<div class="phx-topic abstract-wrapper">If the momentum China has shown coming out of the financial crisis signals a new Asia-centric economic order, the emergence of the intra-Asia container market is one important marker of that developme</div>

If the momentum China has shown coming out of the financial crisis signals a new Asia-centric economic order, the emergence of the intra-Asia container market is one important marker of that developme

<div>If the momentum China has shown coming out of the financial crisis signals a new Asia-centric economic order, the emergence of the intra-Asia container market is one important marker of that development in the shipping industry. Still quaintly and inaccurately referred to as a &amp;ldquo;trade&amp;rdquo; &amp;mdash; as if it were somehow a single route like the California-Boston cowhide trade described in Richard Henry Dana&amp;rsquo;s 1840 classic, &amp;ldquo;Two Years before the Mast&amp;rdquo; &amp;mdash; the intra-Asia market is emerging from the shadows with real information coming out for the first time thanks to industry analysts such as AXS-Alphaliner, carriers and others. The...

If the momentum China has shown coming out of the financial crisis signals a new Asia-centric economic order, the emergence of the intra-Asia container market is one important marker of that development in the shipping industry. Still quaintly and inaccurately referred to as a &ldquo;trade&rdquo; &mdash; as if it were somehow a single route like the California-Boston cowhide trade described in Richard Henry Dana&rsquo;s 1840 classic, &ldquo;Two Years before the Mast&rdquo; &mdash; the intra-Asia market is emerging from the shadows with real information coming out for the first time thanks to industry analysts such as AXS-Alphaliner, carriers and others. The picture that emerges depicts a fast-growing, complex and staggeringly large market. A network of dozens of routes, the intra-Asia trade is becoming a magnet for carriers and a reflection of an increasingly interconnected and rapidly expanding regional Asian economy. Its participants run the gamut from global carriers with intra-Asian feeder operations to single-ship operators enticed by the availability of ships and low barriers to entry. With the U.S. and Europe mired in the post-recession blues, Asia is surging, and taking the container market along with it. &ldquo;There is no question that the intra-Asia trade will be the focal point of the future of container shipping,&rdquo; Bronson Hsieh, chairman of Evergreen Marine, told The Journal of Commerce&rsquo;s TPM Asia conference last month. His point is that the intra-Asia market is a reflection of expanding and more formalized trade relationships within Asia, particularly between China and the 10 members of the Association of Southeast Asian Nations. He sees a former competitive scenario between China and ASEAN nations evolving to one of greater interdependency based in part on China&rsquo;s growing consumer market, and formalized in a China-ASEAN Free Trade Agreement that took effect last January. &ldquo;The expansion of China&rsquo;s domestic market brought new opportunities for ASEAN countries and enabled them to change their role from being China&rsquo;s competitors to becoming its suppliers,&rdquo; he said. While the U.S. and Europe were embroiled in the financial crisis, Asia was riding out the storm, and the idea Asia is being decoupled economically from the West is gaining credibility. The intra-Asia market illustrates this, with two-way China-ASEAN trade growing nearly 50 percent in dollar terms from January through July over the same period in 2009. &ldquo;In contrast to the severe decline in most trade lanes, the intra-Asia market was able to maintain a high degree of stability throughout the global financial storm,&rdquo; Hsieh said. &ldquo;In 2009 (intra-Asia) cargo volumes decreased by only 2.6 percent. During the first half of this year, cargo volumes increased by 16.9 percent. The performances of both periods outstrip the long-haul markets from Asia to the U.S. and Europe.&rdquo; The question of how much the intra-Asia market is tied to non-Asia markets, particularly Europe and North America, is still relevant. Although pure intra-Asia volumes are growing, much of the volume is still transshipped to traditional east-west linehaul services. &ldquo;Intra-Asia is often considered the largest market for containers in the world, but recall about half is destined for re-export,&rdquo; Hong Kong shipping analyst Charles deTrenck wrote in his Transport Trackers write-up of TPM Asia. Including feeder transshipments, the total intra-Asia market may be as high as 37 million TEUs, compared with 13 million to 14 million in the Asia-Europe and trans-Pacific trades. Some 100 carriers operate in the market, many of them small, including some single-ship operators. The more established carriers that participate in the Intra-Asia Discussion Agreement account for only 60 percent of total intra-Asia capacity. Many of the new arrivals are Chinese operators acquiring smaller ships with Chinese bank financing. &ldquo;Carriers are turning to the intra-Asia market as the container shipping industry&rsquo;s new focal point, as the trade&rsquo;s growth is expected to outpace that of the Asia-Europe and trans-Pacific markets,&rdquo; AXS-Alphaliner reported in early November. An estimated 85 percent of capacity is deployed in dedicated intra-Asia services, as opposed to intra-port slots on global carriers&rsquo; long-haul routes, Alphaliner reports, illustrating the regional nature of the market. The ship sizes are getting larger. Cosco and China Shipping are operating 4,100- to 5,000-TEU ships in the China coastal trade and will handle 4.8 million TEUs in that market alone, according to Alphaliner. The pre-recession containership ordering spree concentrated on ships of the largest capacity, which, upon deployment, replaced smaller ships, Hsieh said. &ldquo;As large-sized newbuildings phase into long-haul services, vessels of middle and smaller sizes will cascade to secondary trade routes. The ripple effect will extend to the intra-Asia market,&rdquo; he said. &ldquo;Previously vessel sizes utilized in the intra-Asia services were limited to about 3,000 TEUs due primarily to the capacity of ports and terminals in Southeast Asia&rdquo; but now Panamax-sized ships of 4,000 to 5,000 TEUs are being deployed to the largest intra-Asia routes. The most important aspect about the intra-Asia container market isn&rsquo;t necessarily the logistics opportunities it offers, but what it says about the makeup of the post-recession global economy. A new picture is emerging. Peter Tirschwell is senior vice president of strategy at UBM Global Trade. Contact him at ptirschwell@joc.com and follow him on Twitter at www.twitter.com/PeterTirschwell .

