<div class="phx-topic abstract-wrapper">The Biden administration may have no choice but to invoke the Taft-Hartley Act to stop a US port strike even as broader support for Democrats among transportation unions falters ahead of the presidential election. </div>

The Biden administration may have no choice but to invoke the Taft-Hartley Act to stop a US port strike even as broader support for Democrats among transportation unions falters ahead of the presidential election.

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<div class="phx-topic">It’s hard to exaggerate how politically toxic the invocation of the Taft-Hartley Act by the Biden administration to stop a potential strike by the International Longshoremen’s Association (ILA) would be to the Harris presidential campaign. That will no doubt temper the White House’s response if the ILA follows through with its Oct. 1 strike threat. The law that would allow the federal government to shut down a strike at US East and Gulf coast ports is reviled among labor — and for good reason. After the busiest period of strikes in US history, involving coal miners to Hollywood stagehands, Congress in 1947 overrode President Harry Truman’s veto to pass the Labor Management Relations Act, delivering a sharp rebuke to workers from big business. Named after its Republican co-authors, Taft-Hartley underpins modern labor relations, including prohibitions on wildcat strikes and secondary boycotts. Invoking the act, as some states have already begun early voting, would send a damaging message to organized transportation labor already tilting away from its conventional Democratic support. The ILA endorsed Biden in 2020, but hasn’t yet backed either Kamala Harris or Donald Trump. Last November, ILA President Harold Daggett said he had a productive 90-minute meeting with Trump, where the union leader stressed “the threat of automation to American workers.” The invoking of Taft-Hartley by the Biden administration could also likely spark criticism of Democrats protecting foreign-owned container lines at the expense of blue-collar workers. The importance of that narrative can be seen in how Harris, Biden and Trump decry the takeover of Pennsylvania-based US Steel by Japan’s Nippon Steel Corp. rather than risk losing votes in the critical swing state. <h3>Stewarding the economy</h3>Yet, the Biden administration may have no choice but to invoke the executive bane on the ILA, given there’s scant hope for a breakthrough in the months-long stalemate with the US Maritime Alliance (USMX). The alternative of cutting off some $588 billion in annual trade flowing through US East and Gulf coast ports for more than day, however, looks even more politically damaging. The Biden administration — and by extension the Harris campaign — doesn’t want to be seen as weak on economic stewardship. Republicans are ready to pounce on any perceived weakness. In a Sept. 20 letter to Biden urging him to prevent an economic fallout from a strike, House Republicans criticized federal officials’ “lack of engagement” in the negotiations between the ILA and employers, as represented by the USMX. Compared with the last two bargaining cycles involving US West Coast longshore labor, <a href="https://www.joc.com/article/anxious-white-house-weighing-options-as-ila-contract-deadline-nears-5725622">there has been less outreach from the White House</a> amid ILA-USMX negotiations, two people familiar with US longshore negotiations told the Journal of Commerce. The calculations for the Biden administration are made even harder because of new signs of faltering support among transportation unions. Last week, the Teamsters, which endorsed Biden in 2020, declined to formally back either Trump or Harris. Trump, whose Republican convention in July hosted Teamsters chief Sean O’Brien — a first for the GOP — not surprisingly proclaimed the lack of any endorsement a win for his campaign. Teamsters support for Democrats has eroded significantly in just four years. According to a Teamsters phone polling of its members, workers favored Trump over Harris by more than two to one. Many Teamsters locals and the union’s national Black caucus, however, have endorsed Harris. Despite his boast of being the most pro-union president in modern times, Biden last year angered rail unions who were seeking 15 days of paid sick day leave but received just four in the contact that was ultimately forced upon them by Congress. The last time Taft-Hartley was invoked was in 2002, when President George W. Bush ended an 11-day lockout at West Coast ports. The economy was slowing then, too, but Bush didn’t have the same political consideration to maintain union support. In the meantime, the importance of trade to the US economy has only grown. In 2002, the ratio of the share of US trade to GDP was 22.9%, according to the Bureau of Economic Analysis. Last year, it was 27.6%. The bureau won’t publish fourth quarter GDP readings until late January — well after the election. So much for small favors. Contact Mark Szakonyi at <a href="mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

