<div class="phx-topic abstract-wrapper">What are the key issues in container shipping? There is a litany of answers. Some seem to be rewound</div>

What are the key issues in container shipping? There is a litany of answers. Some seem to be rewound

<div>What are the key issues in container shipping? There is a litany of answers. Some seem to be rewound and replayed over and over, including dredging and terminal financing. Others reflect the changing economy, such as alternative uses for waterfront property. The message that was clear from last week's Bulk Shipping conference sponsored by The Journal of Com-merce Group was that this sector of the shipping business faces many of the same concerns. 'We are pretty much on par with last year's volumes for our traditional grain and oil movements,' said Joe Accardo, Jr., executive director of The Port of...

What are the key issues in container shipping? There is a litany of answers. Some seem to be rewound and replayed over and over, including dredging and terminal financing. Others reflect the changing economy, such as alternative uses for waterfront property. The message that was clear from last week's Bulk Shipping conference sponsored by The Journal of Com-merce Group was that this sector of the shipping business faces many of the same concerns. 'We are pretty much on par with last year's volumes for our traditional grain and oil movements,' said Joe Accardo, Jr., executive director of The Port of South Louisiana. He added, 'We are optimistic as to what the future holds as we expand our facilities.' The Port of South Louisiana, which encompasses the Mississippi River between New Orleans and Baton Rouge, is the nation's largest conduit for bulk cargo. The port is in the third phase of a $30 million expansion of its Globalplex terminal, a 205-acre multipurpose facility handling bulk, breakbulk and containers. Within a month, the port hopes to sign an agreement with Steve-doring Services of America and Associated Terminals to jointly operate Globalplex. In addition to a crane for special handling of cement, two gantry cranes move both heavy lift cargoes and containers. The Maersk Arizona container vessel called at Globalplex in June and is scheduled for two more port calls this year. Financing the port's expansion has not been easy because of the low visibility for international trade in raw materials. 'The benefits of river commerce are not well known at the local, state or federal level,' Joe said. 'We have made our community partners early on and need to be more active with the state to get matching funds support for our tenants.' Using grain as an example, the port estimates that barge transport is five times more efficient than rail and 10 times more efficient than truck. The port sees a strong need to modernize its grain elevators to remain competitive. 'Exporters know all about free enterprise and how costly transportation is in selling grain globally,' Joe said. 'They can go elsewhere and we, the port and the country, could lose our edge.' While a geographic opposite of Louisiana, the Port of Duluth-Superior has experienced a similar flatness in its bulk trade, emerging opportunities in general cargoes and a question of awareness. Davis Helberg, executive port director said, 'Bulk is capital intensive with marginal profits, so to be competitive we have to be highly productive and efficient.' According to Davis, one man on the deck of a coal vessel can mechanically control the unloading of 10,000 tons an hour. It used to take hundreds of men operating clam shell buckets to reach that volume. 'We are experiencing land use pressure as the government has discovered that they prefer jobs, tourists and shops more than mounds of coal,' Davis said. The Minnesota harbor is 150 miles north of the Twin Cities and attracts 3.5 million tourists a year. Davis believes there is plenty of elbow room for steel-toed work boots as well as Reeboks. Over the past few years, the port has spent $3.6 million on general cargo facility improvements and is seeking $5 million from the state for a new warehouse. Water quality is a unique issue for Great Lakes ports. Davis explained, 'Most environmental issues for ports get their start in our region because we are a fresh water port and people drink the water we ship on.' A recent Michigan law on ballast water sterilization was narrowly defeated. The environment also plays a part in the restricted operations of the Soo Locks. 'The locks have set opening and closing dates regardless of the demand for more shipping,' Davis said. He added, 'Maintaining the Great Lakes balance between commercial use and the environment is important, but where do you draw the line? This year we are experiencing low water levels from three consecutive mild winters. The draft problem has shorted the ships on cargo, yet the operators cannot make up the business with additional voyages with a fixed lock closing date.' The ports of South Louisiana and Duluth-Superior are in no danger of stagnating. Yet, I sense their stories are not as widely known as the issues that have captured the media in cities such as New York and Long Beach. Bill Ralph is president and publisher of The Journal of Commerce Group. He may be reached at bralph oc.com.