Maritime

Forwarding

Asia Looks Within

<div class="phx-topic abstract-wrapper">Seasonal fog along Texas waterways has caused ocean carriers to switch up typical Gulf Coast port rotations, sometimes with little warning of vessel arrivals.</div>

Seasonal fog along Texas waterways has caused ocean carriers to switch up typical Gulf Coast port rotations, sometimes with little warning of vessel arrivals.

Feature image

<div class="phx-topic">Seasonal fog along the US Gulf Coast is delaying container ship arrivals to the Port of Houston and prompting diversions to Mobile. But shippers out of Mobile say they are only getting last-minute warnings of the diversions, giving them little time to ready their freight and causing further delays as export containers miss their cutoff day. Houston, the busiest port in the US when all types of ship traffic are considered, including tankers and bulkers, typically experiences fog during the winter months. While it’s unclear if this season’s fog episodes are more frequent or of longer duration, more container ships are having to wait longer to berth due to the fog. During the month of December, Houston had 21 container ships sit at anchor with an average delay of four days, according to Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. During the holiday period, some ships were seeing five-day dwells at anchorage. The delays are spilling into 2026, with CMA CGM warning in an advisory this week of “building vessel congestion and dwell due to dense fog and seasonal holiday terminal closures.” <h3>Opting for Mobile </h3>Instead of waiting out the fog, ocean carriers are reversing typical port rotations for Gulf Coast services by calling Mobile first, then Houston. Since December, at least nine container ships that previously had a Houston-to-Mobile rotation instead made Mobile the first call, Sea-web data shows. Another four container ships that were not on regular deployment to the Gulf Coast also made Mobile-to-Houston rotations. Maersk rotated four ships to Mobile ahead of Houston during the period, while three Mediterranean Shipping Co. vessels and two CMA CGM ships made similar rotations. Evergreen Marine, Ocean Network Express, HMM and Yang Ming also followed a Mobile-to-Houston rotation. In many instances, though, shippers tell the Journal of Commerce they have only been given one-day notice of the schedule changes and vessel arrivals. That’s been especially difficult for exporters, who typically have a window of about a week to prepare an export container and bring it to the port. The director of global logistics for a Houston-based chemicals manufacturer that ships about 20,000 containers annually, primarily out of Mobile, said ships that he’s booked export freight on have arrived about a week ahead of schedule, well ahead of when his company has been able to stuff a container and find a trucker to move the box. ”We’ve missed the cutoff date on several voyages,” the source said, estimating that the early arrivals into Mobile have impacted about 800 of his company’s export containers since December. “We’re scrambling the day of the cutoff,” he said. “You can’t tell me that day to have the container ready.” As a result of the missed cutoff, his cargo is being rolled to later voyages. But since space is already booked on those voyages and other shippers have rolled cargo, the source said vessel capacity to certain regions, such as Southeast Asia, has tightened. “I’m not the only guy who has production that needs to get out,” he said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="cbdb9f34-b9ba-4645-86be-6a36c1f1b1d4"></dynamic-object></div><h3>Carrier communication ‘not proactive’</h3>A Jacksonville-based ocean freight forwarder said one of his clients, a wood products company in Mississippi, ships between 20 and 30 containers per week out of Mobile. While some of that freight is already positioned at Mobile for export, the one-day cutoffs for ships means his client is having to find space at their facility to store already-loaded export containers that missed a vessel.“It’s like a big game of Jenga,” the forwarder said. “It takes time to stuff and stage these containers. Now you’ve got to move these back to your warehouse and repeat the process.” Other complications ensue because of the missed vessels, the source said. Export wood products may require a USDA certification that the product is pest-free. But the certification is only valid for a limited time, requiring a second certification if the product has not yet been exported. As for the communication from ocean carriers about the schedule changes: “They are not proactive,” the forwarder said. Maersk and CMA CGM did not respond to a request for comment about how they communicate schedule changes to shippers.In a statement to the Journal of Commerce, Port Houston Authority said it is supporting a bill introduced last year by Texas Sen. Ted Cruz and Rep. Brian Babin (R–Texas) that would direct the National Oceanic and Atmospheric Administration (NOAA) to expand observation and improve the forecasting of fog events that impact maritime navigation. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a> </div>