It’s hard to exaggerate how politically toxic the invocation of the Taft-Hartley Act by the Biden administration to stop a potential strike by the International Longshoremen’s Association (ILA) would be to the Harris presidential campaign. That will no doubt temper the White House’s response if the ILA follows through with its Oct. 1 strike threat. The law that would allow the federal government to shut down a strike at US East and Gulf coast ports is reviled among labor — and for good reason. After the busiest period of strikes in US history, involving coal miners to Hollywood stagehands, Congress in 1947 overrode President Harry Truman’s veto to pass the Labor Management Relations Act, delivering a sharp rebuke to workers from big business. Named after its Republican co-authors, Taft-Hartley underpins modern labor relations, including prohibitions on wildcat strikes and secondary boycotts. Invoking the act, as some states have already begun early voting, would send a damaging message to organized transportation labor already tilting away from its conventional Democratic support. The ILA endorsed Biden in 2020, but hasn’t yet backed either Kamala Harris or Donald Trump. Last November, ILA President Harold Daggett said he had a productive 90-minute meeting with Trump, where the union leader stressed “the threat of automation to American workers.” The invoking of Taft-Hartley by the Biden administration could also likely spark criticism of Democrats protecting foreign-owned container lines at the expense of blue-collar workers. The importance of that narrative can be seen in how Harris, Biden and Trump decry the takeover of Pennsylvania-based US Steel by Japan’s Nippon Steel Corp. rather than risk losing votes in the critical swing state. Stewarding the economy Yet, the Biden administration may have no choice but to invoke the executive bane on the ILA, given there’s scant hope for a breakthrough in the months-long stalemate with the US Maritime Alliance (USMX). The alternative of cutting off some $588 billion in annual trade flowing through US East and Gulf coast ports for more than day, however, looks even more politically damaging. The Biden administration — and by extension the Harris campaign — doesn’t want to be seen as weak on economic stewardship. Republicans are ready to pounce on any perceived weakness. In a Sept. 20 letter to Biden urging him to prevent an economic fallout from a strike, House Republicans criticized federal officials’ “lack of engagement” in the negotiations between the ILA and employers, as represented by the USMX. Compared with the last two bargaining cycles involving US West Coast longshore labor, there has been less outreach from the White House amid ILA-USMX negotiations, two people familiar with US longshore negotiations told the Journal of Commerce. The calculations for the Biden administration are made even harder because of new signs of faltering support among transportation unions. Last week, the Teamsters, which endorsed Biden in 2020, declined to formally back either Trump or Harris. Trump, whose Republican convention in July hosted Teamsters chief Sean O’Brien — a first for the GOP — not surprisingly proclaimed the lack of any endorsement a win for his campaign. Teamsters support for Democrats has eroded significantly in just four years. According to a Teamsters phone polling of its members, workers favored Trump over Harris by more than two to one. Many Teamsters locals and the union’s national Black caucus, however, have endorsed Harris. Despite his boast of being the most pro-union president in modern times, Biden last year angered rail unions who were seeking 15 days of paid sick day leave but received just four in the contact that was ultimately forced upon them by Congress. The last time Taft-Hartley was invoked was in 2002, when President George W. Bush ended an 11-day lockout at West Coast ports. The economy was slowing then, too, but Bush didn’t have the same political consideration to maintain union support. In the meantime, the importance of trade to the US economy has only grown. In 2002, the ratio of the share of US trade to GDP was 22.9%, according to the Bureau of Economic Analysis. Last year, it was 27.6%. The bureau won’t publish fourth quarter GDP readings until late January — well after the election. So much for small favors. Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Transport, Trade and Regulation News

Container Shipping News

White House’s executive lever to prevent port strike is politically toxic

<div class="phx-topic abstract-wrapper">The state senate is considering a new bill that would block state funds from going toward port automation, with longshore workers adding their support.</div>

The state senate is considering a new bill that would block state funds from going toward port automation, with longshore workers adding their support.

<div class="phx-topic">Longshore workers in Washington state have thrown their support behind a bill that permanently blocks state money from funding port automation, arguing that technology already in place at the ports of Seattle and Tacoma has impacted waterfront jobs. Local members of the International Longshore and Warehouse Union (ILWU) on Thursday testified before a state senate committee about a bill introduced earlier this month that would allow the use of state money to buy zero-emission cargo equipment, but also ban the “purchase (of) fully automated marine container cargo handling equipment.”The bill is a followup to 2021 legislation that also blocked state funding for automated cargo handling equipment, but was set to expire at the end of 2031. The new bill does not have a sunset clause, and the current expiration date “is starting to creep toward the present day,” state Sen. Jesse Salomon, the bill’s sponsor, said Thursday. “The point of this is to make sure that as we move forward into the future, humans still are valued for the work that they do, and we don’t fully automate,” Salomon said. The bill represents the latest effort by West Coast longshore workers to stem further encroachment of automation technology at ports. Last year, California ILWU members threw their support behind <a href="https://www.joc.com/article/stakeholders-differ-on-newsoms-move-to-kill-automation-ban-at-california-ports-6097378">an unsuccessful bill that would have prevented automated cargo handling from connecting to the state’s power grid</a>.<h3>Union questions state funds for marine terminals</h3>Dan McKisson, president of ILWU Washington area District Council representing 5,000 dockworkers statewide, said in his testimony that while the union supports state funding of zero-emission equipment and infrastructure upgrades, marine terminals do not need state money because most of them “are multi-million international companies or controlled by private equity.” “This bill does not prohibit (terminals) from purchasing automated cargo handling equipment,” McKisson said. “International companies benefit from using taxpayer dollars for automated equipment. It does not benefit ports, workers, and the community.”Most of the technological upgrades at Seattle and Tacoma ports have focused on speeding up truck processing at terminal gates. As with nearly all US ports, Seattle and Tacoma have used optical character readers (OCR) for scanning incoming containers for decades, along with using remote speaker boxes at gates in place of longshore clerks. Kesa Sten, the president of ILWU Local 52 that represents clerks and checkers, said such “computerized auto gates” have meant fewer such jobs and has led to inefficiencies, such as in-gating damaged containers. “Private companies wish to use automation to shift labor costs to others in the supply chain and to do the same work with fewer workers,” Sten said, adding that when she started on the job, every gate booth had a clerk. But now, “one person can do the job of five” checking in truckers.“That is fast, that is efficient, but it is also job erosion,” she said. “We welcome advances that enhance our job, not eliminate them.”Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