BLOWING BULK'S HORN

<div class="phx-topic abstract-wrapper">The fourth-largest US domestic intermodal provider has received additional funding and now must focus on meeting revenue and expenditure targets through the second quarter.</div>

The fourth-largest US domestic intermodal provider has received additional funding and now must focus on meeting revenue and expenditure targets through the second quarter.

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<div class="phx-topic">STG Logistics has received $40 million in new funding and another reserve fund of $25 million after a deal was reached between lenders ahead of a key hearing before a New Jersey bankruptcy court. The deal agreed to on Tuesday results in a temporary truce between two lenders who sued STG Logistics in a New York court and a group of lenders who provided the rescue funds when <a href="https://www.joc.com/article/stg-files-ch-11-bankruptcy-but-intermodal-operations-remain-intact-6150641">the bankruptcy was filed on Jan. 12</a>. STG operates a thriving transloading and drayage business and is also the fourth-largest US domestic intermodal provider with 15,000 privately-owned containers. The agreement allows Axos Financial and Siemens Financial Solutions to proceed as a sub-case within the bankruptcy case in exchange for withdrawing an objection to the rescue funding. If a deal had not been struck, then the bankruptcy judge would have ruled on the objection Tuesday. The final order authorizes STG to pay drivers, warehouse workers, and railroads, among others. STG owed Union Pacific Railroad $13.4 million in back payments, significantly more than the $1.2 million owed to CSX Transportation. In exchange for receiving payment, the railroads cannot change credit terms with STG or increase rates or fees while it remains in Chapter 11 bankruptcy. <h3>Default triggers </h3>Hurdles remain in STG’s efforts to emerge from bankruptcy restructuring. The original bankruptcy filing included a 13-week budget outlining projected revenue from operations and expenses. If STG spends more than 115% of the budgeted expenses, fails to book at least 80% of the estimated revenue, or falls below $50 million in cash on hand, then it will be considered in default. A default doesn’t automatically mean operations would cease, but it gives the lenders the right to stop the cash flow entirely. STG did not fall below the 80% threshold after the recent winter storm briefly disrupted operations on UP and CSX, according to a source close to the bankruptcy hearing. Next month, there will be a window known as a “sale toggle” in which the lenders could decide to sell the company to an outside bidder, who then would decide how to manage STG’s operations. The sale toggle is a standard practice in Chapter 11 bankruptcy allowing the bankrupt company to explore other offers. Finally, the Axos-Siemens case isn’t resolved, just shifted to a sub-case. The bankruptcy judge must still rule before STG emerges from bankruptcy. If the judge rules in favor of Axos and Siemens, the group of rescue lenders could pull their financial support. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

STG Logistics has received $40 million in new funding and another reserve fund of $25 million after a deal was reached between lenders ahead of a key hearing before a New Jersey bankruptcy court. The deal agreed to on Tuesday results in a temporary truce between two lenders who sued STG Logistics in a New York court and a group of lenders who provided the rescue funds when the bankruptcy was filed on Jan. 12 . STG operates a thriving transloading and drayage business and is also the fourth-largest US domestic intermodal provider with 15,000 privately-owned containers. The agreement allows Axos Financial and Siemens Financial Solutions to proceed as a sub-case within the bankruptcy case in exchange for withdrawing an objection to the rescue funding. If a deal had not been struck, then the bankruptcy judge would have ruled on the objection Tuesday. The final order authorizes STG to pay drivers, warehouse workers, and railroads, among others. STG owed Union Pacific Railroad $13.4 million in back payments, significantly more than the $1.2 million owed to CSX Transportation. In exchange for receiving payment, the railroads cannot change credit terms with STG or increase rates or fees while it remains in Chapter 11 bankruptcy. Default triggers Hurdles remain in STG’s efforts to emerge from bankruptcy restructuring. The original bankruptcy filing included a 13-week budget outlining projected revenue from operations and expenses. If STG spends more than 115% of the budgeted expenses, fails to book at least 80% of the estimated revenue, or falls below $50 million in cash on hand, then it will be considered in default. A default doesn’t automatically mean operations would cease, but it gives the lenders the right to stop the cash flow entirely. STG did not fall below the 80% threshold after the recent winter storm briefly disrupted operations on UP and CSX, according to a source close to the bankruptcy hearing. Next month, there will be a window known as a “sale toggle” in which the lenders could decide to sell the company to an outside bidder, who then would decide how to manage STG’s operations. The sale toggle is a standard practice in Chapter 11 bankruptcy allowing the bankrupt company to explore other offers. Finally, the Axos-Siemens case isn’t resolved, just shifted to a sub-case. The bankruptcy judge must still rule before STG emerges from bankruptcy. If the judge rules in favor of Axos and Siemens, the group of rescue lenders could pull their financial support. Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

