<div class="phx-topic abstract-wrapper">Walter H. Johnson Jr., a world respected air cargo industry pioneer, died Tuesday from complications</div>

Walter H. Johnson Jr., a world respected air cargo industry pioneer, died Tuesday from complications

<div>Walter H. Johnson Jr., a world respected air cargo industry pioneer, died Tuesday from complications related to a car accident he suffered one month ago. He was 84. Johnson was one of the founders of The International Air Cargo Association and a past president of the organization. At the time of his death, he was chairman of Tiaca's Education Committee and one of the association's most prolific advisers and planners. An authoritative speaker, writer and researcher, Johnson used his expertise to help promote the worldwide air cargo industry.'Walter Johnson was an exceptional and multi-talented person. His inspiration, hard work, devotion...

Walter H. Johnson Jr., a world respected air cargo industry pioneer, died Tuesday from complications related to a car accident he suffered one month ago. He was 84. Johnson was one of the founders of The International Air Cargo Association and a past president of the organization. At the time of his death, he was chairman of Tiaca's Education Committee and one of the association's most prolific advisers and planners. An authoritative speaker, writer and researcher, Johnson used his expertise to help promote the worldwide air cargo industry. 'Walter Johnson was an exceptional and multi-talented person. His inspiration, hard work, devotion and support helped to take Tiaca from just an idea to being the worldwide representative body of all parts of the air cargo business,' said Larry Coyne, the association's current president.Coyne praised Johnson's ability to analyze and tackle difficult issues and formulate intelligent, positive policies. 'I relied heavily on Walter for advice and inspiration and I, amongst many others, will miss him very much,' Coyne said in a statement. Born in New York in 1917, Johnson joined American Airlines after graduating from Notre Dame in 1939. He quickly moved up through the sales and marketing departments. When American launched the first airline cargo department and field organization he became an original member. During World War II, he served in the Pacific as an air logistics officer with the Marine Corps, rising to the rank of captain. After the war, he returned to American Airlines and rose to the position of vice president of sales, Eastern Region, and finally to vice president of sales worldwide. In 1958, he joined Capital Airlines as an executive vice president and board member and was active in negotiating the merger between Capital and United Airlines. After the merger, Johnson went into advertising and public relations. He was active in planning and project activity with Presidents Eisenhower, Kennedy, Johnson and Nixon and worked closely with the secretary of commerce to develop the U.S. Travel Service. From 1978 until his death, he worked as a consultant, serving a variety of clients, including Tiaca. He was renowned for his adept summaries of the presentations made by all the conference speakers at Tiaca's biennial Air Cargo Forum. Johnson also lectured at numerous colleges around the world, including Harvard, Virginia, the New School, New York University, Northwestern, Ohio State, American University, Michigan State, North Carolina, and Syracuse. He is survived by his wife of 57 years, Marcelle; his four children, Gina, Hank, Kevin and Bruce; and 18 grandchildren. Services will be held at St. Aloysius Church, 40 Maple Ave. New Canaan, Conn., on Monday. In lieu of flowers, donations can be made to The Walter and Marcelle Johnson Fund at The Harvey School, Katonah, N.Y.

Air Cargo

WALTER JOHNSON, AIR-CARGO PIONEER, DIES

<div class="phx-topic abstract-wrapper">The long-term prospect for diesel costs and fuel surcharges is pushing US truck shippers to rethink how they move freight, and even to redesign networks. </div>

The long-term prospect for diesel costs and fuel surcharges is pushing US truck shippers to rethink how they move freight, and even to redesign networks.