Longshore workers in Washington state have thrown their support behind a bill that permanently blocks state money from funding port automation, arguing that technology already in place at the ports of Seattle and Tacoma has impacted waterfront jobs. Local members of the International Longshore and Warehouse Union (ILWU) on Thursday testified before a state senate committee about a bill introduced earlier this month that would allow the use of state money to buy zero-emission cargo equipment, but also ban the “purchase (of) fully automated marine container cargo handling equipment.” The bill is a followup to 2021 legislation that also blocked state funding for automated cargo handling equipment, but was set to expire at the end of 2031. The new bill does not have a sunset clause, and the current expiration date “is starting to creep toward the present day,” state Sen. Jesse Salomon, the bill’s sponsor, said Thursday. “The point of this is to make sure that as we move forward into the future, humans still are valued for the work that they do, and we don’t fully automate,” Salomon said. The bill represents the latest effort by West Coast longshore workers to stem further encroachment of automation technology at ports. Last year, California ILWU members threw their support behind an unsuccessful bill that would have prevented automated cargo handling from connecting to the state’s power grid . Union questions state funds for marine terminals Dan McKisson, president of ILWU Washington area District Council representing 5,000 dockworkers statewide, said in his testimony that while the union supports state funding of zero-emission equipment and infrastructure upgrades, marine terminals do not need state money because most of them “are multi-million international companies or controlled by private equity.” “This bill does not prohibit (terminals) from purchasing automated cargo handling equipment,” McKisson said. “International companies benefit from using taxpayer dollars for automated equipment. It does not benefit ports, workers, and the community.” Most of the technological upgrades at Seattle and Tacoma ports have focused on speeding up truck processing at terminal gates. As with nearly all US ports, Seattle and Tacoma have used optical character readers (OCR) for scanning incoming containers for decades, along with using remote speaker boxes at gates in place of longshore clerks. Kesa Sten, the president of ILWU Local 52 that represents clerks and checkers, said such “computerized auto gates” have meant fewer such jobs and has led to inefficiencies, such as in-gating damaged containers. “Private companies wish to use automation to shift labor costs to others in the supply chain and to do the same work with fewer workers,” Sten said, adding that when she started on the job, every gate booth had a clerk. But now, “one person can do the job of five” checking in truckers. “That is fast, that is efficient, but it is also job erosion,” she said. “We welcome advances that enhance our job, not eliminate them.” Contact Michael Angell at michael.angell@spglobal.com

North American ports

Longshore labor

Marine terminals

Washington state weighs permanent ban on funding port automation

<div class="phx-topic abstract-wrapper">The orders come amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide a stable cargo for MPV and heavy-lift operators. </div>

The orders come amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide a stable cargo for MPV and heavy-lift operators.

<div class="phx-topic">Multipurpose vessel operators are continuing to add to their fleets, with owners in Germany and China placing orders for up to 12 ships totaling approximately $450 million.   The move comes amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide a stable cargo for MPV and heavy-lift operators. Nordic Hamburg Group signed firm contracts this week for three 13,300-deadweight metric ton (dwt) heavy-lift multipurpose vessels, plus options for two similar vessels with Wuhu Shipyard, the east China shipbuilder said in a statement. The shipyard did not disclose financial details, but shipbrokers said the total order was worth about $150 million. The ships will be equipped with two 250-mt cranes to give a combined lifting capacity of 500 mt, “which can efficiently carry wind power equipment and other large equipment,” the statement said. The Ice-class vessels will have cargo hold totaling 936,000 cubic feet and will be over 20% more fuel efficient than older vessels, the shipyard added. The ships are likely to be delivered in 2027. Nordic Hamburg owns and manages a fleet of about 60 ships, including container ships and container and roll-on/roll-off (conro) ships, in addition to MPVs. Separately, Chinese shipowner Fujian Highton Development has ordered up to seven 62,000-dwt multipurpose and heavy-lift vessels from China’s Taizhou Kouan Shipbuilding. The deal, with a total value of about $300 million, comprises a firm contract for three ships to be delivered in 2029 and options for four similar ships. Fujian’s investment in the first three vessels will be capped at $130 million, the company said in a filing to the Shanghai stock exchange. Fujian, which operates around 80 MPVs and dry cargo ships, is planning to expand to 100 vessels by 2030. Contact Keith Wallis at <a href=" keithwallis@hotmail.com.">keithwallis@hotmail.com.</a></div>

Multipurpose vessel operators are continuing to add to their fleets, with owners in Germany and China placing orders for up to 12 ships totaling approximately $450 million.   The move comes amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide a stable cargo for MPV and heavy-lift operators. Nordic Hamburg Group signed firm contracts this week for three 13,300-deadweight metric ton (dwt) heavy-lift multipurpose vessels, plus options for two similar vessels with Wuhu Shipyard, the east China shipbuilder said in a statement. The shipyard did not disclose financial details, but shipbrokers said the total order was worth about $150 million. The ships will be equipped with two 250-mt cranes to give a combined lifting capacity of 500 mt, “which can efficiently carry wind power equipment and other large equipment,” the statement said. The Ice-class vessels will have cargo hold totaling 936,000 cubic feet and will be over 20% more fuel efficient than older vessels, the shipyard added. The ships are likely to be delivered in 2027. Nordic Hamburg owns and manages a fleet of about 60 ships, including container ships and container and roll-on/roll-off (conro) ships, in addition to MPVs. Separately, Chinese shipowner Fujian Highton Development has ordered up to seven 62,000-dwt multipurpose and heavy-lift vessels from China’s Taizhou Kouan Shipbuilding. The deal, with a total value of about $300 million, comprises a firm contract for three ships to be delivered in 2029 and options for four similar ships. Fujian’s investment in the first three vessels will be capped at $130 million, the company said in a filing to the Shanghai stock exchange. Fujian, which operates around 80 MPVs and dry cargo ships, is planning to expand to 100 vessels by 2030. Contact Keith Wallis at keithwallis@hotmail.com.