Intermodal providers

Surface

STG Logistics survives key bankruptcy hurdle to remain in business

<div class="phx-topic abstract-wrapper">La Caisse, a major infrastructure fund and co-investor with DP World, said it wants clarity from the ports operator about Sultan Ahmed Bin Sulayem’s relationship with the convicted sex trafficker after messages between the two men became public this week.</div>

La Caisse, a major infrastructure fund and co-investor with DP World, said it wants clarity from the ports operator about Sultan Ahmed Bin Sulayem’s relationship with the convicted sex trafficker after messages between the two men became public this week.

<div class="phx-topic">A Quebec-based pension fund has put future investments with DP World on hold until the ports operator clarifies the relationship its chief executive had with deceased sex offender Jeffrey Epstein. The pause could slow development of Canada’s next big container terminal. La Caisse, which has C$496 billion in assets under management, said in a statement to the Journal of Commerce Wednesday it is waiting to hear from DP World about what steps it is taking in regards to its Chairman and Chief Executive Sultan Ahmed Bin Sulayem after messages between him and Epstein were released by US Congressional representatives this week as part of a probe into Epstein’s ties to rich and powerful men across the globe. Some of <a href="https://www.ft.com/content/c813601e-e8cb-4eb9-b1de-6ca504bb689f">the messages between Sulayem and Epstein</a> were sexual in nature. La Caisse, which has invested in DP World port projects across the world, said that until it hears from DP World, it is “pausing additional capital deployment alongside the company.” “It is important to distinguish the company, DP World, from the individual, who is the focus of the current situation,” La Caisse said. “On that point, we have made it clear to the company that we expect it to shed light on the situation and take the necessary actions.” According to local media, La Caisse had been slated to provide over C$100 million toward the development of Quebec’s Contrecoeur terminal, which is estimated to cost about C$1.6 billion and <a href="https://www.joc.com/article/dp-world-to-build-big-ship-container-terminal-in-montreal-6077326">would be operated by DP World</a>. La Caisse said no final decision on financing Contrecoeur has been made. In 2020, DP World and La Caisse acquired the Fraser Surrey terminal at the Port of Vancouver. That was followed by La Caisse investing up to $5 billion in 2022 in DP World’s Jebel Ali port in Dubai, along with a nearby free trade zone and industrial park. Montreal Port Authority (MPA) Chief Executive Julie Gascon said in a statement to the Journal of Commerce that it’s not yet clear whether La Caisse’s pause would affect Contrecoeur’s expected 2030 opening date. The MPA, which is responsible for <a href="https://www.joc.com/article/quebec-provides-new-funding-for-proposed-montreal-terminal-citing-us-trade-tensions-5947783">the separate government-backed financing of dredging and other below-water work at the site</a>, is also waiting to hear from DP World about how it will respond to La Caisse. Gascon said, however, that development of Contrecoeur is a national priority for Prime Minister Mark Carney, <a href="https://www.joc.com/article/canada-looks-for-new-container-gateways-for-decoupling-from-us-6122714">who is looking to grow Canada’s non-US international trade</a>. Contrecoeur will be needed to serve the country’s eastern half as the Port of Montreal will likely be at capacity by the next decade. “My concern is that as soon as we start signing more services, then we’re full,” Gascon said. “So, I can’t come in late with Contrecoeur. It’s 2026, and it’s going to be delivered in 2030, so we need to be on time.” <h3>DP World expanded in US </h3>Dubai-based DP World, the fourth-largest ports operator globally by volume, is Canada’s largest terminal company, operating the Fraser Surrey, Centerm and Nanaimo facilities in Vancouver; the Prince Rupert terminal, and the Port of Saint John container terminal. In the US, DP World has a limited presence in non-marine logistics. Last year, it acquired Unique Logistics International, a North Carolina-based contract logistics provider, and bought Michigan-based warehousing and logistics operator Syncreon in 2021. But DP World is also looking to expand in the US, with the company reported to be one of the potential suitors for the Maher terminal at the Port of New York and New Jersey. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.  </div>

