.Much of the approach to improving visibility has been focused on using mountable real-time tracking devices on containers where electro-mechanical devices use GPS to track where the box is. But in Knoors’ view, this approach has limitations; it comes at a cost, not just for the cost of attaching the device to a container, but also because there is a logistics process behind the handling of that device. Their batteries need to be charged, the device must be customs cleared, and it needs to be taken from the point where it is detached to where it can be re-mounted on another container.Logit One has a different strategy. “We collect multiple data sources from carriers, terminals, and inland movements, but to be useful there needs to be a proper interpretation of that data,” Knoors said. “We subject that continuous data stream to a business intelligence engine that interprets the data and generates logistics facts that are sufficiently reliable. Based on those logistics facts, we call them conclusions, we are continuously updating — not focusing on where the container is but on where the logistics process has been disrupted and is deviating from what was planned.“We continuously take on board the knock-on effects from that part of the logistics chain that has not yet been executed, and that allows the forwarder to know beforehand that something is going wrong and he does that with a higher degree of reliability than he currently has today,” Knoors said. Contact Greg Knowler at greg.knowler@ihsmarkit.com and follow him on Twitter: @greg_knowler .

Logistics Technology News

Visibility tools key to combating supply chain disruption

<div class="phx-topic abstract-wrapper">Charleston’s total rail lifts for 2025 were about one-quarter of the planned capacity of Navy Base Intermodal Facility, prompting the port’s CEO to reset capital spending plans. </div>

Charleston’s total rail lifts for 2025 were about one-quarter of the planned capacity of Navy Base Intermodal Facility, prompting the port’s CEO to reset capital spending plans.

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<div class="phx-topic">The Port of Charleston has paused work on its near-dock rail yard pending agreements with Class I railroads to service the facility, the port’s chief executive said, adding that shipper demand for more intermodal capacity may not be needed until 2028. South Carolina Ports Authority Chief Executive Micah Mallace told state legislators last week Charleston has “slowed construction” of the Navy Base Intermodal Facility until it has finalized operating agreements with CSX Transportation and Norfolk Southern Railway. “We are working on delivering operating agreements with the railroads,” Mallace said. “We aspire to finish that quickly. Upon successful completion of that, we will restart our delivery of the facility.” The last major work on the facility involves 80,000 feet of southbound track that would link Navy Base directly to both CSX and NS trackage. Navy Base has northern access that connects to CSX trackage, but the southern access is a preferred route for both railroads. Under previous chief executive Barbara Melvin, the port expected to announce <a href="https://www.joc.com/article/charlestons-navy-base-rail-yard-project-faces-delays-big-cost-overruns-6070926">a construction award for the project last October</a>, but that award has been paused. Mallace, <a href="https://www.joc.com/article/sc-ports-taps-former-commercial-executive-to-lead-6092988">who took over as CEO that month</a>, has been <a href="https://www.joc.com/article/new-charleston-ceo-seeks-to-regain-container-growth-momentum-6104583">reevaluating the port’s capital spending plans</a> in light of slower growth in cargo demand. “SC Ports continues to work with our partners at CSX and Norfolk Southern to deliver additional rail capacity and enhance intermodal competitiveness to support growth in the Southeast market,” the port said in a statement to the Journal of Commerce. Mallace appeared before the South Carolina legislators to ask that some $2 million in state funding previously appropriated to SC Ports for joint development of a container terminal with the Georgia Port Authority on the South Carolina side of the Savannah River be redirected to a local economic development agency. The request stemmed from the GPA’s “wish to deliver capacity on the Georgia side of the river,” Mallace said. <h3>Navy Base start anticipated for 2028 </h3>SC Ports previously forecast a potential 2026 launch of Navy Base service with CSX and later adding NS access by 2027 once the southern access and other infrastructure was complete. While there’s no specific target for Navy Base’s full completion, Mallace said “we estimate needing to bring it on in 2028.” Intermodal cargo at the port is currently trucked to the CSX and NS intermodal facilities under Charleston’s “Rapid Rail” program. Navy Base allows the port to handle containers faster via a one-mile dedicated drayage road connected to the Leatherman marine terminal. Navy Base is designed to handle 1 million container lifts per year. It connects Charleston directly to its inland ports at Dillon and Greer, which are served respectively by CSX and NS, as well as other destinations in the Southeast. Dillon handled 48,761 container lifts last year, a 33% increase from 2024 largely due to a state initiative to reroute soybean shipments to export markets after the closure of a nearby processing facility, as well as demand from Dillon’s retailer shippers, according to SC Ports. Greer, which serves some of the state’s manufacturers and other retail distributors and can handle 300,000 lifts annually, saw roughly two-thirds of that at 197,805 container lifts last year, up 2% from a year earlier. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a></div>