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Project cargo

Breakbulk News

Maritime

Carriers expand MPV fleets with $450 million in new vessel orders

<div class="phx-topic abstract-wrapper">But the US’ largest intermodal provider said during its fourth-quarter earnings call it is not forecasting a market inflection just yet, citing the “false starts” the industry has seen during the past 18 months.</div>

But the US’ largest intermodal provider said during its fourth-quarter earnings call it is not forecasting a market inflection just yet, citing the “false starts” the industry has seen during the past 18 months.

<div class="phx-topic">The US truckload market is “fragile” enough given the capacity now exiting that a disruption or demand catalyst could quickly send prices higher and mark the end of the freight recession, according to J. B. Hunt. But the US’ largest intermodal provider is not forecasting an inflection just yet, citing what it called the “false starts” the market has seen during the past 18 months. “[An] uptick in demand could create an environment that’s different than what we’ve seen in the last several years,” J.B. Hunt CEO Shelley Simpson said late Thursday during the company’s fourth-quarter earnings call. “Having said that, we’re not holding our breath…We want to finish up at least January and February and see what happens there.” Spot market truckload rates paid by the shipper rose 19 cents month over month in December to $2.46 per mile on lanes greater than 250 miles, according to a Journal of Commerce analysis of data from DAT Freight and Analytics, Sunset Transportation, and digital platform Loadsmart. Shippers have told the Journal of Commerce, however, that the December spot market surge has not emerged as a topic in ongoing truckload contract negotiations. “Most customers view recent market tightening as temporary and seasonal rather than a structural shift,” Spencer Frazier, J.B. Hunt’s executive vice president of sales, said on the earnings call. “After several years of mixed signals and forecasting challenges, customers will only acknowledge a structural change after they feel a tighter market for a longer period of time, likely driven by some degree of both reduced capacity and stronger demand.” <h3>Intermodal markets still sluggish </h3>Intermodal demand, which often lags truckload, has yet to strengthen enough to shift pricing power back toward carriers. J.B. Hunt reported that its intermodal revenue was down 3% and volume down 2% year over year in the fourth quarter. Volume on the West Coast dropped 6%, while East Coast volume rose 5% in Q4. Intermodal operating income increased 16% year over year in the quarter, driven by lower costs and a strategy of walking away from low-margin freight. Over the past year, J.B. Hunt has emphasized yield and margin discipline even at the expense of weaker volume and revenue. To support that goal, the company has taken a tougher stance on pricing, a decision that has resulted in losing share to competitors in California. RailState, a rail visibility and analytics provider, reported that Union Pacific Railroad’s domestic intermodal volume out of Southern California increased more than 20% year over year in the fourth quarter, while BNSF Railway’s volume fell about 5%. The divergence suggests that UP partners such as Hub Group and Schneider National have captured business at J.B. Hunt’s expense in Southern California. BNSF is J.B. Hunt’s exclusive partner in the western US. Despite J.B. Hunt’s emphasis on margins, there is no indication that intermodal pricing dynamics have shifted materially from a year ago. During the 2025 bid cycle, intermodal providers were generally able to secure rate increases on outbound lanes from California, but struggled to do so elsewhere. “We’re a little bit hesitant to suggest that we think there’s some big pricing opportunity, but we’ll be quick to identify when we see the market shift...,” Darren Field, J.B. Hunt’s president of intermodal, said during the call. Field added that it’s too early to gauge 2026 contract pricing, noting that many of the intermodal bids in the fourth quarter were backhaul routes. Pricing on those lanes was flat to down last year as e-commerce giant Amazon continued to offer low rates to third-party shippers to fill capacity on return moves to Southern California. Field also made brief remarks about the UP-Norfolk Southern merger application filed Dec. 19 with the US Surface Transportation Board. “We continue to digest the application and had expected more intermodal-specific questions to be addressed in the merger application than there were [addressed],” he said. Analysts did not ask Field to elaborate. J.B. Hunt did not respond to a Journal of Commerce request for comment on which intermodal-related issues it expected to be addressed in the filing but were not. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a></div>