A Quebec-based pension fund has put future investments with DP World on hold until the ports operator clarifies the relationship its chief executive had with deceased sex offender Jeffrey Epstein. The pause could slow development of Canada’s next big container terminal. La Caisse, which has C$496 billion in assets under management, said in a statement to the Journal of Commerce Wednesday it is waiting to hear from DP World about what steps it is taking in regards to its Chairman and Chief Executive Sultan Ahmed Bin Sulayem after messages between him and Epstein were released by US Congressional representatives this week as part of a probe into Epstein’s ties to rich and powerful men across the globe. Some of the messages between Sulayem and Epstein were sexual in nature. La Caisse, which has invested in DP World port projects across the world, said that until it hears from DP World, it is “pausing additional capital deployment alongside the company.” “It is important to distinguish the company, DP World, from the individual, who is the focus of the current situation,” La Caisse said. “On that point, we have made it clear to the company that we expect it to shed light on the situation and take the necessary actions.” According to local media, La Caisse had been slated to provide over C$100 million toward the development of Quebec’s Contrecoeur terminal, which is estimated to cost about C$1.6 billion and would be operated by DP World . La Caisse said no final decision on financing Contrecoeur has been made. In 2020, DP World and La Caisse acquired the Fraser Surrey terminal at the Port of Vancouver. That was followed by La Caisse investing up to $5 billion in 2022 in DP World’s Jebel Ali port in Dubai, along with a nearby free trade zone and industrial park. Montreal Port Authority (MPA) Chief Executive Julie Gascon said in a statement to the Journal of Commerce that it’s not yet clear whether La Caisse’s pause would affect Contrecoeur’s expected 2030 opening date. The MPA, which is responsible for the separate government-backed financing of dredging and other below-water work at the site , is also waiting to hear from DP World about how it will respond to La Caisse. Gascon said, however, that development of Contrecoeur is a national priority for Prime Minister Mark Carney, who is looking to grow Canada’s non-US international trade . Contrecoeur will be needed to serve the country’s eastern half as the Port of Montreal will likely be at capacity by the next decade. “My concern is that as soon as we start signing more services, then we’re full,” Gascon said. “So, I can’t come in late with Contrecoeur. It’s 2026, and it’s going to be delivered in 2030, so we need to be on time.” DP World expanded in US Dubai-based DP World, the fourth-largest ports operator globally by volume, is Canada’s largest terminal company, operating the Fraser Surrey, Centerm and Nanaimo facilities in Vancouver; the Prince Rupert terminal, and the Port of Saint John container terminal. In the US, DP World has a limited presence in non-marine logistics. Last year, it acquired Unique Logistics International, a North Carolina-based contract logistics provider, and bought Michigan-based warehousing and logistics operator Syncreon in 2021. But DP World is also looking to expand in the US, with the company reported to be one of the potential suitors for the Maher terminal at the Port of New York and New Jersey. Contact Michael Angell at michael.angell@spglobal.com . 

Port News

North American ports

International ports

Maritime

DP World’s financial partner hits pause over CEO’s ties to Epstein

<div class="phx-topic abstract-wrapper">Equipped with 12 quay cranes capable of handling ultra-large container ships, the expansion allows the East Container Terminal to handle 3 million TEUs annually at full speed. </div>

Equipped with 12 quay cranes capable of handling ultra-large container ships, the expansion allows the East Container Terminal to handle 3 million TEUs annually at full speed.

