<div class="phx-topic abstract-wrapper">Australia’s total export volume rose by more than 6 percent in 2012, according to “Composition of Trade, Australia 2012” and “Trade in Primary and Manufactured Products 2012” released by the nation’s Department of Foreign Affairs and Trade.</div>

Australia’s total export volume rose by more than 6 percent in 2012, according to “Composition of Trade, Australia 2012” and “Trade in Primary and Manufactured Products 2012” released by the nation’s Department of Foreign Affairs and Trade.

<div>Australia’s total export volume <a>rose by more than 6 percent</a> in 2012, according to “Composition of Trade, Australia 2012” and “Trade in Primary and Manufactured Products 2012,” released by the country’s Department of Foreign Affairs and Trade.This gain in export volume was more than double the average rate over the last decade and the highest annual growth rate in export volume since 2000, the reports said.However, overall export value fell 4.2 percent to A$300.1 billion (about US$277.4 billion) in 2012, as the increase in export volume was offset by a drop in export prices, which were down 10.2 percent.In addition,...

Australia’s total export volume rose by more than 6 percent in 2012, according to “Composition of Trade, Australia 2012” and “Trade in Primary and Manufactured Products 2012,” released by the country’s Department of Foreign Affairs and Trade. This gain in export volume was more than double the average rate over the last decade and the highest annual growth rate in export volume since 2000, the reports said. However, overall export value fell 4.2 percent to A$300.1 billion (about US$277.4 billion) in 2012, as the increase in export volume was offset by a drop in export prices, which were down 10.2 percent. In addition, the publications reported that China remained Australia’s top trading partner in 2012, accounting for 20 percent of total trade, followed by Japan and the U.S., accounting for 11.5 percent and 9.1 percent respectively.

Container lines

Australia's Export Volume Rose 6 Percent in 2012

<div class="phx-topic abstract-wrapper">Ag exporters have always faced logistical challenges because their crops are grown in the interior US and shipped through ports located hundreds of miles away; those challenges seem to be growing, the AgTC conference heard this week. </div>

Ag exporters have always faced logistical challenges because their crops are grown in the interior US and shipped through ports located hundreds of miles away; those challenges seem to be growing, the AgTC conference heard this week.

Feature image

<div class="phx-topic">US agricultural shippers are facing increasing and costly challenges in getting their goods to global markets as the war in the Middle East and schedule changes by ocean carriers upset the cadence of their operations. “Container availability, schedule changes, rail delays from the interior of the country; these things can combine and create sort of a monster for us,” Christopher Jennum, global manager of export logistics and marketing at the Dairy Farmers of America, told the annual Agriculture Transportation Coalition (AgTC) conference this week in Tacoma. Ag exporters have always faced logistical challenges because their crops are grown in the interior US and shipped through ports located hundreds of miles away. This makes it difficult for exporters to secure empty containers, plan their rail moves to the ports, and meet marine terminal requirements for the on-time delivery of their boxes. Shippers must commit to delivery of their containers weeks ahead of time. “They’re committing to an export window that hasn’t formed,” said Vijay Harrell, CEO of logistics provider Tradelanes. Additionally, ag exporters are operating in a transportation environment designed decades ago and not equipped to handle modern day disruptions such as the pandemic and now the war in the Middle East. “I think the system that has carried us this far is starting to show some wear and tear,” Ken O’Brien, CEO of Gemini Shippers Association, told AgTC. “The disruption we face has somehow fundamentally changed our industry.” That wear and tear has affected the reliability of service, while communication between carriers and their customers has been compromised and the ability to accurately forecast supply and demand has been degraded, he said. “Both (carriers and customers) have to do a better job as to how we forecast demand,” O’Brien said. The fact that ag exports originate across a vast heartland and are shipped through a number of gateways makes it difficult for ocean carriers to consistently provide the equipment and services their customers demand and need, said Patrick “PJ” McGrath, senior vice president for commercial at Hapag-Lloyd in North America. If all imports and exports went through either Los Angeles-Long Beach or New York-New Jersey, serving shippers in the interior would be easy and much less costly for the ocean carriers. They’re not, but there is a strategy, McGrath said. “So how do I look at each individual piece? It boils down to communication (between the parties),” he said. <h3>Communication among parties is crucial </h3>Carriers must do a better job of communicating disruptions in vessel scheduling and services, as well as the fuel surcharges they are implementing due to the war in the Middle East, said Irina Brown, cotton export specialist at Dunavant Global Logistics Group. “The biggest problem is managing communication during disruptions, but it is super hard when you have trouble receiving responses from carriers, especially during the past year,” Brown told AgTC. “We get responses from carriers that make no sense.” Rapidly rising fuel costs and accompanying surcharges, which vary from carrier to carrier, have become a huge cost burden for shippers, said Cynthia Tathwell, supply chain logistics specialist at Columbia Grain. “I’ve seen unjustified rises in rates and billing practices outside of published tariffs,” Tathwell said. “It’s a pattern across the industry.” She added that she has challenged these charges, which has its own set of problems, noting that disputes “equal time and money for both sides.” <h3>FMC ‘has teeth’ </h3>Ag exporters also face ongoing problems with transportation providers in the levying of detention fees for the late return of equipment to the marine terminal or railyard and demurrage charges for containers remaining at a marine terminal or railyard after free storage time has expired. Laura DiBella, chairman of the Federal Maritime Commission (FMC), told the ag shippers the agency is aware of these practices and will move to stop any unfair implementation of detention and demurrage fees. “You are going to see plenty more on that,” DiBella told AgTc. “We’re definitely taking a more aggressive stance.” Whether it’s addressing unfair detention and demurrage fees or fuel surcharge issues, the FMC has various investigatory and enforcement powers it will use to move against unfair practices, she said. “The FMC has teeth,” DiBella said. “It has very big teeth.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