The US truckload market is “fragile” enough given the capacity now exiting that a disruption or demand catalyst could quickly send prices higher and mark the end of the freight recession, according to J. B. Hunt. But the US’ largest intermodal provider is not forecasting an inflection just yet, citing what it called the “false starts” the market has seen during the past 18 months. “[An] uptick in demand could create an environment that’s different than what we’ve seen in the last several years,” J.B. Hunt CEO Shelley Simpson said late Thursday during the company’s fourth-quarter earnings call. “Having said that, we’re not holding our breath…We want to finish up at least January and February and see what happens there.” Spot market truckload rates paid by the shipper rose 19 cents month over month in December to $2.46 per mile on lanes greater than 250 miles, according to a Journal of Commerce analysis of data from DAT Freight and Analytics, Sunset Transportation, and digital platform Loadsmart. Shippers have told the Journal of Commerce, however, that the December spot market surge has not emerged as a topic in ongoing truckload contract negotiations. “Most customers view recent market tightening as temporary and seasonal rather than a structural shift,” Spencer Frazier, J.B. Hunt’s executive vice president of sales, said on the earnings call. “After several years of mixed signals and forecasting challenges, customers will only acknowledge a structural change after they feel a tighter market for a longer period of time, likely driven by some degree of both reduced capacity and stronger demand.” Intermodal markets still sluggish Intermodal demand, which often lags truckload, has yet to strengthen enough to shift pricing power back toward carriers. J.B. Hunt reported that its intermodal revenue was down 3% and volume down 2% year over year in the fourth quarter. Volume on the West Coast dropped 6%, while East Coast volume rose 5% in Q4. Intermodal operating income increased 16% year over year in the quarter, driven by lower costs and a strategy of walking away from low-margin freight. Over the past year, J.B. Hunt has emphasized yield and margin discipline even at the expense of weaker volume and revenue. To support that goal, the company has taken a tougher stance on pricing, a decision that has resulted in losing share to competitors in California. RailState, a rail visibility and analytics provider, reported that Union Pacific Railroad’s domestic intermodal volume out of Southern California increased more than 20% year over year in the fourth quarter, while BNSF Railway’s volume fell about 5%. The divergence suggests that UP partners such as Hub Group and Schneider National have captured business at J.B. Hunt’s expense in Southern California. BNSF is J.B. Hunt’s exclusive partner in the western US. Despite J.B. Hunt’s emphasis on margins, there is no indication that intermodal pricing dynamics have shifted materially from a year ago. During the 2025 bid cycle, intermodal providers were generally able to secure rate increases on outbound lanes from California, but struggled to do so elsewhere. “We’re a little bit hesitant to suggest that we think there’s some big pricing opportunity, but we’ll be quick to identify when we see the market shift...,” Darren Field, J.B. Hunt’s president of intermodal, said during the call. Field added that it’s too early to gauge 2026 contract pricing, noting that many of the intermodal bids in the fourth quarter were backhaul routes. Pricing on those lanes was flat to down last year as e-commerce giant Amazon continued to offer low rates to third-party shippers to fill capacity on return moves to Southern California. Field also made brief remarks about the UP-Norfolk Southern merger application filed Dec. 19 with the US Surface Transportation Board. “We continue to digest the application and had expected more intermodal-specific questions to be addressed in the merger application than there were [addressed],” he said. Analysts did not ask Field to elaborate. J.B. Hunt did not respond to a Journal of Commerce request for comment on which intermodal-related issues it expected to be addressed in the filing but were not. Contact Ari Ashe at ari.ashe@spglobal.com

Trucking News

Rail News

Truckload

North-American rail

Intermodal providers

Surface

Truckload at a tipping point; intermodal still lagging: J.B. Hunt

<div class="phx-topic abstract-wrapper">But rapid development of the record 8.4 gigawatts of new offshore capacity could lead to ship capacity constraints and logistical bottlenecks.</div>

But rapid development of the record 8.4 gigawatts of new offshore capacity could lead to ship capacity constraints and logistical bottlenecks.

