<div class="phx-topic abstract-wrapper">Exporters of agriculture and forest products who diverted shipments from West Coast ports earlier this year because of labor disruptions and congestion are once again shipping most of their cargo through the West Coast. But in order to remain loyal shippers, they demand that the Pacific Maritime Association and International Longshore and Warehouse Union guarantee a more efficient and reliable labor environment.
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Exporters of agriculture and forest products who diverted shipments from West Coast ports earlier this year because of labor disruptions and congestion are once again shipping most of their cargo through the West Coast. But in order to remain loyal shippers, they demand that the Pacific Maritime Association and International Longshore and Warehouse Union guarantee a more efficient and reliable labor environment.

<div>SAN FRANCISCO – Exporters of agriculture and forest products who diverted shipments from West Coast ports earlier this year because of labor disruptions and congestion are once again shipping most of their cargo through the West Coast. But in order to remain loyal shippers, they demand that the Pacific Maritime Association and International Longshore and Warehouse Union guarantee a more efficient and reliable labor environment.<div><img>l</div>“This will not get better if we don’t do something different,” Joe Goodwin, director of transportation at Seaboard Foods, told the annual meeting of the Agriculture Transportation Coalition Thursday. “We really do need to lean on...

SAN FRANCISCO – Exporters of agriculture and forest products who diverted shipments from West Coast ports earlier this year because of labor disruptions and congestion are once again shipping most of their cargo through the West Coast. But in order to remain loyal shippers, they demand that the Pacific Maritime Association and International Longshore and Warehouse Union guarantee a more efficient and reliable labor environment. l “This will not get better if we don’t do something different,” Joe Goodwin, director of transportation at Seaboard Foods, told the annual meeting of the Agriculture Transportation Coalition Thursday. “We really do need to lean on the PMA and get things done,” he said. A panel of ag exporters said their companies collectively lost millions of dollars due to labor slowdowns , retaliation by employers and the additional thousands of dollars it cost to divert their shipments to ports on the East and Gulf coasts. Unlike retailers and other large importers that have multiple import distribution centers and can somewhat seamlessly divert shipments from coast to coast, exporters, especially ag exporters, are tied to ports in their regions. Furthermore, agricultural products have low margins, so the cost of transportation can be a deal-breaker in the export market. The ag exporters said the East and Gulf coast port authorities did their best to guarantee good service, but shipping commodities, especially perishables, cross country from production centers in the West and Midwest is not a sustainable model in the long term. Shipping lines were charging premium rates because of the increased demand for all-water services, and inland transportation costs to those ports were double or triple the rates to closer West Coast ports. Furthermore, Marlon Jones, manager of international distribution at International Paper, said the cargo surge at the East and Gulf Coast ports resulted in sporadic congestion problems and truck capacity issues. Nina Solari, vice president of quality control and food safety at Avanti Nut Company, said her family-owned export operation incurred an additional $50,000 in transportation costs and fees at West Coast ports and costlier transportation for diverted shipments the East Coast. Solari had especially harsh words for how the PMA and ILWU handled the negotiations, saying they had no regard for small shippers such as her company, and she suggested that the 300-plus attendees at the AgTC event “take a walk to the PMA headquarters” nearby in San Francisco to demand changes in the future. Having said that, Solari said she has returned to the Port of Oakland “because it is the closest.” This is the dilemma that shippers of agricultural and forest products face. They ship through ports in their region because inland transportation and ocean-shipping costs are more favorable, but when labor and management at those ports make those gateways unreliable, and poor productivity adds unnecessary costs to their shipments, they have no reason to continue their allegiance. Solari said she has no problem with the high salaries longshoremen are paid, “as long as it is earned.” Employers should include in the waterfront contract productivity requirements upon which the pay can be based. Quoting PMA figures that said the ILWU during the previous eight-year contract period was judged by arbitrators as having engaged in more than 200 illegal work slowdowns, and that slowdowns continued even after the tentative contract was reached on Feb. 20, she said, “The ILWU violates its own contract and disrespects truckers, with no consequences.” That system must be changed, she said. In a creative suggestion that probably will never happen, Solari suggested that the ILWU be broken up into regional unions that will allow the individual ports to compete with each other on productivity. Jones said that when the ILWU dragged the negotiations beyond the July 1, 2014, expiration of the previous contract, the uncertainties of the negotiations and the eventual work slowdowns opened the door for exporters in other countries to step in and take market share away from U.S. exporters of the same commodities. He suggested that future contract negotiations be resolved three to six months before the expiration of the existing contract. “We need regulations to prevent slowdowns,” he said. “What we lost was the confidence of our customer base. We will never have 100 percent of that market share back again,” he said. Contact Bill Mongelluzzo at bill.mongelluzzo@ihs.com and follow him on Twitter: @billmongelluzzo .