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<div class="phx-topic">Diesel prices stuck above $5 per gallon are adding significantly to US trucking costs, squeezing shippers between rising rates and fuel surcharges and tightening capacity, with continued geopolitical uncertainty making a return to lower fuel prices unlikely for the foreseeable future. Companies such as packaged meats manufacturer Smithfield Foods are considering multiple options to control costs. “We’ve done lane consolidation, [we’re] <a href="https://www.joc.com/article/soaring-truck-rates-power-major-rebound-in-domestic-intermodal-volume-6208736">adding intermodal</a>,” Smithfield’s CEO Charles Shane Smith said on an earnings call last week in response to a question about the impact of rising fuel prices. The Virginia-based company eliminated one million road miles in 2025 by optimizing its transportation network and expects to take another million miles off the road in 2026. “We’re still looking at hedging opportunities for diesel where we can, driving fewer miles,” Smith said. But higher oil and fuel prices ripple throughout Smithfield’s freight, packaging and agricultural costs. Soaring oil prices also affect the cost of resin-based packaging, for example, and the cost of agricultural feed supporting hog production, Smith said. Andrew Silvernail, CEO of International Paper, noted that rising freight costs are not passed through directly, but recovered “through pricing over time.” “Diesel prices are putting pressure on costs across the supply chain,” Silvernail said during an earnings call last week. “Combined with an exceptionally tight freight market, this remains a strong headwind.” Fuel’s headwinds are both global and domestic, with the impact of higher fuel costs on ocean and air cargo rippling deep into trucking and rail networks, putting pressure on transportation rates shippers pay and, eventually, the costs of goods to their customers. The average price of diesel fuel in the US has been above $5 per gallon since March 16, according to the US Energy Information Administration. It was $3.81 per gallon when the war began. In 2022, following Russia’s invasion of Ukraine, the US average diesel price stayed above $5 per gallon for 21 weeks, averaging $5.43 per gallon from March into early August. It spiked north of $5 per gallon again for 11 weeks from late August through November of that year. <h3>Dislocated freight drives costs </h3>War-linked <a href="https://www.joc.com/article/cost-hit-ocean-carriers-roll-out-series-of-rate-increases-fuel-surcharges-6202474">bunker fuel surcharges</a> are raising costs for US importers and <a href="https://www.joc.com/article/middle-east-fuel-shock-exacerbates-rising-us-ag-export-costs-6213888">exporters</a>, and ocean shipping lines are trying to constrain costs through increased direct sailings and slow steaming. Soaring jet fuel costs are grounding <a href="https://www.joc.com/article/rising-jet-fuel-costs-challenging-freighter-viability-as-war-enters-second-month-6199130">air cargo capacity</a>. That’s already leading to some mismatch between freight and capacity once shipments arrive in the US, and that dislocation means more truck miles and higher fuel costs. “People who had lead times built into supply chains, those lead times have been compressed,” Ryan Carter, executive vice president of the Americas at AIT Worldwide Logistics, told the Journal of Commerce. Global disruption — whether caused by the closure of the Strait of Hormuz or a pandemic — expedites demand, he said. “Time is your most valuable commodity,” Carter said. “We’ve seen an increase in tie-ins [between international and domestic transportation] that claws back time for those sourcing goods internationally that’s been lost since the conflict began.” Shippers need to be aware of the total cost impact from higher oil prices, said Jenny Vander Zanden, COO of Breakthrough, a transportation technology firm specializing in fuel cost management. “Part of that is understanding the difference between diesel and gasoline price dynamics,” Vander Zanden told the Journal of Commerce. Gas prices tend to fluctuate in sync with oil prices, but not diesel prices. One reason is that gasoline prices tend to be “elastic,” while diesel prices are not. When gasoline prices surge, consumers can, to an extent, cut back on fuel use. It’s much harder for diesel-using truckers and farmers to make fewer trips or plow fewer acres. “When I go to Walmart, I need my stuff — I don’t care if diesel prices are going higher,” said Keith Prather, managing director at Armada Corporate Intelligence. Walmart has to cover the higher diesel price to ensure goods are on its shelves for consumers. “I don’t think diesel prices are going to snap back” if oil prices drop, Prather told the Journal of Commerce. “It’s a question of how long diesel prices stay up.” <h3>Intermodal moment </h3>Intermodal rail is likely to <a href="https://www.joc.com/article/tailwinds-for-us-intermodal-volume-growth-strengthening-analyst-6206045">gain more business</a> the longer fuel prices remain elevated. “A revisit with intermodal is needed to think about strategic road maps to transportation,” Vander Zanden said. “There are some real savings opportunities with intermodal.” The Journal of Commerce Intermodal Savings Index (ISI) shows why that’s the case. In March, the ISI intermodal contract rate, including fuel, was up 8 cents year over year at $1.65 per mile. At $2.34 per mile, the truckload contract rate was up 50 cents from a year ago. That all-inclusive truckload contract rate leapt 14.8% year over year, with higher fuel costs accounting for more than 1,000 basis points of the increase, according to a Journal of Commerce analysis. Sans fuel, the ISI truckload rate was up only 4.4% year over year. That’s a clear indication of how much shippers are really paying in higher fuel costs. Shifting freight to intermodal is part of an answer, but shippers need to find ways to rein in miles driven by their carriers as well, especially deadhead or empty miles. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="a1244989-1fd3-41a3-9782-0bf65208b331"></dynamic-object></div>If fuel costs remain elevated for months, rather than weeks, shippers will face even more pressure to rethink transportation networks. Uber Freight says the number of shippers approaching the logistics provider for network optimization is rising fast. That’s especially true for companies that shrank their inventory in late 2025 and now face high replenishment costs. “There was a big push among many companies to reduce inventory in late 2025, with the expectation they could replenish in the first quarter,” Bob Daymon, head of client freight for Uber Freight, told the Journal of Commerce. “They’re finding costs are considerably higher than they expected,” Daymon said. Shippers have “drawn mental lines” based on how long the war in the Middle East and high fuel prices last, he said, adding: “I see the queue filling up with requests for network optimization.” Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

