<div class="phx-topic abstract-wrapper">Sears, Roebuck and Co. has picked a Desert Storm leader to shape up its enormous merchandise distrib</div>

Sears, Roebuck and Co. has picked a Desert Storm leader to shape up its enormous merchandise distrib

<div>Sears, Roebuck and Co. has picked a Desert Storm leader to shape up its enormous merchandise distribution system.Army Lt. Gen. William G. Pagonis, who directed the transportation of troops and supplies for the Persian Gulf war, was named senior vice president of logistics for Sears. He will be responsible for shipping, distribution and delivery of all Sears merchandise."Superior logistical services are central to the effective execution of our merchandise group strategy, focusing equally on improved customer services and lower costs," Arthur C. Martinez, chairman of the Sears Merchandise Group, said in a statement.Mr. Pagonis' responsibilities will include home delivery of...

Sears, Roebuck and Co. has picked a Desert Storm leader to shape up its enormous merchandise distribution system. Army Lt. Gen. William G. Pagonis, who directed the transportation of troops and supplies for the Persian Gulf war, was named senior vice president of logistics for Sears. He will be responsible for shipping, distribution and delivery of all Sears merchandise."Superior logistical services are central to the effective execution of our merchandise group strategy, focusing equally on improved customer services and lower costs," Arthur C. Martinez, chairman of the Sears Merchandise Group, said in a statement. Mr. Pagonis' responsibilities will include home delivery of furniture and appliances in addition to distribution of goods to Sears' 798 stores. The unit under his command, Sears Logistics Services Inc., employs 6,000 people. Mr. Pagonis, 52, is retiring from a 29-year military career. He will succeed Charles R. Reaves, 55, who accepted an early retirement offer, Sears said. Mr. Pagonis currently is commanding general of the 21st Theater Army Area Command of the U.S. Army in Europe. Logistics is the art of moving goods efficiently. At Sears, Mr. Pagonis will oversee the movement of everything from frocks to refrigerators, from manufacturer to customer. He also will be charged with cutting costs by increasing the efficiency of Sears' distribution system. Sears has closed some urban warehouses and built larger regional distribution centers but trails No. 1 retailer Wal-Mart Stores Inc., in mastering the logistics of modern merchandising, analysts said. "I think most people will agree that one of the major advantages Wal-Mart has over most of its competitors is the most efficient distribution system around," said Joseph Ronning of Brown Brothers Harriman Inc. in New York. Mr. Ronning said Wal-Mart's high-tech system for tracking and directing merchandise saves money. ''Sears has some catching up to do," he said. Mr. Pagonis is not the first Army logistics expert to land at Sears. From 1939 to 1954 the company was headed by Gen. Robert E. Wood, the Army's quartermaster general during World War I. Mr. Wood directed Sears' transformation after World War II from primarily a mail-order company into a national chain of retail stores.

GULF WAR'S LOGISTICS HEAD TO DIRECT SEARS NETWORK

<div class="phx-topic abstract-wrapper">Although the timeline is still uncertain, a resumption of the shorter Suez routing brings its own risks, with analysts warning of the potential for significant port disruption and upward rate pressure.</div>

Although the timeline is still uncertain, a resumption of the shorter Suez routing brings its own risks, with analysts warning of the potential for significant port disruption and upward rate pressure.