US agricultural shippers are facing increasing and costly challenges in getting their goods to global markets as the war in the Middle East and schedule changes by ocean carriers upset the cadence of their operations. “Container availability, schedule changes, rail delays from the interior of the country; these things can combine and create sort of a monster for us,” Christopher Jennum, global manager of export logistics and marketing at the Dairy Farmers of America, told the annual Agriculture Transportation Coalition (AgTC) conference this week in Tacoma. Ag exporters have always faced logistical challenges because their crops are grown in the interior US and shipped through ports located hundreds of miles away. This makes it difficult for exporters to secure empty containers, plan their rail moves to the ports, and meet marine terminal requirements for the on-time delivery of their boxes. Shippers must commit to delivery of their containers weeks ahead of time. “They’re committing to an export window that hasn’t formed,” said Vijay Harrell, CEO of logistics provider Tradelanes. Additionally, ag exporters are operating in a transportation environment designed decades ago and not equipped to handle modern day disruptions such as the pandemic and now the war in the Middle East. “I think the system that has carried us this far is starting to show some wear and tear,” Ken O’Brien, CEO of Gemini Shippers Association, told AgTC. “The disruption we face has somehow fundamentally changed our industry.” That wear and tear has affected the reliability of service, while communication between carriers and their customers has been compromised and the ability to accurately forecast supply and demand has been degraded, he said. “Both (carriers and customers) have to do a better job as to how we forecast demand,” O’Brien said. The fact that ag exports originate across a vast heartland and are shipped through a number of gateways makes it difficult for ocean carriers to consistently provide the equipment and services their customers demand and need, said Patrick “PJ” McGrath, senior vice president for commercial at Hapag-Lloyd in North America. If all imports and exports went through either Los Angeles-Long Beach or New York-New Jersey, serving shippers in the interior would be easy and much less costly for the ocean carriers. They’re not, but there is a strategy, McGrath said. “So how do I look at each individual piece? It boils down to communication (between the parties),” he said. Communication among parties is crucial Carriers must do a better job of communicating disruptions in vessel scheduling and services, as well as the fuel surcharges they are implementing due to the war in the Middle East, said Irina Brown, cotton export specialist at Dunavant Global Logistics Group. “The biggest problem is managing communication during disruptions, but it is super hard when you have trouble receiving responses from carriers, especially during the past year,” Brown told AgTC. “We get responses from carriers that make no sense.” Rapidly rising fuel costs and accompanying surcharges, which vary from carrier to carrier, have become a huge cost burden for shippers, said Cynthia Tathwell, supply chain logistics specialist at Columbia Grain. “I’ve seen unjustified rises in rates and billing practices outside of published tariffs,” Tathwell said. “It’s a pattern across the industry.” She added that she has challenged these charges, which has its own set of problems, noting that disputes “equal time and money for both sides.” FMC ‘has teeth’ Ag exporters also face ongoing problems with transportation providers in the levying of detention fees for the late return of equipment to the marine terminal or railyard and demurrage charges for containers remaining at a marine terminal or railyard after free storage time has expired. Laura DiBella, chairman of the Federal Maritime Commission (FMC), told the ag shippers the agency is aware of these practices and will move to stop any unfair implementation of detention and demurrage fees. “You are going to see plenty more on that,” DiBella told AgTc. “We’re definitely taking a more aggressive stance.” Whether it’s addressing unfair detention and demurrage fees or fuel surcharge issues, the FMC has various investigatory and enforcement powers it will use to move against unfair practices, she said. “The FMC has teeth,” DiBella said. “It has very big teeth.” Contact Bill Mongelluzzo at  bill.mongelluzzo@spglobal.com .