North American ports

West Coast ag shippers demand reliability from ILWU, employers

<div class="phx-topic abstract-wrapper">The service disruptions come as freight tracking platform Vizion said Friday there has been an 81% drop in daily bookings placed by shippers looking to import goods into key Persian Gulf ports.</div>

The service disruptions come as freight tracking platform Vizion said Friday there has been an 81% drop in daily bookings placed by shippers looking to import goods into key Persian Gulf ports.

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<div class="phx-topic">Gemini Cooperation is suspending some Middle East services, including those to Europe and Asia as well as regional shuttles, due to the ongoing war in the region. The alliance is also adding a new Asia-Europe loop that would partially replace the suspended east-west services, partners Maersk and Hapag-Lloyd said Friday. Maersk said the suspensions are being made “following our latest risk assessment and operational review and considering the escalating conflict affecting safe navigation in the Gulf region.” ”This decision has been taken as a precautionary measure to ensure the safety of our personnel and vessels while minimizing operational disruption across our wider network,” the carrier added in its advisory. The service disruptions come as freight tracking platform Vizion said Friday there has been an 81% drop in daily bookings placed by shippers looking to import goods into key Persian Gulf ports including Jebel Ali, Dammam, Umm Qasr, Sohar, Khalifa, Sharjah, and Al Jubail. Container ports in the Gulf usually book 3.4 million TEUs per year with an estimated cargo value of $140 billion, according to Vizion's Tradeview platform. The Gemini partners said two mainline services — ME11/IMX linking the Middle East, India and the Mediterranean and FM1/AGX linking Asia and the Middle East — would be halted starting next week. But a new AE19/SE4 service would be launched from March 13 that would replace most of the Asia port calls lost with the suspension of the FM1/AGX. Maersk said the westbound FM1 service being operated by the 10,100-TEU Vung Tau Express would terminate at Tanjung Pelepas in Malaysia on March 9 while the ME11 served by the 15,100-TEU Astrid Maersk would be curtailed at Salalah in Oman on March 13. The carrier said it was still determining the final eastbound FM1 and ME11 voyages and would inform shippers and cargo owners once discharge and contingency plans are confirmed. The ME11/IMX loop normally calls at Jebel Ali and Salalah, along with other ports such as Nheva Shava, Port Said and Valencia, while the FM1/AGX service calls at Jebel Ali in addition to its Asia calls at ports including Pusan, Shanghai, Ningbo, and Tanjung Pelepas. But US and Israeli strikes on Iran and Tehran’s retaliation across the region means the risk of drone and missile attacks in the Strait of Hormuz has closed the area to shipping, including access to Jebel Ali. As a result, the carriers said they have also dropped Jebel Ali from Gemini’s ME1/IOS service. The revised rotation is now Mundra, Nhava Sheva, Salalah, Port Tangier (TC1), Rotterdam, Wilhelmshaven, Hamburg, and London Gateway. <h3>New Gemini service to ease capacity cut </h3>To fill the reduction in cargo capacity caused by the FM1/AGX service suspension, the new Gemini AE19/SE4 loop will call at Jeddah in Saudi Arabia plus its West Med and East Med hubs at Tangier and Damietta (Egypt), respectively. The full rotation, via the Cape of Good Hope. is Xingang, Qingdao, Busan, Ningbo, Shanghai, Tanjung Pelepas, West Med hub, East Med hub, Jeddah, West Med hub, Singapore, and Xingang. The carriers said the first westbound sailing will be by the 13,092-TEU Maersk Elba at Xingang on March 13. The new service “will enable more flexibility and routing options for customers’ supply chain,” Maersk said in an advisory. Three Middle East/Gulf shuttles — OGS, UG2, and UGS — will also stop while Jebel Ali will be omitted from the rotation of the PKS service, which has a revised rotation of Karachi, Bin Qasim, Salalah, and Karachi. Hapag-Lloyd said alternatives are being evaluated following the demise of the shuttles, with details to be confirmed shortly. Meanwhile, Yang Ming said Friday it is declaring “an end of voyage” for cargo currently stranded at transshipment ports. Yang Ming’s other Premier Alliance partners, Ocean Network Express and HMM, have yet to confirm if the measure applies to them. ONE did announce Friday it was imposing an emergency surcharge of $1,200 per 20-foot container and $2,400 per 40-foot box on all imports and exports to and from Persian Gulf countries including Bahrain, Saudi Arabia (Dammam and Jubail), Kuwait, Oman, Qatar, and the United Arab Emirates, that have not been discharged or loaded by March 4. The carrier said the surcharge also applies to all cargo currently in transit, which will be diverted to the next safe port of discharge. At these contingency ports, cargo will be discharged and placed at the disposal of the customer for local pickup and subsequent handling. CMA CGM, meanwhile, has abandoned all alternative Middle East port options it was evaluating to keep shipping schedules running as best as possible. Sohar in Oman and Khor Fakkan in the UAE were part of those interim plans, but the carrier finally found even them unworkable in the current volatile scenario. CMA CGM is the latest carrier to declare a total “end of voyage” for Middle East coverage. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. Special correspondent Bency Mathew contributed to this report. </div>