Feature image

<div class="phx-topic">The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: After two years of sailing around southern Africa to avoid the risk of Houthi attacks in the Red Sea, Asia–Europe carriers could return to Suez Canal transits in 2026, possibly even in the first half. Although the timeline is still uncertain, a resumption of the shorter Suez routing brings its own risks, with analysts warning of the potential for significant port disruption and upward rate pressure. A look back: Like in 2024, the Asia–Europe peak season came earlier than usual in 2025, with volumes ramping up in early May rather than the typical June start. Fueled by concerns over persistent port congestion in Europe — on top of extended transit times due to diversions away from the Suez Canal — importers rushed to build inventory for summer sales. Cargo owners had already baked into their supply chains the additional two weeks ships take to sail around southern Africa, but planning for port congestion proved more difficult as bottlenecks shifted dynamically among European terminals, sometimes within the same port. The strong demand continued into the fall, with Asia–Europe container volumes rising on a year-over-year basis for seven straight months from March through September, according to data from Container Trades Statistics (CTS). “We haven’t seen growth like that on the Far East westbound trade since before the global financial crisis,” Michael Aldwell, executive vice president of sea logistics at forwarder Kuehne + Nagel, told the Journal of Commerce in late November. The early peak saw spot rates spike in late May and early June before gradually declining through October. As end-of-year contract talks between shippers and carriers neared, carriers imposed a series of fortnightly freight-all-kinds rate increases from Oct. 1. Although not fully accepted by the market, the rate hikes, along with aggressive blank sailings, boosted average pricing from Asia to North Europe and the Mediterranean by 92.3% and 150%, respectively, from early October to mid-December, according to Platts, a Journal of Commerce sister product within S&amp;P Global. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="dd9a04f6-aae8-43c6-8d19-2be08a433378"></dynamic-object></div><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6135205_0.1.jpg"></img></div>A look ahead: Shippers can pencil in a return to the Red Sea in 2026, but neither carriers nor cargo owners are in any great rush to do so. Those moving refrigerated or otherwise perishable commodities would be thrilled to cut their transit times, but most shippers prefer consistency and plannability, even if it takes a couple more weeks for cargo to get from port to port. Forwarders and ship owners have warned that carriers switching Asia–Europe services back to the Suez Canal route en masse will result in waves of vessels and cargo arriving at major European gateways that were already at maximum capacity for much of 2025. From a supply-demand perspective, reverting to the traditional Suez transits will release effective capacity into a trade already awash with excess tonnage. That means carriers will likely be forced to blank sailings and reduce ship speeds to manage capacity and prevent rates from bottoming out. Planning for such an event is practically impossible, particularly without a clear timeline, but Asia–Europe shippers should expect disrupted ocean schedules and continued — possibly worsening — congestion that will likely take months to clear. The next inflection: A wholesale return to the Red Sea would cause intense disruption on the Asia–Europe trade lane, with ships sailing through the Suez Canal converging with those sailing around Africa at already congested European ports. To mitigate vessel bunching and the release of pent-up capacity, carriers could keep some services on the around Africa route during the transition period. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: After two years of sailing around southern Africa to avoid the risk of Houthi attacks in the Red Sea, Asia–Europe carriers could return to Suez Canal transits in 2026, possibly even in the first half. Although the timeline is still uncertain, a resumption of the shorter Suez routing brings its own risks, with analysts warning of the potential for significant port disruption and upward rate pressure. A look back: Like in 2024, the Asia–Europe peak season came earlier than usual in 2025, with volumes ramping up in early May rather than the typical June start. Fueled by concerns over persistent port congestion in Europe — on top of extended transit times due to diversions away from the Suez Canal — importers rushed to build inventory for summer sales. Cargo owners had already baked into their supply chains the additional two weeks ships take to sail around southern Africa, but planning for port congestion proved more difficult as bottlenecks shifted dynamically among European terminals, sometimes within the same port. The strong demand continued into the fall, with Asia–Europe container volumes rising on a year-over-year basis for seven straight months from March through September, according to data from Container Trades Statistics (CTS). “We haven’t seen growth like that on the Far East westbound trade since before the global financial crisis,” Michael Aldwell, executive vice president of sea logistics at forwarder Kuehne + Nagel, told the Journal of Commerce in late November. The early peak saw spot rates spike in late May and early June before gradually declining through October. As end-of-year contract talks between shippers and carriers neared, carriers imposed a series of fortnightly freight-all-kinds rate increases from Oct. 1. Although not fully accepted by the market, the rate hikes, along with aggressive blank sailings, boosted average pricing from Asia to North Europe and the Mediterranean by 92.3% and 150%, respectively, from early October to mid-December, according to Platts, a Journal of Commerce sister product within S&P Global. A look ahead: Shippers can pencil in a return to the Red Sea in 2026, but neither carriers nor cargo owners are in any great rush to do so. Those moving refrigerated or otherwise perishable commodities would be thrilled to cut their transit times, but most shippers prefer consistency and plannability, even if it takes a couple more weeks for cargo to get from port to port. Forwarders and ship owners have warned that carriers switching Asia–Europe services back to the Suez Canal route en masse will result in waves of vessels and cargo arriving at major European gateways that were already at maximum capacity for much of 2025. From a supply-demand perspective, reverting to the traditional Suez transits will release effective capacity into a trade already awash with excess tonnage. That means carriers will likely be forced to blank sailings and reduce ship speeds to manage capacity and prevent rates from bottoming out. Planning for such an event is practically impossible, particularly without a clear timeline, but Asia–Europe shippers should expect disrupted ocean schedules and continued — possibly worsening — congestion that will likely take months to clear. The next inflection: A wholesale return to the Red Sea would cause intense disruption on the Asia–Europe trade lane, with ships sailing through the Suez Canal converging with those sailing around Africa at already congested European ports. To mitigate vessel bunching and the release of pent-up capacity, carriers could keep some services on the around Africa route during the transition period. Contact Greg Knowler at greg.knowler@spglobal.com .

