<div class="phx-topic abstract-wrapper">Caterpillar says production and demand for high-and-heavy equipment were flattened by the COVID-19 shutdown during the first quarter of 2020.</div>

Caterpillar says production and demand for high-and-heavy equipment were flattened by the COVID-19 shutdown during the first quarter of 2020.

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<div>A quarter of Caterpillar's global manufacturing operations were shut down as of mid-April as the COVID-19 pandemic spread across the globe, CEO D. James Umpleby said during the company's first-quarter earnings call. Caterpillar is “working through a number of operational challenges related to the pandemic and [has] suspended operations at certain facilities due to a combination of supply chain issues, weak customer demand, and government regulations,” Umpleby said on the April 28th call. “As of mid-April, approximately 75 percent of our production facilities across our three main segments continue to operate. Some facilities that were temporarily closed have reopened, such...

A quarter of Caterpillar's global manufacturing operations were shut down as of mid-April as the COVID-19 pandemic spread across the globe, CEO D. James Umpleby said during the company's first-quarter earnings call. Caterpillar is “working through a number of operational challenges related to the pandemic and [has] suspended operations at certain facilities due to a combination of supply chain issues, weak customer demand, and government regulations,” Umpleby said on the April 28th call. “As of mid-April, approximately 75 percent of our production facilities across our three main segments continue to operate. Some facilities that were temporarily closed have reopened, such as in China.” To cope, Caterpillar is sourcing alternatively, increasing the use of air freight, redirecting orders, and prioritizing the distribution of important parts, he said. Across the globe, Caterpillar dealers invested only $100 million in machine and engine inventories during the first quarter, compared with $1.3 billion in Q1 2019, a 92.3 percent decrease. The heavy equipment manufacturer reported a 21-percent decline in overall sales and revenues in Q1, to $10.6 billion, due to faltering end-user demand and dealer inventory contraction, all driven by the global economic shutdown intended to halt the spread of the coronavirus disease 2019 (COVID-19). Caterpillar manufactures machinery, equipment, and turbines for mining, oil and gas, construction, agriculture, and other industries. Wheeled equipment and machinery are key high-and-heavy rolling stock cargo for roll-on, roll-off (ro-ro) carriers and ports, despite a primary focus on vehicles. Larger or heavier pieces are also transported as heavy-haul and/or multipurpose/heavy-lift cargoes. The ro-ro carrier sector overall has been hard hit by COVID-19-related production shutdowns and shelter-in-place orders . Carrier Wallenius Wilhelmsen Group said in late March it would put up to 10 vessels in cold layup and send as many as four for recycling . Caterpillar's revenue for its construction industries segment across all regions was down 27 percent to $4.3 billion for the quarter. Resource industries products fell 24 percent to $2 billion, and energy and transportation fell 17 percent to $4.3 billion. Due to economic uncertainty caused by the global pandemic, Caterpillar withdrew its 2020 earnings guidance on March 26 and is not currently providing a 2020 financial outlook, Umpleby said. But “from a financial performance perspective, we certainly expect the second quarter to be weaker than the first quarter.” The financial impact will linger as long as the pandemic continues, he said. “The impact of COVID-19 on our business has been significantly more severe and chaotic than any cyclical downturn we had envisioned,” Umpleby said. “Governments have closed suppliers with little or no notice, impacting Caterpillar's operational efficiency. Importantly, while we have taken actions to reduce costs, we have made a conscious decision to continue to invest in enablers of services growth and expanded offerings, key elements of our strategy for long-term profitable growth.” Contact Janet Nodar at janet.nodar@ihsmarkit.com and follow her on Twitter: @janet_nodar .

Ro/ro cargo

Ro-ro shipper Caterpillar idles 25 percent of operations on COVID-19

<div class="phx-topic abstract-wrapper">While the alliance will strengthen its presence in Southeast Asia, the refined network to be rolled out in April has removed several direct calls in other parts of Asia. </div>

While the alliance will strengthen its presence in Southeast Asia, the refined network to be rolled out in April has removed several direct calls in other parts of Asia.