Seasonal fog along the US Gulf Coast is delaying container ship arrivals to the Port of Houston and prompting diversions to Mobile. But shippers out of Mobile say they are only getting last-minute warnings of the diversions, giving them little time to ready their freight and causing further delays as export containers miss their cutoff day. Houston, the busiest port in the US when all types of ship traffic are considered, including tankers and bulkers, typically experiences fog during the winter months. While it’s unclear if this season’s fog episodes are more frequent or of longer duration, more container ships are having to wait longer to berth due to the fog. During the month of December, Houston had 21 container ships sit at anchor with an average delay of four days, according to Sea-web, a sister product of the Journal of Commerce within S&P Global. During the holiday period, some ships were seeing five-day dwells at anchorage. The delays are spilling into 2026, with CMA CGM warning in an advisory this week of “building vessel congestion and dwell due to dense fog and seasonal holiday terminal closures.” Opting for Mobile Instead of waiting out the fog, ocean carriers are reversing typical port rotations for Gulf Coast services by calling Mobile first, then Houston. Since December, at least nine container ships that previously had a Houston-to-Mobile rotation instead made Mobile the first call, Sea-web data shows. Another four container ships that were not on regular deployment to the Gulf Coast also made Mobile-to-Houston rotations. Maersk rotated four ships to Mobile ahead of Houston during the period, while three Mediterranean Shipping Co. vessels and two CMA CGM ships made similar rotations. Evergreen Marine, Ocean Network Express, HMM and Yang Ming also followed a Mobile-to-Houston rotation. In many instances, though, shippers tell the Journal of Commerce they have only been given one-day notice of the schedule changes and vessel arrivals. That’s been especially difficult for exporters, who typically have a window of about a week to prepare an export container and bring it to the port. The director of global logistics for a Houston-based chemicals manufacturer that ships about 20,000 containers annually, primarily out of Mobile, said ships that he’s booked export freight on have arrived about a week ahead of schedule, well ahead of when his company has been able to stuff a container and find a trucker to move the box. ”We’ve missed the cutoff date on several voyages,” the source said, estimating that the early arrivals into Mobile have impacted about 800 of his company’s export containers since December. “We’re scrambling the day of the cutoff,” he said. “You can’t tell me that day to have the container ready.” As a result of the missed cutoff, his cargo is being rolled to later voyages. But since space is already booked on those voyages and other shippers have rolled cargo, the source said vessel capacity to certain regions, such as Southeast Asia, has tightened. “I’m not the only guy who has production that needs to get out,” he said. Carrier communication ‘not proactive’ A Jacksonville-based ocean freight forwarder said one of his clients, a wood products company in Mississippi, ships between 20 and 30 containers per week out of Mobile. While some of that freight is already positioned at Mobile for export, the one-day cutoffs for ships means his client is having to find space at their facility to store already-loaded export containers that missed a vessel. “It’s like a big game of Jenga,” the forwarder said. “It takes time to stuff and stage these containers. Now you’ve got to move these back to your warehouse and repeat the process.” Other complications ensue because of the missed vessels, the source said. Export wood products may require a USDA certification that the product is pest-free. But the certification is only valid for a limited time, requiring a second certification if the product has not yet been exported. As for the communication from ocean carriers about the schedule changes: “They are not proactive,” the forwarder said. Maersk and CMA CGM did not respond to a request for comment about how they communicate schedule changes to shippers. In a statement to the Journal of Commerce, Port Houston Authority said it is supporting a bill introduced last year by Texas Sen. Ted Cruz and Rep. Brian Babin (R–Texas) that would direct the National Oceanic and Atmospheric Administration (NOAA) to expand observation and improve the forecasting of fog events that impact maritime navigation. Contact Michael Angell at michael.angell@spglobal.com

Container lines

North American ports

Houston fog sets up ship diversions to Mobile, forcing exporters to scramble

<div class="phx-topic abstract-wrapper">This year’s positive MPV forecast is bolstered by a high level of forward bookings and the prospect of postponed projects coming onstream. </div>

This year’s positive MPV forecast is bolstered by a high level of forward bookings and the prospect of postponed projects coming onstream.