Gemini Cooperation is suspending some Middle East services, including those to Europe and Asia as well as regional shuttles, due to the ongoing war in the region. The alliance is also adding a new Asia-Europe loop that would partially replace the suspended east-west services, partners Maersk and Hapag-Lloyd said Friday. Maersk said the suspensions are being made “following our latest risk assessment and operational review and considering the escalating conflict affecting safe navigation in the Gulf region.” ”This decision has been taken as a precautionary measure to ensure the safety of our personnel and vessels while minimizing operational disruption across our wider network,” the carrier added in its advisory. The service disruptions come as freight tracking platform Vizion said Friday there has been an 81% drop in daily bookings placed by shippers looking to import goods into key Persian Gulf ports including Jebel Ali, Dammam, Umm Qasr, Sohar, Khalifa, Sharjah, and Al Jubail. Container ports in the Gulf usually book 3.4 million TEUs per year with an estimated cargo value of $140 billion, according to Vizion's Tradeview platform. The Gemini partners said two mainline services — ME11/IMX linking the Middle East, India and the Mediterranean and FM1/AGX linking Asia and the Middle East — would be halted starting next week. But a new AE19/SE4 service would be launched from March 13 that would replace most of the Asia port calls lost with the suspension of the FM1/AGX. Maersk said the westbound FM1 service being operated by the 10,100-TEU Vung Tau Express would terminate at Tanjung Pelepas in Malaysia on March 9 while the ME11 served by the 15,100-TEU Astrid Maersk would be curtailed at Salalah in Oman on March 13. The carrier said it was still determining the final eastbound FM1 and ME11 voyages and would inform shippers and cargo owners once discharge and contingency plans are confirmed. The ME11/IMX loop normally calls at Jebel Ali and Salalah, along with other ports such as Nheva Shava, Port Said and Valencia, while the FM1/AGX service calls at Jebel Ali in addition to its Asia calls at ports including Pusan, Shanghai, Ningbo, and Tanjung Pelepas. But US and Israeli strikes on Iran and Tehran’s retaliation across the region means the risk of drone and missile attacks in the Strait of Hormuz has closed the area to shipping, including access to Jebel Ali. As a result, the carriers said they have also dropped Jebel Ali from Gemini’s ME1/IOS service. The revised rotation is now Mundra, Nhava Sheva, Salalah, Port Tangier (TC1), Rotterdam, Wilhelmshaven, Hamburg, and London Gateway. New Gemini service to ease capacity cut To fill the reduction in cargo capacity caused by the FM1/AGX service suspension, the new Gemini AE19/SE4 loop will call at Jeddah in Saudi Arabia plus its West Med and East Med hubs at Tangier and Damietta (Egypt), respectively. The full rotation, via the Cape of Good Hope. is Xingang, Qingdao, Busan, Ningbo, Shanghai, Tanjung Pelepas, West Med hub, East Med hub, Jeddah, West Med hub, Singapore, and Xingang. The carriers said the first westbound sailing will be by the 13,092-TEU Maersk Elba at Xingang on March 13. The new service “will enable more flexibility and routing options for customers’ supply chain,” Maersk said in an advisory. Three Middle East/Gulf shuttles — OGS, UG2, and UGS — will also stop while Jebel Ali will be omitted from the rotation of the PKS service, which has a revised rotation of Karachi, Bin Qasim, Salalah, and Karachi. Hapag-Lloyd said alternatives are being evaluated following the demise of the shuttles, with details to be confirmed shortly. Meanwhile, Yang Ming said Friday it is declaring “an end of voyage” for cargo currently stranded at transshipment ports. Yang Ming’s other Premier Alliance partners, Ocean Network Express and HMM, have yet to confirm if the measure applies to them. ONE did announce Friday it was imposing an emergency surcharge of $1,200 per 20-foot container and $2,400 per 40-foot box on all imports and exports to and from Persian Gulf countries including Bahrain, Saudi Arabia (Dammam and Jubail), Kuwait, Oman, Qatar, and the United Arab Emirates, that have not been discharged or loaded by March 4. The carrier said the surcharge also applies to all cargo currently in transit, which will be diverted to the next safe port of discharge. At these contingency ports, cargo will be discharged and placed at the disposal of the customer for local pickup and subsequent handling. CMA CGM, meanwhile, has abandoned all alternative Middle East port options it was evaluating to keep shipping schedules running as best as possible. Sohar in Oman and Khor Fakkan in the UAE were part of those interim plans, but the carrier finally found even them unworkable in the current volatile scenario. CMA CGM is the latest carrier to declare a total “end of voyage” for Middle East coverage. Contact Keith Wallis at keithwallis@hotmail.com . Special correspondent Bency Mathew contributed to this report.