Diesel prices stuck above $5 per gallon are adding significantly to US trucking costs, squeezing shippers between rising rates and fuel surcharges and tightening capacity, with continued geopolitical uncertainty making a return to lower fuel prices unlikely for the foreseeable future. Companies such as packaged meats manufacturer Smithfield Foods are considering multiple options to control costs. “We’ve done lane consolidation, [we’re] adding intermodal ,” Smithfield’s CEO Charles Shane Smith said on an earnings call last week in response to a question about the impact of rising fuel prices. The Virginia-based company eliminated one million road miles in 2025 by optimizing its transportation network and expects to take another million miles off the road in 2026. “We’re still looking at hedging opportunities for diesel where we can, driving fewer miles,” Smith said. But higher oil and fuel prices ripple throughout Smithfield’s freight, packaging and agricultural costs. Soaring oil prices also affect the cost of resin-based packaging, for example, and the cost of agricultural feed supporting hog production, Smith said. Andrew Silvernail, CEO of International Paper, noted that rising freight costs are not passed through directly, but recovered “through pricing over time.” “Diesel prices are putting pressure on costs across the supply chain,” Silvernail said during an earnings call last week. “Combined with an exceptionally tight freight market, this remains a strong headwind.” Fuel’s headwinds are both global and domestic, with the impact of higher fuel costs on ocean and air cargo rippling deep into trucking and rail networks, putting pressure on transportation rates shippers pay and, eventually, the costs of goods to their customers. The average price of diesel fuel in the US has been above $5 per gallon since March 16, according to the US Energy Information Administration. It was $3.81 per gallon when the war began. In 2022, following Russia’s invasion of Ukraine, the US average diesel price stayed above $5 per gallon for 21 weeks, averaging $5.43 per gallon from March into early August. It spiked north of $5 per gallon again for 11 weeks from late August through November of that year. Dislocated freight drives costs War-linked bunker fuel surcharges are raising costs for US importers and exporters , and ocean shipping lines are trying to constrain costs through increased direct sailings and slow steaming. Soaring jet fuel costs are grounding air cargo capacity . That’s already leading to some mismatch between freight and capacity once shipments arrive in the US, and that dislocation means more truck miles and higher fuel costs. “People who had lead times built into supply chains, those lead times have been compressed,” Ryan Carter, executive vice president of the Americas at AIT Worldwide Logistics, told the Journal of Commerce. Global disruption — whether caused by the closure of the Strait of Hormuz or a pandemic — expedites demand, he said. “Time is your most valuable commodity,” Carter said. “We’ve seen an increase in tie-ins [between international and domestic transportation] that claws back time for those sourcing goods internationally that’s been lost since the conflict began.” Shippers need to be aware of the total cost impact from higher oil prices, said Jenny Vander Zanden, COO of Breakthrough, a transportation technology firm specializing in fuel cost management. “Part of that is understanding the difference between diesel and gasoline price dynamics,” Vander Zanden told the Journal of Commerce. Gas prices tend to fluctuate in sync with oil prices, but not diesel prices. One reason is that gasoline prices tend to be “elastic,” while diesel prices are not. When gasoline prices surge, consumers can, to an extent, cut back on fuel use. It’s much harder for diesel-using truckers and farmers to make fewer trips or plow fewer acres. “When I go to Walmart, I need my stuff — I don’t care if diesel prices are going higher,” said Keith Prather, managing director at Armada Corporate Intelligence. Walmart has to cover the higher diesel price to ensure goods are on its shelves for consumers. “I don’t think diesel prices are going to snap back” if oil prices drop, Prather told the Journal of Commerce. “It’s a question of how long diesel prices stay up.” Intermodal moment Intermodal rail is likely to gain more business the longer fuel prices remain elevated. “A revisit with intermodal is needed to think about strategic road maps to transportation,” Vander Zanden said. “There are some real savings opportunities with intermodal.” The Journal of Commerce Intermodal Savings Index (ISI) shows why that’s the case. In March, the ISI intermodal contract rate, including fuel, was up 8 cents year over year at $1.65 per mile. At $2.34 per mile, the truckload contract rate was up 50 cents from a year ago. That all-inclusive truckload contract rate leapt 14.8% year over year, with higher fuel costs accounting for more than 1,000 basis points of the increase, according to a Journal of Commerce analysis. Sans fuel, the ISI truckload rate was up only 4.4% year over year. That’s a clear indication of how much shippers are really paying in higher fuel costs. Shifting freight to intermodal is part of an answer, but shippers need to find ways to rein in miles driven by their carriers as well, especially deadhead or empty miles. If fuel costs remain elevated for months, rather than weeks, shippers will face even more pressure to rethink transportation networks. Uber Freight says the number of shippers approaching the logistics provider for network optimization is rising fast. That’s especially true for companies that shrank their inventory in late 2025 and now face high replenishment costs. “There was a big push among many companies to reduce inventory in late 2025, with the expectation they could replenish in the first quarter,” Bob Daymon, head of client freight for Uber Freight, told the Journal of Commerce. “They’re finding costs are considerably higher than they expected,” Daymon said. Shippers have “drawn mental lines” based on how long the war in the Middle East and high fuel prices last, he said, adding: “I see the queue filling up with requests for network optimization.” Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

Rail News

Intermodal providers

Surface

Rising fuel costs forcing US truck shippers to shift freight

<div class="phx-topic abstract-wrapper">The services, which include land bridge options to circumvent the still-effectively closed Strait of Hormuz, appear to be an acknowledgement by the liners that Hormuz will remain a no-go zone for the foreseeable future.</div>

The services, which include land bridge options to circumvent the still-effectively closed Strait of Hormuz, appear to be an acknowledgement by the liners that Hormuz will remain a no-go zone for the foreseeable future.