The Port of Charleston has paused work on its near-dock rail yard pending agreements with Class I railroads to service the facility, the port’s chief executive said, adding that shipper demand for more intermodal capacity may not be needed until 2028. South Carolina Ports Authority Chief Executive Micah Mallace told state legislators last week Charleston has “slowed construction” of the Navy Base Intermodal Facility until it has finalized operating agreements with CSX Transportation and Norfolk Southern Railway. “We are working on delivering operating agreements with the railroads,” Mallace said. “We aspire to finish that quickly. Upon successful completion of that, we will restart our delivery of the facility.” The last major work on the facility involves 80,000 feet of southbound track that would link Navy Base directly to both CSX and NS trackage. Navy Base has northern access that connects to CSX trackage, but the southern access is a preferred route for both railroads. Under previous chief executive Barbara Melvin, the port expected to announce a construction award for the project last October , but that award has been paused. Mallace, who took over as CEO that month , has been reevaluating the port’s capital spending plans in light of slower growth in cargo demand. “SC Ports continues to work with our partners at CSX and Norfolk Southern to deliver additional rail capacity and enhance intermodal competitiveness to support growth in the Southeast market,” the port said in a statement to the Journal of Commerce. Mallace appeared before the South Carolina legislators to ask that some $2 million in state funding previously appropriated to SC Ports for joint development of a container terminal with the Georgia Port Authority on the South Carolina side of the Savannah River be redirected to a local economic development agency. The request stemmed from the GPA’s “wish to deliver capacity on the Georgia side of the river,” Mallace said. Navy Base start anticipated for 2028 SC Ports previously forecast a potential 2026 launch of Navy Base service with CSX and later adding NS access by 2027 once the southern access and other infrastructure was complete. While there’s no specific target for Navy Base’s full completion, Mallace said “we estimate needing to bring it on in 2028.” Intermodal cargo at the port is currently trucked to the CSX and NS intermodal facilities under Charleston’s “Rapid Rail” program. Navy Base allows the port to handle containers faster via a one-mile dedicated drayage road connected to the Leatherman marine terminal. Navy Base is designed to handle 1 million container lifts per year. It connects Charleston directly to its inland ports at Dillon and Greer, which are served respectively by CSX and NS, as well as other destinations in the Southeast. Dillon handled 48,761 container lifts last year, a 33% increase from 2024 largely due to a state initiative to reroute soybean shipments to export markets after the closure of a nearby processing facility, as well as demand from Dillon’s retailer shippers, according to SC Ports. Greer, which serves some of the state’s manufacturers and other retail distributors and can handle 300,000 lifts annually, saw roughly two-thirds of that at 197,805 container lifts last year, up 2% from a year earlier. Contact Michael Angell at michael.angell@spglobal.com

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Charleston slows railyard development amid insufficient shipper demand

<div class="phx-topic abstract-wrapper">Absorbing its largest and most complex takeover to date was initially expected to take at least two years to complete, but will now be fully wrapped 20 months after the DB Schenker acquisition closed. </div>

Absorbing its largest and most complex takeover to date was initially expected to take at least two years to complete, but will now be fully wrapped 20 months after the DB Schenker acquisition closed.