Asia-Europe

Container Shipping News

Maritime

Red Sea return poses disruption threat to Asia–Europe trade

<div class="phx-topic abstract-wrapper">Current anti-trust protections “have enabled foreign-owned shipping lines to exert disproportionate control over pricing and service levels” in Australia’s maritime industry, the head of a leading shipper group in the country says. </div>

Current anti-trust protections “have enabled foreign-owned shipping lines to exert disproportionate control over pricing and service levels” in Australia’s maritime industry, the head of a leading shipper group in the country says.

<div class="phx-topic">Shipper groups in Australia will urge the abolition of ocean carrier anti-trust immunity and the implementation of legal controls on port and related fees in their submission to a government inquiry into productivity within the country’s maritime and logistics sectors. While groups are still drafting their filing, Paul Zalai, director of the Freight &amp; Trade Alliance, said the focus will be on the two most contentious issues facing shippers in Australia. “The FTA and the Australian Peak Shippers Association (ASPA) consider both the end of anti-trust immunity and the introduction of a mandatory port-related fees code central to improving productivity, resilience and competitiveness in Australia’s freight supply chains,” Zalai told the Journal of Commerce. Current anti-trust protections “have enabled foreign-owned shipping lines to exert disproportionate control over pricing and service levels, stifling competition, raising costs, and undermining supply chain resilience in our trade-dependent economy,” Zalai said. On the matter of landside fees, Zalai said terminal and container park operators should charge their direct shipping line customers, who can then decide whether to absorb the fees or recover the costs from importers, exporters and freight forwarders. “But under current arrangements, stevedores and container parks impose incontestable landside fees directly on road and rail transport operators, bypassing normal commercial negotiation and distorting market dynamics,” he said. The FTA and ASPA, which together represent more than 550 businesses and trade bodies, were invited to make submissions just before Christmas by a Senate select committee set up to investigate productivity in Australian industry. Filings are due by Feb. 20, with a report scheduled for release by Sept. 30. Explaining the rationale for the probe, the Senate said that “global and domestic freight disruptions continue to destabilize the supply chain, leading to congestion, delays and higher costs.” Among the issues the Senate committee will consider is whether harmonized freight and logistics regulations would better support Australia's economy; how disrupted freight supply chains have impacted Australia's infrastructure resilience; and how fit-for-purpose freight infrastructure can encourage productivity growth. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Shipper groups in Australia will urge the abolition of ocean carrier anti-trust immunity and the implementation of legal controls on port and related fees in their submission to a government inquiry into productivity within the country’s maritime and logistics sectors. While groups are still drafting their filing, Paul Zalai, director of the Freight & Trade Alliance, said the focus will be on the two most contentious issues facing shippers in Australia. “The FTA and the Australian Peak Shippers Association (ASPA) consider both the end of anti-trust immunity and the introduction of a mandatory port-related fees code central to improving productivity, resilience and competitiveness in Australia’s freight supply chains,” Zalai told the Journal of Commerce. Current anti-trust protections “have enabled foreign-owned shipping lines to exert disproportionate control over pricing and service levels, stifling competition, raising costs, and undermining supply chain resilience in our trade-dependent economy,” Zalai said. On the matter of landside fees, Zalai said terminal and container park operators should charge their direct shipping line customers, who can then decide whether to absorb the fees or recover the costs from importers, exporters and freight forwarders. “But under current arrangements, stevedores and container parks impose incontestable landside fees directly on road and rail transport operators, bypassing normal commercial negotiation and distorting market dynamics,” he said. The FTA and ASPA, which together represent more than 550 businesses and trade bodies, were invited to make submissions just before Christmas by a Senate select committee set up to investigate productivity in Australian industry. Filings are due by Feb. 20, with a report scheduled for release by Sept. 30. Explaining the rationale for the probe, the Senate said that “global and domestic freight disruptions continue to destabilize the supply chain, leading to congestion, delays and higher costs.” Among the issues the Senate committee will consider is whether harmonized freight and logistics regulations would better support Australia's economy; how disrupted freight supply chains have impacted Australia's infrastructure resilience; and how fit-for-purpose freight infrastructure can encourage productivity growth. Contact Keith Wallis at keithwallis@hotmail.com .