<div class="phx-topic">Sri Lanka is moving swiftly to fend off the threat of <a href="https://www.joc.com/article/carriers-revalue-colombo-transshipment-calls-amid-congestion-indian-hub-push-5192152">alternative hub development efforts by India</a> as ocean carriers increasingly seek berthing window flexibility for transshipment calls in a volatile operating environment. The Sri Lanka Ports Authority (SLPA)-operated East Container Terminal (ECT) in Colombo Port has opened a third berth to business, extending its total quay length to 1,300 meters. Equipped with 12 quay cranes capable of handling ultra-large container ships, the expansion allows ECT to handle 3 million TEUs annually at full speed. SLPA in a statement said the upgrades strengthen Colombo’s position as a primary transshipment hub for services linking the Indian subcontinent, the Bay of Bengal and major east-west trade lanes. “The addition of the third berth is expected to ease congestion, distribute vessel calls more efficiently across terminals and reinforce Colombo’s reputation for dependable, high-volume container handling,” SLPA said. The port authority projects a quick three-fold increase in container volumes through the expanded terminal, from 500,000 TEUs in 2025 to 1.5 million TEUs by the end of this year. That capacity expansion complements the recent launch of Phase I operations by the Colombo West Container Terminal (CWCT), a project led by India’s Adani Group. With multiple ongoing expansions, including Phase 2 development at CWCT that has a late-2026 completion timeline, Colombo’s combined capacity is estimated to reach 12 million TEUs over the next year. The port handled 8.3 million TEUs in 2025, up 6% year over year, industry data shows. <h3>Transshipment competition from India </h3>Transshipment trade out of the subcontinent region is no longer a given for Colombo after India opened the Vizhinjam terminal, also managed by Adani, a year ago. Thanks to cargo relay activity by Mediterranean Shipping Co., Vizhinjam's Phase 1 capacity of 1 million TEUs is already saturated, with 2025 volumes hitting 1.2 million TEUs — making it the fastest-growing port in India by capacity utilization. Stronger-than-expected demand has prompted Vizhinjam to fast-track the implementation of projects deemed necessary for longer-term market ambitions. The new hub now aims to put 5.7 million TEUs of capacity in operation by 2028–29, some 17 years ahead of the original development schedule. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Sri Lanka is moving swiftly to fend off the threat of alternative hub development efforts by India as ocean carriers increasingly seek berthing window flexibility for transshipment calls in a volatile operating environment. The Sri Lanka Ports Authority (SLPA)-operated East Container Terminal (ECT) in Colombo Port has opened a third berth to business, extending its total quay length to 1,300 meters. Equipped with 12 quay cranes capable of handling ultra-large container ships, the expansion allows ECT to handle 3 million TEUs annually at full speed. SLPA in a statement said the upgrades strengthen Colombo’s position as a primary transshipment hub for services linking the Indian subcontinent, the Bay of Bengal and major east-west trade lanes. “The addition of the third berth is expected to ease congestion, distribute vessel calls more efficiently across terminals and reinforce Colombo’s reputation for dependable, high-volume container handling,” SLPA said. The port authority projects a quick three-fold increase in container volumes through the expanded terminal, from 500,000 TEUs in 2025 to 1.5 million TEUs by the end of this year. That capacity expansion complements the recent launch of Phase I operations by the Colombo West Container Terminal (CWCT), a project led by India’s Adani Group. With multiple ongoing expansions, including Phase 2 development at CWCT that has a late-2026 completion timeline, Colombo’s combined capacity is estimated to reach 12 million TEUs over the next year. The port handled 8.3 million TEUs in 2025, up 6% year over year, industry data shows. Transshipment competition from India Transshipment trade out of the subcontinent region is no longer a given for Colombo after India opened the Vizhinjam terminal, also managed by Adani, a year ago. Thanks to cargo relay activity by Mediterranean Shipping Co., Vizhinjam's Phase 1 capacity of 1 million TEUs is already saturated, with 2025 volumes hitting 1.2 million TEUs — making it the fastest-growing port in India by capacity utilization. Stronger-than-expected demand has prompted Vizhinjam to fast-track the implementation of projects deemed necessary for longer-term market ambitions. The new hub now aims to put 5.7 million TEUs of capacity in operation by 2028–29, some 17 years ahead of the original development schedule. Contact Bency Mathew at bencyvmathew@gmail.com .

Port infrastructure

Marine terminals

Colombo expands box capacity as regional hub competition intensifies 

<div class="phx-topic abstract-wrapper">The 2025 result follows a familiar trend seen across the full-year financials reported so far by Maersk, Hapag-Lloyd and Ocean Network Express as the industry moves into an overcapacity-driven downcycle. </div>

The 2025 result follows a familiar trend seen across the full-year financials reported so far by Maersk, Hapag-Lloyd and Ocean Network Express as the industry moves into an overcapacity-driven downcycle.