Maritime

Container Shipping News

Supply chain

US ag shippers navigate creaky supply chain not built for modern disruption 

<div class="phx-topic abstract-wrapper">Rising fuel costs, reliable service and higher rates amid the end of the four-year recession in trucking are helping convert more freight to rail in the eastern US. </div>

Rising fuel costs, reliable service and higher rates amid the end of the four-year recession in trucking are helping convert more freight to rail in the eastern US.

<div class="phx-topic">US domestic intermodal demand has rebounded sharply since the war with Iran began, with the growth coming, surprisingly, on lanes east of the Mississippi River rather than the long-haul West Coast corridors that typically offer the biggest fuel advantage over trucking. Intermodal providers have historically struggled to compete with trucking in the eastern US because the shorter lengths of haul mean less cost savings than transcontinental moves. But railroads and intermodal marketing companies (IMCs) say rising fuel costs, higher rates amid the end of the four-year recession in the trucking industry, and reliable service are helping convert more freight to rail in the east. Combined domestic container traffic in March and April was up 9% over the same period in 2025, according to the International Association of North America (IANA), a surge not seen since the pandemic-related lockdowns six years ago. Freight originating in the Northeast, South-Central and Southeast US have all jumped more than 10% year over year. “You’re finally seeing us coming out of ... the worst trucking cycle that we’ve witnessed — at least the worst one certainly that I’ve seen,” Kevin Boone, CFO of CSX Transportation, said at the Bank of America Annual Industrials Conference on May 13. “We’re seeing [freight] start to convert over to rail and with our service product, we’re pretty optimistic that can continue here.” The strongest gains have been concentrated in eastern corridors. Traffic from the Northeast to the Southeast jumped 17.7% year over year in March and April, according to IANA, while Southeast-to-Northeast traffic on the same corridor rose 16%. Midwest-to-Northeast volume increased 17.6%. Those are three routes where CSX will be able to better compete after beginning double-stack intermodal service through the Howard Street Tunnel in Baltimore <a href="https://www.joc.com/article/soaring-truck-rates-power-major-rebound-in-domestic-intermodal-volume-6208736">earlier this month</a>. The upgrade allows CSX to compete better against Norfolk Southern (NS) on freight between Atlanta and Newark and cuts about a day from transit times between Chicago and Newark. That gives CSX a chance to capture more of the eastern demand upswing, along with private-asset intermodal partners such as J.B. Hunt Transport Services. J.B. Hunt executives are signaling the same strong demand pattern in the east, with shippers beginning to save more money on freight in the region. “The discount has grown from 15% to 20% in the last six to eight weeks,” Darren Field, the company’s president of intermodal, said this week at Wolfe Research’s Annual Global Transportation and Industrials Conference. “I don’t know that we can close that 20% discount gap back to 15% in just this cycle, but I would anticipate certainly our intermodal pricing opportunity to start to improve [in the 2027 bid cycle].” <h3>Rebound tied to diesel prices? </h3>The Journal of Commerce <a href="https://www.joc.com/resources/special-reports/intermodal-savings-index">Intermodal Savings Index</a> also showed the steepest increases in rail savings sequentially compared with truckload in March occurred in the eastern US. Even so, Norfolk Southern cautioned that the rebound may be tied more to higher diesel prices than to a structural change, meaning it could fade if energy markets ease. “If the war ends in the next couple of weeks and fuel prices start going back down over the next few months, does that dynamic persist or does it reverse back to where it was? Hard to say,” NS CEO Mark George said at the Wolfe Research conference. Service will help determine whether intermodal keeps gaining share from trucking on the East Coast. CSX’s intermodal train speed was 7.2% faster from March through the first week of May than during the same period last year, while Norfolk Southern’s speeds were 1.1% slower over the same span, according to the Association of American Railroads. A disruption at CSX’s Fairburn intermodal terminal in Atlanta in April sharply increased truck turn times, in some cases forcing drivers to wait hours and pushing deliveries to the next day. The issue has since been resolved. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