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<div class="phx-topic">The Asia–Europe trade lane of the Premier Alliance’s revised 2026 network is edging closer to a hub-and-spoke model with some loops having just five ports in their rotation. While the alliance of HMM, Ocean Network Express (ONE) and Yang Ming will strengthen its presence in Southeast Asia, the refined network that was unveiled earlier this week and will be put into play in April has removed several direct calls in other parts of Asia, according to Alphaliner. “This will be compensated for by more feeder services calling at Busan for transshipment to and from Kaohsiung, Xiamen and the Japanese ports of Tokyo, Kobe and Nagoya,” the analyst wrote in its latest newsletter. The Gemini Cooperation alliance of Maersk and Hapag-Lloyd uses a hub-and-spoke approach, with its east-west network consisting of 29 main line services and 28 intra-regional shuttle services. The carriers wholly or partly control the hub terminals where Gemini ships call, with Maersk controlling most of the shuttles that make up the shuttle spokes. “While not adopting the hub-and-spoke principle applied by the Gemini Cooperation, some (Premier Alliance) Asia–North Europe loops will only have five ports in their rotation,” Alphaliner noted, adding that the Asia–Europe trade was most affected by the network revision. For example, the Asia–North Europe leg will be maintained as a dedicated Southeast Asia-North Europe FE1 loop calling at five ports — Laem Chabang (Thailand), Cai Mep (Vietnam), Singapore, Rotterdam and Hamburg before returning to Singapore and Laem Chabang. The FE4 loop from April will also have a limited rotation, with calls at Shanghai and Busan on the Asian side and at Rotterdam, Hamburg and Le Havre in Europe. On the FE3 loop, Busan, Shanghai and Xiamen will be removed, with the Asian rotation including stops at Qingdao, Ningbo, Yantian and Singapore. The European rotation will become Algeciras (Spain), Felixstowe (replacing Southampton), Hamburg and Antwerp (replacing Rotterdam). Another change is that the vessels will return directly from Antwerp to Qingdao, skipping current eastbound calls at Singapore and Yantian. In the North Europe–Asia–North America West Coast FP2 pendulum service, the European rotation will only include Southampton, Rotterdam and a new second eastbound call at Southampton. <h3>Schedule reliability needs improvement </h3>The shortening of some rotations is aimed at enhancing the Premier Alliance’s schedule reliability, an area that requires substantial improvement. On-time performance data from eeSea by Xeneta shows the alliance carriers’ global reliability was at 36% in the first quarter, but slid to 22% by Q3 before edging up to 23% thus far in the fourth quarter. Average ship delays began the year at 2.7 days in the first quarter, but that has almost doubled to 5.2 days in Q4. Peter Sand, chief analyst at Xeneta, said there was certainly room for improvement in Premier’s on-time performance. “Shippers will hold Premier Alliance responsible in 2026 for their claim that enhanced service reliability will be delivered through an optimized global network,” Sand told the Journal of Commerce. In <a href="https://www.joc.com/article/premier-alliances-2026-network-to-maintain-red-sea-diversions-6134989">a joint statement earlier this week</a>, Premier Alliance members said the updated network aimed to “deliver improved service reliability by means of an optimized global structure.” “With the Premier Alliance calling fewer ports on individual services, that could prove to be one pathway to better on-time performance,” Sand noted. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="327db686-17bc-4c86-bc4e-86d341c2425a"></dynamic-object></div>Gemini Cooperation continues to lead global schedule reliability scores, recording 88.6% on-time performance across September and October, according to data from Sea-Intelligence Maritime Analysis. The standalone Mediterranean Shipping Co. (MSC) was at 77.5%, Ocean Alliance scored 65% and Premier Alliance recorded 64.6% over the two months. Data from eeSea shows overall industry schedule reliability on the Asia–North Europe trade lane in November was 32%, up from a 2025 low of just 18% in August. Asia–Mediterranean on-time performance of 30% in November, while still at a low level, was also a substantial improvement on the 15% recorded in August. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The Asia–Europe trade lane of the Premier Alliance’s revised 2026 network is edging closer to a hub-and-spoke model with some loops having just five ports in their rotation. While the alliance of HMM, Ocean Network Express (ONE) and Yang Ming will strengthen its presence in Southeast Asia, the refined network that was unveiled earlier this week and will be put into play in April has removed several direct calls in other parts of Asia, according to Alphaliner. “This will be compensated for by more feeder services calling at Busan for transshipment to and from Kaohsiung, Xiamen and the Japanese ports of Tokyo, Kobe and Nagoya,” the analyst wrote in its latest newsletter. The Gemini Cooperation alliance of Maersk and Hapag-Lloyd uses a hub-and-spoke approach, with its east-west network consisting of 29 main line services and 28 intra-regional shuttle services. The carriers wholly or partly control the hub terminals where Gemini ships call, with Maersk controlling most of the shuttles that make up the shuttle spokes. “While not adopting the hub-and-spoke principle applied by the Gemini Cooperation, some (Premier Alliance) Asia–North Europe loops will only have five ports in their rotation,” Alphaliner noted, adding that the Asia–Europe trade was most affected by the network revision. For example, the Asia–North Europe leg will be maintained as a dedicated Southeast Asia-North Europe FE1 loop calling at five ports — Laem Chabang (Thailand), Cai Mep (Vietnam), Singapore, Rotterdam and Hamburg before returning to Singapore and Laem Chabang. The FE4 loop from April will also have a limited rotation, with calls at Shanghai and Busan on the Asian side and at Rotterdam, Hamburg and Le Havre in Europe. On the FE3 loop, Busan, Shanghai and Xiamen will be removed, with the Asian rotation including stops at Qingdao, Ningbo, Yantian and Singapore. The European rotation will become Algeciras (Spain), Felixstowe (replacing Southampton), Hamburg and Antwerp (replacing Rotterdam). Another change is that the vessels will return directly from Antwerp to Qingdao, skipping current eastbound calls at Singapore and Yantian. In the North Europe–Asia–North America West Coast FP2 pendulum service, the European rotation will only include Southampton, Rotterdam and a new second eastbound call at Southampton. Schedule reliability needs improvement The shortening of some rotations is aimed at enhancing the Premier Alliance’s schedule reliability, an area that requires substantial improvement. On-time performance data from eeSea by Xeneta shows the alliance carriers’ global reliability was at 36% in the first quarter, but slid to 22% by Q3 before edging up to 23% thus far in the fourth quarter. Average ship delays began the year at 2.7 days in the first quarter, but that has almost doubled to 5.2 days in Q4. Peter Sand, chief analyst at Xeneta, said there was certainly room for improvement in Premier’s on-time performance. “Shippers will hold Premier Alliance responsible in 2026 for their claim that enhanced service reliability will be delivered through an optimized global network,” Sand told the Journal of Commerce. In a joint statement earlier this week , Premier Alliance members said the updated network aimed to “deliver improved service reliability by means of an optimized global structure.” “With the Premier Alliance calling fewer ports on individual services, that could prove to be one pathway to better on-time performance,” Sand noted. Gemini Cooperation continues to lead global schedule reliability scores, recording 88.6% on-time performance across September and October, according to data from Sea-Intelligence Maritime Analysis. The standalone Mediterranean Shipping Co. (MSC) was at 77.5%, Ocean Alliance scored 65% and Premier Alliance recorded 64.6% over the two months. Data from eeSea shows overall industry schedule reliability on the Asia–North Europe trade lane in November was 32%, up from a 2025 low of just 18% in August. Asia–Mediterranean on-time performance of 30% in November, while still at a low level, was also a substantial improvement on the 15% recorded in August. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Asia-Europe

