<div>The ability to deliver products directly to consumers across borders and with a high level of service may be the fastest growing trend in today’s supply chain. It is a trend driven by two powerful forces: first is the move by retailers to capture and capitalize on the vast global consumer market through e-commerce; second is the demand from those global consumers for such premium services as free shipping and free returns.Growth of the international B2C market and its pressure for global direct delivery presents significant challenges for logistics companies, including the large integrators that have long served the domestic...

The ability to deliver products directly to consumers across borders and with a high level of service may be the fastest growing trend in today’s supply chain. It is a trend driven by two powerful forces: first is the move by retailers to capture and capitalize on the vast global consumer market through e-commerce; second is the demand from those global consumers for such premium services as free shipping and free returns. Growth of the international B2C market and its pressure for global direct delivery presents significant challenges for logistics companies, including the large integrators that have long served the domestic market so effectively. These companies and traditional forwarders, brokers and couriers, as well as mail companies are all being pulled into the mix, but none alone can perform the spectrum of services needed to meet the demands of a global e-commerce marketplace. Whether it’s a fashionista in Shanghai demanding the latest style from Paris or the small retailer in Memphis wanting to ship direct to consumers from a supplier in Vietnam, serving the logistics needs of these customers and consumers will require service providers to collaborate as never before. The days of factory to distribution center to store are not going to disappear, but logistics companies clearly will be challenged to come up with new ways of thinking and doing business in this emerging new world. Meanwhile, logistics companies continue to look for ways to improve service and cut costs from existing international supply chains. One opportunity lies is the area of chassis management. Previously, harbor truckers were able to consistently pick up and return container and chassis to the same location, and today they increasingly are being instructed to return the chassis to a separate location. This practice, known as chassis splits, adds costs that are difficult to assign and absorb. This situation is particularly onerous for draymen as the ability to use their vehicles and drivers efficiently is key, not only to profitability, but to survival. Some believe that draymen should build the additional costs into their rates. Few are able to do this, however, because they don’t own the chassis. So the question remains: In an environment where everyone is looking to take costs out of the supply chain, who is going to assume these costs? The First and Final Mile of the ocean market is a changing landscape ... clarity is what we need in 2014. Andrew Scott is CEO of American Worldwide Agencies . See all ARO Logistics-related content.

Annual Review & Outlook 2014: American Worldwide Agencies

<div class="phx-topic abstract-wrapper">Union Pacific for the second time in five weeks is resetting freight-all-kinds rates on key lanes for rail-owned boxes used by intermodal marketing companies.</div>

Union Pacific for the second time in five weeks is resetting freight-all-kinds rates on key lanes for rail-owned boxes used by intermodal marketing companies.

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<div class="phx-topic">Union Pacific Railroad (UP) on Tuesday adjusted rates for rail-owned boxes used by intermodal marketing companies (IMCs), the second such move in the last five weeks amid a widening gap between the truckload spot market and domestic intermodal rates. The pricing adjustments, which go into effect April 1, cover freight-all-kinds (FAK) rates on roughly 30 lanes on so-called EMP boxes and UMAX boxes which interchange with Norfolk Southern and CSX, respectively. About half of the adjustments seek a rate increase, ranging from 1.6% to 14.8%, while the other half actually lower rates between 1.2% and 29%. The moves come as current truckload spot rates have soared since the start of 2026, up between 15% to 20% year on year, according to DAT Freight &amp; Analytics. UP is eyeing an opportunity to win back cargo that can flex between domestic intermodal and truckload as truckload spot rates rise. Truckload contract rates have risen by the low single digits thus far in 2026, due in part to tightening capacity from US regulatory scrutiny over non-domiciled and non-English language proficient drivers, and the lingering effects of weather disruptions from February. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="9f53592f-fdc6-46d3-b392-18fdccf441fe"></dynamic-object></div>A big jump in diesel prices due to the war in the Middle East has also pushed truckload carriers to raise all-in spot rates as they attempt to recapture an unexpected operational cost, while the increased cost of diesel is captured through fuel surcharges on contract rates. Those dynamics present an opportunity for railroads to recapture volume lost to truckload as the full truckload market navigated three years of low pricing, inducing shippers to move cargo to truckload. Even before the recent jump in diesel prices, the spread between spot truckload and spot intermodal rates was widening, with the gap at 68 cents in February, according to the Journal of Commerce’s Intermodal Savings Index (ISI). Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com.</a></div>