Port News

Container lines

Asia-Europe

International ports

Container Shipping News

Maritime

Gemini suspends, revamps Middle East services amid growing conflict

<div class="phx-topic abstract-wrapper">The new express service comes amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations.</div>

The new express service comes amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations.

<div class="phx-topic">CMA CGM is launching a standalone direct service between India and the US West Coast in another apparent revamp of its Asian networks after just <a href="https://www.joc.com/article/cma-cgm-to-launch-standalone-japan-europe-express-service-in-april-6177297">announcing a new Japan-Europe express service</a> to start in early April. As market updates suggest, the Marseille-based carrier has extended the port rotation of its Pearl River Express service between South China and the USWC to the Indian subcontinent, using about 13 vessels with capacities of 10,000 to 13,000 TEUs. The extended weekly loop includes four ports of call across the subcontinent: Nhava Sheva and Mundra in West India, Karachi in Pakistan, and Colombo in Sri Lanka. The relaunched Pearl’s full eastbound rotation will be Nhava Sheva, Mundra, Karachi, Colombo, Singapore, Haiphong, Xiamen, Nansha, Yantian and Los Angeles. On the westbound leg, vessels will call Los Angeles, Gwangyang, Qingdao, Shanghai, Ningbo, Shekou, Singapore, Nhava Sheva, Mundra and Karachi, according to a CMA CGM India advisory. The rotation structure seems to be in sync with ongoing Indian port restrictions for Pakistan transit cargo. CMA-CGM said the service upgrade seeks to enhance connectivity and coverage for Indian trades to the USWC. “The Pearl service will now offer an exclusive and direct connection from West India, Pakistan and Sri Lanka ports to Los Angeles,” the carrier said. The service is due to begin with the 10,000-TEU APL Qingdao departing Nhava Sheva March 30, offering a declared transit time of 47 days to Los Angeles. The restructured Pearl will compete with Ocean Network Express’ Pacific South 3 service, currently the only direct connection on the trade lane, which offers a faster 36-day transit from Nhava Sheva to Los Angeles. CMA CGM has typically relied on transshipment over Asian ports for coverage of trades between India and the USWC, mainly feeding via its Asia-Subcontinent Express (AS1) service with calls at Nhava Sheva and Mundra, according to industry sources. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="1cf22f06-bc03-4442-9050-628846faea40"></dynamic-object></div>New direct links between India and the US come amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations. Industry data also points to an upward move in Nhava Sheva–Los Angeles spot rates, pegged at $2,500 per FEU for late-March sailings, compared with the current $1,500 per FEU, sources said. Indian exports to the West Coast have shown some strength of late, hitting 19,117 TEUs in January, highest since September, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

CMA CGM is launching a standalone direct service between India and the US West Coast in another apparent revamp of its Asian networks after just announcing a new Japan-Europe express service to start in early April. As market updates suggest, the Marseille-based carrier has extended the port rotation of its Pearl River Express service between South China and the USWC to the Indian subcontinent, using about 13 vessels with capacities of 10,000 to 13,000 TEUs. The extended weekly loop includes four ports of call across the subcontinent: Nhava Sheva and Mundra in West India, Karachi in Pakistan, and Colombo in Sri Lanka. The relaunched Pearl’s full eastbound rotation will be Nhava Sheva, Mundra, Karachi, Colombo, Singapore, Haiphong, Xiamen, Nansha, Yantian and Los Angeles. On the westbound leg, vessels will call Los Angeles, Gwangyang, Qingdao, Shanghai, Ningbo, Shekou, Singapore, Nhava Sheva, Mundra and Karachi, according to a CMA CGM India advisory. The rotation structure seems to be in sync with ongoing Indian port restrictions for Pakistan transit cargo. CMA-CGM said the service upgrade seeks to enhance connectivity and coverage for Indian trades to the USWC. “The Pearl service will now offer an exclusive and direct connection from West India, Pakistan and Sri Lanka ports to Los Angeles,” the carrier said. The service is due to begin with the 10,000-TEU APL Qingdao departing Nhava Sheva March 30, offering a declared transit time of 47 days to Los Angeles. The restructured Pearl will compete with Ocean Network Express’ Pacific South 3 service, currently the only direct connection on the trade lane, which offers a faster 36-day transit from Nhava Sheva to Los Angeles. CMA CGM has typically relied on transshipment over Asian ports for coverage of trades between India and the USWC, mainly feeding via its Asia-Subcontinent Express (AS1) service with calls at Nhava Sheva and Mundra, according to industry sources. New direct links between India and the US come amid expectations of a rebound in capacity demand with the easing of tariffs between the two countries and ongoing trade negotiations. Industry data also points to an upward move in Nhava Sheva–Los Angeles spot rates, pegged at $2,500 per FEU for late-March sailings, compared with the current $1,500 per FEU, sources said. Indian exports to the West Coast have shown some strength of late, hitting 19,117 TEUs in January, highest since September, according to PIERS, a sister product of the Journal of Commerce within S&P Global. Contact Bency Mathew at bencyvmathew@gmail.com .