Container Shipping News

Maritime

Premier Alliance trims Asia–Europe port calls in new 2026 network

<div class="phx-topic abstract-wrapper">Port officials say the next Army Corps spending bill needs to make sure that dredging funds set aside under a 2020 law actually get distributed. </div>

Port officials say the next Army Corps spending bill needs to make sure that dredging funds set aside under a 2020 law actually get distributed.

<div class="phx-topic">Large US ports face the prospect of less federal support for dredging and maintenance projects next year if Congress doesn’t ensure fairer distribution of monies from a government-run maintenance fund, lawmakers were told Wednesday. Port of Long Beach Chief Operating Officer Noel Hacegaba told the House Transportation and Infrastructure Committee that Congress needs to require the US Army Corps of Engineers’ (USACE’s) next spending authorization to comply with a law passed during its 2020 authorization that aimed at more even distribution of dredging funds. That law, known as Section 102, aimed to distribute at least 12% of the federal Harbor Maintenance Trust Fund back to so-called “donor and energy ports,” which contribute about half of the funds. Hacegaba’s testimony comes as Congress looks to draft a biennial spending authorization for the USACE. The Harbor Maintenance Trust Fund is expected to reach $7.8 billion next year. Sen. John Kennedy (R-Louisiana) introduced a spending bill earlier this month that would require the USACE to use $417 million from the trust toward Section 102 funding in 2026. The House version of the next USACE, however, does not have that provision. Hacegaba said the 2025 US Army Corps of Engineers (USACE) budget failed to include some $380 million that should be available under Section 102. Without that, Hacegaba said there was a $43 million shortfall in federal funds available this year to Long Beach for dredging and other maintenance. “You’re talking about nearly a 90% drop in funding that is critical for this project,” Hacegaba said. “[Long Beach] respectfully requests your continued support to ensure that annual distribution of these funds is not viewed as optional,” he added. “We are asking for equitable funding for donor and energy ports.” The American Association of Port Authorities (AAPA), which has estimated that <a href="https://www.joc.com/article/big-us-ports-ask-congress-to-follow-law-for-equal-funding-of-dredging-work-6055791">lax enforcement of Section 102 could mean a $1 billion loss in dredging funds</a>, said in a letter to Congress the law itself needs to be redrafted due to having too many qualifiers that “have led to inconsistent implementation.” Changing the law “would provide stability and ensure that these critical hubs receive the support needed to maintain safe and efficient operations,” AAPA said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com ">michael.angell@spglobal.com</a>. </div>

Large US ports face the prospect of less federal support for dredging and maintenance projects next year if Congress doesn’t ensure fairer distribution of monies from a government-run maintenance fund, lawmakers were told Wednesday. Port of Long Beach Chief Operating Officer Noel Hacegaba told the House Transportation and Infrastructure Committee that Congress needs to require the US Army Corps of Engineers’ (USACE’s) next spending authorization to comply with a law passed during its 2020 authorization that aimed at more even distribution of dredging funds. That law, known as Section 102, aimed to distribute at least 12% of the federal Harbor Maintenance Trust Fund back to so-called “donor and energy ports,” which contribute about half of the funds. Hacegaba’s testimony comes as Congress looks to draft a biennial spending authorization for the USACE. The Harbor Maintenance Trust Fund is expected to reach $7.8 billion next year. Sen. John Kennedy (R-Louisiana) introduced a spending bill earlier this month that would require the USACE to use $417 million from the trust toward Section 102 funding in 2026. The House version of the next USACE, however, does not have that provision. Hacegaba said the 2025 US Army Corps of Engineers (USACE) budget failed to include some $380 million that should be available under Section 102. Without that, Hacegaba said there was a $43 million shortfall in federal funds available this year to Long Beach for dredging and other maintenance. “You’re talking about nearly a 90% drop in funding that is critical for this project,” Hacegaba said. “[Long Beach] respectfully requests your continued support to ensure that annual distribution of these funds is not viewed as optional,” he added. “We are asking for equitable funding for donor and energy ports.” The American Association of Port Authorities (AAPA), which has estimated that lax enforcement of Section 102 could mean a $1 billion loss in dredging funds , said in a letter to Congress the law itself needs to be redrafted due to having too many qualifiers that “have led to inconsistent implementation.” Changing the law “would provide stability and ensure that these critical hubs receive the support needed to maintain safe and efficient operations,” AAPA said. Contact Michael Angell at michael.angell@spglobal.com .

Transport, Trade and Regulation News

Port infrastructure

North American ports

Big US ports ask Congress to ensure fair funding for dredging

<div class="phx-topic abstract-wrapper">Zvi Schreiber oversaw key milestones such as Freightos’ public listing and a transformative acquisition of air freight booking platform WebCargo, but the company has yet to turn a profit. </div>

Zvi Schreiber oversaw key milestones such as Freightos’ public listing and a transformative acquisition of air freight booking platform WebCargo, but the company has yet to turn a profit.