Union Pacific Railroad (UP) on Tuesday adjusted rates for rail-owned boxes used by intermodal marketing companies (IMCs), the second such move in the last five weeks amid a widening gap between the truckload spot market and domestic intermodal rates. The pricing adjustments, which go into effect April 1, cover freight-all-kinds (FAK) rates on roughly 30 lanes on so-called EMP boxes and UMAX boxes which interchange with Norfolk Southern and CSX, respectively. About half of the adjustments seek a rate increase, ranging from 1.6% to 14.8%, while the other half actually lower rates between 1.2% and 29%. The moves come as current truckload spot rates have soared since the start of 2026, up between 15% to 20% year on year, according to DAT Freight & Analytics. UP is eyeing an opportunity to win back cargo that can flex between domestic intermodal and truckload as truckload spot rates rise. Truckload contract rates have risen by the low single digits thus far in 2026, due in part to tightening capacity from US regulatory scrutiny over non-domiciled and non-English language proficient drivers, and the lingering effects of weather disruptions from February. A big jump in diesel prices due to the war in the Middle East has also pushed truckload carriers to raise all-in spot rates as they attempt to recapture an unexpected operational cost, while the increased cost of diesel is captured through fuel surcharges on contract rates. Those dynamics present an opportunity for railroads to recapture volume lost to truckload as the full truckload market navigated three years of low pricing, inducing shippers to move cargo to truckload. Even before the recent jump in diesel prices, the spread between spot truckload and spot intermodal rates was widening, with the gap at 68 cents in February, according to the Journal of Commerce’s Intermodal Savings Index (ISI). Contact Eric Johnson at eric.johnson@spglobal.com.

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<div class="phx-topic abstract-wrapper">Houston and New Orleans are coming off a year of growth for project cargo volumes, albeit with a drop in steel imports, and both ports anticipate a continuation of those trends.</div>

Houston and New Orleans are coming off a year of growth for project cargo volumes, albeit with a drop in steel imports, and both ports anticipate a continuation of those trends.

<div class="phx-topic">Major industrial and energy projects on the Gulf Coast are dialing up cargo activity at two of the largest US ports for breakbulk and project cargo, even as conflict in the Middle East introduces global shipping disruptions and tariff-induced market volatilities linger. The Port of New Orleans and Port Houston are coming off a year of growth for project cargo volumes, albeit with a drop in steel imports, and both ports anticipate a continuation of those trends. For New Orleans, the latest development expected to drive project cargo activity is the $3.4 billion expansion of Shintech’s chemical manufacturing complex in southeastern Louisiana, a project announced March 4. Construction is set to take place in phases, with the first phase slated for completion in 2030. Shintech is the world’s largest manufacturer of polyvinyl chloride (PVC). “With them announcing a new expansion, there’s a lot of optimism from the petrochemical sector, especially in light of the challenges in the Middle East that affect the products they’re producing on a competitive scale,” Janine Mansour, director of trade development for the Port of New Orleans, told the Journal of Commerce. Project cargo volumes at the Port of New Orleans increased 31% to 64,806 tons in 2025, with shipments originating from multiple global locations including Italy, China, India, Thailand, and South Korea, according to data from the Port. That growth comes after a 46% increase in project cargo volumes in 2024. Major projects producing project cargo include Venture Global’s massive CP2 liquefied natural gas (LNG) export facility in southwest Louisiana, UBE Corporation’s Louisiana EV battery plant outside of New Orleans that will produce key chemicals used in EV battery manufacturing, and Meta’s 4-million-square-foot data center in northeast Louisiana. Hyundai Steel also plans to build a $5.8 billion low-carbon steel mill in southeast Louisiana. Overall breakbulk volumes at the Port of New Orleans fell 22% to 958,152 tons in 2025, according to port data, because of tariff-related market uncertainty and because some steel and non-ferrous cargoes have shifted to containers, Mansour said. Breakbulk steel volumes declined 29% to 524,749 short tons in 2025, with most cargo coming from Japan, followed by South Korea and China, according to data from the port. “Steel imports have been severely hit by tariff increases to foster domestic production,” Mansour said, adding that the port last year measured an 80% year-over-year increase, to 129,705 tons, of bulk imports of ferro alloys and silico-alloys, both of which are used in steel manufacturing. With the declines in breakbulk cargoes, the total number of multipurpose/heavy-lift vessel (MPV/HL) calls at New Orleans fell to 163 in 2025 from 189 the previous year. The ongoing conflict in the Middle East could potentially squeeze vessel capacity for breakbulk and project cargoes worldwide, as port closures and route changes have already been tying up vessels on the container side, Mansour said. That could indirectly affect vessel movements at the Port of New Orleans. “For the carriers that are calling New Orleans, if they do have routes in the Middle East, they may have disruptions where it affects their capacity from a global fleet perspective,” she said. “But we’re not anticipating significant impacts on the breakbulk and project cargo side, and we haven’t really seen any direct impacts yet.” Mansour acknowledged that the Middle East is not a major shipping lane for breakbulk and project cargoes for the port. <h3>Cargo mix offsets steel slump for Houston </h3>With tariffs chipping away at steel imports, Port Houston is looking to cargo diversification and Gulf Coast project developments to expand cargo shipments for the nation’s largest breakbulk and project cargo gateway. Volumes of general cargo — which the port defines to include project cargo, breakbulk, and other non-containerized goods — reached 564,346 tons in January, a 27% year-over-year increase, according to Port Houston data. That growth trend is expected to continue, driven in part by a mix of projects under development in the region, port spokesperson Lisa Ashley-Daniels told the Journal of Commerce. “There are several major industrial and energy projects along the Gulf Coast that are expected to move forward between 2026 and 2028, with the potential to generate considerable breakbulk and heavy-lift cargo through Port Houston,” she said. Breakbulk steel imports at Port Houston declined 35% year over year to 213,653 tons in January, according to port data, mirroring larger trends tied to lower drilling activity, Ashley-Daniels said. For all of 2025, breakbulk steel volumes fell 8% to just under 4.2 million tons. “The decline in steel imports that Houston experienced in January is not unique to the port, but reflects broad shifts in energy markets, supply and demand drivers, regulatory environments, and trade policies, among other contributing factors,” she said. Significant activity from cargo types other than steel is driving an overall rise in general cargo volumes at the port, Ashley-Daniels said, citing quadruple-digit growth in machinery, triple-digit increases in grain, and double-digit gains in pet coke volumes and roll-on/roll-off cargo in February. “The growing diversification of breakbulk cargo beyond steel is helping to stabilize overall activity,” Ashley-Daniels said, adding that cargo activity for these commodities is expected to increase further. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com.</a></div>