<div class="phx-topic">The sharply correcting container shipping market pulled down HMM’s 2025 earnings as a drop in average rates across its network offset an increase in volume, the South Korean carrier said Wednesday. It is a familiar trend seen across the full-year 2025 results reported so far by <a href="https://www.joc.com/article/gemini-benefits-face-looming-challenge-from-oversupplied-market-maersk-ceo-6164887">Maersk</a>, <a href="https://www.joc.com/article/fourth-quarter-rate-slump-drags-down-hapag-lloyds-2025-financials-6166755">Hapag-Lloyd</a> and <a href="https://www.joc.com/article/frontloading-drags-one-to-a-loss-in-its-fiscal-third-quarter-6161263">Ocean Network Express</a> as the carriers move into an overcapacity-driven downcycle. “A large volume of new container vessel deliveries is expected to result in oversupply, while demand growth remains weak, likely to exacerbate supply-demand imbalances,” HMM said in its results statement. The carrier’s total volume in 2025 reached 3.9 million TEUs, up 3.2% year over year. But the higher throughput was undermined by average revenue per TEU that fell 24.3% to $1,214. The declining rates saw HMM’s total revenue for the year sliding 6.9% to $7.5 billion, while operating profit dropped 58.4% to $220 million and net profit slid 50.3% to $1.3 billion. Although HMM’s fourth-quarter performance was a slight improvement on the third quarter, the weakening market saw key metrics decline significantly year over year. Fourth-quarter revenue of $1.86 billion was a drop of 14.2% year over year, operating profit fell 68.3% to $220 million and net profit of $250 million was down 59.5% compared with the fourth quarter of 2024. Excess capacity in the market will continue to exert downward pressure on rate levels. The global container shipping order book sits near 10.7 million TEUs, or 32% of the current in-service fleet, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. Just over 1 million TEUs of capacity via ships above 10,000 TEUs is scheduled to be delivered this year. But 2.3 million TEUs are due for delivery in 2027, with another 3.4 million TEUs due to come online in 2028, equal to all the tonnage received in 2022 and 2023. Despite the growing supply-demand imbalance, analysts expect global container shipping volume growth of 2% to 4% in 2026. Maritime consultant Drewry has even raised the collective financial outlook for carriers this year from a $10 billion loss to a $1 billion profit. <h3>Hub-and-spoke network expansion </h3>In its outlook for the year, HMM announced plans to expand its hub-and-spoke network. Last October, the carrier <a href="https://www.joc.com/article/hmm-inks-25-billion-lng-container-ship-order-6098410">said it would spend $8 billion on eco-friendly vessels</a> by 2030 to boost its operational fleet to 130 container ships totaling 1.55 million TEUs. The investment is part of a $17 billion spending plan that also includes $3 billion on its logistics business with the acquisition of new container terminals and expanding existing facilities by 2030. HMM is part of the Premier Alliance with ONE and Yang Ming that operates or calls at terminals in the hubs of Felixstowe, Rotterdam, Hamburg, Le Havre, Algeciras and Singapore on the Asia-Europe trade; Piraeus, Istanbul, Damietta and Jeddah in the Mediterranean; and Los Angeles, Long Beach, Oakland, Kaohsiung, Ningbo, Shanghai, Pusan and Yantian on the trans-Pacific. HMM also said Wednesday it plans to strengthen low-emission services in a bid to increase market share and “improve cost structures through optimized feeder operations.” An area the Premier Alliance carriers will need to significantly improve on is schedule reliability, which was at 26% last year, according to <a href="https://www.joc.com/article/gemini-schedule-reliability-shows-sum-greater-than-its-parts-xeneta-6167423">Xeneta’s “Schedule Reliability Scorecard” for 2025</a>. Partners ONE and Yang Ming both saw individual on-time performance hit close to that mark, but HMM was only at a 15% on-time rate. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The sharply correcting container shipping market pulled down HMM’s 2025 earnings as a drop in average rates across its network offset an increase in volume, the South Korean carrier said Wednesday. It is a familiar trend seen across the full-year 2025 results reported so far by Maersk , Hapag-Lloyd and Ocean Network Express as the carriers move into an overcapacity-driven downcycle. “A large volume of new container vessel deliveries is expected to result in oversupply, while demand growth remains weak, likely to exacerbate supply-demand imbalances,” HMM said in its results statement. The carrier’s total volume in 2025 reached 3.9 million TEUs, up 3.2% year over year. But the higher throughput was undermined by average revenue per TEU that fell 24.3% to $1,214. The declining rates saw HMM’s total revenue for the year sliding 6.9% to $7.5 billion, while operating profit dropped 58.4% to $220 million and net profit slid 50.3% to $1.3 billion. Although HMM’s fourth-quarter performance was a slight improvement on the third quarter, the weakening market saw key metrics decline significantly year over year. Fourth-quarter revenue of $1.86 billion was a drop of 14.2% year over year, operating profit fell 68.3% to $220 million and net profit of $250 million was down 59.5% compared with the fourth quarter of 2024. Excess capacity in the market will continue to exert downward pressure on rate levels. The global container shipping order book sits near 10.7 million TEUs, or 32% of the current in-service fleet, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. Just over 1 million TEUs of capacity via ships above 10,000 TEUs is scheduled to be delivered this year. But 2.3 million TEUs are due for delivery in 2027, with another 3.4 million TEUs due to come online in 2028, equal to all the tonnage received in 2022 and 2023. Despite the growing supply-demand imbalance, analysts expect global container shipping volume growth of 2% to 4% in 2026. Maritime consultant Drewry has even raised the collective financial outlook for carriers this year from a $10 billion loss to a $1 billion profit. Hub-and-spoke network expansion In its outlook for the year, HMM announced plans to expand its hub-and-spoke network. Last October, the carrier said it would spend $8 billion on eco-friendly vessels by 2030 to boost its operational fleet to 130 container ships totaling 1.55 million TEUs. The investment is part of a $17 billion spending plan that also includes $3 billion on its logistics business with the acquisition of new container terminals and expanding existing facilities by 2030. HMM is part of the Premier Alliance with ONE and Yang Ming that operates or calls at terminals in the hubs of Felixstowe, Rotterdam, Hamburg, Le Havre, Algeciras and Singapore on the Asia-Europe trade; Piraeus, Istanbul, Damietta and Jeddah in the Mediterranean; and Los Angeles, Long Beach, Oakland, Kaohsiung, Ningbo, Shanghai, Pusan and Yantian on the trans-Pacific. HMM also said Wednesday it plans to strengthen low-emission services in a bid to increase market share and “improve cost structures through optimized feeder operations.” An area the Premier Alliance carriers will need to significantly improve on is schedule reliability, which was at 26% last year, according to Xeneta’s “Schedule Reliability Scorecard” for 2025 . Partners ONE and Yang Ming both saw individual on-time performance hit close to that mark, but HMM was only at a 15% on-time rate. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Container Shipping News