<div class="phx-topic">Multipurpose and heavy-lift vessel operators are set for a surge of cargo linked to offshore wind farms around the coast of Britain after the UK government green lit eight projects totaling $30 billion for completion by 2030. The projects, announced on Jan. 14, cover a record 8.4 gigawatts (GW) of new offshore wind capacity split between six fixed and two floating sites around the coast of Britain following a government-backed auction of new locations. They will represent a 50% increase in offshore wind capacity from the 16 GW operating at the end of 2025. Still, vessel operators and analysts cautioned the development of so much offshore wind capacity in such a short period could cause supply chain bottlenecks due to due limits on specialized vessel availability, port capacity, and the manufacturing capability of key equipment. “The volume of bottom-fixed projects implies a very high level of demand for heavy-lift and jack-up vessels, increasing the risk of installation bottlenecks if schedules converge,” Maëlig Gaborieau, senior offshore wind analyst at consultancy Spinergie, told the Journal of Commerce. Gaborieau said the supply of nacelles, which house the power generation equipment at the top of the turbine tower, is the most exposed part of the supply chain. “The scale program is such that UK projects alone will absorb a very significant share of European nacelle manufacturing capacity over a short period,” he said. “This makes nacelles the most critical component-level risk in terms of delivery timelines.” The supply of monopile foundations is also tight, although components are likely to be imported by non-European manufacturers including China, which would provide some additional flexibility, the analyst said. <h3>Ship capacity a concern </h3>Michael Mørland, project cargo director at MPV operator G2 Ocean, said there is currently limited capacity of MPVs and heavy-lift ships that can handle longer and heavier equipment, including blades and monopiles. “Blades, for example, typically span 344 to 377 feet, demanding ships with extended holds for tower sections and expansive, unobstructed weather decks to accommodate such lengths,” he told the Journal of Commerce. Some operators have seen this gap in the market and have ordered vessels that can more easily handle and install the latest generation of wind farm components. G2 Ocean will take delivery of 10 82,000-deadweight metric ton open hatch MPVs between now and 2029. Chipolbrok has 11 heavy-lift MPVs on order, including up to 10 60,800-dwt ships ordered last week, while DSME took delivery of the Norse Energi, on Jan. 15, its second new wind turbine installation vessel purpose built to install the next generation of large-scale offshore wind turbines. Mørland thought that this extra cargo volume could ease capacity constraints, but it would also lead to a firming in charter rates with the more capable ships attracting a premium. He said the eight UK projects are expected to involve the installation of approximately 500 to 600 turbines, “boosting the project cargo volumes bound for the North Sea.” “For G2 Ocean, this signals renewed momentum in the offshore wind segment – a welcome change after a period of slower growth,” Mørland said. <h3>Ports a possible chokepoint </h3>Mørland also highlighted port capacity as a potential bottleneck for the cargo needed for the UK projects. “The availability of lay-down areas and mobilization yards is a concern that has been widely raised in relation to this project,” he said. “The UK has limited space for these large offshore wind components. “Complicating matters, the UK’s departure from the EU means that utilizing facilities in neighboring countries for storage and staging is no longer as straightforward,” he added. “Deciding where the components will be manufactured, as well as securing sufficient staging, lay-down, and mobilization yard capacities, must be addressed fast to avoid delays to the projects.” But Spinergie’s Gaborieau said pressure on ports could be reduced by components being delivered and installed progressively, allowing more manageable lay-down capacity. Mørland thought the winners of the eight projects would be already talking to potential shipping and equipment company partners. RWE, the German energy company, won approval for five of the eight projects — Norfolk Vanguard East, Norfolk Vanguard West, and two Dogger Bank South projects in the British North Sea, plus the Awel y Môr project located in the Irish Sea — that total 6.9 GW of capacity. Investment firm KKR has teamed up with RWE to jointly develop, build and operate the two Norfolk Vanguard projects. Energy company SSE will develop the 1,380-megawatt (MW) Berwick Bank B project in northern England. Highland Wind, led by Copenhagen Offshore Partners, is developing the 9.5-MW Pentland floating offshore wind farm off the coast of northern Scotland. The second floating wind farm development is Blue Gem Wind’s 100-MW project off the coast of Wales. RWE and SSE declined to comment beyond their official statements. Other companies, including turbine suppliers Vestas and Siemens Gamesa, did not respond to requests for comment from the Journal of Commerce. Contact Keith Wallis at keithwallis@hotmail.com. </div>

Multipurpose and heavy-lift vessel operators are set for a surge of cargo linked to offshore wind farms around the coast of Britain after the UK government green lit eight projects totaling $30 billion for completion by 2030. The projects, announced on Jan. 14, cover a record 8.4 gigawatts (GW) of new offshore wind capacity split between six fixed and two floating sites around the coast of Britain following a government-backed auction of new locations. They will represent a 50% increase in offshore wind capacity from the 16 GW operating at the end of 2025. Still, vessel operators and analysts cautioned the development of so much offshore wind capacity in such a short period could cause supply chain bottlenecks due to due limits on specialized vessel availability, port capacity, and the manufacturing capability of key equipment. “The volume of bottom-fixed projects implies a very high level of demand for heavy-lift and jack-up vessels, increasing the risk of installation bottlenecks if schedules converge,” Maëlig Gaborieau, senior offshore wind analyst at consultancy Spinergie, told the Journal of Commerce. Gaborieau said the supply of nacelles, which house the power generation equipment at the top of the turbine tower, is the most exposed part of the supply chain. “The scale program is such that UK projects alone will absorb a very significant share of European nacelle manufacturing capacity over a short period,” he said. “This makes nacelles the most critical component-level risk in terms of delivery timelines.” The supply of monopile foundations is also tight, although components are likely to be imported by non-European manufacturers including China, which would provide some additional flexibility, the analyst said. Ship capacity a concern Michael Mørland, project cargo director at MPV operator G2 Ocean, said there is currently limited capacity of MPVs and heavy-lift ships that can handle longer and heavier equipment, including blades and monopiles. “Blades, for example, typically span 344 to 377 feet, demanding ships with extended holds for tower sections and expansive, unobstructed weather decks to accommodate such lengths,” he told the Journal of Commerce. Some operators have seen this gap in the market and have ordered vessels that can more easily handle and install the latest generation of wind farm components. G2 Ocean will take delivery of 10 82,000-deadweight metric ton open hatch MPVs between now and 2029. Chipolbrok has 11 heavy-lift MPVs on order, including up to 10 60,800-dwt ships ordered last week, while DSME took delivery of the Norse Energi, on Jan. 15, its second new wind turbine installation vessel purpose built to install the next generation of large-scale offshore wind turbines. Mørland thought that this extra cargo volume could ease capacity constraints, but it would also lead to a firming in charter rates with the more capable ships attracting a premium. He said the eight UK projects are expected to involve the installation of approximately 500 to 600 turbines, “boosting the project cargo volumes bound for the North Sea.” “For G2 Ocean, this signals renewed momentum in the offshore wind segment – a welcome change after a period of slower growth,” Mørland said. Ports a possible chokepoint Mørland also highlighted port capacity as a potential bottleneck for the cargo needed for the UK projects. “The availability of lay-down areas and mobilization yards is a concern that has been widely raised in relation to this project,” he said. “The UK has limited space for these large offshore wind components. “Complicating matters, the UK’s departure from the EU means that utilizing facilities in neighboring countries for storage and staging is no longer as straightforward,” he added. “Deciding where the components will be manufactured, as well as securing sufficient staging, lay-down, and mobilization yard capacities, must be addressed fast to avoid delays to the projects.” But Spinergie’s Gaborieau said pressure on ports could be reduced by components being delivered and installed progressively, allowing more manageable lay-down capacity. Mørland thought the winners of the eight projects would be already talking to potential shipping and equipment company partners. RWE, the German energy company, won approval for five of the eight projects — Norfolk Vanguard East, Norfolk Vanguard West, and two Dogger Bank South projects in the British North Sea, plus the Awel y Môr project located in the Irish Sea — that total 6.9 GW of capacity. Investment firm KKR has teamed up with RWE to jointly develop, build and operate the two Norfolk Vanguard projects. Energy company SSE will develop the 1,380-megawatt (MW) Berwick Bank B project in northern England. Highland Wind, led by Copenhagen Offshore Partners, is developing the 9.5-MW Pentland floating offshore wind farm off the coast of northern Scotland. The second floating wind farm development is Blue Gem Wind’s 100-MW project off the coast of Wales. RWE and SSE declined to comment beyond their official statements. Other companies, including turbine suppliers Vestas and Siemens Gamesa, did not respond to requests for comment from the Journal of Commerce. Contact Keith Wallis at keithwallis@hotmail.com.