Major industrial and energy projects on the Gulf Coast are dialing up cargo activity at two of the largest US ports for breakbulk and project cargo, even as conflict in the Middle East introduces global shipping disruptions and tariff-induced market volatilities linger. The Port of New Orleans and Port Houston are coming off a year of growth for project cargo volumes, albeit with a drop in steel imports, and both ports anticipate a continuation of those trends. For New Orleans, the latest development expected to drive project cargo activity is the $3.4 billion expansion of Shintech’s chemical manufacturing complex in southeastern Louisiana, a project announced March 4. Construction is set to take place in phases, with the first phase slated for completion in 2030. Shintech is the world’s largest manufacturer of polyvinyl chloride (PVC). “With them announcing a new expansion, there’s a lot of optimism from the petrochemical sector, especially in light of the challenges in the Middle East that affect the products they’re producing on a competitive scale,” Janine Mansour, director of trade development for the Port of New Orleans, told the Journal of Commerce. Project cargo volumes at the Port of New Orleans increased 31% to 64,806 tons in 2025, with shipments originating from multiple global locations including Italy, China, India, Thailand, and South Korea, according to data from the Port. That growth comes after a 46% increase in project cargo volumes in 2024. Major projects producing project cargo include Venture Global’s massive CP2 liquefied natural gas (LNG) export facility in southwest Louisiana, UBE Corporation’s Louisiana EV battery plant outside of New Orleans that will produce key chemicals used in EV battery manufacturing, and Meta’s 4-million-square-foot data center in northeast Louisiana. Hyundai Steel also plans to build a $5.8 billion low-carbon steel mill in southeast Louisiana. Overall breakbulk volumes at the Port of New Orleans fell 22% to 958,152 tons in 2025, according to port data, because of tariff-related market uncertainty and because some steel and non-ferrous cargoes have shifted to containers, Mansour said. Breakbulk steel volumes declined 29% to 524,749 short tons in 2025, with most cargo coming from Japan, followed by South Korea and China, according to data from the port. “Steel imports have been severely hit by tariff increases to foster domestic production,” Mansour said, adding that the port last year measured an 80% year-over-year increase, to 129,705 tons, of bulk imports of ferro alloys and silico-alloys, both of which are used in steel manufacturing. With the declines in breakbulk cargoes, the total number of multipurpose/heavy-lift vessel (MPV/HL) calls at New Orleans fell to 163 in 2025 from 189 the previous year. The ongoing conflict in the Middle East could potentially squeeze vessel capacity for breakbulk and project cargoes worldwide, as port closures and route changes have already been tying up vessels on the container side, Mansour said. That could indirectly affect vessel movements at the Port of New Orleans. “For the carriers that are calling New Orleans, if they do have routes in the Middle East, they may have disruptions where it affects their capacity from a global fleet perspective,” she said. “But we’re not anticipating significant impacts on the breakbulk and project cargo side, and we haven’t really seen any direct impacts yet.” Mansour acknowledged that the Middle East is not a major shipping lane for breakbulk and project cargoes for the port. Cargo mix offsets steel slump for Houston With tariffs chipping away at steel imports, Port Houston is looking to cargo diversification and Gulf Coast project developments to expand cargo shipments for the nation’s largest breakbulk and project cargo gateway. Volumes of general cargo — which the port defines to include project cargo, breakbulk, and other non-containerized goods — reached 564,346 tons in January, a 27% year-over-year increase, according to Port Houston data. That growth trend is expected to continue, driven in part by a mix of projects under development in the region, port spokesperson Lisa Ashley-Daniels told the Journal of Commerce. “There are several major industrial and energy projects along the Gulf Coast that are expected to move forward between 2026 and 2028, with the potential to generate considerable breakbulk and heavy-lift cargo through Port Houston,” she said. Breakbulk steel imports at Port Houston declined 35% year over year to 213,653 tons in January, according to port data, mirroring larger trends tied to lower drilling activity, Ashley-Daniels said. For all of 2025, breakbulk steel volumes fell 8% to just under 4.2 million tons. “The decline in steel imports that Houston experienced in January is not unique to the port, but reflects broad shifts in energy markets, supply and demand drivers, regulatory environments, and trade policies, among other contributing factors,” she said. Significant activity from cargo types other than steel is driving an overall rise in general cargo volumes at the port, Ashley-Daniels said, citing quadruple-digit growth in machinery, triple-digit increases in grain, and double-digit gains in pet coke volumes and roll-on/roll-off cargo in February. “The growing diversification of breakbulk cargo beyond steel is helping to stabilize overall activity,” Ashley-Daniels said, adding that cargo activity for these commodities is expected to increase further. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com.