CMA CGM adds direct India-USWC string as part of Asia network overhaul

<div class="phx-topic abstract-wrapper">The push to launch futures contracts for container shipping has gained momentum in recent years given the seemingly never-ending volatility and disruption in the market.</div>

The push to launch futures contracts for container shipping has gained momentum in recent years given the seemingly never-ending volatility and disruption in the market.

<div class="phx-topic">Intercontinental Exchange (ICE) on Friday said it intends to launch four container freight futures contracts next month covering shipping routes linking Asia, Europe and the US. Subject to regulatory approval, the contracts will begin trading on ICE, owner of the New York Stock Exchange, on April 7, ICE said in a statement. The contracts, which ICE said “are designed to help the market manage container freight (price) risk,” will be indexed to the New York Shipping Exchange’s (NYSHEX) Freight Indices price assessments, <a href="https://www.joc.com/article/nyshex-enters-container-index-fray-targeting-floating-rate-contract-adoption-5996516">which were unveiled last May.</a>The four futures contracts, which will be US-denominated and cash-settled, will cover Asia to the US West Coast, Asia to the US East Coast, Asia to North Europe, and North Europe to the US East Coast. The ICE futures do not represent physical slots on container ships; they are a financial instrument that allows investors to hedge against future spot rate movements. The push to launch futures contracts for container shipping <a href="https://www.joc.com/article/near-constant-disruption-giving-new-momentum-to-freight-futures-5979859">has gained momentum in recent years</a> given the seemingly never-ending volatility in the market — from the supply chain disruption caused by the COVID-19 pandemic, the lengthy and costly vessel diversions around southern Africa to avoid the Red Sea and Suez Canal, and now with up to 10% of global capacity tied up due to the war in the Middle East. One big question about container shipping futures has been the potential liquidity of the market, meaning whether the contacts could gain enough traction and eventually become heavily traded. Previous attempts at launching similar container rate futures markets have struggled to generate demand. ICE sought to ease those doubts by pointing out the four contracts “will be supported by (its) network of extremely liquid energy markets.” Open interest, or the number of actively traded contracts, for ICE’s total oil market was at a record 18.7 million contracts as of Feb. 23, it said. “The container shipping industry is massive and critical for global trade, yet it is incredibly volatile,” Gordon Downes, CEO and co-founder of NYSHEX, said in the statement. “With the launch of ICE’s new freight futures, the market participants can far more easily hedge against unexpected swings in the market price.” Contact Kevin Saville at <a href="mailto:kevin.saville2@spglobal.com">kevin.saville2@spglobal.com.</a></div>

Intercontinental Exchange (ICE) on Friday said it intends to launch four container freight futures contracts next month covering shipping routes linking Asia, Europe and the US. Subject to regulatory approval, the contracts will begin trading on ICE, owner of the New York Stock Exchange, on April 7, ICE said in a statement. The contracts, which ICE said “are designed to help the market manage container freight (price) risk,” will be indexed to the New York Shipping Exchange’s (NYSHEX) Freight Indices price assessments, which were unveiled last May. The four futures contracts, which will be US-denominated and cash-settled, will cover Asia to the US West Coast, Asia to the US East Coast, Asia to North Europe, and North Europe to the US East Coast. The ICE futures do not represent physical slots on container ships; they are a financial instrument that allows investors to hedge against future spot rate movements. The push to launch futures contracts for container shipping has gained momentum in recent years given the seemingly never-ending volatility in the market — from the supply chain disruption caused by the COVID-19 pandemic, the lengthy and costly vessel diversions around southern Africa to avoid the Red Sea and Suez Canal, and now with up to 10% of global capacity tied up due to the war in the Middle East. One big question about container shipping futures has been the potential liquidity of the market, meaning whether the contacts could gain enough traction and eventually become heavily traded. Previous attempts at launching similar container rate futures markets have struggled to generate demand. ICE sought to ease those doubts by pointing out the four contracts “will be supported by (its) network of extremely liquid energy markets.” Open interest, or the number of actively traded contracts, for ICE’s total oil market was at a record 18.7 million contracts as of Feb. 23, it said. “The container shipping industry is massive and critical for global trade, yet it is incredibly volatile,” Gordon Downes, CEO and co-founder of NYSHEX, said in the statement. “With the launch of ICE’s new freight futures, the market participants can far more easily hedge against unexpected swings in the market price.” Contact Kevin Saville at kevin.saville2@spglobal.com.