<div class="phx-topic">An optimistic outlook for the multipurpose sector in 2026 is underpinned by a well-utilized fleet, revivals of postponed high-capacity projects, and a reportedly healthy level of forward bookings. Yorck Niclas Prehm, head of research at specialist shipbroker Toepfer Transport, said multipurpose vessel (MPV) operators with highly specialized vessels can look forward to an “even more comfortable” 2026. With super-heavy-lift vessels and vessels with offshore installation capabilities almost fully booked for 2026, operators are now focused on bookings for 2027 and 2028. In comments for the Journal of Commerce’s 2026 Annual Review and Outlook, Prehm said the multipurpose and breakbulk shipping market in 2025 was “characterized by minimal volatility and a stable and steady behavior of freight and charter rates.” Prehm added that while this could be viewed as “a rather boring development,” considering the economic and geopolitical challenges the shipping industry and global supply chains faced in 2025, the stability underscores how “extraordinarily strong and resilient this niche market is.” The foundation for this stability was the constraint on ordering exercised by owners and operators in the sector last year, Prehm said. In its end-of-year quarterly report, Toepfer Transport noted the order book for MPVs is “relatively moderate,” with total fleet growth in 2025 of 2.4% by deadweight tons, or 19 ships net. For freight rate assessments, the Toepfer Multipurpose Index for January, published Thursday, is $12,648 per day, down from $12,818 in December. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="eb684173-3331-459c-8c00-85ae47522402"></dynamic-object></div><h3>Positive outlook for year ahead </h3>Toepfer’s upbeat assessment for 2026 was echoed by Ulrich Ulrichs, CEO of MPV operator BBC Chartering. In comments for the Journal of Commerce’s Annual Review and Outlook, Ulrichs described his outlook for the breakbulk and project cargo sector in 2026 as positive. “Supply and demand in our sector appear to be reasonably balanced, and the number of newbuildings for the multipurpose vessel sector remains sparse,” Ulrichs said. New orders are for more efficient tonnage, phasing out older tonnage with no overcapacity being generated. In terms of cargo demand, Ulrichs said BBC is focused on the “dominant drivers” of energy-related cargoes from both the wind turbine sector and the oil and gas and mining sectors. However, he raised concerns about the offshore wind sector, “the success — or otherwise — of which is entirely due to political decision-making.” Regulations and geopolitics will continue to buffet the MPV sector in 2026, characterized by an “increasingly unpredictable” US market and “complex and region-specific regulations,” including the European Union Emissions Trading System and FuelEU Maritime, Ulrichs said. “While these initiatives aim to reduce environmental impact, their implementation has introduced significant operational and financial challenges — especially for carriers operating across multiple jurisdictions,” he said. Ulrichs called for a single, global, and transparent set of rules to reduce administrative overhead for MPV operations, level the playing field, and encourage broader compliance. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

An optimistic outlook for the multipurpose sector in 2026 is underpinned by a well-utilized fleet, revivals of postponed high-capacity projects, and a reportedly healthy level of forward bookings. Yorck Niclas Prehm, head of research at specialist shipbroker Toepfer Transport, said multipurpose vessel (MPV) operators with highly specialized vessels can look forward to an “even more comfortable” 2026. With super-heavy-lift vessels and vessels with offshore installation capabilities almost fully booked for 2026, operators are now focused on bookings for 2027 and 2028. In comments for the Journal of Commerce’s 2026 Annual Review and Outlook, Prehm said the multipurpose and breakbulk shipping market in 2025 was “characterized by minimal volatility and a stable and steady behavior of freight and charter rates.” Prehm added that while this could be viewed as “a rather boring development,” considering the economic and geopolitical challenges the shipping industry and global supply chains faced in 2025, the stability underscores how “extraordinarily strong and resilient this niche market is.” The foundation for this stability was the constraint on ordering exercised by owners and operators in the sector last year, Prehm said. In its end-of-year quarterly report, Toepfer Transport noted the order book for MPVs is “relatively moderate,” with total fleet growth in 2025 of 2.4% by deadweight tons, or 19 ships net. For freight rate assessments, the Toepfer Multipurpose Index for January, published Thursday, is $12,648 per day, down from $12,818 in December. Positive outlook for year ahead Toepfer’s upbeat assessment for 2026 was echoed by Ulrich Ulrichs, CEO of MPV operator BBC Chartering. In comments for the Journal of Commerce’s Annual Review and Outlook, Ulrichs described his outlook for the breakbulk and project cargo sector in 2026 as positive. “Supply and demand in our sector appear to be reasonably balanced, and the number of newbuildings for the multipurpose vessel sector remains sparse,” Ulrichs said. New orders are for more efficient tonnage, phasing out older tonnage with no overcapacity being generated. In terms of cargo demand, Ulrichs said BBC is focused on the “dominant drivers” of energy-related cargoes from both the wind turbine sector and the oil and gas and mining sectors. However, he raised concerns about the offshore wind sector, “the success — or otherwise — of which is entirely due to political decision-making.” Regulations and geopolitics will continue to buffet the MPV sector in 2026, characterized by an “increasingly unpredictable” US market and “complex and region-specific regulations,” including the European Union Emissions Trading System and FuelEU Maritime, Ulrichs said. “While these initiatives aim to reduce environmental impact, their implementation has introduced significant operational and financial challenges — especially for carriers operating across multiple jurisdictions,” he said. Ulrichs called for a single, global, and transparent set of rules to reduce administrative overhead for MPV operations, level the playing field, and encourage broader compliance. Contact Carly Fields at carly.fields@spglobal.com .

Breakbulk News

Optimistic outlook sets multipurpose sector on firm footing for 2026

<div class="phx-topic abstract-wrapper">The performance of the Cosco Shipping subsidiary provides an early glimpse of what to expect as ocean carriers prepare to report their full-year 2025 earnings in an uncertain container shipping market. </div>

The performance of the Cosco Shipping subsidiary provides an early glimpse of what to expect as ocean carriers prepare to report their full-year 2025 earnings in an uncertain container shipping market.