Transport, Trade and Regulation News

Australian shippers call for end to ocean carrier anti-trust immunity

<div class="phx-topic abstract-wrapper">The carrier is now including calls at Malta, Port Said (Egypt) and Beirut on the weekly Medex itinerary, replacing Valencia and Barcelona in Spain and For-sur-Mer in France.</div>

The carrier is now including calls at Malta, Port Said (Egypt) and Beirut on the weekly Medex itinerary, replacing Valencia and Barcelona in Spain and For-sur-Mer in France.

<div class="phx-topic">CMA CGM has reorganized the port rotation of its India–Middle East–West Mediterranean “Medex” service that it switched over <a href="https://www.joc.com/article/cma-cgm-unveils-plans-for-suez-return-on-india-mediterranean-service-6012039">to a Red Sea schedule in June</a>. The carrier is now including calls at Malta, Port Said (Egypt) and Beirut on the weekly Medex itinerary, replacing Valencia and Barcelona in Spain and For-sur-Mer in France. “As part of this enhancement, the overall rotation duration will be reduced from 70 days to 63 days...,” CMA CGM (India) said in a customer advisory. “This optimization will enable more frequent sailings and enhanced capacity through additional departures, thereby offering greater flexibility and improved connectivity.” The carrier said it will continue to serve the three dropped ports of call via transshipment. The full updated rotation is Abu Dhabi, Jebel Ali, Mundra, Nhava Sheva, Colombo, Jeddah, Port Said, Piraeus, Malta, Genoa, Beirut, Port Said, Jeddah and back to Abu Dhabi. For Indian loads, the changes are due to begin with the CMA CGM Pelleas that has an estimated time of arrival of Jan. 7 in Mundra. The revised rotation allows the carrier to run the string with nine vessels, compared with the 10 ships it needed to deploy previously. Cosco Shipping has a slot charter deal with CMA CGM on the Medex, with space allotments pegged at approximately 1,000 TEUs out of India per week. India-Mediterranean trades have been the target of a new crop of opportunistic regional carriers over the past year, especially multiple Turkish lines and some others backed by non-vessel operating common carriers (NVOCCs). The new entrants have caused serious market share setbacks for traditional mainline heavyweights, particularly CMA CGM. <h3>Spot rates fall on capacity boost </h3>With the Medex’s enhanced capacity, signs of a downward correction in rates are emerging. Sources have reported a sharp drop in spot rates for loads from Nhava Sheva to Port Said for late-January CMA CGM sailings — down to $2,350 per TEU and $2,300 per FEU, from $3,250 and $2,800, respectively, quoted for early-January sailings. On a broader note, the Medex rotation reset comes as CMA CGM is set to resume Suez Canal transits for its India–US East Coast “Indamex” loop from next month, though it is believed that the carrier still needs to position two more vessels in India to offer a weekly rotation under the normal itinerary. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