Transport, Trade and Regulation News

Trans-Atlantic

Trans-Pacific

Intercontinental Exchange to launch container freight futures in April

<div class="phx-topic abstract-wrapper">While of concern to shippers and ocean carriers, the global impact of the war in the Middle East on container flows will be less severe than COVID-19 disruptions and Red Sea diversions, Lars Jensen told TPM26.</div>

While of concern to shippers and ocean carriers, the global impact of the war in the Middle East on container flows will be less severe than COVID-19 disruptions and Red Sea diversions, Lars Jensen told TPM26.

<div class="phx-topic">Long Beach, California — The war in the Middle East that has effectively shut the Persian Gulf and Strait of Hormuz is a problem for container shipping, but not on the scale of other recent disruptions the sector has faced. That was the closing message of the Journal of Commerce’s TPM 26 conference, delivered by industry analyst and CEO of Vespucci Maritime Lars Jensen. “This is going to sound weird. Globally, strictly on container shipping, it’s a problem, but it’s not a major problem,” Jensen told conference attendees. “It’s definitely not pandemic-scale.” <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177005_0.1.jpg"></img></div>When Houthi militants in Yemen began <a href="https://www.joc.com/article/red-sea-diversions-could-last-for-months-until-attack-risk-ends-drewry-5225718">their attacks on shipping in the Red Sea two years ago</a>, container ships serving the Asia-Europe, Asia-Mediterranean and Asia-US East Coast trade lanes were forced to make lengthy and costly diversions around the southern tip of Africa. The current danger zone in the Middle East is much more limited. “In this case, it is ... ‘only’ the cargo in the Gulf. So from a global perspective, yes there will be an impact,” Jensen said. “It will contract capacity some, but it’s not a major disaster for the countries in the Gulf.” Looking at the volume of containers destined for the Strait of Hormuz, either on board vessels already or at least booked within the next 90 days to head toward the Gulf, approximately 2 million TEUs will be impacted, he said. A significant portion of that total will be offloaded at ports around the Strait of Hormuz. The war, meanwhile, has put to rest the assumption importers had entering 2026 that container traffic from Asia bound for Europe and the US East Coast would return to the Suez Canal in the second half of this year, thereby reducing carriers’ leverage in pricing. “The baseline outlook for 2026 now has to include the assumption that the deviations around Africa will continue this year, and therefore materially strengthen the supply and demand balance,” Jensen said. As for when container ships will contemplate returning to the Suez Canal, he said that discussion has been kicked down the road for at least another six months. “So realistically, we are probably looking at least six months into the future before anybody is going to start contemplating doing this again, and that is if we stop the war basically today,” Jensen said. Major container lines have mostly avoided the Red Sea/Suez route since late 2023, when Houthi militants began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing the diversions around southern Africa. Those attacks stopped last October after the ceasefire agreement between Israel and Hamas, prompting some major carriers to resume transits through the volatile area on a small scale in recent months. <h3>Rising oil prices, congestion are a concern </h3>In the short term, oil prices, and therefore bunker fuel prices, will increase, which will impact container shipping costs. And that means ocean carriers will respond with increased fuel surcharges. “On account of the Middle East, the carriers will go gangbusters in terms of implementing as many and as high surcharges as humanly possible, and not just on trades to and from the Gulf, [but] everywhere,” Jensen said. “They will be called emergency fuel surcharges, emergency conflict surcharges, and whatever nice names, but they will be a reality. The only question is, how high will it go and how long will it last.” Even cargo owners who are shipping only from Asia to the US West Coast will feel an impact from events in the Middle East in terms of surcharges and disrupted operations in the form of knock-on congestion. “You’re going to get all of these congestion effects in Asia that [are] going to impact everything and everyone, so you’re going to see these surcharges also on the Pacific,” Jensen said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