MPV, heavy-lift operators ready for UK offshore wind boom after project approvals

<div class="phx-topic abstract-wrapper">Noel Hacegaba made the announcement about the possible 1.8 million-TEU terminal during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero.</div>

Noel Hacegaba made the announcement about the possible 1.8 million-TEU terminal during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero.

<div class="phx-topic">The Port of Long Beach is exploring the possibility of developing what its new CEO said Thursday would be the “first conventional, zero-emissions container terminal in the world.” Noel Hacegaba made the announcement during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero. Hacegaba said Long Beach has inked an exclusive agreement with Brookfield Infrastructure Group for the potential development of a 1.8 million-TEU terminal designed for express vessels of up to 9,000-TEU capacity. The facility, being called the Metro Express Terminal, would be built on Long Beach’s Pier S and use zero-emission, human-operated equipment, container peel-off operations, 24/7 gate access, free-flow cargo stacks and zero-emission trucks, he said. If it comes to fruition, Brookfield would partner with Nautilus International on the project, further details of which were not disclosed in Hacegaba’s presentation. That presentation made clear that the Port of Long Beach will leverage marine terminal expansion, massive investment in intermodal rail connectivity and the creation of a supply chain information highway to handle a projected doubling of container volume by 2050. That comes after the port handled a record 9.9 million laden and empty TEUs in 2025, according to data from the port. “According to our latest cargo forecast, 2050 is the year our container volumes will reach 20 million TEUs,” Hacegaba said. Long Beach forecasts it will handle about 9 million TEUs this year, which although down from 2025, will still rank among its top five years, he said. Long Beach faces an immediate challenge in adjusting to diminishing imports from China due to the Trump administration’s tariffs, and fewer exports to China because of that country’s counter tariffs. “Six years ago, about 70% of all our cargo — imports and exports — was tied to China,” Hacegaba said. “Today that’s down to 60%.” While the tariffs have fostered a shifting of US trade to Vietnam and other countries in Southeast Asia, it has also highlighted the importance of adding “speed, precision and reliability” to the Long Beach supply chain as it competes for cargo with other US ports, he said. <h3>Emphasis on on-dock rail connectivity </h3>Long Beach is investing $1.8 billion in its <a href="https://www.joc.com/article/inland-rail-connectivity-key-to-port-of-long-beach-growth-new-ceo-6133971">on-dock rail support facility at Pier B</a>, which is scheduled for completion in 2032. By assembling longer intermodal trains on dock rather than at near-dock sites that require a move by truck, the transfer of containers from vessel to train, which now takes slightly less than four days, will be reduced to 24 hours, Hacegaba said. “Our terminals are driving the movement of rail to inland points,” he said. “TTI (Total Terminals International) is already moving more than 50% of its containers by rail.” The <a href="https://www.joc.com/article/up-ns-deal-could-benefit-some-shippers-while-others-face-longer-transits-6143225">proposed merger of Union Pacific and Norfolk Southern</a>, which would create the nation’s first transcontinental railroad, holds the potential for faster, more efficient intermodal service to rail hubs in the eastern half of the country. Also, the announcement in November by BNSF Railway and CSX that they will <a href="https://www.joc.com/article/intermodal-cooperation-on-rails-has-declined-amid-cost-pressures-6152067">expand their intermodal partnership for service connecting Long Beach with rail terminals in the Ohio Valley and the Northeast</a> will cut transit times by as much as two days, Hacegaba said. Five of Long Beach’s six container terminals last year handled more than 1 million TEUs, with two of those facilities handling more than 2 million TEUs. International Transportation Service and Macquarie Asset Management in July broke ground on a project that will fill in a 19-acre slip at Pier G that will enhance operational efficiency and build a single, continuous wharf measuring 3,400 feet that will accommodate the berthing of two super-post Panamax ships at the same time, Hacegaba said. <h3>Data sharing within the supply chain </h3>Hacegaba also announced that development is beginning on Long Beach’s CargoNav digital platform that will navigate the supply chain one container at a time, from arrival on the dock to shipment to its final destination. Further information will be released in the coming months. Emphasizing the importance of data sharing among carriers, terminal operators, truckers, railroads and shippers, Long Beach several years ago unveiled its supply chain information highway through its community portal. “The goal was simple, end-to-end visibility via coast-to-coast connectivity,” Hacegaba said. Long Beach in the coming weeks will also launch a universal trucking appointment system that members of the Harbor Trucking Association asked for several years ago, he said. Projects that improve operational efficiency will be another priority, Hacegaba said, particularly those that continue to reduce harmful emissions from vessels, cargo-handling equipment, tugboats, trucks, and trains. “As we continue our quest to zero emissions, we remain laser-focused on our core mission — moving more cargo more quickly, safely, efficiently, and sustainably,” he said Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a></div>