<div class="phx-topic">Weakening demand and falling rates on OOCL’s major trade lanes through the fourth quarter weighed heavily on the carrier’s full-year operating result announced Friday. The performance of the Hong Kong-based subsidiary of Cosco Shipping provides an early glimpse of what to expect as ocean carriers prepare to report their full-year 2025 earnings in an uncertain container shipping market. Solid earnings in the first three quarters of 2025 have ensured most carriers will report a profitable year — Drewry Shipping Consultants has forecast a combined $20 billion in profits — but the difficult fourth-quarter operating environment was reflected in OOCL’s revenue and volume. No profit and loss figures were disclosed by OOCL in its operating result. OOCL reported fourth-quarter revenue of $2.08 billion, a 17.2% year-over-year decline across its major trade lanes, while Q4 volume rose just 0.8% to 2 million TEUs. Available capacity increased 4.5% and average revenue per TEU plunged 17.8% compared to the 2024 fourth quarter. From a trade lane perspective, trans-Pacific revenue in Q4 was down 25% year over year at $726 million, with volume down 4.2% at 528,394 TEUs. Asia-Europe revenue fell 24.5% to $418 million while volume edged up 1.3% to 367,728 TEUs. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ea023e46-41d8-4790-b614-6af084fc81ec"></dynamic-object></div>OOCL’s largest trade lane, which combines Australasia with intra-Asia, saw revenue fall 6.8% to $772 million in the fourth quarter while volume rose 2.4% to 974,653 TEUs. The trans-Atlantic, the smallest of the carrier’s major trades, reported flat revenue of $163 million in Q4 and an 8.8% increase in volume to 130,231 TEUs. For the full year, OOCL revenue of $8.7 billion declined 10.6% year over year against volume that increased 3.7% to 7.8 million TEUs. Available capacity for the year was up 6.1% and average revenue per TEU dropped 13.7% year over year. Full-year revenue on the trans-Pacific of $3.2 billion was down 17.2% year over year, with volume up 1.7% at 2.1 million TEUs. Asia-Europe revenue came in at $1.8 billion, down 21.3%, and volume was flat at 1.4 million TEUs. Intra-Asia/Australasia revenue of $3 billion was up 1.2% and volume grew 4.8% to 3.8 million TEUs, while trans-Atlantic revenue increased 14.9% to $708 million and volume also rose 14.9% to 550,765 TEUs. <h3>Supply-demand imbalance hangs over market </h3>As carriers enter the new year, they will be buoyed by sharply increasing rates on the east-west trades out of Asia as shippers get their cargo on the water ahead of a relatively late start to the Lunar New Year on Feb. 17. Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegged North Asia-US West Coast spot rates at $2,175 per FEU of Thursday, up from $1,270 per FEU on Dec. 12. Asia-North Europe rates of $2,700 per FEU this week are up from $2,440 per FEU four weeks ago. The World Container Index as assessed by Drewry pegged Shanghai-to-Los Angeles rates at $3,132 per FEU as of Thursday, up from $2,103 on Dec. 11. Shanghai-to-Rotterdam rates at $2,840 per FEU were up from $2,361 per FEU over the same period, according to Drewry. But with significant newbuilding capacity being added to the market, analysts expect excess tonnage to exert downwards pressure on rates. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="300082c3-330d-45f1-b9d8-9a63e1bb82b4"></dynamic-object></div>“A traditional pre-Lunar New Year cargo rush at the start of the 2026 is a key driver behind dramatic increases in spot rates out of the Far East that are up almost 60% into the US West Coast compared to a month ago,” Peter Sand, chief analyst at rate benchmarking platform Xeneta, wrote in a market update this week. “With Lunar New Year just over a month away, shippers will ramp up efforts to get goods out of the Far East before the holiday shutdown, so there will be further upward pressure on rates,” Sand added. “The question is whether the expected increase in deployed capacity will be enough to outweigh higher demand.” That question extends far beyond the first quarter of 2026. The full-year earnings prognosis is not positive for carriers, with analysts predicting that a growing imbalance between supply and demand will <a href="https://www.joc.com/article/supply-demand-imbalance-puts-ocean-carriers-on-course-for-heavy-losses-6143218">bring container shipping’s five-year run of profitability to an end</a>. With vessel capacity outstripping volumes on the major trade lanes, analysts expect carriers to fall into the red as early as the first quarter, culminating in a multi-billion-dollar combined loss for the full year. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com.</a></div>