Long Beach, California — The war in the Middle East that has effectively shut the Persian Gulf and Strait of Hormuz is a problem for container shipping, but not on the scale of other recent disruptions the sector has faced. That was the closing message of the Journal of Commerce’s TPM 26 conference, delivered by industry analyst and CEO of Vespucci Maritime Lars Jensen. “This is going to sound weird. Globally, strictly on container shipping, it’s a problem, but it’s not a major problem,” Jensen told conference attendees. “It’s definitely not pandemic-scale.” When Houthi militants in Yemen began their attacks on shipping in the Red Sea two years ago , container ships serving the Asia-Europe, Asia-Mediterranean and Asia-US East Coast trade lanes were forced to make lengthy and costly diversions around the southern tip of Africa. The current danger zone in the Middle East is much more limited. “In this case, it is ... ‘only’ the cargo in the Gulf. So from a global perspective, yes there will be an impact,” Jensen said. “It will contract capacity some, but it’s not a major disaster for the countries in the Gulf.” Looking at the volume of containers destined for the Strait of Hormuz, either on board vessels already or at least booked within the next 90 days to head toward the Gulf, approximately 2 million TEUs will be impacted, he said. A significant portion of that total will be offloaded at ports around the Strait of Hormuz. The war, meanwhile, has put to rest the assumption importers had entering 2026 that container traffic from Asia bound for Europe and the US East Coast would return to the Suez Canal in the second half of this year, thereby reducing carriers’ leverage in pricing. “The baseline outlook for 2026 now has to include the assumption that the deviations around Africa will continue this year, and therefore materially strengthen the supply and demand balance,” Jensen said. As for when container ships will contemplate returning to the Suez Canal, he said that discussion has been kicked down the road for at least another six months. “So realistically, we are probably looking at least six months into the future before anybody is going to start contemplating doing this again, and that is if we stop the war basically today,” Jensen said. Major container lines have mostly avoided the Red Sea/Suez route since late 2023, when Houthi militants began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing the diversions around southern Africa. Those attacks stopped last October after the ceasefire agreement between Israel and Hamas, prompting some major carriers to resume transits through the volatile area on a small scale in recent months. Rising oil prices, congestion are a concern In the short term, oil prices, and therefore bunker fuel prices, will increase, which will impact container shipping costs. And that means ocean carriers will respond with increased fuel surcharges. “On account of the Middle East, the carriers will go gangbusters in terms of implementing as many and as high surcharges as humanly possible, and not just on trades to and from the Gulf, [but] everywhere,” Jensen said. “They will be called emergency fuel surcharges, emergency conflict surcharges, and whatever nice names, but they will be a reality. The only question is, how high will it go and how long will it last.” Even cargo owners who are shipping only from Asia to the US West Coast will feel an impact from events in the Middle East in terms of surcharges and disrupted operations in the form of knock-on congestion. “You’re going to get all of these congestion effects in Asia that [are] going to impact everything and everyone, so you’re going to see these surcharges also on the Pacific,” Jensen said. Contact Bill Mongelluzzo at  bill.mongelluzzo@spglobal.com .

TPM26: War a problem for container shipping, but not ‘pandemic-scale’: analyst

<div class="phx-topic abstract-wrapper">A sharp increase in imports from Asia, declining back-haul volume, and congestion delaying the return of empties are slowing down the repatriation of equipment back to Asia. </div>

A sharp increase in imports from Asia, declining back-haul volume, and congestion delaying the return of empties are slowing down the repatriation of equipment back to Asia.