CMA CGM has reorganized the port rotation of its India–Middle East–West Mediterranean “Medex” service that it switched over to a Red Sea schedule in June . The carrier is now including calls at Malta, Port Said (Egypt) and Beirut on the weekly Medex itinerary, replacing Valencia and Barcelona in Spain and For-sur-Mer in France. “As part of this enhancement, the overall rotation duration will be reduced from 70 days to 63 days...,” CMA CGM (India) said in a customer advisory. “This optimization will enable more frequent sailings and enhanced capacity through additional departures, thereby offering greater flexibility and improved connectivity.” The carrier said it will continue to serve the three dropped ports of call via transshipment. The full updated rotation is Abu Dhabi, Jebel Ali, Mundra, Nhava Sheva, Colombo, Jeddah, Port Said, Piraeus, Malta, Genoa, Beirut, Port Said, Jeddah and back to Abu Dhabi. For Indian loads, the changes are due to begin with the CMA CGM Pelleas that has an estimated time of arrival of Jan. 7 in Mundra. The revised rotation allows the carrier to run the string with nine vessels, compared with the 10 ships it needed to deploy previously. Cosco Shipping has a slot charter deal with CMA CGM on the Medex, with space allotments pegged at approximately 1,000 TEUs out of India per week. India-Mediterranean trades have been the target of a new crop of opportunistic regional carriers over the past year, especially multiple Turkish lines and some others backed by non-vessel operating common carriers (NVOCCs). The new entrants have caused serious market share setbacks for traditional mainline heavyweights, particularly CMA CGM. Spot rates fall on capacity boost With the Medex’s enhanced capacity, signs of a downward correction in rates are emerging. Sources have reported a sharp drop in spot rates for loads from Nhava Sheva to Port Said for late-January CMA CGM sailings — down to $2,350 per TEU and $2,300 per FEU, from $3,250 and $2,800, respectively, quoted for early-January sailings. On a broader note, the Medex rotation reset comes as CMA CGM is set to resume Suez Canal transits for its India–US East Coast “Indamex” loop from next month, though it is believed that the carrier still needs to position two more vessels in India to offer a weekly rotation under the normal itinerary. Contact Bency Mathew at bencyvmathew@gmail.com .

CMA CGM reworks India-Med loop rotation to streamline Red Sea operations

<div class="phx-topic abstract-wrapper">Whatever capacity might exit the market in 2026, most analysts believe a strong resurgence in freight volumes is needed to enable a true rebound in truckload rates. </div>

Whatever capacity might exit the market in 2026, most analysts believe a strong resurgence in freight volumes is needed to enable a true rebound in truckload rates.

<div class="phx-topic">The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook.The big picture: The depression in demand that has gripped the US truckload sector for three years will likely continue through the first half of 2026. That could mean a sharper correction in capacity followed by higher rates late in the year or in 2027, which some believe will be the real recovery year for truckload carriers. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6135199_0.1.jpg"></img></div>A look back: The recovery in trucking volumes many carriers and analysts had expected — or at least hoped for — at the start of 2025 failed to materialize as US manufacturing lost its early momentum and US tariffs distorted import demand. As a result, truckload spot rates stayed in the trough they’ve inhabited since mid-2022. Pricing rose and fell seasonally throughout 2025, and each minor gain was hailed as a potential turning point, but widespread overcapacity and the lack of a demand catalyst kept a lid on spot and contract rate hikes. Large truckload carriers cut their fleets in an attempt to match low levels of demand and preserve profit margins, dragging capacity to historic lows. The Journal of Commerce Truckload Capacity Index (TCI), a measure of actual truck counts at large publicly-owned carriers, dropped to 72.4% in the third quarter, an all-time low in two decades of TCI data. But the “long tail” of small truckload carriers remains long. More than 38,500 operating authorities were canceled between December 2022 and September 2025, but there were almost 90,000 more carriers that month than in December 2019, according to the Federal Motor Carrier Safety Administration (FMCSA). That underscores a shift, with more drivers moving to smaller trucking firms and those smaller firms proving more resilient than in the past. A look ahead: The resiliency demonstrated by small carriers is a significant break from previous economic downturns and, therefore, makes projections for 2026 more difficult. Analysts and large carrier executives have been predicting small fleets would fold and exit the market in increasing numbers for three years, and while rising costs and low demand will continue to squeeze those carriers, the number of companies closing their doors has slowed to a crawl. Just 1,500 operating authorities were revoked in the first nine months of 2025, down from 13,000 in 2024 and 25,000 in 2023, according to FMCSA data. Trucking executives believe a regulatory crackdown on non-domiciled commercial driver’s licenses and increased enforcement of English-language proficiency requirements will pull more drivers off the road, but whether these actions will take enough capacity out of service — and do so quickly enough — to move the needle on rates remains to be seen. Orders for new Class 8 trucks are expected to fall amid low rates, weak demand, tariffs and uncertainty over future emissions regulations, slowing the influx of additional capacity into the oversupplied truckload market. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="5ef87bc3-b502-4e31-85d7-457673195134"></dynamic-object></div>The next inflection: Whatever capacity might exit the market in 2026, most analysts believe a strong resurgence in freight volumes is needed to enable a true rebound in truckload rates. US manufacturing output, as measured by the S&amp;P Global US Manufacturing Purchasing Managers’ Index (PMI), expanded sequentially for the fourth straight month in November, but growth remains constrained by uncertainty over tariffs, trade policy and consumer spending. Absent a sudden and unexpected demand spike, truckload contract rate increases will likely be limited to low single-digit percentages and spot pricing will likely remain depressed well into this year, if not 2027. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