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US Gulf breakbulk ports lean into project boom

<div class="phx-topic abstract-wrapper">The carrier alliance will shake up its Asia-Europe network in April with Busan becoming the focus of its North Asia trade and direct calls ending to ports in Japan and Taiwan.</div>

The carrier alliance will shake up its Asia-Europe network in April with Busan becoming the focus of its North Asia trade and direct calls ending to ports in Japan and Taiwan.

<div class="phx-topic">Ocean Network Express (ONE) has expanded its Asia container terminal network by acquiring a stake in Dongwon Global Terminal Busan (DGT) from South Korean conglomerate and terminal owner Dongwon Group, ONE said Tuesday. The carrier gave no details about how much it paid for what it referred to in a statement as an “indirect but meaningful share” or the size of the shareholding in the fully automated DGT. The terminal, which opened in April 2024, will have a capacity of more than 4.5 million TEUs with five mainline berths totaling 5,740 feet and one berth of 1,263 feet for feeder ships when completed around 2030. ONE previously took minority stakes in China’s Dalian Container Terminal last December and Jakarta’s New Priok Container Terminal One (NPCT1) in Indonesia in November 2024. More broadly, ONE’s move comes as container lines, supported by record profits from several years of supply chain disruption, are investing more in marine terminals to gain better control of landside operations and mitigate port congestion. ONE CEO Jeremey Nixon, speaking at the Journal of Commerce’s TPM26 conference earlier this month, said carriers are "increasingly having to come into the terminal space and taking over involvement in major gateway ports, or major hub ports, and that trend will continue to accelerate, I think, over the next 10 to 15 years.” ”But the problem there is the number of terminals or ports that are available to be acquired is not that significant,” Nixon said. <h3>Premier Alliance Asia-Europe network shift </h3>ONE’s terminal move in Busan also comes ahead of a shakeup in the Premier Alliance’s Asia-Europe network in April that will see Busan become the focus of its North Asia trade, while ending direct calls at ports in Japan and Taiwan. Instead, the group, comprising ONE, HMM and Yang Ming Marine Transport, will launch four shuttle services connecting Busan with Tokyo, Nagoya and Kobe in Japan and with Kaohsiung and Taichung in Taiwan, plus Xiamen in eastern China. While CMA CGM is launching its own <a href="https://www.joc.com/article/cma-cgm-to-launch-standalone-japan-europe-express-service-in-april-6177297">direct Asia-Japan service in April</a>, it will use smaller vessels – 14 ships ranging in size from 7,000 to 10,000 TEU – compared with 20 9,500-13,000-TEU ships previously deployed by the Premier Alliance. It is also one service while the Premier Alliance operated two direct Asia-Europe services from Japan which have now ended with the new 2026 network. The shift in focus to Busan is expected to drive a further increase in transshipment traffic through the port, which has seen transshipment make up an increasing proportion of total container volumes over the last five years, from almost 53% in 2021 to 56% last year. Transshipment volumes are also growing at a faster clip than origin and destination cargo. Busan port authority figures show transshipment cargoes increased 4.4% to 14.1 million TEUs last year out of total throughput of 24.9 million TEUs. That followed an 8.8% surge to 13.5 million TEUs in transshipment volumes in 2024. By comparison, origin and destination cargoes at Busan nudged lower last year to 10.8 million TEUs from 10.9 million TEUs in 2024. Busan has also been consistently higher on the UN Conference on Trade and Development port liner shipping connectivity index than its Japanese rival ports since at least 2008. Results for the fourth quarter of 2025 show Busan with an index ranking of 1,648 compared with Tokyo at 585 and Kobe at 555. According to UNCTAD’s methodology, the higher the ranking number, the better the connectivity. <h3>Improving transshipment cargo handling </h3>The growth in transshipment volumes comes as the Busan Port Authority is introducing a comprehensive digital port community system this year that will improve cargo handling efficiencies for transshipment cargo moving between the port’s nine terminals. Results from pilot tests last year have already shown significant productivity gains with a 90% reduction in container rehandling, up to a 50% reduction in truck waiting times and a threefold increase in load factors, Lee Eung-hyuk, the port authority’s director of international logistics, told the Journal of Commerce. Final quantitative outcomes are expected to be confirmed around 2027, he added. The digital port community system is part of a wider initiative to solidify Busan’s position as the main transshipment hub for north Asia. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