Weakening demand and falling rates on OOCL’s major trade lanes through the fourth quarter weighed heavily on the carrier’s full-year operating result announced Friday. The performance of the Hong Kong-based subsidiary of Cosco Shipping provides an early glimpse of what to expect as ocean carriers prepare to report their full-year 2025 earnings in an uncertain container shipping market. Solid earnings in the first three quarters of 2025 have ensured most carriers will report a profitable year — Drewry Shipping Consultants has forecast a combined $20 billion in profits — but the difficult fourth-quarter operating environment was reflected in OOCL’s revenue and volume. No profit and loss figures were disclosed by OOCL in its operating result. OOCL reported fourth-quarter revenue of $2.08 billion, a 17.2% year-over-year decline across its major trade lanes, while Q4 volume rose just 0.8% to 2 million TEUs. Available capacity increased 4.5% and average revenue per TEU plunged 17.8% compared to the 2024 fourth quarter. From a trade lane perspective, trans-Pacific revenue in Q4 was down 25% year over year at $726 million, with volume down 4.2% at 528,394 TEUs. Asia-Europe revenue fell 24.5% to $418 million while volume edged up 1.3% to 367,728 TEUs. OOCL’s largest trade lane, which combines Australasia with intra-Asia, saw revenue fall 6.8% to $772 million in the fourth quarter while volume rose 2.4% to 974,653 TEUs. The trans-Atlantic, the smallest of the carrier’s major trades, reported flat revenue of $163 million in Q4 and an 8.8% increase in volume to 130,231 TEUs. For the full year, OOCL revenue of $8.7 billion declined 10.6% year over year against volume that increased 3.7% to 7.8 million TEUs. Available capacity for the year was up 6.1% and average revenue per TEU dropped 13.7% year over year. Full-year revenue on the trans-Pacific of $3.2 billion was down 17.2% year over year, with volume up 1.7% at 2.1 million TEUs. Asia-Europe revenue came in at $1.8 billion, down 21.3%, and volume was flat at 1.4 million TEUs. Intra-Asia/Australasia revenue of $3 billion was up 1.2% and volume grew 4.8% to 3.8 million TEUs, while trans-Atlantic revenue increased 14.9% to $708 million and volume also rose 14.9% to 550,765 TEUs. Supply-demand imbalance hangs over market As carriers enter the new year, they will be buoyed by sharply increasing rates on the east-west trades out of Asia as shippers get their cargo on the water ahead of a relatively late start to the Lunar New Year on Feb. 17. Platts, a sister company of the Journal of Commerce within S&P Global, pegged North Asia-US West Coast spot rates at $2,175 per FEU of Thursday, up from $1,270 per FEU on Dec. 12. Asia-North Europe rates of $2,700 per FEU this week are up from $2,440 per FEU four weeks ago. The World Container Index as assessed by Drewry pegged Shanghai-to-Los Angeles rates at $3,132 per FEU as of Thursday, up from $2,103 on Dec. 11. Shanghai-to-Rotterdam rates at $2,840 per FEU were up from $2,361 per FEU over the same period, according to Drewry. But with significant newbuilding capacity being added to the market, analysts expect excess tonnage to exert downwards pressure on rates. “A traditional pre-Lunar New Year cargo rush at the start of the 2026 is a key driver behind dramatic increases in spot rates out of the Far East that are up almost 60% into the US West Coast compared to a month ago,” Peter Sand, chief analyst at rate benchmarking platform Xeneta, wrote in a market update this week. “With Lunar New Year just over a month away, shippers will ramp up efforts to get goods out of the Far East before the holiday shutdown, so there will be further upward pressure on rates,” Sand added. “The question is whether the expected increase in deployed capacity will be enough to outweigh higher demand.” That question extends far beyond the first quarter of 2026. The full-year earnings prognosis is not positive for carriers, with analysts predicting that a growing imbalance between supply and demand will bring container shipping’s five-year run of profitability to an end . With vessel capacity outstripping volumes on the major trade lanes, analysts expect carriers to fall into the red as early as the first quarter, culminating in a multi-billion-dollar combined loss for the full year. Contact Greg Knowler at greg.knowler@spglobal.com.

Asia-Europe

Trans-Pacific

Container Shipping News

Fourth-quarter downturn weighs on OOCL’s full-year operating result

<div class="phx-topic abstract-wrapper">The merger will see Fatton &amp; Lyseo use Ovrsea’s proprietary operating software across its air and sea customers in Asia, Africa and North America. </div>

The merger will see Fatton & Lyseo use Ovrsea’s proprietary operating software across its air and sea customers in Asia, Africa and North America.

<div class="phx-topic">French forwarding group Fatton &amp; Lyseo on Thursday said it has merged operations with Ovrsea, a digital forwarder owned by the Bolloré Group. The merger will see Fatton &amp; Lyseo, itself the combination of a 2024 merger between two French forwarders, use Ovrsea’s proprietary operating software across its air and sea customers in Asia, Africa and North America. Financial terms of the deal were not disclosed. Ovrsea CEO Arthur Barillas de Thé will become CEO of the joint company, with Fatton &amp; Lyseo CEO Sylvain Fatton moving into a chairman role. The combined company brings 350 million euros of revenue across 60 offices in 14 countries, with 1,000 employees. “By combining over a century of operational excellence with pioneering digital technology and talent, we are creating a unique offering and position ourselves for strong organic and external growth in the future,” Barillas de Thé said in a LinkedIn post announcing the merger. Ovrsea was founded in 2017 as part of a cohort of so-called digital forwarders such as Flexport, Forto, iContainers, Nowports, and ExFreight as a technology-focused alternative to established global third-party logistics providers (3PLs) and non-vessel-operating common carriers. Unlike most of its cohorts, Paris-based Ovrsea eschewed major investment from venture capital or private equity firms, instead selling a majority stake in 2021 to the Bolloré Group, where it served as the 3PL’s digital customer channel and operated independently. <a href="https://www.joc.com/article/bollor-backed-startup-ovrsea-expands-digital-forwarding-options-to-us-5222142">Ovrsea entered the US market</a> a year later on the basis of the relationship with Bolloré. Its customers generally move in the range of 200 to 1,000 TEUs annually. Fatton &amp; Lyseo provides ocean, air, warehousing and customs services. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