<div class="phx-topic">DSV expects to complete its integration of DB Schenker by the end of the year, far earlier than expected, with the emphasis firmly on growing synergies within the combined entity and using artificial intelligence (AI) to transform the business, DSV executives said Wednesday. The integration process was initially expected to take at least two years to complete, but will now be fully wrapped 20 months after the Schenker acquisition closed. The full financial impact will be felt in 2027. “It is the largest and most complex transaction we have ever made, and that was reflected in our initial integration plans,” DSV CFO Michael Ebbe told the Journal of Commerce as the Denmark-based forwarder announced its 2025 results. “We started in August by onboarding countries and going live and in Q3 (and) Q4,” Ebbe said. “And the beginning of this year, we started to onboard complex large markets like China, Germany, Sweden and Singapore and now we have a plan for the next phase to finalize integration before year-end.” The contribution of DB Schenker in the fourth quarter significantly boosted DSV’s annual earnings and volumes. Revenue for 2025 was up 51.3% at $39 billion, gross profit rose 59% to $10 billion, and earnings before interest and taxes (EBIT) of $3.1 billion was up 23.8% from the year prior. Air freight volume of 2 million metric tons for 2025 was up 42%, while ocean freight of 3.7 million TEUs was up 38% year over year. Combined revenue for the air and sea division of $21.7 billion was up 35.6% compared to 2024. In the fourth quarter, despite the contribution of Schenker volume, the air and sea business faced headwinds in the form of geopolitical uncertainty, shifting trade flows and the impact of a weakening US dollar against the Danish krone. Air freight volume was up 63% in Q4 at 592,000 mt, but average gross profit per metric ton of $1,201 was down 8% year over year, mainly due to Schenker dilution. It was a similar picture in ocean freight. Volume was up 52% in Q4 at just over 1 million TEUs, while average gross profit of $601/TEU was down 17%. Synergies from the Schenker integration will reach almost $800 million this year and close to $1.5 billion in 2027. Total transaction and integration costs will be around $1.7 billion. <h3>Implementing AI at an enterprise level </h3>It was the focus on consolidating IT infrastructure and implementing AI at an enterprise level to improve productivity across the combined business that stood out in an earnings call with DSV executives Wednesday. Complexity has increased due to the Schenker acquisition, and DSV is consolidating and combining operations into selected systems across its air and sea, road, and contract logistics divisions, with AI playing an integral part of the digital operations. “When you introduce technology, you can do it on an enterprise level, a regional level, in clusters, countries, branches, departments, (or) on a person level,” DSV CEO Jens Lund told analysts on the earnings call. “But the further you go down into the stack, the less benefit you get of it. ”It has to be something that is done on enterprise level,” he added. “This is the only way we’ve managed to create value. This is also how you transform the business.” Lund pointed to a customs AI tool rolled out by DSV last year to improve the efficiency of customs handling, as well as an in-house “AI Factory” platform that was planning, forecasting and developing AI tools aimed at optimizing routes and processes. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>.</div>

DSV expects to complete its integration of DB Schenker by the end of the year, far earlier than expected, with the emphasis firmly on growing synergies within the combined entity and using artificial intelligence (AI) to transform the business, DSV executives said Wednesday. The integration process was initially expected to take at least two years to complete, but will now be fully wrapped 20 months after the Schenker acquisition closed. The full financial impact will be felt in 2027. “It is the largest and most complex transaction we have ever made, and that was reflected in our initial integration plans,” DSV CFO Michael Ebbe told the Journal of Commerce as the Denmark-based forwarder announced its 2025 results. “We started in August by onboarding countries and going live and in Q3 (and) Q4,” Ebbe said. “And the beginning of this year, we started to onboard complex large markets like China, Germany, Sweden and Singapore and now we have a plan for the next phase to finalize integration before year-end.” The contribution of DB Schenker in the fourth quarter significantly boosted DSV’s annual earnings and volumes. Revenue for 2025 was up 51.3% at $39 billion, gross profit rose 59% to $10 billion, and earnings before interest and taxes (EBIT) of $3.1 billion was up 23.8% from the year prior. Air freight volume of 2 million metric tons for 2025 was up 42%, while ocean freight of 3.7 million TEUs was up 38% year over year. Combined revenue for the air and sea division of $21.7 billion was up 35.6% compared to 2024. In the fourth quarter, despite the contribution of Schenker volume, the air and sea business faced headwinds in the form of geopolitical uncertainty, shifting trade flows and the impact of a weakening US dollar against the Danish krone. Air freight volume was up 63% in Q4 at 592,000 mt, but average gross profit per metric ton of $1,201 was down 8% year over year, mainly due to Schenker dilution. It was a similar picture in ocean freight. Volume was up 52% in Q4 at just over 1 million TEUs, while average gross profit of $601/TEU was down 17%. Synergies from the Schenker integration will reach almost $800 million this year and close to $1.5 billion in 2027. Total transaction and integration costs will be around $1.7 billion. Implementing AI at an enterprise level It was the focus on consolidating IT infrastructure and implementing AI at an enterprise level to improve productivity across the combined business that stood out in an earnings call with DSV executives Wednesday. Complexity has increased due to the Schenker acquisition, and DSV is consolidating and combining operations into selected systems across its air and sea, road, and contract logistics divisions, with AI playing an integral part of the digital operations. “When you introduce technology, you can do it on an enterprise level, a regional level, in clusters, countries, branches, departments, (or) on a person level,” DSV CEO Jens Lund told analysts on the earnings call. “But the further you go down into the stack, the less benefit you get of it. ”It has to be something that is done on enterprise level,” he added. “This is the only way we’ve managed to create value. This is also how you transform the business.” Lund pointed to a customs AI tool rolled out by DSV last year to improve the efficiency of customs handling, as well as an in-house “AI Factory” platform that was planning, forecasting and developing AI tools aimed at optimizing routes and processes. Contact Greg Knowler at greg.knowler@spglobal.com .