<div class="phx-topic">Long Beach, California — The equipment imbalance on the Asia-Europe trade lane and repositioning empty containers is fast becoming a structural challenge for the region’s maxed-out ports, industry leaders said this week. While volume on the main Asia-Europe westbound lane increased 9.1% in 2025 against a capacity increase of 8.3% over the past two years, the backhaul trade volume was down 5.7% while capacity rose 11.5%, according to Nigel Pusey, CEO of Container Trades Statistics. “The container imbalance is the fundamental challenge of this trade, and how those boxes will continue to be fed in as the ability to recycle containers becomes more and more difficult,” Pusey told the Journal of Commerce’s TPM26 conference. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177005_0.1.jpg"></img></div>“Only 37% of the slots going between Europe and the Far East were actually carrying commercial cargo,” he added. Hanna Stelzel, director of containers at the Port of Rotterdam, said empty repositioning was becoming a structural challenge for ports in Europe that are all operating at high utilization levels. “We had approximately 10% growth on Asia-Europe in 2025, but the growth was mainly coming from imports,” she told the conference. “China into Rotterdam grew 40% compared to 2024. We have declining exports, and Rotterdam is often the first and last port of call, and that is causing enormous challenges in empty repositioning.” Stelzel explained that empties took up room in container yards and require extra moves as the containers are repositioned from one terminal to another. “We are already operating at maximum capacity in Rotterdam and all those extra moves, especially of empty containers, are something we would like to avoid to keep the port more fluid and more efficient, and that’s not possible if you have those extreme numbers of equipment that needs to be repositioned,” she added. <h3>Second-half surge in Rotterdam volume </h3>Total <a href="https://www.joc.com/article/rotterdam-congestion-limits-benefit-of-second-half-surge-in-imports-6176418">container volume at the Port of Rotterdam grew 3.1% in 2025</a>, driven by a second-half surge in imports from Asia and rising trade with North America that boosted annual throughput. The container imbalance and <a href="https://www.joc.com/article/tpm26-europes-persistent-port-congestion-wont-be-remedied-by-short-term-fixes-6180335">persistent port congestion in Europe</a> were also extending the life of the boxes, Pusey said. Instead of a container on the trade lane revolving three or four times a year, the increase in imports meant it was taking longer for carriers to discharge the containers, and the boxes were taking longer to be emptied and returned from inland locations. “That means you’ve actually got more boxes in the system and are having to find places to store them,” Pusey said. He warned that the war in the Middle East that has <a href="https://www.joc.com/article/carriers-pause-india-middle-east-cargo-bookings-amid-persian-gulf-port-chaos-6179223">halted shipping in the Persian Gulf</a> will worsen the current equipment imbalance. “The Middle East and India are interwoven into many schedules of many carriers, so there is going to be a massive impact,” Pusey said. “It’s probably far too early to say what’s going to happen, but the imbalance is going to get far worse.” Jakob Jeppesen, CEO of air and sea for Asia-Pacific at forwarder DSV, said Asia will continue to be a growth market for Europe as Asian brands expand their international presence. “When Asian brands go international, they look towards Europe,” Jeppesen told TPM26. “They will ship more than they need to build inventory to make sure that they have a resilient supply chain. We are seeing brands from India and from China. They used to be [original equipment] manufacturing, but now they want their own brands in retail stores, not only in e-commerce.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Long Beach, California — The equipment imbalance on the Asia-Europe trade lane and repositioning empty containers is fast becoming a structural challenge for the region’s maxed-out ports, industry leaders said this week. While volume on the main Asia-Europe westbound lane increased 9.1% in 2025 against a capacity increase of 8.3% over the past two years, the backhaul trade volume was down 5.7% while capacity rose 11.5%, according to Nigel Pusey, CEO of Container Trades Statistics. “The container imbalance is the fundamental challenge of this trade, and how those boxes will continue to be fed in as the ability to recycle containers becomes more and more difficult,” Pusey told the Journal of Commerce’s TPM26 conference. “Only 37% of the slots going between Europe and the Far East were actually carrying commercial cargo,” he added. Hanna Stelzel, director of containers at the Port of Rotterdam, said empty repositioning was becoming a structural challenge for ports in Europe that are all operating at high utilization levels. “We had approximately 10% growth on Asia-Europe in 2025, but the growth was mainly coming from imports,” she told the conference. “China into Rotterdam grew 40% compared to 2024. We have declining exports, and Rotterdam is often the first and last port of call, and that is causing enormous challenges in empty repositioning.” Stelzel explained that empties took up room in container yards and require extra moves as the containers are repositioned from one terminal to another. “We are already operating at maximum capacity in Rotterdam and all those extra moves, especially of empty containers, are something we would like to avoid to keep the port more fluid and more efficient, and that’s not possible if you have those extreme numbers of equipment that needs to be repositioned,” she added. Second-half surge in Rotterdam volume Total container volume at the Port of Rotterdam grew 3.1% in 2025 , driven by a second-half surge in imports from Asia and rising trade with North America that boosted annual throughput. The container imbalance and persistent port congestion in Europe were also extending the life of the boxes, Pusey said. Instead of a container on the trade lane revolving three or four times a year, the increase in imports meant it was taking longer for carriers to discharge the containers, and the boxes were taking longer to be emptied and returned from inland locations. “That means you’ve actually got more boxes in the system and are having to find places to store them,” Pusey said. He warned that the war in the Middle East that has halted shipping in the Persian Gulf will worsen the current equipment imbalance. “The Middle East and India are interwoven into many schedules of many carriers, so there is going to be a massive impact,” Pusey said. “It’s probably far too early to say what’s going to happen, but the imbalance is going to get far worse.” Jakob Jeppesen, CEO of air and sea for Asia-Pacific at forwarder DSV, said Asia will continue to be a growth market for Europe as Asian brands expand their international presence. “When Asian brands go international, they look towards Europe,” Jeppesen told TPM26. “They will ship more than they need to build inventory to make sure that they have a resilient supply chain. We are seeing brands from India and from China. They used to be [original equipment] manufacturing, but now they want their own brands in retail stores, not only in e-commerce.” Contact Greg Knowler at greg.knowler@spglobal.com .

TPM26: Empty boxes pose structural challenge for Europe’s busy ports

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