<div class="phx-topic">Hapag-Lloyd and Mediterranean Shipping Co. have become among the first ocean carriers to restore seaborne cargo links to the upper Persian Gulf that have been largely severed since early March due to the war in the Middle East. The services, which include land bridge options to circumvent the still-effectively closed Strait of Hormuz, appear to be an acknowledgement by the liners that Hormuz will remain a no-go zone for the foreseeable future. Hostilities <a href="https://www.nytimes.com/live/2026/05/04/world/iran-hormuz-ships-navy">that flared there Monday</a> demonstrate that reality. Hapag and MSC have announced separate services in the last three days that use third-party feeder vessels to connect ports such as Dubai’s Jebel Ali, Damman in Saudi Arabia and Shuwaikh in Kuwait. It has allowed Hapag-Lloyd to resume cargo bookings for the upper Gulf, the carrier said in an advisory Monday, while MSC is using feeders to help launch an express service connecting Europe, the Red Sea and Middle East, it said over the weekend. The carriers join CMA CGM, <a href="https://www.joc.com/article/as-war-rages-multimodal-demand-surges-on-asia-europe-landbridge-6185162">which has been using feeder vessels since March</a> as part of a wider multimodal service network it launched in the region after lifting a brief halt in cargo bookings. But Maersk said in an advisory Monday it would continue to suspend bookings for dry, reefer and in-gauge cargo to and from the UAE (except for Khor Fakkan), Iraq, Kuwait, Qatar, Saudi Arabia and Bahrain. <h3>‘Subject to transit safety conditions’ </h3>Hapag-Lloyd said dry cargo, reefer and in-gauge special freight containers are the only freight being accepted under its booking resumption. The carrier said the feeder services will operate between Sharjah and other key ports in the UAE, as well as Kuwait, Saudi Arabia, Qatar and Iraq. A bonded trucking service will connect Sharjah with Khor Fakkan on the Gulf of Oman, which has shipping services linking with Mundra and Nhava Sheva in India and Salalah in Oman, Hapag-Lloyd said. The lead time for the bonded road transport between Sharjah and Khor Fakkan is about five days, Hapag-Lloyd said in its advisory. The carrier halted all bookings for the upper Gulf region on March 4, shortly after the US and Israel launched their attacks on Iran on Feb. 28. Highlighting the ongoing security risk to shipping services in the Gulf, Hapag indicated the feeder services will operate on a semi-ad hoc basis. “Feeder rotations do not operate on a fixed weekly schedule and remain subject to transit safety conditions in the region,” the carrier said in its advisory. MSC, meanwhile, confirmed it will use a similar feeder network in the upper Persian Gulf as part of a new Europe-Red Sea-Middle East express service beginning May 10. The service will connect Jebel Ali, Abu Dhabi, Kuwait and Iraq’s Umm Qasr with Damman, from where cargo will be trucked across Saudi Arabia to connect with the Red Sea port of King Abdullah. MSC said the express service is being launched “in response to the growing demand [for] services from Europe to the Red Sea and to the challenging scenario in the Middle East.” The first sailing is scheduled from Antwerp on May 10. The full mainline eastbound rotation is Gdansk, Klaipeda, Bremerhaven, Antwerp, Valencia, Barcelona, Gioia Tauro, Abu Kir, King Abdullah, Jeddah and Aqaba. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Hapag-Lloyd and Mediterranean Shipping Co. have become among the first ocean carriers to restore seaborne cargo links to the upper Persian Gulf that have been largely severed since early March due to the war in the Middle East. The services, which include land bridge options to circumvent the still-effectively closed Strait of Hormuz, appear to be an acknowledgement by the liners that Hormuz will remain a no-go zone for the foreseeable future. Hostilities that flared there Monday demonstrate that reality. Hapag and MSC have announced separate services in the last three days that use third-party feeder vessels to connect ports such as Dubai’s Jebel Ali, Damman in Saudi Arabia and Shuwaikh in Kuwait. It has allowed Hapag-Lloyd to resume cargo bookings for the upper Gulf, the carrier said in an advisory Monday, while MSC is using feeders to help launch an express service connecting Europe, the Red Sea and Middle East, it said over the weekend. The carriers join CMA CGM, which has been using feeder vessels since March as part of a wider multimodal service network it launched in the region after lifting a brief halt in cargo bookings. But Maersk said in an advisory Monday it would continue to suspend bookings for dry, reefer and in-gauge cargo to and from the UAE (except for Khor Fakkan), Iraq, Kuwait, Qatar, Saudi Arabia and Bahrain. ‘Subject to transit safety conditions’ Hapag-Lloyd said dry cargo, reefer and in-gauge special freight containers are the only freight being accepted under its booking resumption. The carrier said the feeder services will operate between Sharjah and other key ports in the UAE, as well as Kuwait, Saudi Arabia, Qatar and Iraq. A bonded trucking service will connect Sharjah with Khor Fakkan on the Gulf of Oman, which has shipping services linking with Mundra and Nhava Sheva in India and Salalah in Oman, Hapag-Lloyd said. The lead time for the bonded road transport between Sharjah and Khor Fakkan is about five days, Hapag-Lloyd said in its advisory. The carrier halted all bookings for the upper Gulf region on March 4, shortly after the US and Israel launched their attacks on Iran on Feb. 28. Highlighting the ongoing security risk to shipping services in the Gulf, Hapag indicated the feeder services will operate on a semi-ad hoc basis. “Feeder rotations do not operate on a fixed weekly schedule and remain subject to transit safety conditions in the region,” the carrier said in its advisory. MSC, meanwhile, confirmed it will use a similar feeder network in the upper Persian Gulf as part of a new Europe-Red Sea-Middle East express service beginning May 10. The service will connect Jebel Ali, Abu Dhabi, Kuwait and Iraq’s Umm Qasr with Damman, from where cargo will be trucked across Saudi Arabia to connect with the Red Sea port of King Abdullah. MSC said the express service is being launched “in response to the growing demand [for] services from Europe to the Red Sea and to the challenging scenario in the Middle East.” The first sailing is scheduled from Antwerp on May 10. The full mainline eastbound rotation is Gdansk, Klaipeda, Bremerhaven, Antwerp, Valencia, Barcelona, Gioia Tauro, Abu Kir, King Abdullah, Jeddah and Aqaba. Contact Keith Wallis at keithwallis@hotmail.com .

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Container Shipping News

Maritime

Hapag-Lloyd, MSC to use feeders to restore upper Persian Gulf cargo links

<div class="phx-topic abstract-wrapper">The move coincides with plans by XCTG to develop new berths, upgrade existing berths, and develop a multimodal smart logistics center.</div>

The move coincides with plans by XCTG to develop new berths, upgrade existing berths, and develop a multimodal smart logistics center.