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Forwarding

Air Cargo

DSV moves to transform its business as Schenker integration accelerates

<div class="phx-topic abstract-wrapper">CMA CGM and Hapag-Lloyd are seeking a general rate increase of $1,000 per FEU starting March 1 to reverse a steady spot rate decline that began in July 2025.</div>

CMA CGM and Hapag-Lloyd are seeking a general rate increase of $1,000 per FEU starting March 1 to reverse a steady spot rate decline that began in July 2025.

<div class="phx-topic">Container lines are marshalling another rate hike on the Asia-to-Latin America trade amid rising volumes, but recent capacity injections into a market where spot rates have plummeted more than 80% over the past seven months offer a hard backstop to their efforts. CMA CGM and Hapag-Lloyd are seeking a general rate increase of $1,000 per FEU starting March 1 to reverse a steady spot rate decline that began in July 2025 when prices for Shanghai to Santos in Brazil were $6,374 per TEU, according to the Shanghai Shipping Exchange. Those rates are now at $1,131 per TEU, a decline of 82%. Container lines began adding more capacity to chase the higher rates; major carriers injected some 700,000 TEUs into the trade in the last 12 months, according to advisory firm MDS Transmodal. Capacity from Asia to the East Coast of South America is due to hit 303,517 TEUs in March, according to eeSea. That’s up almost 9% from February and would be the highest level in more than three years. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="3f037742-ccbd-42e6-a9c1-eef2aebad508"></dynamic-object></div>The capacity rush comes as CMA CGM announced its planned rate increase in an advisory Tuesday, following Hapag-Lloyd’s notice on Friday. Both carriers are again seeking a $1,000 per box across-the-board increase on all trades from Asia to Latin America, including the West and East coasts of South America, Mexico, Central America, and the Caribbean. Hapag-Lloyd said the increase will apply to 20-foot, 40-foot and 40-foot non-operated reefers, while CMA CGM said its rate hike will also apply to out-of-gauge and paying empties. The two carriers announced similar $1,000 per-box rate increases at the end of last year. CMA CGM said in a Dec. 18 advisory the increase would apply from Jan. 1, while Hapag-Lloyd published a notice on Nov. 21 saying the revised rate would take effect from Dec. 1. But Brazilian forwarders questioned whether the carriers would be any more successful with their latest planned hike than they were previously. “The fundamentals haven’t really changed since then. Yes, demand has been strong, but there is significant overcapacity,” a senior executive at a Sao Paolo-based freight forwarder told the Journal of Commerce. “Our partners in China tell us shipping lines have struggled to fill their vessels. “Rates might pick up after the Lunar New Year festival period as demand rebounds, but we’ve been told there’s more capacity coming into the market,” the source added. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="69a20079-176d-4590-97c9-677559ec748f"></dynamic-object></div>CMA CGM did not give a comparison, but Hapag-Lloyd’s rate notices showed it had attempted to push its December GRI in a falling market. In its latest GRI announcement, Hapag-Lloyd said East Coast of South America base rates were now $1,000 per 20-foot container and $1,200 for a 40-foot box. By comparison, West Coast of South America base rates were down to $750 for both a 20-foot and 40-foot container, it said. Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegged rates from North Asia to the West Coast of South America at $1,200 per FEU as of Feb. 2, down 60% year over year. A Hapag-Lloyd spokesperson did not comment specifically on the GRIs, cargo demand or capacity when contacted by the Journal of Commerce. “Not much I can say other than that we are continuously monitoring market developments, and rate adjustments on the back of changed supply and demand are a part of our day-to-day business,” the spokesperson said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Container lines are marshalling another rate hike on the Asia-to-Latin America trade amid rising volumes, but recent capacity injections into a market where spot rates have plummeted more than 80% over the past seven months offer a hard backstop to their efforts. CMA CGM and Hapag-Lloyd are seeking a general rate increase of $1,000 per FEU starting March 1 to reverse a steady spot rate decline that began in July 2025 when prices for Shanghai to Santos in Brazil were $6,374 per TEU, according to the Shanghai Shipping Exchange. Those rates are now at $1,131 per TEU, a decline of 82%. Container lines began adding more capacity to chase the higher rates; major carriers injected some 700,000 TEUs into the trade in the last 12 months, according to advisory firm MDS Transmodal. Capacity from Asia to the East Coast of South America is due to hit 303,517 TEUs in March, according to eeSea. That’s up almost 9% from February and would be the highest level in more than three years. The capacity rush comes as CMA CGM announced its planned rate increase in an advisory Tuesday, following Hapag-Lloyd’s notice on Friday. Both carriers are again seeking a $1,000 per box across-the-board increase on all trades from Asia to Latin America, including the West and East coasts of South America, Mexico, Central America, and the Caribbean. Hapag-Lloyd said the increase will apply to 20-foot, 40-foot and 40-foot non-operated reefers, while CMA CGM said its rate hike will also apply to out-of-gauge and paying empties. The two carriers announced similar $1,000 per-box rate increases at the end of last year. CMA CGM said in a Dec. 18 advisory the increase would apply from Jan. 1, while Hapag-Lloyd published a notice on Nov. 21 saying the revised rate would take effect from Dec. 1. But Brazilian forwarders questioned whether the carriers would be any more successful with their latest planned hike than they were previously. “The fundamentals haven’t really changed since then. Yes, demand has been strong, but there is significant overcapacity,” a senior executive at a Sao Paolo-based freight forwarder told the Journal of Commerce. “Our partners in China tell us shipping lines have struggled to fill their vessels. “Rates might pick up after the Lunar New Year festival period as demand rebounds, but we’ve been told there’s more capacity coming into the market,” the source added. CMA CGM did not give a comparison, but Hapag-Lloyd’s rate notices showed it had attempted to push its December GRI in a falling market. In its latest GRI announcement, Hapag-Lloyd said East Coast of South America base rates were now $1,000 per 20-foot container and $1,200 for a 40-foot box. By comparison, West Coast of South America base rates were down to $750 for both a 20-foot and 40-foot container, it said. Platts, a sister company of the Journal of Commerce within S&P Global, pegged rates from North Asia to the West Coast of South America at $1,200 per FEU as of Feb. 2, down 60% year over year. A Hapag-Lloyd spokesperson did not comment specifically on the GRIs, cargo demand or capacity when contacted by the Journal of Commerce. “Not much I can say other than that we are continuously monitoring market developments, and rate adjustments on the back of changed supply and demand are a part of our day-to-day business,” the spokesperson said. Contact Keith Wallis at keithwallis@hotmail.com .