Ocean Network Express (ONE) has expanded its Asia container terminal network by acquiring a stake in Dongwon Global Terminal Busan (DGT) from South Korean conglomerate and terminal owner Dongwon Group, ONE said Tuesday. The carrier gave no details about how much it paid for what it referred to in a statement as an “indirect but meaningful share” or the size of the shareholding in the fully automated DGT. The terminal, which opened in April 2024, will have a capacity of more than 4.5 million TEUs with five mainline berths totaling 5,740 feet and one berth of 1,263 feet for feeder ships when completed around 2030. ONE previously took minority stakes in China’s Dalian Container Terminal last December and Jakarta’s New Priok Container Terminal One (NPCT1) in Indonesia in November 2024. More broadly, ONE’s move comes as container lines, supported by record profits from several years of supply chain disruption, are investing more in marine terminals to gain better control of landside operations and mitigate port congestion. ONE CEO Jeremey Nixon, speaking at the Journal of Commerce’s TPM26 conference earlier this month, said carriers are "increasingly having to come into the terminal space and taking over involvement in major gateway ports, or major hub ports, and that trend will continue to accelerate, I think, over the next 10 to 15 years.” ”But the problem there is the number of terminals or ports that are available to be acquired is not that significant,” Nixon said. Premier Alliance Asia-Europe network shift ONE’s terminal move in Busan also comes ahead of a shakeup in the Premier Alliance’s Asia-Europe network in April that will see Busan become the focus of its North Asia trade, while ending direct calls at ports in Japan and Taiwan. Instead, the group, comprising ONE, HMM and Yang Ming Marine Transport, will launch four shuttle services connecting Busan with Tokyo, Nagoya and Kobe in Japan and with Kaohsiung and Taichung in Taiwan, plus Xiamen in eastern China. While CMA CGM is launching its own direct Asia-Japan service in April , it will use smaller vessels – 14 ships ranging in size from 7,000 to 10,000 TEU – compared with 20 9,500-13,000-TEU ships previously deployed by the Premier Alliance. It is also one service while the Premier Alliance operated two direct Asia-Europe services from Japan which have now ended with the new 2026 network. The shift in focus to Busan is expected to drive a further increase in transshipment traffic through the port, which has seen transshipment make up an increasing proportion of total container volumes over the last five years, from almost 53% in 2021 to 56% last year. Transshipment volumes are also growing at a faster clip than origin and destination cargo. Busan port authority figures show transshipment cargoes increased 4.4% to 14.1 million TEUs last year out of total throughput of 24.9 million TEUs. That followed an 8.8% surge to 13.5 million TEUs in transshipment volumes in 2024. By comparison, origin and destination cargoes at Busan nudged lower last year to 10.8 million TEUs from 10.9 million TEUs in 2024. Busan has also been consistently higher on the UN Conference on Trade and Development port liner shipping connectivity index than its Japanese rival ports since at least 2008. Results for the fourth quarter of 2025 show Busan with an index ranking of 1,648 compared with Tokyo at 585 and Kobe at 555. According to UNCTAD’s methodology, the higher the ranking number, the better the connectivity. Improving transshipment cargo handling The growth in transshipment volumes comes as the Busan Port Authority is introducing a comprehensive digital port community system this year that will improve cargo handling efficiencies for transshipment cargo moving between the port’s nine terminals. Results from pilot tests last year have already shown significant productivity gains with a 90% reduction in container rehandling, up to a 50% reduction in truck waiting times and a threefold increase in load factors, Lee Eung-hyuk, the port authority’s director of international logistics, told the Journal of Commerce. Final quantitative outcomes are expected to be confirmed around 2027, he added. The digital port community system is part of a wider initiative to solidify Busan’s position as the main transshipment hub for north Asia. Contact Keith Wallis at keithwallis@hotmail.com.

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ONE takes stake in Busan’s Dongwon terminal ahead of Premier network shift

<div class="phx-topic abstract-wrapper">The decision means CMA CGM, Hapag-Lloyd, Maersk and Zim will be forced to wait until early April before implementing surcharges designed to recoup higher operating costs associated with the war in the Middle East. </div>

The decision means CMA CGM, Hapag-Lloyd, Maersk and Zim will be forced to wait until early April before implementing surcharges designed to recoup higher operating costs associated with the war in the Middle East.