French forwarding group Fatton & Lyseo on Thursday said it has merged operations with Ovrsea, a digital forwarder owned by the Bolloré Group. The merger will see Fatton & Lyseo, itself the combination of a 2024 merger between two French forwarders, use Ovrsea’s proprietary operating software across its air and sea customers in Asia, Africa and North America. Financial terms of the deal were not disclosed. Ovrsea CEO Arthur Barillas de Thé will become CEO of the joint company, with Fatton & Lyseo CEO Sylvain Fatton moving into a chairman role. The combined company brings 350 million euros of revenue across 60 offices in 14 countries, with 1,000 employees. “By combining over a century of operational excellence with pioneering digital technology and talent, we are creating a unique offering and position ourselves for strong organic and external growth in the future,” Barillas de Thé said in a LinkedIn post announcing the merger. Ovrsea was founded in 2017 as part of a cohort of so-called digital forwarders such as Flexport, Forto, iContainers, Nowports, and ExFreight as a technology-focused alternative to established global third-party logistics providers (3PLs) and non-vessel-operating common carriers. Unlike most of its cohorts, Paris-based Ovrsea eschewed major investment from venture capital or private equity firms, instead selling a majority stake in 2021 to the Bolloré Group, where it served as the 3PL’s digital customer channel and operated independently. Ovrsea entered the US market a year later on the basis of the relationship with Bolloré. Its customers generally move in the range of 200 to 1,000 TEUs annually. Fatton & Lyseo provides ocean, air, warehousing and customs services. Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

Digital forwarder owned by Bolloré merges with French forwarding group

<div class="phx-topic abstract-wrapper">The growth in traffic on intra-Asian routes is a result of ongoing US demand for cloud infrastructure logistics related to the rapid development of AI technology.</div>

The growth in traffic on intra-Asian routes is a result of ongoing US demand for cloud infrastructure logistics related to the rapid development of AI technology.