<div class="phx-topic">PSA International, the world’s largest container terminal operator, has expanded its portfolio in China after agreeing to pay $388 million for a 30% stake in Xiamen Container Terminal Group Co. (XCTG) in Fujian province. The move coincides with plans by XCTG to develop new berths, upgrade existing berths, and develop a multimodal smart logistics center. The Singapore-headquartered port operator is acquiring its stake through subsidiary PSA Amoy from XCTG’s parent, Xiamen Port Development Co., after the latter invited public bids for the investment. The deal also includes an increase in PSA’s stake in the Xiamen Port Intermodal Logistics Hub. XCTG comprises eight container terminals with a combined annual capacity of 20 million TEUs, although the company actually handled 12.5 million TEUs last year, a 2% increase over the prior year. Expansion projects there include the construction of five new berths, including in Xiamen’s Gulei Port North, Hai'an, and Haicang port areas, Shenzhen-listed Xiamen Port Development Co. said in regulatory filing. Other plans include new warehouse projects and the expansion of shore-power facilities at existing berths. PSA’s investment, which still has to be approved by regulatory agencies in China, was confirmed in separate statements late last week by PSA and Xiamen Port Development. It also comes about two months after Chinese regulators approved the $1.1 billion acquisition by Xiamen Port Development of a 70% stake in XCTG from Xiamen International Port Co. PSA, which handled a total of 105 million TEUs last year, also operates six other container terminals in China including Dalian, Guangzhou, Tianjin, and Lianyungang near Shanghai. “This partnership reflects the strong alignment between Xiamen Port Group and PSA in supporting the Silk Road maritime strategy and enhancing Fujian’s role in international trade and shipping,” Xiamen Port Group chairman Cai Li Qun said in a statement announcing the deal. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

PSA International, the world’s largest container terminal operator, has expanded its portfolio in China after agreeing to pay $388 million for a 30% stake in Xiamen Container Terminal Group Co. (XCTG) in Fujian province. The move coincides with plans by XCTG to develop new berths, upgrade existing berths, and develop a multimodal smart logistics center. The Singapore-headquartered port operator is acquiring its stake through subsidiary PSA Amoy from XCTG’s parent, Xiamen Port Development Co., after the latter invited public bids for the investment. The deal also includes an increase in PSA’s stake in the Xiamen Port Intermodal Logistics Hub. XCTG comprises eight container terminals with a combined annual capacity of 20 million TEUs, although the company actually handled 12.5 million TEUs last year, a 2% increase over the prior year. Expansion projects there include the construction of five new berths, including in Xiamen’s Gulei Port North, Hai'an, and Haicang port areas, Shenzhen-listed Xiamen Port Development Co. said in regulatory filing. Other plans include new warehouse projects and the expansion of shore-power facilities at existing berths. PSA’s investment, which still has to be approved by regulatory agencies in China, was confirmed in separate statements late last week by PSA and Xiamen Port Development. It also comes about two months after Chinese regulators approved the $1.1 billion acquisition by Xiamen Port Development of a 70% stake in XCTG from Xiamen International Port Co. PSA, which handled a total of 105 million TEUs last year, also operates six other container terminals in China including Dalian, Guangzhou, Tianjin, and Lianyungang near Shanghai. “This partnership reflects the strong alignment between Xiamen Port Group and PSA in supporting the Silk Road maritime strategy and enhancing Fujian’s role in international trade and shipping,” Xiamen Port Group chairman Cai Li Qun said in a statement announcing the deal. Contact Keith Wallis at keithwallis@hotmail.com .

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Port infrastructure

Marine terminals

International ports

Singapore’s PSA invests $388 million in Xiamen’s XCTG port group

<div class="phx-topic abstract-wrapper">Linde has adopted a “guarded” outlook for the rest of 2026 as Air Liquide looks to a “rebound effect” in the US for an uplift. Linde has adopted a “guarded” outlook for the rest of 2026 as Air Liquide looks to a “rebound effect” in the US for an uplift. </div>

Linde has adopted a “guarded” outlook for the rest of 2026 as Air Liquide looks to a “rebound effect” in the US for an uplift. Linde has adopted a “guarded” outlook for the rest of 2026 as Air Liquide looks to a “rebound effect” in the US for an uplift.