<div class="phx-topic">Freightos founder and CEO Zvi Schreiber will step down on Jan. 31, the company announced Wednesday, as the freight technology and marketplace provider looks for new leadership to guide it into its “next phase.” CFO Pablo Pinillos will become interim CEO from Feb. 1, Freightos said in a statement, adding that Schreiber will remain as a non-executive board member with the company after his departure as CEO. “The time is right for Freightos to have a CEO laser-focused on our next stage of scale-up, while I turn my attention to new adventures,” Schreiber said in the statement. Founded by Schreiber in 2012, Freightos provides a range of procurement, booking, rate management and rate data services. Among the notable milestones in Schreiber’s tenure as CEO was the launch of the now-widely used FBX spot rate index, the move to take Freightos public in 2023 on the NASDAQ exchange, and the transformative acquisition of air freight booking platform WebCargo. Along with launching a freight rate marketplace used primarily by forwarders and smaller importers and exporters, Freightos provides tools for cargo airlines and a digital customs brokerage service. Despite sizable growth in two key metrics it tracks — the number of bookings and gross booking value passing through its marketplace — Freightos has yet to turn a profit. The company’s third-quarter financials showed losses before interest, taxes, depreciation and amortization of $2.6 million on revenue of $7.7 million. For context, those losses are the lowest since the company went public two years ago and its revenue is 25% higher over the last year. “Zvi poured himself into this company,” Udo Lange, non-executive chairman of Freightos, said in the statement. “His vision and his belief in a connected, digital freight ecosystem have shaped Freightos at every step. We’re now moving into Freightos’ next phase ... as we scale, implementing ongoing improvements for operational discipline, and delivering the full potential of the platform that Zvi envisioned.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Freightos founder and CEO Zvi Schreiber will step down on Jan. 31, the company announced Wednesday, as the freight technology and marketplace provider looks for new leadership to guide it into its “next phase.” CFO Pablo Pinillos will become interim CEO from Feb. 1, Freightos said in a statement, adding that Schreiber will remain as a non-executive board member with the company after his departure as CEO. “The time is right for Freightos to have a CEO laser-focused on our next stage of scale-up, while I turn my attention to new adventures,” Schreiber said in the statement. Founded by Schreiber in 2012, Freightos provides a range of procurement, booking, rate management and rate data services. Among the notable milestones in Schreiber’s tenure as CEO was the launch of the now-widely used FBX spot rate index, the move to take Freightos public in 2023 on the NASDAQ exchange, and the transformative acquisition of air freight booking platform WebCargo. Along with launching a freight rate marketplace used primarily by forwarders and smaller importers and exporters, Freightos provides tools for cargo airlines and a digital customs brokerage service. Despite sizable growth in two key metrics it tracks — the number of bookings and gross booking value passing through its marketplace — Freightos has yet to turn a profit. The company’s third-quarter financials showed losses before interest, taxes, depreciation and amortization of $2.6 million on revenue of $7.7 million. For context, those losses are the lowest since the company went public two years ago and its revenue is 25% higher over the last year. “Zvi poured himself into this company,” Udo Lange, non-executive chairman of Freightos, said in the statement. “His vision and his belief in a connected, digital freight ecosystem have shaped Freightos at every step. We’re now moving into Freightos’ next phase ... as we scale, implementing ongoing improvements for operational discipline, and delivering the full potential of the platform that Zvi envisioned.” Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

Freightos founder to step down as CEO as company moves into ‘next phase’

<div class="phx-topic abstract-wrapper">The head of one opposition union says the job protection deals agreed to by other unions in exchange for their support of the merger have “loopholes big enough to traverse freight trains through.”</div>

The head of one opposition union says the job protection deals agreed to by other unions in exchange for their support of the merger have “loopholes big enough to traverse freight trains through.”