<div class="phx-topic">The US Federal Maritime Commission (FMC) on Monday unanimously rejected separate requests from four ocean carriers to waive a 30-day notice period to implement surcharges tied to the war in the Middle East, forcing the four to wait until early April to charge their shipper customers. CMA CGM, Hapag-Lloyd, Maersk and Zim Integrated Shipping Services, as required by US shipping law, filed 30-day notices with the FMC in early March informing the agency of their intent to implement special surcharges on customers in order to <a href="https://www.joc.com/article/war-reignites-tussle-between-ocean-carriers-cargo-owners-over-fuel-surcharges-6188632">recoup the higher operating costs</a> tied to spiking fuel prices and the disruption to ships and equipment after the US and Israel launched attacks against Iran on Feb. 28. Along with the notices came requests by the carriers to waive the 30-day waiting period, which would have allowed the liners to implement the new charges immediately. Zim’s surcharge applies to all US trades, while the charges for the other three carriers apply only to their US-Middle East trade. “In my view, when a carrier seeks special permission to reduce the 30 days’ notice period for a surcharge, the carrier should demonstrate how its increased costs are: linked to the dollar amount of the proposed surcharge,” FMC Chairman Laura DiBella said in a statement. “An assertion that there are increased costs, without any data on what those costs are, how long they may last, and what steps the carrier is taking to mitigate them, is insufficient in demonstrating good cause.” DiBella recommended that carriers provide data behind the decision to levy the surcharge and specify a duration, so the fee is “reasonably related to the increased costs.” <h3>Seeking to recoup higher costs </h3>The surcharge notices filed with the FMC are just one of the ways container lines are trying to recoup the higher costs. Cargo contracted on a long-term basis rather than via freight-all-kinds rates (FAK) are subject to bunker adjustment factors reset quarterly and floating fuel surcharges that can be reset as frequently as monthly. Ocean carriers began assessing war-related surcharges for any shipments to and from the Persian Gulf states on March 2. The FMC must grant special permission for any such charges to be implemented on US trades prior to the end of a 30-day review period. The surcharges filed with the FMC by Hapag-Lloyd and Maersk pertain only to shipments between the US and Saudi Arabia, Bahrain, Iraq, Kuwait, Oman, Qatar, and the United Arab Emirates. Maersk’s surcharge specifically noted eastern Saudi Arabia. Maersk plans to charge $1,800 per TEU; $3,000 per FEU and 45-foot unit; and $3,800 for refrigerated and special containers. Hapag-Lloyd plans to levy $1,500 per dry TEU and $3,500 for reefer containers. CMA CGM said it would implement an emergency conflict surcharge on exports and imports from the Middle East and Africa at $2,000 per TEU; $3,000 per FEU; and $4,000 for reefer and special containers. Zim plans to seek a war risk surcharge of $25 per TEU and $50 per FEU on all US shipments. Zim said the war has increased the cost of running its network and operations at its headquarters in Haifa, Israel. “These increased costs include higher war-risk insurance premiums and tighter P&amp;I coverage terms; the need to delay, speed up, and/or re-route vessels and cargo; increased equipment positioning/repositioning costs resulting from changes in vessel schedules; and a loss of productivity as the result of employees having to take refuge in bomb shelters throughout the day and night, among others,” Wayne Rohde, an attorney at Cozen O’Conner representing three of the carriers, wrote to the FMC. While the carriers filed their surcharge notices separately, Maersk, Hapag-Lloyd and Zim are represented by Cozen O’Conner. The carriers each told the FMC that unless the 30-day notice period for the surcharges was waived, they would be unable to begin recovering the increased costs they are experiencing for almost a full month. <h3>Waiver requests filed in early March </h3>The various requests were filed by the carriers between March 2-5, following the beginning of the war on Feb. 28. The four requests are the only ones that have been processed by the agency so far, an FMC spokesperson told the Journal of Commerce on Monday. The FMC in mid-March told shippers to check their ocean freight bills for any surcharges related to the war in the Middle East that have not been formally reviewed by the agency. In a March 11 statement, the agency said it was “closely monitoring the impact the current conflict in the Middle East is having on shipping conditions through the Strait of Hormuz” and any rate adjustments ocean carriers are making in response. The FMC in early 2024 came under fire from shippers, including the Agriculture Transportation Coalition, after waiving for one ocean carrier the 30-day notice period for surcharges tied to vessel diversions away from the Suez Canal due to attacks by Houthi militants on commercial shipping in the Red Sea. A subsequent economic analysis questioned whether the surcharge was warranted, given the carrier was also avoiding Suez Canal tolls by diverting around the Cape of Good Hope. AgTC Executive Director Peter Friedmann praised the FMC for rejecting the carriers’ requests to waive the 30-day waiting period and criticized the lack of explanation from the liners on how the surcharges were calculated. He noted in a statement Monday that none of the requests from the carriers specified the actual costs they were accruing from the Middle East disruption. While recognizing that container lines have made efforts to understand and support US agriculture exporters, Friedmann nonetheless said AgTC was “shocked by the manner in which these requests were drafted, the disrespect shown to carriers’ customers and even to the (FMC).” Contact Mark Szakonyi at <a href="mailto:mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a></div>