Container lines

Trans-Pacific

International ports

Container Shipping News

Carriers try new rate hike on Asia-Latin America, but fresh capacity provides headwind

<div class="phx-topic abstract-wrapper">Momentum from robust growth on some Asian export trade lanes following the Christmas holidays has now slowed, with forwarders and analysts expecting muted demand over the coming two weeks.</div>

Momentum from robust growth on some Asian export trade lanes following the Christmas holidays has now slowed, with forwarders and analysts expecting muted demand over the coming two weeks.

<div class="phx-topic">Air cargo analysts and forwarders are expecting a modest pre-Lunar New Year uptick in exports on Asian trade lanes following solid demand growth in January from China to Europe and from Southeast Asia and Taiwan to the US. With the Lunar New Year beginning relatively late on Feb. 17, industry forecasts are for a gradual increase in volume and rates over the next two weeks before factories close for Asia’s main annual holiday. Capacity trends on the Asia-Europe lane suggest “robust” volume growth in January from China’s inland air freight hubs of Chongqing, Chengdu and Zhengzhou, according to Rotate analyst Ray Zedov. While Asia to US capacity was down year over year from all Asia-Pacific regions, “a deeper dive into the US market shows that capacity from Vietnam continues to grow as Chinese imports to the US are impacted by the new tariff policy in the US,” Zedov told the Journal of Commerce. The US removed its “de minimis” duty exemption on low-value goods from all its trading partners on Aug. 29 last year following the scrapping of duty-free access for low-value Chinese imports in May. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="33a72818-4d4c-4365-97ce-ccb39dab8dd8"></dynamic-object></div>Sou Ping Chee, regional head of air freight in Asia-Pacific for Hellmann Worldwide Logistics, said volume out of Asia had weakened by early February even with the holidays just two weeks away, which suggests muted demand this year. “However, there is still a general expectation that demand will pick up next week ahead of Lunar New Year from China, Hong Kong, Vietnam and Taiwan across industries before these markets close for the biggest festive season in this part of the world,” he said. An Asia-based executive at a global forwarder said he was not seeing any major uptick in demand on China-Europe and the wider Asia Pacific-North America market. “It remains rather flat and even prior to the Lunar New Year we are not seeing anything exceptional,” the source said. He added that although overall demand out of Asia-Pacific to North America has flattened out, demand out of Taipei and Vietnam has remained solid. “Taipei-US, Bangkok-US and Hanoi-US are busy,” he said. “Rates are holding steady at a higher level and demand remains strong, largely driven by AI-related components. Bangkok-Europe and Vietnam-Europe are also busy.” <h3>Rates rising on Asian export trade lanes </h3>Netherlands-based air cargo analyst WorldACD said after two weeks of strong sequential volume growth from Asia-Pacific to US and Europe markets, overall week-over-week growth came to a halt last week with flat volumes for both trade lanes. When compared with the same week last year, volume to the US was down 1% and volume to Europe was up 7%. While spot rates on the trans-Pacific and Asia-Europe in the last week of January were down 9% year over year, there were significant week-over-week increases on both trades, particularly from China origins, WorldACD data shows. Spot rates to the US last week rose 6% compared with the previous week to $4.02 per kilogram, while rates to Europe were up 7% at $3.80/kg as the market edged into the pre-Lunar New Year peak and capacity tightened on some airport pairings. Sou noted that rates on the Asian export trade lanes have remained at healthy levels in the first weeks of 2026 after softening over the Christmas period. “As such we do not expect as sharp an increase now, but rather spot rates are likely to creep up as we enter the last 10 days to Lunar New Year and pick up momentum from next week onwards,” he said. Willie Walsh, director general of the International Air Transport Association (IATA), said the moderate demand will extend to the full year, with global air freight demand in 2026 expected to grow 2.4% from 2025, although that would be down from last year’s 3.4% growth over 2024. “We can expect that demand will continue to be shaped by trade and geopolitical developments,” Walsh noted in a January market update, adding that carriers will continue to relocate capacity to support shifting trade patterns. Contact Greg Knowler at <a href="">greg.knowler@spglobal.com</a>.   </div>