<div class="phx-topic">The second- and third-largest railroad worker unions in the US on Wednesday came out in opposition to Union Pacific’s (UP’s) proposed $85 billion acquisition of Norfolk Southern (NS). The move by the Brotherhood of Locomotive Engineers and Trainmen (BLET) and Brotherhood of Maintenance of Way Employees (BMWED), both part of the Teamsters Union, comes just days before UP is expected to file its formal application seeking approval for the deal from the US Surface Transportation Board (STB). BLET National President Mark Wallace said the decision to oppose the merger came after five months of review, as well as meetings across the US with rank-and-file workers and direct negotiations with UP CEO Jim Vena over post-merger job protections. “We believe this transcontinental railroad will make shipping by rail less attractive as the merged carrier passes off rail lines that service small towns, factories, and farms to short-line railroads,” Wallace said in a statement. “For rail customers, it will be a choice between Hell or the highway.” BLET also cited safety concerns, referring to the high-profile NS derailment in East Palestine, Ohio, in 2023, and UP’s propensity to run “extremely long trains, some three miles in length” as key factors behind its opposition to the merger. The unions also rejected Vena’s promise to protect the jobs of workers, which convinced other unions to back the deal. “We don’t believe anything Vena says about how workers would be treated in the supersized Union Pacific,” Tony Cardwell, BMWED’s president, said in the statement. “The agreements reached with some other unions related to job protections post-merger have loopholes big enough to traverse freight trains through. We refuse to accept the same terms in return for unions’ support for the merger.” <h3>UP reiterates job protections </h3>Union Pacific responded in a statement Wednesday, saying the growth opportunities in the merger are “unprecedented in railroad history.” UP also reiterated its job protection stance and emphasized that five unions have come out in support of the deal. UP flagged what it said was its commitment to unions, notably an average annual compensation and benefits package worth $160,000 that it said is approximately 40% above the national industrial average and retirement income that is nearly twice the average Social Security recipient. BLET and BMWED become the first major rail unions to oppose the proposed merger. Five have come out in favor, driven mainly by the job protections UP has offered to all union workers. The railroad has vowed that anyone who has a job after the deal is approved is protected against losing their job for any reason linked to the merger. The Sheet Metal, Air, Rail, and Transportation Workers-Transportation Division (SMART-TD) — the largest US rail union — <a href="https://www.joc.com/article/major-rail-union-backs-up-ns-merger-after-job-protection-deal-6084510">endorsed the deal in September</a>, while the International Brotherhood of Railway Boilermakers <a href="https://www.joc.com/article/up-reaches-agreement-with-ibb-union-to-support-ns-merger-6122657">pledged support</a> last month. Three other smaller unions — the Brotherhood of Railway Carmen, the National Conference of Firemen and Oilers, and the United Supervisors Council of America — have also come out in favor of the merger. “We’ve formalized this ‘jobs-for-life’ agreement with five unions ... and we look forward to filing our application with the STB this week,” UP said. There is also a split among other interested parties. Nine Republican Attorneys General wrote a letter opposing the deal on Nov. 14, but the Attorneys General from three other US states, also all Republicans, wrote their own letter nearly two weeks later supporting the deal. The STB is not expected to rule on the UP-NS application until 2027. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

The second- and third-largest railroad worker unions in the US on Wednesday came out in opposition to Union Pacific’s (UP’s) proposed $85 billion acquisition of Norfolk Southern (NS). The move by the Brotherhood of Locomotive Engineers and Trainmen (BLET) and Brotherhood of Maintenance of Way Employees (BMWED), both part of the Teamsters Union, comes just days before UP is expected to file its formal application seeking approval for the deal from the US Surface Transportation Board (STB). BLET National President Mark Wallace said the decision to oppose the merger came after five months of review, as well as meetings across the US with rank-and-file workers and direct negotiations with UP CEO Jim Vena over post-merger job protections. “We believe this transcontinental railroad will make shipping by rail less attractive as the merged carrier passes off rail lines that service small towns, factories, and farms to short-line railroads,” Wallace said in a statement. “For rail customers, it will be a choice between Hell or the highway.” BLET also cited safety concerns, referring to the high-profile NS derailment in East Palestine, Ohio, in 2023, and UP’s propensity to run “extremely long trains, some three miles in length” as key factors behind its opposition to the merger. The unions also rejected Vena’s promise to protect the jobs of workers, which convinced other unions to back the deal. “We don’t believe anything Vena says about how workers would be treated in the supersized Union Pacific,” Tony Cardwell, BMWED’s president, said in the statement. “The agreements reached with some other unions related to job protections post-merger have loopholes big enough to traverse freight trains through. We refuse to accept the same terms in return for unions’ support for the merger.” UP reiterates job protections Union Pacific responded in a statement Wednesday, saying the growth opportunities in the merger are “unprecedented in railroad history.” UP also reiterated its job protection stance and emphasized that five unions have come out in support of the deal. UP flagged what it said was its commitment to unions, notably an average annual compensation and benefits package worth $160,000 that it said is approximately 40% above the national industrial average and retirement income that is nearly twice the average Social Security recipient. BLET and BMWED become the first major rail unions to oppose the proposed merger. Five have come out in favor, driven mainly by the job protections UP has offered to all union workers. The railroad has vowed that anyone who has a job after the deal is approved is protected against losing their job for any reason linked to the merger. The Sheet Metal, Air, Rail, and Transportation Workers-Transportation Division (SMART-TD) — the largest US rail union — endorsed the deal in September , while the International Brotherhood of Railway Boilermakers pledged support last month. Three other smaller unions — the Brotherhood of Railway Carmen, the National Conference of Firemen and Oilers, and the United Supervisors Council of America — have also come out in favor of the merger. “We’ve formalized this ‘jobs-for-life’ agreement with five unions ... and we look forward to filing our application with the STB this week,” UP said. There is also a split among other interested parties. Nine Republican Attorneys General wrote a letter opposing the deal on Nov. 14, but the Attorneys General from three other US states, also all Republicans, wrote their own letter nearly two weeks later supporting the deal. The STB is not expected to rule on the UP-NS application until 2027. Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