The US Federal Maritime Commission (FMC) on Monday unanimously rejected separate requests from four ocean carriers to waive a 30-day notice period to implement surcharges tied to the war in the Middle East, forcing the four to wait until early April to charge their shipper customers. CMA CGM, Hapag-Lloyd, Maersk and Zim Integrated Shipping Services, as required by US shipping law, filed 30-day notices with the FMC in early March informing the agency of their intent to implement special surcharges on customers in order to recoup the higher operating costs tied to spiking fuel prices and the disruption to ships and equipment after the US and Israel launched attacks against Iran on Feb. 28. Along with the notices came requests by the carriers to waive the 30-day waiting period, which would have allowed the liners to implement the new charges immediately. Zim’s surcharge applies to all US trades, while the charges for the other three carriers apply only to their US-Middle East trade. “In my view, when a carrier seeks special permission to reduce the 30 days’ notice period for a surcharge, the carrier should demonstrate how its increased costs are: linked to the dollar amount of the proposed surcharge,” FMC Chairman Laura DiBella said in a statement. “An assertion that there are increased costs, without any data on what those costs are, how long they may last, and what steps the carrier is taking to mitigate them, is insufficient in demonstrating good cause.” DiBella recommended that carriers provide data behind the decision to levy the surcharge and specify a duration, so the fee is “reasonably related to the increased costs.” Seeking to recoup higher costs The surcharge notices filed with the FMC are just one of the ways container lines are trying to recoup the higher costs. Cargo contracted on a long-term basis rather than via freight-all-kinds rates (FAK) are subject to bunker adjustment factors reset quarterly and floating fuel surcharges that can be reset as frequently as monthly. Ocean carriers began assessing war-related surcharges for any shipments to and from the Persian Gulf states on March 2. The FMC must grant special permission for any such charges to be implemented on US trades prior to the end of a 30-day review period. The surcharges filed with the FMC by Hapag-Lloyd and Maersk pertain only to shipments between the US and Saudi Arabia, Bahrain, Iraq, Kuwait, Oman, Qatar, and the United Arab Emirates. Maersk’s surcharge specifically noted eastern Saudi Arabia. Maersk plans to charge $1,800 per TEU; $3,000 per FEU and 45-foot unit; and $3,800 for refrigerated and special containers. Hapag-Lloyd plans to levy $1,500 per dry TEU and $3,500 for reefer containers. CMA CGM said it would implement an emergency conflict surcharge on exports and imports from the Middle East and Africa at $2,000 per TEU; $3,000 per FEU; and $4,000 for reefer and special containers. Zim plans to seek a war risk surcharge of $25 per TEU and $50 per FEU on all US shipments. Zim said the war has increased the cost of running its network and operations at its headquarters in Haifa, Israel. “These increased costs include higher war-risk insurance premiums and tighter P&I coverage terms; the need to delay, speed up, and/or re-route vessels and cargo; increased equipment positioning/repositioning costs resulting from changes in vessel schedules; and a loss of productivity as the result of employees having to take refuge in bomb shelters throughout the day and night, among others,” Wayne Rohde, an attorney at Cozen O’Conner representing three of the carriers, wrote to the FMC. While the carriers filed their surcharge notices separately, Maersk, Hapag-Lloyd and Zim are represented by Cozen O’Conner. The carriers each told the FMC that unless the 30-day notice period for the surcharges was waived, they would be unable to begin recovering the increased costs they are experiencing for almost a full month. Waiver requests filed in early March The various requests were filed by the carriers between March 2-5, following the beginning of the war on Feb. 28. The four requests are the only ones that have been processed by the agency so far, an FMC spokesperson told the Journal of Commerce on Monday. The FMC in mid-March told shippers to check their ocean freight bills for any surcharges related to the war in the Middle East that have not been formally reviewed by the agency. In a March 11 statement, the agency said it was “closely monitoring the impact the current conflict in the Middle East is having on shipping conditions through the Strait of Hormuz” and any rate adjustments ocean carriers are making in response. The FMC in early 2024 came under fire from shippers, including the Agriculture Transportation Coalition, after waiving for one ocean carrier the 30-day notice period for surcharges tied to vessel diversions away from the Suez Canal due to attacks by Houthi militants on commercial shipping in the Red Sea. A subsequent economic analysis questioned whether the surcharge was warranted, given the carrier was also avoiding Suez Canal tolls by diverting around the Cape of Good Hope. AgTC Executive Director Peter Friedmann praised the FMC for rejecting the carriers’ requests to waive the 30-day waiting period and criticized the lack of explanation from the liners on how the surcharges were calculated. He noted in a statement Monday that none of the requests from the carriers specified the actual costs they were accruing from the Middle East disruption. While recognizing that container lines have made efforts to understand and support US agriculture exporters, Friedmann nonetheless said AgTC was “shocked by the manner in which these requests were drafted, the disrespect shown to carriers’ customers and even to the (FMC).” Contact Mark Szakonyi at  mark.szakonyi@spglobal.com

Transport, Trade and Regulation News

Supply chain

FMC rejects requests by carriers to waive waiting period for Middle East surcharges

<div class="phx-topic abstract-wrapper"> Reefer shipments into the port, while still small, have been growing faster than overall cargo, forcing port officials to deal with more long-dwelling containers. </div>

 Reefer shipments into the port, while still small, have been growing faster than overall cargo, forcing port officials to deal with more long-dwelling containers. 