The following is part of the Journal of Commerce’s 2026 Annual Review and Outlook. The big picture: The depression in demand that has gripped the US truckload sector for three years will likely continue through the first half of 2026. That could mean a sharper correction in capacity followed by higher rates late in the year or in 2027, which some believe will be the real recovery year for truckload carriers. A look back: The recovery in trucking volumes many carriers and analysts had expected — or at least hoped for — at the start of 2025 failed to materialize as US manufacturing lost its early momentum and US tariffs distorted import demand. As a result, truckload spot rates stayed in the trough they’ve inhabited since mid-2022. Pricing rose and fell seasonally throughout 2025, and each minor gain was hailed as a potential turning point, but widespread overcapacity and the lack of a demand catalyst kept a lid on spot and contract rate hikes. Large truckload carriers cut their fleets in an attempt to match low levels of demand and preserve profit margins, dragging capacity to historic lows. The Journal of Commerce Truckload Capacity Index (TCI), a measure of actual truck counts at large publicly-owned carriers, dropped to 72.4% in the third quarter, an all-time low in two decades of TCI data. But the “long tail” of small truckload carriers remains long. More than 38,500 operating authorities were canceled between December 2022 and September 2025, but there were almost 90,000 more carriers that month than in December 2019, according to the Federal Motor Carrier Safety Administration (FMCSA). That underscores a shift, with more drivers moving to smaller trucking firms and those smaller firms proving more resilient than in the past. A look ahead: The resiliency demonstrated by small carriers is a significant break from previous economic downturns and, therefore, makes projections for 2026 more difficult. Analysts and large carrier executives have been predicting small fleets would fold and exit the market in increasing numbers for three years, and while rising costs and low demand will continue to squeeze those carriers, the number of companies closing their doors has slowed to a crawl. Just 1,500 operating authorities were revoked in the first nine months of 2025, down from 13,000 in 2024 and 25,000 in 2023, according to FMCSA data. Trucking executives believe a regulatory crackdown on non-domiciled commercial driver’s licenses and increased enforcement of English-language proficiency requirements will pull more drivers off the road, but whether these actions will take enough capacity out of service — and do so quickly enough — to move the needle on rates remains to be seen. Orders for new Class 8 trucks are expected to fall amid low rates, weak demand, tariffs and uncertainty over future emissions regulations, slowing the influx of additional capacity into the oversupplied truckload market. The next inflection: Whatever capacity might exit the market in 2026, most analysts believe a strong resurgence in freight volumes is needed to enable a true rebound in truckload rates. US manufacturing output, as measured by the S&P Global US Manufacturing Purchasing Managers’ Index (PMI), expanded sequentially for the fourth straight month in November, but growth remains constrained by uncertainty over tariffs, trade policy and consumer spending. Absent a sudden and unexpected demand spike, truckload contract rate increases will likely be limited to low single-digit percentages and spot pricing will likely remain depressed well into this year, if not 2027. Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

Truckload

Surface

Persistent supply-demand imbalance to keep US truckload rates in check

<div class="phx-topic abstract-wrapper">Hapag-Lloyd’s investment in the Aracruz terminal project in Brazil is part of a plan announced by CEO Rolf Habben Jansen last March to expand the carrier’s ports network to more than 30 terminals by 2030.</div>

Hapag-Lloyd’s investment in the Aracruz terminal project in Brazil is part of a plan announced by CEO Rolf Habben Jansen last March to expand the carrier’s ports network to more than 30 terminals by 2030.