North-American rail

Two large rail unions say they oppose planned UP-NS merger

<div class="phx-topic abstract-wrapper">The Hamburg-based carrier will share the tender with feeder carrier North Sea Container Line that will operate e-ammonia services on a northern intra-Europe trade lane. </div>

The Hamburg-based carrier will share the tender with feeder carrier North Sea Container Line that will operate e-ammonia services on a northern intra-Europe trade lane. 

<div class="phx-topic">Hapag-Lloyd has won the deep-sea portion of an e-fuel-focused tender issued by the Zero Emission Maritime Buyers Alliance (ZEMBA), the second green shipping tender the carrier has secured from the group of global shippers. The Hamburg-based carrier will share the tender with feeder carrier North Sea Container Line (NCL) that will operate e-fuel services on a northern intra-Europe lane, ZEMBA said in a statement Wednesday. “At a time when sourcing scalable e-fuels remains a major challenge for the entire industry, winning the second ZEMBA tender is a significant milestone for us,” Hapag-Lloyd CEO Rolf Habben Jansen said in the statement, adding that deploying e-methanol vessels was “an essential step in our journey to reach net-zero fleet operations by 2045.”    The <a href="https://www.joc.com/article/hapag-lloyd-wins-asia-europe-green-shipping-tender-to-launch-next-year-5240949">first ZEMBA tender won by Hapag-Lloyd</a> in 2024 was based on biomethane sourced from the carrier’s suppliers via the European gas grid, but the second tender is focused on two fuel pathways — e-methanol and e-ammonia. Hapag-Lloyd has committed to using e-methanol on dual-fuel container ships on a to-be-determined deep-sea trade lane from 2027, while NCL will deploy the world’s first e-ammonia-powered vessel on a northern European trade lane. The timing of the tender announcement was intended to follow the hoped-for adoption in October of the International Maritime Organization’s (IMO’s) net-zero framework of measures aimed at closing the cost gap between conventional and alternative fuels while accelerating investment in production. But despite the IMO being <a href="https://www.joc.com/article/imo-punts-on-pivotal-net-zero-shipping-regulation-6099141">forced to postpone the net-zero framework process for a year</a> after the adoption was derailed by US-led opposition, the private sector continues to pick up the slack. “This voluntary private sector initiative remains on track to invest in rapid on-the-water deployment of vastly scalable, next-generation maritime fuels,” Ingrid Irigoyen, president and CEO of ZEMBA, said in the statement.  <h3>Great potential for economies of scale </h3>Based on commitments to date, the more than 40 members of ZEMBA — including co-founders Amazon, Patagonia and Tchibo, and members including Beiersdorf, Brooks Running, IKEA and Nike — will be able to deploy e-fuels on an initial 22 billion metric ton-nautical miles of transport activity over three years, with some members extending to five years, ZEMBA’s statement said. It is estimated that a combined 132,000 of greenhouse gas emissions will be abated starting in 2027.   “Just as global renewable energy costs have declined significantly in recent years as the market has matured, e-methanol and e-ammonia that are produced with clean energy offer great potential for economies of scale,” ZEMBA said.  “With this announcement, ZEMBA’s first-mover members are demonstrating support for scalable, strategic, and holistic supply chain sustainability solutions that can enable them to meet long-term goals,” it added. Hapag-Lloyd has made big moves to bolster its fleet of methanol vessels. Earlier this month, the carrier announced <a href="https://www.joc.com/article/hapag-lloyd-to-expand-feeder-fleet-with-new-methanol-ready-ships-6133938">plans to spend $500 million building eight dual-fuel methanol feeder vessels</a> of 4,500-TEU capacity for delivery in 2028 and 2029. And last year, it said it was <a href="https://www.joc.com/article/hapag-lloyd-joins-maersk-in-chinese-methanol-supply-deal-5866031">retrofitting five of its post-Panamax chartered ships into dual-fuel methanol</a> while securing a long-term supply deal with Chinese methanol producer Goldwind. In the inaugural tender, ZEMBA members collectively committed to purchase alternative fuels associated with over 1 billion TEU-miles of zero-emission shipping on the Singapore-to-Rotterdam trade lane in 2025 and 2026. The tender covered a negotiated “green premium” paid by shippers and does not involve the base freight rate. As Hapag-Lloyd nears the halfway mark of the first tender, Arne Maibohm, the carrier’s director of decarbonization, told the Journal of Commerce the company was “fully on track and meeting all commitments.