Air cargo analysts and forwarders are expecting a modest pre-Lunar New Year uptick in exports on Asian trade lanes following solid demand growth in January from China to Europe and from Southeast Asia and Taiwan to the US. With the Lunar New Year beginning relatively late on Feb. 17, industry forecasts are for a gradual increase in volume and rates over the next two weeks before factories close for Asia’s main annual holiday. Capacity trends on the Asia-Europe lane suggest “robust” volume growth in January from China’s inland air freight hubs of Chongqing, Chengdu and Zhengzhou, according to Rotate analyst Ray Zedov. While Asia to US capacity was down year over year from all Asia-Pacific regions, “a deeper dive into the US market shows that capacity from Vietnam continues to grow as Chinese imports to the US are impacted by the new tariff policy in the US,” Zedov told the Journal of Commerce. The US removed its “de minimis” duty exemption on low-value goods from all its trading partners on Aug. 29 last year following the scrapping of duty-free access for low-value Chinese imports in May. Sou Ping Chee, regional head of air freight in Asia-Pacific for Hellmann Worldwide Logistics, said volume out of Asia had weakened by early February even with the holidays just two weeks away, which suggests muted demand this year. “However, there is still a general expectation that demand will pick up next week ahead of Lunar New Year from China, Hong Kong, Vietnam and Taiwan across industries before these markets close for the biggest festive season in this part of the world,” he said. An Asia-based executive at a global forwarder said he was not seeing any major uptick in demand on China-Europe and the wider Asia Pacific-North America market. “It remains rather flat and even prior to the Lunar New Year we are not seeing anything exceptional,” the source said. He added that although overall demand out of Asia-Pacific to North America has flattened out, demand out of Taipei and Vietnam has remained solid. “Taipei-US, Bangkok-US and Hanoi-US are busy,” he said. “Rates are holding steady at a higher level and demand remains strong, largely driven by AI-related components. Bangkok-Europe and Vietnam-Europe are also busy.” Rates rising on Asian export trade lanes Netherlands-based air cargo analyst WorldACD said after two weeks of strong sequential volume growth from Asia-Pacific to US and Europe markets, overall week-over-week growth came to a halt last week with flat volumes for both trade lanes. When compared with the same week last year, volume to the US was down 1% and volume to Europe was up 7%. While spot rates on the trans-Pacific and Asia-Europe in the last week of January were down 9% year over year, there were significant week-over-week increases on both trades, particularly from China origins, WorldACD data shows. Spot rates to the US last week rose 6% compared with the previous week to $4.02 per kilogram, while rates to Europe were up 7% at $3.80/kg as the market edged into the pre-Lunar New Year peak and capacity tightened on some airport pairings. Sou noted that rates on the Asian export trade lanes have remained at healthy levels in the first weeks of 2026 after softening over the Christmas period. “As such we do not expect as sharp an increase now, but rather spot rates are likely to creep up as we enter the last 10 days to Lunar New Year and pick up momentum from next week onwards,” he said. Willie Walsh, director general of the International Air Transport Association (IATA), said the moderate demand will extend to the full year, with global air freight demand in 2026 expected to grow 2.4% from 2025, although that would be down from last year’s 3.4% growth over 2024. “We can expect that demand will continue to be shaped by trade and geopolitical developments,” Walsh noted in a January market update, adding that carriers will continue to relocate capacity to support shifting trade patterns. Contact Greg Knowler at  greg.knowler@spglobal.com .   