<div class="phx-topic">Hapag-Lloyd and Ocean Network Express (ONE) are expanding their container terminal portfolios with separate deals for facilities in Brazil and China, the carriers announced Tuesday. In Brazil, Hanseatic Global Terminals, Hapag-Lloyd’s ports division, has signed a joint venture agreement with the Imetame Group to take a 50% stake in Imetame Logística Porto (ILP), which focuses on container terminal operations. Under the deal, Hanseatic and Imetame will build and operate the 1.2 million-TEU capacity Hanseatic Global Terminals Aracruz container terminal at Aracruz in Brazil’s Espírito Santo state, about 310 miles north of Rio de Janeiro. The two companies declined to disclose the cost of the project, although local sources estimated the terminal would cost $486 million to build. The facility, with 2,461 feet of quay and water depth of 56 feet, is expected to start operations in mid-2028 and handle breakbulk in addition to containerized cargo. “Latin America is a key strategic market for Hanseatic Global Terminals and Hapag-Lloyd,” Dheeraj Bhatia, Hanseatic Global Terminals CEO, said in a statement. “Our joint venture with the Imetame Group and the development of a new transshipment hub and gateway port on Brazil’s east coast strengthens our terminal portfolio while addressing capacity constraints in a growth region.” Operations at some of Brazil’s existing ports, including Santos and Navegantes, are often disrupted due to bad weather, congestion and port construction work, according to advisories published by Hapag-Lloyd and forwarder Kuehne + Nagel. The investment in the Aracruz terminal project is part of a Hapag-Lloyd plan announced by CEO Rolf Habben Jansen last March to expand its ports network to more than 30 terminals by 2030. <h3>ONE extends terminal holdings </h3>Meanwhile, ONE has bolstered its container terminals portfolio after signing a deal to take a minority stake in Dalian Container Terminal (DCT) in northern China, the Singapore-headquartered carrier said. ONE did not disclose how large its interest will be, but the Dalian deal will add to its network that includes stakes in terminals in Los Angeles, Oakland, Rotterdam and Singapore. “This acquisition of a minority stake aligns with our strategy of ensuring access at key regional ports,” Hiroki Tsujii, global chief officer of ONE’s product and network division, said in a statement. “The ownership stake allows us to collaborate with DCT and contribute to its continued infrastructure development and green terminal initiatives.” DCT is one of the biggest container terminals in the region, with 14 container berths, a total quay length of 14,400 feet, and annual handling capacity of 6.6 million TEUs. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Hapag-Lloyd and Ocean Network Express (ONE) are expanding their container terminal portfolios with separate deals for facilities in Brazil and China, the carriers announced Tuesday. In Brazil, Hanseatic Global Terminals, Hapag-Lloyd’s ports division, has signed a joint venture agreement with the Imetame Group to take a 50% stake in Imetame Logística Porto (ILP), which focuses on container terminal operations. Under the deal, Hanseatic and Imetame will build and operate the 1.2 million-TEU capacity Hanseatic Global Terminals Aracruz container terminal at Aracruz in Brazil’s Espírito Santo state, about 310 miles north of Rio de Janeiro. The two companies declined to disclose the cost of the project, although local sources estimated the terminal would cost $486 million to build. The facility, with 2,461 feet of quay and water depth of 56 feet, is expected to start operations in mid-2028 and handle breakbulk in addition to containerized cargo. “Latin America is a key strategic market for Hanseatic Global Terminals and Hapag-Lloyd,” Dheeraj Bhatia, Hanseatic Global Terminals CEO, said in a statement. “Our joint venture with the Imetame Group and the development of a new transshipment hub and gateway port on Brazil’s east coast strengthens our terminal portfolio while addressing capacity constraints in a growth region.” Operations at some of Brazil’s existing ports, including Santos and Navegantes, are often disrupted due to bad weather, congestion and port construction work, according to advisories published by Hapag-Lloyd and forwarder Kuehne + Nagel. The investment in the Aracruz terminal project is part of a Hapag-Lloyd plan announced by CEO Rolf Habben Jansen last March to expand its ports network to more than 30 terminals by 2030. ONE extends terminal holdings Meanwhile, ONE has bolstered its container terminals portfolio after signing a deal to take a minority stake in Dalian Container Terminal (DCT) in northern China, the Singapore-headquartered carrier said. ONE did not disclose how large its interest will be, but the Dalian deal will add to its network that includes stakes in terminals in Los Angeles, Oakland, Rotterdam and Singapore. “This acquisition of a minority stake aligns with our strategy of ensuring access at key regional ports,” Hiroki Tsujii, global chief officer of ONE’s product and network division, said in a statement. “The ownership stake allows us to collaborate with DCT and contribute to its continued infrastructure development and green terminal initiatives.” DCT is one of the biggest container terminals in the region, with 14 container berths, a total quay length of 14,400 feet, and annual handling capacity of 6.6 million TEUs. Contact Keith Wallis at keithwallis@hotmail.com .

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Hapag-Lloyd, ONE expand terminal networks with deals in Brazil, China

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