<div class="phx-topic">The Port of Houston is reducing the free time given to refrigerated container imports at its marine terminals because shippers continue to leave reefer cargo past the port’s allotted grace period. The Board of Commissioners for the Port Houston Authority approved Monday a change to the terminal tariffs that will reduce the free time for a refrigerated container to four days from the current seven-day period in place for all containers. The policy change comes as reefer imports, while still a small part of the port’s business, grow faster than Houston’s dry cargo imports. The tariff change will take effect May 1. Reefer shippers will still have an additional three days of free time available if a container requires an inspection by US Customs and Border Protection or the Department of Agriculture (USDA). In asking for the tariff change, Chief Port Operations Officer Ryan Mariacher said the move would align Houston’s policies with how other ports handle refrigerated containers. “This supports the shippers that need to expedite the handling of these commodity types,” Mariacher said. “We want to be a transit facility, not a storage facility.” Mariacher did not say how long refrigerated containers are dwelling at the port. But in June 2025, <a href="https://www.joc.com/article/port-houston-implementing-reefer-dwell-fees-to-encourage-container-flow-6030417">when the port approved a higher rate of demurrage on refrigerated boxes</a>, he said some shippers had been leaving their reefer shipments at the port for a week or more. <h3>Reefer imports growing </h3>Refrigerated imports into Houston appear to have been accelerating since 2024 after <a href="https://www.joc.com/article/houston-gets-usda-approval-to-handle-cold-treated-produce-cargoes-5703146">the port secured approval from the USDA to bring in cold-treated cargo without inspection</a>. Houston last year handled 83,354 TEUs in reefer containers, up 9.7% from 2024, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global. Overall imports of 1.93 million TEUs grew 1.5% year over year. Most of Houston’s growth in refrigerated imports comes from its north-south services. Imports from Guatemala, which is the port’s second-largest origin for reefer shipments behind China, saw a 9% gain in 2025 to 10,913 TEUs, led largely by bananas, according to PIERS. High US prices for beef have also led to a strong uptick in the port’s inbound reefer business. Refrigerated imports from Brazil rose 71% to 8,185 TEUs during 2025, led by meat and animal proteins. Colombia saw its refrigerated meat exports to Houston grow 56% in 2025 to 6,249 TEUs, PIERS data shows. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Port of Houston is reducing the free time given to refrigerated container imports at its marine terminals because shippers continue to leave reefer cargo past the port’s allotted grace period. The Board of Commissioners for the Port Houston Authority approved Monday a change to the terminal tariffs that will reduce the free time for a refrigerated container to four days from the current seven-day period in place for all containers. The policy change comes as reefer imports, while still a small part of the port’s business, grow faster than Houston’s dry cargo imports. The tariff change will take effect May 1. Reefer shippers will still have an additional three days of free time available if a container requires an inspection by US Customs and Border Protection or the Department of Agriculture (USDA). In asking for the tariff change, Chief Port Operations Officer Ryan Mariacher said the move would align Houston’s policies with how other ports handle refrigerated containers. “This supports the shippers that need to expedite the handling of these commodity types,” Mariacher said. “We want to be a transit facility, not a storage facility.” Mariacher did not say how long refrigerated containers are dwelling at the port. But in June 2025, when the port approved a higher rate of demurrage on refrigerated boxes , he said some shippers had been leaving their reefer shipments at the port for a week or more. Reefer imports growing Refrigerated imports into Houston appear to have been accelerating since 2024 after the port secured approval from the USDA to bring in cold-treated cargo without inspection . Houston last year handled 83,354 TEUs in reefer containers, up 9.7% from 2024, according to PIERS, a sister company of the Journal of Commerce within S&P Global. Overall imports of 1.93 million TEUs grew 1.5% year over year. Most of Houston’s growth in refrigerated imports comes from its north-south services. Imports from Guatemala, which is the port’s second-largest origin for reefer shipments behind China, saw a 9% gain in 2025 to 10,913 TEUs, led largely by bananas, according to PIERS. High US prices for beef have also led to a strong uptick in the port’s inbound reefer business. Refrigerated imports from Brazil rose 71% to 8,185 TEUs during 2025, led by meat and animal proteins. Colombia saw its refrigerated meat exports to Houston grow 56% in 2025 to 6,249 TEUs, PIERS data shows. Contact Michael Angell at michael.angell@spglobal.com .

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Houston cuts free time on reefer importers amid ongoing high dwells

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