Solid January demand to largely mute Lunar New Year air freight rush

<div class="phx-topic abstract-wrapper">The India/Middle East-Mediterranean service will be the first Gemini loop in two years to transit the Red Sea, with plans for other services to follow “where possible,” the alliance partners say.</div>

The India/Middle East-Mediterranean service will be the first Gemini loop in two years to transit the Red Sea, with plans for other services to follow “where possible,” the alliance partners say.

<div class="phx-topic">Gemini Cooperation partners Maersk and Hapag-Lloyd said Tuesday that the first vessels in their ME11/IMX service will be routed through the Suez Canal in mid-February, with plans by the carriers to send two other services through the waterway. The Journal of Commerce reported on Jan. 15 that the ME11/IMX service <a href="https://www.joc.com/article/gemini-india-med-service-the-next-to-plan-return-to-red-seasuez-passage-6152941">would resume the Suez route “shortly,”</a> citing a Maersk executive. It would be the first time in more than two years that a Gemini service has transited the Red Sea. “The service in scope is the ME11 service, which connects India and the Middle East with the Mediterranean,” Maersk said in a statement. “From mid-February, changes will be implemented on westbound sailings as of the vessel Albert Maersk and on eastbound sailings as of the vessel Astrid Maersk.” On the initial westbound sailing, the Albert Maersk will depart Mundra in India on Feb. 4 after arriving from Jebel Ali in the United Arab Emirates; on the eastbound sailing, the Astrid Maersk will depart Valencia in Spain on Feb. 3. A naval escort will ride shotgun during the Red Sea passages to guard against attacks by Yemen’s Houthi militants, the Gemini statement noted. Maersk and Hapag-Lloyd also said that “where possible,” they will redirect Gemini’s AE12 Asia-Mediterranean and AE15 Asia-Turkey services through the Red Sea and Suez “at a later stage.” The carriers said further information for customers will follow, but no further changes to the Gemini network related to the Red Sea were foreseen at this stage. “We see this announcement as another important milestone for the industry,” J.P. Morgan said Tuesday in a note to customers. “It demonstrates the willingness of container shipping lines to improve flows and increase sailings via the Suez Canal.” But the investment bank said the market has yet to price in a sustained return to the Suez, which will add up to 7% of effective capacity to the global fleet. Earlier this year, Maersk made its first structural move back into the Red Sea by <a href="https://www.joc.com/article/maersk-set-to-resume-regular-suez-transits-on-india-usec-mecl-loop-sources-6152441">rerouting its standalone MECL service</a>, which links the Middle East and India with the US East Coast via the Suez Canal. <h3>Regional unease over volatile US-Iran relations </h3>The regional situation remains tense, with a US carrier strike group now stationed in the Gulf of Oman to back up threats by President Donald Trump to launch military strikes on Iran. Tehran has vowed to respond to any attacks, which may spill over into the southern Red Sea controlled by Iran-backed Houthi militants. Gemini said switching the services from around the Cape of Good Hope to Suez would be carried out in a way that keeps disruption for customers to a minimum. But in a nod to the volatile regional security situation, the Gemini statement added: “Contingency plans are in place should the security situation deteriorate, which may necessitate reverting individual sailings or the wider structural change of the ME11 service back to the Cape of Good Hope route.” Carriers have been forced to divert vessels around southern Africa since late 2023, when the Houthis began their attacks against commercial shipping to protest Israel’s move into Gaza. Maersk and Hapag-Lloyd also warned shippers to review their bookings on the ME11 service and ensure they had sufficient insurance cover for their cargo being transported through the area. <a href="https://www.joc.com/article/shippers-shoulder-burden-of-red-sea-uncertainty-as-regional-tensions-rise-again-6160632">Cargo insurance is a significant hurdle for shippers</a> with freight transiting the Red Sea. Some shippers say their insurance brokers have refused to provide cover, while others say the high cost of premiums was prohibitive. Contact Greg Knowler at <a href="">greg.knowler@spglobal.com</a>.     </div>