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Hapag-Lloyd has won the deep-sea portion of an e-fuel-focused tender issued by the Zero Emission Maritime Buyers Alliance (ZEMBA), the second green shipping tender the carrier has secured from the group of global shippers.  The Hamburg-based carrier will share the tender with feeder carrier North Sea Container Line (NCL) that will operate e-fuel services on a northern intra-Europe lane, ZEMBA said in a statement Wednesday.  “At a time when sourcing scalable e-fuels remains a major challenge for the entire industry, winning the second ZEMBA tender is a significant milestone for us,” Hapag-Lloyd CEO Rolf Habben Jansen said in the statement, adding that deploying e-methanol vessels was “an essential step in our journey to reach net-zero fleet operations by 2045.”     The  first ZEMBA tender won by Hapag-Lloyd  in 2024 was based on biomethane sourced from the carrier’s suppliers via the European gas grid, but the second tender is focused on two fuel pathways — e-methanol and e-ammonia.  Hapag-Lloyd has committed to using e-methanol on dual-fuel container ships on a to-be-determined deep-sea trade lane from 2027, while NCL will deploy the world’s first e-ammonia-powered vessel on a northern European trade lane.  The timing of the tender announcement was intended to follow the hoped-for adoption in October of the International Maritime Organization’s (IMO’s) net-zero framework of measures aimed at closing the cost gap between conventional and alternative fuels while accelerating investment in production. But despite the IMO being  forced to postpone the net-zero framework process for a year  after the adoption was derailed by US-led opposition, the private sector continues to pick up the slack.  “This voluntary private sector initiative remains on track to invest in rapid on-the-water deployment of vastly scalable, next-generation maritime fuels,” Ingrid Irigoyen, president and CEO of ZEMBA, said in the statement.   Great potential for economies of scale  Based on commitments to date, the more than 40 members of ZEMBA — including co-founders Amazon, Patagonia and Tchibo, and members including Beiersdorf, Brooks Running, IKEA and Nike — will be able to deploy e-fuels on an initial 22 billion metric ton-nautical miles of transport activity over three years, with some members extending to five years, ZEMBA’s statement said. It is estimated that a combined 132,000 of greenhouse gas emissions will be abated starting in 2027.    “Just as global renewable energy costs have declined significantly in recent years as the market has matured, e-methanol and e-ammonia that are produced with clean energy offer great potential for economies of scale,” ZEMBA said.  “With this announcement, ZEMBA’s first-mover members are demonstrating support for scalable, strategic, and holistic supply chain sustainability solutions that can enable them to meet long-term goals,” it added. Hapag-Lloyd has made big moves to bolster its fleet of methanol vessels. Earlier this month, the carrier announced  plans to spend $500 million building eight dual-fuel methanol feeder vessels  of 4,500-TEU capacity for delivery in 2028 and 2029. And last year, it said it was  retrofitting five of its post-Panamax chartered ships into dual-fuel methanol  while securing a long-term supply deal with Chinese methanol producer Goldwind.  In the inaugural tender, ZEMBA members collectively committed to purchase alternative fuels associated with over 1 billion TEU-miles of zero-emission shipping on the Singapore-to-Rotterdam trade lane in 2025 and 2026. The tender covered a negotiated “green premium” paid by shippers and does not involve the base freight rate.  As Hapag-Lloyd nears the halfway mark of the first tender, Arne Maibohm, the carrier’s director of decarbonization, told the Journal of Commerce the company was “fully on track and meeting all commitments.”  Contact Greg Knowler at  greg.knowler@spglobal.com . 

Hapag-Lloyd wins second green tender from global shipper group 

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