The Port of Long Beach is exploring the possibility of developing what its new CEO said Thursday would be the “first conventional, zero-emissions container terminal in the world.” Noel Hacegaba made the announcement during his first State of the Port presentation since taking over as CEO on Jan. 1 following the retirement of Mario Cordero. Hacegaba said Long Beach has inked an exclusive agreement with Brookfield Infrastructure Group for the potential development of a 1.8 million-TEU terminal designed for express vessels of up to 9,000-TEU capacity. The facility, being called the Metro Express Terminal, would be built on Long Beach’s Pier S and use zero-emission, human-operated equipment, container peel-off operations, 24/7 gate access, free-flow cargo stacks and zero-emission trucks, he said. If it comes to fruition, Brookfield would partner with Nautilus International on the project, further details of which were not disclosed in Hacegaba’s presentation. That presentation made clear that the Port of Long Beach will leverage marine terminal expansion, massive investment in intermodal rail connectivity and the creation of a supply chain information highway to handle a projected doubling of container volume by 2050. That comes after the port handled a record 9.9 million laden and empty TEUs in 2025, according to data from the port. “According to our latest cargo forecast, 2050 is the year our container volumes will reach 20 million TEUs,” Hacegaba said. Long Beach forecasts it will handle about 9 million TEUs this year, which although down from 2025, will still rank among its top five years, he said. Long Beach faces an immediate challenge in adjusting to diminishing imports from China due to the Trump administration’s tariffs, and fewer exports to China because of that country’s counter tariffs. “Six years ago, about 70% of all our cargo — imports and exports — was tied to China,” Hacegaba said. “Today that’s down to 60%.” While the tariffs have fostered a shifting of US trade to Vietnam and other countries in Southeast Asia, it has also highlighted the importance of adding “speed, precision and reliability” to the Long Beach supply chain as it competes for cargo with other US ports, he said. Emphasis on on-dock rail connectivity Long Beach is investing $1.8 billion in its on-dock rail support facility at Pier B , which is scheduled for completion in 2032. By assembling longer intermodal trains on dock rather than at near-dock sites that require a move by truck, the transfer of containers from vessel to train, which now takes slightly less than four days, will be reduced to 24 hours, Hacegaba said. “Our terminals are driving the movement of rail to inland points,” he said. “TTI (Total Terminals International) is already moving more than 50% of its containers by rail.” The proposed merger of Union Pacific and Norfolk Southern , which would create the nation’s first transcontinental railroad, holds the potential for faster, more efficient intermodal service to rail hubs in the eastern half of the country. Also, the announcement in November by BNSF Railway and CSX that they will expand their intermodal partnership for service connecting Long Beach with rail terminals in the Ohio Valley and the Northeast will cut transit times by as much as two days, Hacegaba said. Five of Long Beach’s six container terminals last year handled more than 1 million TEUs, with two of those facilities handling more than 2 million TEUs. International Transportation Service and Macquarie Asset Management in July broke ground on a project that will fill in a 19-acre slip at Pier G that will enhance operational efficiency and build a single, continuous wharf measuring 3,400 feet that will accommodate the berthing of two super-post Panamax ships at the same time, Hacegaba said. Data sharing within the supply chain Hacegaba also announced that development is beginning on Long Beach’s CargoNav digital platform that will navigate the supply chain one container at a time, from arrival on the dock to shipment to its final destination. Further information will be released in the coming months. Emphasizing the importance of data sharing among carriers, terminal operators, truckers, railroads and shippers, Long Beach several years ago unveiled its supply chain information highway through its community portal. “The goal was simple, end-to-end visibility via coast-to-coast connectivity,” Hacegaba said. Long Beach in the coming weeks will also launch a universal trucking appointment system that members of the Harbor Trucking Association asked for several years ago, he said. Projects that improve operational efficiency will be another priority, Hacegaba said, particularly those that continue to reduce harmful emissions from vessels, cargo-handling equipment, tugboats, trucks, and trains. “As we continue our quest to zero emissions, we remain laser-focused on our core mission — moving more cargo more quickly, safely, efficiently, and sustainably,” he said Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com

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