Gemini Cooperation partners Maersk and Hapag-Lloyd said Tuesday that the first vessels in their ME11/IMX service will be routed through the Suez Canal in mid-February, with plans by the carriers to send two other services through the waterway. The Journal of Commerce reported on Jan. 15 that the ME11/IMX service would resume the Suez route “shortly,” citing a Maersk executive. It would be the first time in more than two years that a Gemini service has transited the Red Sea. “The service in scope is the ME11 service, which connects India and the Middle East with the Mediterranean,” Maersk said in a statement. “From mid-February, changes will be implemented on westbound sailings as of the vessel Albert Maersk and on eastbound sailings as of the vessel Astrid Maersk.” On the initial westbound sailing, the Albert Maersk will depart Mundra in India on Feb. 4 after arriving from Jebel Ali in the United Arab Emirates; on the eastbound sailing, the Astrid Maersk will depart Valencia in Spain on Feb. 3. A naval escort will ride shotgun during the Red Sea passages to guard against attacks by Yemen’s Houthi militants, the Gemini statement noted. Maersk and Hapag-Lloyd also said that “where possible,” they will redirect Gemini’s AE12 Asia-Mediterranean and AE15 Asia-Turkey services through the Red Sea and Suez “at a later stage.” The carriers said further information for customers will follow, but no further changes to the Gemini network related to the Red Sea were foreseen at this stage. “We see this announcement as another important milestone for the industry,” J.P. Morgan said Tuesday in a note to customers. “It demonstrates the willingness of container shipping lines to improve flows and increase sailings via the Suez Canal.” But the investment bank said the market has yet to price in a sustained return to the Suez, which will add up to 7% of effective capacity to the global fleet. Earlier this year, Maersk made its first structural move back into the Red Sea by rerouting its standalone MECL service , which links the Middle East and India with the US East Coast via the Suez Canal. Regional unease over volatile US-Iran relations The regional situation remains tense, with a US carrier strike group now stationed in the Gulf of Oman to back up threats by President Donald Trump to launch military strikes on Iran. Tehran has vowed to respond to any attacks, which may spill over into the southern Red Sea controlled by Iran-backed Houthi militants. Gemini said switching the services from around the Cape of Good Hope to Suez would be carried out in a way that keeps disruption for customers to a minimum. But in a nod to the volatile regional security situation, the Gemini statement added: “Contingency plans are in place should the security situation deteriorate, which may necessitate reverting individual sailings or the wider structural change of the ME11 service back to the Cape of Good Hope route.” Carriers have been forced to divert vessels around southern Africa since late 2023, when the Houthis began their attacks against commercial shipping to protest Israel’s move into Gaza. Maersk and Hapag-Lloyd also warned shippers to review their bookings on the ME11 service and ensure they had sufficient insurance cover for their cargo being transported through the area. Cargo insurance is a significant hurdle for shippers with freight transiting the Red Sea. Some shippers say their insurance brokers have refused to provide cover, while others say the high cost of premiums was prohibitive. Contact Greg Knowler at  greg.knowler@spglobal.com .    

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Maersk, Hapag-Lloyd confirm they’ll route Gemini service through Suez

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