<div class="phx-topic">Against a backdrop of economic uncertainties, the two largest global industrial gas suppliers are riding on record-high project backlogs while looking to gains from the North American market. In their latest earnings statements, suppliers Linde and Air Liquide highlighted key project wins in the electronics sector while maintaining a cautious tone amid industrial disruptions related to the war in the Middle East. Considered bellwether companies for industrial market trends, Linde and Air Liquide are key shippers of breakbulk and project cargo such as gas storage tanks and heavy equipment for large industrial projects. They supply to industries including manufacturing, chemicals and steel production. With global economic conditions in flux and continued weakness in traditional industrial markets across Europe, the Middle East and Africa, Linde — the world’s largest industrial gas supplier — is taking a “guarded” outlook on its performance for the remainder of the year while posting a record project backlog of nearly $10 billion. The backlog represents industrial gas and engineering project contracts that have been awarded but not yet started. First-quarter project orders grew 24% to $640 million. In his remarks during Linde’s May 1 first-quarter earnings call, CEO Sanjiv Lambda described the 2025 economic environment as a “study in contrast” that set the stage for a challenging backdrop for the industrial sectors the US-German company serves. “On one hand, exuberant investment in AI and digital infrastructure drove unprecedented activity,” he said. “On the other hand, traditional industrial markets like manufacturing, metals, chemicals and energy faced continued retrenchment.” Of the company’s $10 billion backlog, 71% of projects are from the Americas, with 64% in the chemicals sector and 66% qualifying as clean energy. “The US, and I've said this over and over again, proves to be a really resilient market,” Lambda said. “Sales are up across almost every end market.” The company expects $2.5 billion to $3 billion of its projects to start in 2026. Not included in the $10 billion backlog is over $500 million in industrial gas infrastructure projects to supply rocket fuel to the commercial space sector. <h3>Air Liquide readies steel, chip projects </h3>French industrial gas supplier Air Liquide is preparing to deliver two major industrial projects in the US and Asia as the company’s project backlog reached an all-time high of $6.5 billion in the first quarter, up 23% from a year ago. The backlog includes nearly 75 projects globally, balanced between the large industry and electronics sectors. “These are tangible, high-quality projects currently under construction that will fuel our profitable growth as they come online,” CEO François Jackow said during the company’s April 28 first-quarter earnings call. Among its first-quarter project wins, Air Liquide will invest over $350 million in pipeline infrastructure for a low-carbon steel mill Hyundai Steel and POSCO Group are building in Louisiana. The $5.8 billion plant is set for completion by 2029. “This project is a perfect illustration of the industrial reshoring trend currently revitalizing the US market,” Jackow said. The company will also invest $234 million to build two ultra-high purity carrier gas units for a global semiconductor chip manufacturer. In the second quarter, Air Liquide subsidiary Airgas provided industrial gas equipment and infrastructure to support the Artemis II moon mission. The conflict in the Middle East introduced challenges related to global helium sourcing in the first quarter, as helium is used in Air Liquide’s two key growth markets — healthcare and electronics. Disruptions to the world’s largest liquefied natural gas production facility in Qatar has resulted in a global helium shortage. While Jackow declined to speculate on opportunities that could arise from the conflict, he said structural shifts resulting from the situation could lead to “positive outcomes.” “Air Liquide is uniquely positioned to capture regional shifts in industrial demand, as we have a global footprint,” he said. “Also, we could expect a rebound effect in the US, where lower energy costs and manufacturing policy are attracting global industrial production.” Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

Against a backdrop of economic uncertainties, the two largest global industrial gas suppliers are riding on record-high project backlogs while looking to gains from the North American market. In their latest earnings statements, suppliers Linde and Air Liquide highlighted key project wins in the electronics sector while maintaining a cautious tone amid industrial disruptions related to the war in the Middle East. Considered bellwether companies for industrial market trends, Linde and Air Liquide are key shippers of breakbulk and project cargo such as gas storage tanks and heavy equipment for large industrial projects. They supply to industries including manufacturing, chemicals and steel production. With global economic conditions in flux and continued weakness in traditional industrial markets across Europe, the Middle East and Africa, Linde — the world’s largest industrial gas supplier — is taking a “guarded” outlook on its performance for the remainder of the year while posting a record project backlog of nearly $10 billion. The backlog represents industrial gas and engineering project contracts that have been awarded but not yet started. First-quarter project orders grew 24% to $640 million. In his remarks during Linde’s May 1 first-quarter earnings call, CEO Sanjiv Lambda described the 2025 economic environment as a “study in contrast” that set the stage for a challenging backdrop for the industrial sectors the US-German company serves. “On one hand, exuberant investment in AI and digital infrastructure drove unprecedented activity,” he said. “On the other hand, traditional industrial markets like manufacturing, metals, chemicals and energy faced continued retrenchment.” Of the company’s $10 billion backlog, 71% of projects are from the Americas, with 64% in the chemicals sector and 66% qualifying as clean energy. “The US, and I've said this over and over again, proves to be a really resilient market,” Lambda said. “Sales are up across almost every end market.” The company expects $2.5 billion to $3 billion of its projects to start in 2026. Not included in the $10 billion backlog is over $500 million in industrial gas infrastructure projects to supply rocket fuel to the commercial space sector. Air Liquide readies steel, chip projects French industrial gas supplier Air Liquide is preparing to deliver two major industrial projects in the US and Asia as the company’s project backlog reached an all-time high of $6.5 billion in the first quarter, up 23% from a year ago. The backlog includes nearly 75 projects globally, balanced between the large industry and electronics sectors. “These are tangible, high-quality projects currently under construction that will fuel our profitable growth as they come online,” CEO François Jackow said during the company’s April 28 first-quarter earnings call. Among its first-quarter project wins, Air Liquide will invest over $350 million in pipeline infrastructure for a low-carbon steel mill Hyundai Steel and POSCO Group are building in Louisiana. The $5.8 billion plant is set for completion by 2029. “This project is a perfect illustration of the industrial reshoring trend currently revitalizing the US market,” Jackow said. The company will also invest $234 million to build two ultra-high purity carrier gas units for a global semiconductor chip manufacturer. In the second quarter, Air Liquide subsidiary Airgas provided industrial gas equipment and infrastructure to support the Artemis II moon mission. The conflict in the Middle East introduced challenges related to global helium sourcing in the first quarter, as helium is used in Air Liquide’s two key growth markets — healthcare and electronics. Disruptions to the world’s largest liquefied natural gas production facility in Qatar has resulted in a global helium shortage. While Jackow declined to speculate on opportunities that could arise from the conflict, he said structural shifts resulting from the situation could lead to “positive outcomes.” “Air Liquide is uniquely positioned to capture regional shifts in industrial demand, as we have a global footprint,” he said. “Also, we could expect a rebound effect in the US, where lower energy costs and manufacturing policy are attracting global industrial production.” Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

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<div class="phx-topic abstract-wrapper">Executives say the jump in trucking rates is being driven less by increased volumes and more by higher operating costs and tightening capacity, creating a more fragile recovery. </div>

Executives say the jump in trucking rates is being driven less by increased volumes and more by higher operating costs and tightening capacity, creating a more fragile recovery.