HMM profitability falls as carrier warns of growing supply-demand imbalance

<div class="phx-topic abstract-wrapper">Kevin Price, president of the port’s stevedoring services company Gateway Terminals, will join GPA in July as president and then add the CEO’s role in mid-2027.</div>

Kevin Price, president of the port’s stevedoring services company Gateway Terminals, will join GPA in July as president and then add the CEO’s role in mid-2027.

<div class="phx-topic">The Georgia Ports Authority (GPA) on Tuesday unveiled an 18-month succession plan that will see long-time CEO Griff Lynch step down in mid-2027 and replaced by a marine terminals veteran who will initially come aboard as GPA’s president this summer.Kevin Price, president of the Port of Savannah’s stevedoring services company Gateway Terminals, will join GPA in July as president and then add the CEO’s role in mid-2027, GPA said in a statement. Price will lead Savannah as it plans its next growth phase with the opening of a new container terminal in the next decade.“Georgia Ports’ long-term approach with its employees, customers, business partners and infrastructure investments are competitive differentiators,” Price said in the statement. Price has served as president of Gateway Terminals since 2022. Prior to that, he spent four years at stevedore Virginia International Terminals, where he rose to chief operating officer. His prior experience includes time at the former Global Container Terminals facility in New Jersey, and with Maersk and APM Terminals in their Northeast operations. Under Lynch, <a href="https://www.joc.com/article/lynch-to-succeed-foltz-as-georgia-ports-chief-5212877">who became chief executive of the port in 2016</a>, Savannah saw total container volumes handled go from 3.6 million TEUs to 5.7 million TEUs in 2025, a 4.5% annual average rate. During that time, the Port of Savannah <a href="https://www.joc.com/article/savannah-expands-with-2030-goal-of-9-million-teu-5222906">dredged its harbor to 47 feet</a> and modernized <a href="https://www.joc.com/article/savannah-project-reflects-growing-premium-for-us-berth-space-5243335">the Garden City Terminal, allowing it to handle three post-Panamax ships at once</a>. The GPA likewise built up rail capacity at Savannah with upgrades to <a href="https://www.joc.com/article/us-se-ports-prepping-more-growth-amid-continued-west-coast-diversions_20230306.html">the Mason Mega rail terminal that allowed it to handle 1 million container lifts annually</a>, and the <a href="https://www.joc.com/article/us-southeast-ports-expand-intermodal-rail-reach-5245618">completion of the Appalachian Regional Port in 2018</a> and expected completion this year of <a href="https://www.joc.com/article/ns-to-eliminate-midwest-service-from-charleston-savannah-due-to-low-volumes-5200097">the Blue Ridge Connector inland port</a>. Along with finishing the Blue Ridge Connector, the GPA’s near-term plans include opening two new container berths at its Ocean Terminal by 2027. The GPA is also working with the state to increase the air clearance for ships on the Savannah River by raising the Talmadge Bridge. The GPA said in its most recent annual report that it expects container volume to increase just over 45% through 2035. That equates to a 3.7% average annual growth rate that would put Savannah’s volumes at 8.3 million TEUs over the next decade. To handle that growth, the GPA is looking to secure a permit for the construction of the Savannah Container Terminal on Hutchinson Island across the Savannah River from Ocean Terminal and upriver of the Talmadge Bridge. The terminal, which would have berths for three large vessels, is targeted for completion in 2032 at a cost of approximately $4.5 billion. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Georgia Ports Authority (GPA) on Tuesday unveiled an 18-month succession plan that will see long-time CEO Griff Lynch step down in mid-2027 and replaced by a marine terminals veteran who will initially come aboard as GPA’s president this summer. Kevin Price, president of the Port of Savannah’s stevedoring services company Gateway Terminals, will join GPA in July as president and then add the CEO’s role in mid-2027, GPA said in a statement. Price will lead Savannah as it plans its next growth phase with the opening of a new container terminal in the next decade. “Georgia Ports’ long-term approach with its employees, customers, business partners and infrastructure investments are competitive differentiators,” Price said in the statement. Price has served as president of Gateway Terminals since 2022. Prior to that, he spent four years at stevedore Virginia International Terminals, where he rose to chief operating officer. His prior experience includes time at the former Global Container Terminals facility in New Jersey, and with Maersk and APM Terminals in their Northeast operations. Under Lynch, who became chief executive of the port in 2016 , Savannah saw total container volumes handled go from 3.6 million TEUs to 5.7 million TEUs in 2025, a 4.5% annual average rate. During that time, the Port of Savannah dredged its harbor to 47 feet and modernized the Garden City Terminal, allowing it to handle three post-Panamax ships at once . The GPA likewise built up rail capacity at Savannah with upgrades to the Mason Mega rail terminal that allowed it to handle 1 million container lifts annually , and the completion of the Appalachian Regional Port in 2018 and expected completion this year of the Blue Ridge Connector inland port . Along with finishing the Blue Ridge Connector, the GPA’s near-term plans include opening two new container berths at its Ocean Terminal by 2027. The GPA is also working with the state to increase the air clearance for ships on the Savannah River by raising the Talmadge Bridge. The GPA said in its most recent annual report that it expects container volume to increase just over 45% through 2035. That equates to a 3.7% average annual growth rate that would put Savannah’s volumes at 8.3 million TEUs over the next decade. To handle that growth, the GPA is looking to secure a permit for the construction of the Savannah Container Terminal on Hutchinson Island across the Savannah River from Ocean Terminal and upriver of the Talmadge Bridge. The terminal, which would have berths for three large vessels, is targeted for completion in 2032 at a cost of approximately $4.5 billion. Contact Michael Angell at michael.angell@spglobal.com .

GPA names next CEO as Savannah readies for new growth phase

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