<div class="phx-topic">Strong US air cargo demand for high-tech and AI-related exports from Southeast Asia is having the indirect effect of placing intra-Asia capacity under mounting pressure as most flights to North America are routed via regional transit hubs. While the air cargo industry prepares for Asian export volume to rise over the next few weeks in line with seasonal demand ahead of the Lunar New Year that begins on Feb. 17, forwarders are already reporting congestion at some of the region’s key airports. Kathy Liu, vice president of global sales and marketing at Taiwan-based Dimerco Express Group, said the China-plus-one production strategy, accelerated by US tariffs last year, was strengthening intra-Asia demand. “This will further constrain intra-Asia capacity, as transit carriers are prioritizing first-leg capacity for long-haul cargo to maximize revenue,” Liu told the Journal of Commerce Thursday. “As a result, major transit hubs such as Hong Kong, Taipei, Singapore, Incheon and Narita are expected to remain highly congested.” The growth in traffic on intra-Asian routes is being accelerated by US tariffs imposed on Beijing in 2025 that led to a shift in regional trade flows through the second half of the year and drove increasing demand from Southeast Asian origins. Tobias Hofemeier, senior vice president for air logistics in greater China at Kuehne + Nagel, said there was ongoing high demand for cloud infrastructure logistics related to the rapid development of AI technology. He cited data from research and advisory firm Gartner projecting 21.3% year-over-year growth in public cloud services in 2026. “We expect continued growth in Southeast Asian countries like Thailand and Vietnam ... due to strong demand driven primarily by high tech, electronics and semiconductor cargo,” Hofemeier said. Kuehne + Nagel uses available commercial capacity on the trans-Pacific and supplements that with nine Kuehne + Nagel-dedicated flights per week from Vietnam to the US and six flights from Taiwan to the US. <h3>Freighter capacity constraints </h3>Air freight capacity data from analyst Rotate shows high growth in direct flights on the Southeast Asia-North America trade lane in the past week, but much of the cargo on that corridor is shipped indirectly to the US through Asian transit hubs. While demand increases, overall capacity, especially belly capacity on commercial flights, is projected to remain at 2025 levels because of delays in aircraft deliveries. Boeing and Airbus have been facing long delays in producing, certifying and delivering new aircraft, severely constricting the ability of airlines to grow their fleets. Another capacity-limiting factor for the industry is the grounding of all McDonnell Douglas MD-11 freighters and DC-10s following the fatal crash in Louisville, Kentucky, in November. Most of the 70 freighters are operated by FedEx and UPS (52 planes) and will be grounded indefinitely. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="a3f6b9ed-e750-40e5-8b28-b4d1703b5c40"></dynamic-object></div>Sou Ping Chee, regional head of air freight in Asia Pacific for Hellmann Worldwide Logistics, said capacity provided by commercial airlines comprised more than 80% of the global market. ”It will remain tight this year because there’s no significant additional capacity being added with few new freighter aircrafts that will be delivered this year,” he told the Journal of Commerce Thursday. But an unknown factor was how much chartered freighter capacity would return to the market this year and what impact it would have on increasing available space. Chee explained that when the US scrapped the de minimis exemption for low-value Chinese imports in May last year and demand tumbled on the trans-Pacific, many chartered freighters were redeployed to other routes. "Charters are committed for at least for a year and they had to somehow find a way to keep flying and filling their aircraft,” Chee said. “This year onwards, some of the e-commerce charter contracts will be due for renewal, so it will be interesting to see how many are renewed and how much capacity is returned to the market.” <h3>Tailwinds of growth</h3>In his latest monthly market update, Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, said one of the tailwinds of demand growth in 2025 came from investment linked to the development of AI solutions. But he warned that the less buoyant forward-looking signals for Chinese e-commerce exports were worrying. Despite a sharp drop in US business, China’s air freight exports are still dominated by e-commerce that comprises approximately one-third of the country’s total air cargo volume. “China’s cross-border e-commerce volumes were flat in October and November,” van de Wouw said. “If we see a third consecutive month of lower e-commerce growth out of China, that is a big signal, while duties imposed by other countries may present more unwelcome news for the air cargo market going forward.” Chinese customs data shows low-value and e-commerce exports in November rose by just 1% year over year after flatlining in October. Exports to the US represented the majority of the decline, falling 52% year over year in November after a drop of 51% in October. Before the de minimis ban imposed by Washington, China-US e-commerce accounted for approximately 3% of global air cargo volumes. China-European Union e-commerce volume continued to grow, expanding 29% in November following 47% year-over-year growth in October. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Strong US air cargo demand for high-tech and AI-related exports from Southeast Asia is having the indirect effect of placing intra-Asia capacity under mounting pressure as most flights to North America are routed via regional transit hubs. While the air cargo industry prepares for Asian export volume to rise over the next few weeks in line with seasonal demand ahead of the Lunar New Year that begins on Feb. 17, forwarders are already reporting congestion at some of the region’s key airports. Kathy Liu, vice president of global sales and marketing at Taiwan-based Dimerco Express Group, said the China-plus-one production strategy, accelerated by US tariffs last year, was strengthening intra-Asia demand. “This will further constrain intra-Asia capacity, as transit carriers are prioritizing first-leg capacity for long-haul cargo to maximize revenue,” Liu told the Journal of Commerce Thursday. “As a result, major transit hubs such as Hong Kong, Taipei, Singapore, Incheon and Narita are expected to remain highly congested.” The growth in traffic on intra-Asian routes is being accelerated by US tariffs imposed on Beijing in 2025 that led to a shift in regional trade flows through the second half of the year and drove increasing demand from Southeast Asian origins. Tobias Hofemeier, senior vice president for air logistics in greater China at Kuehne + Nagel, said there was ongoing high demand for cloud infrastructure logistics related to the rapid development of AI technology. He cited data from research and advisory firm Gartner projecting 21.3% year-over-year growth in public cloud services in 2026. “We expect continued growth in Southeast Asian countries like Thailand and Vietnam ... due to strong demand driven primarily by high tech, electronics and semiconductor cargo,” Hofemeier said. Kuehne + Nagel uses available commercial capacity on the trans-Pacific and supplements that with nine Kuehne + Nagel-dedicated flights per week from Vietnam to the US and six flights from Taiwan to the US. Freighter capacity constraints Air freight capacity data from analyst Rotate shows high growth in direct flights on the Southeast Asia-North America trade lane in the past week, but much of the cargo on that corridor is shipped indirectly to the US through Asian transit hubs. While demand increases, overall capacity, especially belly capacity on commercial flights, is projected to remain at 2025 levels because of delays in aircraft deliveries. Boeing and Airbus have been facing long delays in producing, certifying and delivering new aircraft, severely constricting the ability of airlines to grow their fleets. Another capacity-limiting factor for the industry is the grounding of all McDonnell Douglas MD-11 freighters and DC-10s following the fatal crash in Louisville, Kentucky, in November. Most of the 70 freighters are operated by FedEx and UPS (52 planes) and will be grounded indefinitely. Sou Ping Chee, regional head of air freight in Asia Pacific for Hellmann Worldwide Logistics, said capacity provided by commercial airlines comprised more than 80% of the global market. ”It will remain tight this year because there’s no significant additional capacity being added with few new freighter aircrafts that will be delivered this year,” he told the Journal of Commerce Thursday. But an unknown factor was how much chartered freighter capacity would return to the market this year and what impact it would have on increasing available space. Chee explained that when the US scrapped the de minimis exemption for low-value Chinese imports in May last year and demand tumbled on the trans-Pacific, many chartered freighters were redeployed to other routes. "Charters are committed for at least for a year and they had to somehow find a way to keep flying and filling their aircraft,” Chee said. “This year onwards, some of the e-commerce charter contracts will be due for renewal, so it will be interesting to see how many are renewed and how much capacity is returned to the market.” Tailwinds of growth In his latest monthly market update, Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, said one of the tailwinds of demand growth in 2025 came from investment linked to the development of AI solutions. But he warned that the less buoyant forward-looking signals for Chinese e-commerce exports were worrying. Despite a sharp drop in US business, China’s air freight exports are still dominated by e-commerce that comprises approximately one-third of the country’s total air cargo volume. “China’s cross-border e-commerce volumes were flat in October and November,” van de Wouw said. “If we see a third consecutive month of lower e-commerce growth out of China, that is a big signal, while duties imposed by other countries may present more unwelcome news for the air cargo market going forward.” Chinese customs data shows low-value and e-commerce exports in November rose by just 1% year over year after flatlining in October. Exports to the US represented the majority of the decline, falling 52% year over year in November after a drop of 51% in October. Before the de minimis ban imposed by Washington, China-US e-commerce accounted for approximately 3% of global air cargo volumes. China-European Union e-commerce volume continued to grow, expanding 29% in November following 47% year-over-year growth in October. Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo

Intra-Asia air freight capacity tightens on US high-tech demand

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