<div class="phx-topic">If wood shipping pallets are a reliable leading indicator of freight demand, the recent surge in US trucking rates may be signaling something other than a true market rebound. Industry executives say the rise in rates is being driven less by increased freight volumes and more by higher operating costs — particularly diesel — combined with tightening capacity. That dynamic is creating a more fragile recovery, even as companies express cautious optimism about the second half of 2026. “There’s a lot of uncertainty right now,” said Brent McClendon, president and CEO of Woodpack Global, an international trade association representing pallet manufacturers in 43 countries. “Demand remains inconsistent. When you’re connected to 90% of the goods that move, some sectors are strong while others are not.” That uneven demand profile has become a defining feature of the current freight cycle. Segments tied to government and defense spending are performing well, while other areas — particularly discretionary consumer goods — remain soft. The result is a fragmented market that lacks the broad-based strength typically seen in the early stages of a freight recovery. “Members supplying military-related firms are doing very well,” McClendon said. “Other parts of the economy are much more sluggish. January and February looked stronger, but March and April were weaker. It’s that ‘fits and starts’ pattern — that uncertainty — that has everyone uncomfortable.” At the same time, cost pressures are reshaping behavior across the supply chain. <h3>Reuse, then restock </h3>At Pennsylvania-based pallet manufacturer TMF Corp., production has declined as customers extend the life of existing pallets to conserve cash and manage higher transportation and materials costs. “Companies are doing what I would do — use every pallet until it’s no longer usable,” said TMF founder and President Tom Fitzgerald. “Pallets are getting beat up more quickly, in part because some manufacturers are using thinner wood to control costs.” TMF produced about 20,000 pallets a week at its peak. That figure has fallen to approximately 15,000, Fitzgerald said — a drop of about 25% that reflects both weaker demand and changing customer behavior. The reuse trend, while practical in the short term, has contributed to a tightening of available pallet supply, setting the stage for potential restocking later this year if freight volumes stabilize or increase. Some early signs of that shift are emerging. Packaging Corp. of America President Thomas Hassfurther told analysts on a recent earnings call that volumes are beginning to recover after a weak first quarter, which is typically the slowest period of the year. “The first quarter is by far the weakest in terms of volume, and then it accelerates through the year,” Hassfurther said. “The good news is it has returned in the second quarter as forecast, giving us flexibility to improve operational efficiency.” <h3>Spot rates still rising </h3>Still, freight market data suggests that the current rate environment is being driven primarily by supply-side constraints rather than a demand surge. DAT Freight &amp; Analytics reported that trucking rates continued to climb through April as capacity tightened and fuel prices rose. In some parts of the country, diesel is more than $2 per gallon higher than a year ago, significantly increasing carriers’ cost base. Excluding fuel surcharges, national dry-van spot rates are 25% higher year over year at a base rate of $2.00 per mile, and 23% above the five-year average. Refrigerated, or reefer, rates sans surcharges have climbed 22% to $2.36 per mile. In produce-growing regions, rates are up 10% year over year to $3.84 per mile before surcharges due to tighter truck availability tied to seasonal demand and limited capacity. Flatbed rates have also surged, reaching $2.69 per mile before surcharges, just 5 cents below the all-time high, after seven consecutive weeks of increases. Rates in that segment are 27% higher than a year ago, reflecting strong demand tied to construction, energy and industrial activity.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="7c4fec07-a5cb-4a65-a29e-d9274d1b9816"></dynamic-object></div>The combination of rising fuel costs and constrained capacity is forcing pricing adjustments across the packaging and materials sector. Crackdowns on <a href="https://www.joc.com/article/impact-of-non-domiciled-cdl-enforcement-splits-us-trucking-sector-6135184">non-domiciled commercial drivers</a> and stricter English-language enforcement are constraining truckload capacity after a four-year freight recession. Packaging Corp. of America plans to implement price increases in 2026 in response to higher raw material and transportation costs. “We have room for further improvement and will continue these efforts through the second and third quarters,” Hassfurther said. “Containerboard prices are up a net $50 per ton since the beginning of the year, and we are working with customers to implement increases.” <h3>Transitional phase </h3>Executives say key end markets remain relatively stable, providing a foundation for cautious optimism. Consumer products and food and beverage shipments have held steady, and there are early signs of strengthening demand tied to residential construction and home improvement — sectors that are particularly sensitive to interest rates and broader economic confidence. “The consumer has been very resilient,” said Packaging Corp. of America CEO Mark Kowlzan. “Our customer base feels good about their business going forward, and tax refunds will provide an additional boost in the second half of the year.” Macroeconomic data also points to modest improvement. US gross domestic product grew at a 2% rate in the second quarter, up from 0.5% growth at the end of 2025. While not indicative of a strong expansion, the increase suggests the economy is stabilizing after a period of slower growth. For the pallet and container sector, that stabilization could translate into increased demand for packaging materials, particularly if retailers and manufacturers begin rebuilding inventories that were drawn down during the recent period of cost control and demand uncertainty. Still, industry leaders caution that significant risks remain. Trade policy, interest rates, war-driven fuel costs and broader business confidence all continue to influence freight demand and pricing dynamics. Any disruption in those areas could quickly alter the trajectory of the recovery. “The industry is cautiously optimistic,” McClendon said. “There are a lot of moving parts — tariffs, policy, diesel prices — but overall, the fundamentals look solid.” For now, the pallet and container sector appears to be navigating a transitional phase, one in which rising costs are driving rates higher even as underlying demand remains uneven. Whether that environment evolves into a sustained freight recovery in the second half of 2026 will depend largely on whether demand begins to catch up with the cost-driven pricing pressures already moving through the supply chain. Contact Dan Ronan at <a href="mailto:contactdanronan@gmail.com">contactdanronan@gmail.com</a>. </div>

If wood shipping pallets are a reliable leading indicator of freight demand, the recent surge in US trucking rates may be signaling something other than a true market rebound. Industry executives say the rise in rates is being driven less by increased freight volumes and more by higher operating costs — particularly diesel — combined with tightening capacity. That dynamic is creating a more fragile recovery, even as companies express cautious optimism about the second half of 2026. “There’s a lot of uncertainty right now,” said Brent McClendon, president and CEO of Woodpack Global, an international trade association representing pallet manufacturers in 43 countries. “Demand remains inconsistent. When you’re connected to 90% of the goods that move, some sectors are strong while others are not.” That uneven demand profile has become a defining feature of the current freight cycle. Segments tied to government and defense spending are performing well, while other areas — particularly discretionary consumer goods — remain soft. The result is a fragmented market that lacks the broad-based strength typically seen in the early stages of a freight recovery. “Members supplying military-related firms are doing very well,” McClendon said. “Other parts of the economy are much more sluggish. January and February looked stronger, but March and April were weaker. It’s that ‘fits and starts’ pattern — that uncertainty — that has everyone uncomfortable.” At the same time, cost pressures are reshaping behavior across the supply chain. Reuse, then restock At Pennsylvania-based pallet manufacturer TMF Corp., production has declined as customers extend the life of existing pallets to conserve cash and manage higher transportation and materials costs. “Companies are doing what I would do — use every pallet until it’s no longer usable,” said TMF founder and President Tom Fitzgerald. “Pallets are getting beat up more quickly, in part because some manufacturers are using thinner wood to control costs.” TMF produced about 20,000 pallets a week at its peak. That figure has fallen to approximately 15,000, Fitzgerald said — a drop of about 25% that reflects both weaker demand and changing customer behavior. The reuse trend, while practical in the short term, has contributed to a tightening of available pallet supply, setting the stage for potential restocking later this year if freight volumes stabilize or increase. Some early signs of that shift are emerging. Packaging Corp. of America President Thomas Hassfurther told analysts on a recent earnings call that volumes are beginning to recover after a weak first quarter, which is typically the slowest period of the year. “The first quarter is by far the weakest in terms of volume, and then it accelerates through the year,” Hassfurther said. “The good news is it has returned in the second quarter as forecast, giving us flexibility to improve operational efficiency.” Spot rates still rising Still, freight market data suggests that the current rate environment is being driven primarily by supply-side constraints rather than a demand surge. DAT Freight & Analytics reported that trucking rates continued to climb through April as capacity tightened and fuel prices rose. In some parts of the country, diesel is more than $2 per gallon higher than a year ago, significantly increasing carriers’ cost base. Excluding fuel surcharges, national dry-van spot rates are 25% higher year over year at a base rate of $2.00 per mile, and 23% above the five-year average. Refrigerated, or reefer, rates sans surcharges have climbed 22% to $2.36 per mile. In produce-growing regions, rates are up 10% year over year to $3.84 per mile before surcharges due to tighter truck availability tied to seasonal demand and limited capacity. Flatbed rates have also surged, reaching $2.69 per mile before surcharges, just 5 cents below the all-time high, after seven consecutive weeks of increases. Rates in that segment are 27% higher than a year ago, reflecting strong demand tied to construction, energy and industrial activity. The combination of rising fuel costs and constrained capacity is forcing pricing adjustments across the packaging and materials sector. Crackdowns on non-domiciled commercial drivers and stricter English-language enforcement are constraining truckload capacity after a four-year freight recession. Packaging Corp. of America plans to implement price increases in 2026 in response to higher raw material and transportation costs. “We have room for further improvement and will continue these efforts through the second and third quarters,” Hassfurther said. “Containerboard prices are up a net $50 per ton since the beginning of the year, and we are working with customers to implement increases.” Transitional phase Executives say key end markets remain relatively stable, providing a foundation for cautious optimism. Consumer products and food and beverage shipments have held steady, and there are early signs of strengthening demand tied to residential construction and home improvement — sectors that are particularly sensitive to interest rates and broader economic confidence. “The consumer has been very resilient,” said Packaging Corp. of America CEO Mark Kowlzan. “Our customer base feels good about their business going forward, and tax refunds will provide an additional boost in the second half of the year.” Macroeconomic data also points to modest improvement. US gross domestic product grew at a 2% rate in the second quarter, up from 0.5% growth at the end of 2025. While not indicative of a strong expansion, the increase suggests the economy is stabilizing after a period of slower growth. For the pallet and container sector, that stabilization could translate into increased demand for packaging materials, particularly if retailers and manufacturers begin rebuilding inventories that were drawn down during the recent period of cost control and demand uncertainty. Still, industry leaders caution that significant risks remain. Trade policy, interest rates, war-driven fuel costs and broader business confidence all continue to influence freight demand and pricing dynamics. Any disruption in those areas could quickly alter the trajectory of the recovery. “The industry is cautiously optimistic,” McClendon said. “There are a lot of moving parts — tariffs, policy, diesel prices — but overall, the fundamentals look solid.” For now, the pallet and container sector appears to be navigating a transitional phase, one in which rising costs are driving rates higher even as underlying demand remains uneven. Whether that environment evolves into a sustained freight recovery in the second half of 2026 will depend largely on whether demand begins to catch up with the cost-driven pricing pressures already moving through the supply chain. Contact Dan Ronan at contactdanronan@gmail.com .

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