US domestic intermodal demand has rebounded sharply since the war with Iran began, with the growth coming, surprisingly, on lanes east of the Mississippi River rather than the long-haul West Coast corridors that typically offer the biggest fuel advantage over trucking. Intermodal providers have historically struggled to compete with trucking in the eastern US because the shorter lengths of haul mean less cost savings than transcontinental moves. But railroads and intermodal marketing companies (IMCs) say rising fuel costs, higher rates amid the end of the four-year recession in the trucking industry, and reliable service are helping convert more freight to rail in the east. Combined domestic container traffic in March and April was up 9% over the same period in 2025, according to the International Association of North America (IANA), a surge not seen since the pandemic-related lockdowns six years ago. Freight originating in the Northeast, South-Central and Southeast US have all jumped more than 10% year over year. “You’re finally seeing us coming out of ... the worst trucking cycle that we’ve witnessed — at least the worst one certainly that I’ve seen,” Kevin Boone, CFO of CSX Transportation, said at the Bank of America Annual Industrials Conference on May 13. “We’re seeing [freight] start to convert over to rail and with our service product, we’re pretty optimistic that can continue here.” The strongest gains have been concentrated in eastern corridors. Traffic from the Northeast to the Southeast jumped 17.7% year over year in March and April, according to IANA, while Southeast-to-Northeast traffic on the same corridor rose 16%. Midwest-to-Northeast volume increased 17.6%. Those are three routes where CSX will be able to better compete after beginning double-stack intermodal service through the Howard Street Tunnel in Baltimore earlier this month . The upgrade allows CSX to compete better against Norfolk Southern (NS) on freight between Atlanta and Newark and cuts about a day from transit times between Chicago and Newark. That gives CSX a chance to capture more of the eastern demand upswing, along with private-asset intermodal partners such as J.B. Hunt Transport Services. J.B. Hunt executives are signaling the same strong demand pattern in the east, with shippers beginning to save more money on freight in the region. “The discount has grown from 15% to 20% in the last six to eight weeks,” Darren Field, the company’s president of intermodal, said this week at Wolfe Research’s Annual Global Transportation and Industrials Conference. “I don’t know that we can close that 20% discount gap back to 15% in just this cycle, but I would anticipate certainly our intermodal pricing opportunity to start to improve [in the 2027 bid cycle].” Rebound tied to diesel prices? The Journal of Commerce Intermodal Savings Index also showed the steepest increases in rail savings sequentially compared with truckload in March occurred in the eastern US. Even so, Norfolk Southern cautioned that the rebound may be tied more to higher diesel prices than to a structural change, meaning it could fade if energy markets ease. “If the war ends in the next couple of weeks and fuel prices start going back down over the next few months, does that dynamic persist or does it reverse back to where it was? Hard to say,” NS CEO Mark George said at the Wolfe Research conference. Service will help determine whether intermodal keeps gaining share from trucking on the East Coast. CSX’s intermodal train speed was 7.2% faster from March through the first week of May than during the same period last year, while Norfolk Southern’s speeds were 1.1% slower over the same span, according to the Association of American Railroads. A disruption at CSX’s Fairburn intermodal terminal in Atlanta in April sharply increased truck turn times, in some cases forcing drivers to wait hours and pushing deliveries to the next day. The issue has since been resolved. Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

Truckload

North-American rail

Surface

Local East Coast freight leading charge on intermodal rebound

<div class="phx-topic abstract-wrapper">The carrier’s first-quarter financials, which included a sharp drop in net profit, were generated in a market roiled by ongoing tensions in the Middle East, rising oil prices and increasing operating costs.</div>

The carrier’s first-quarter financials, which included a sharp drop in net profit, were generated in a market roiled by ongoing tensions in the Middle East, rising oil prices and increasing operating costs.

<div class="phx-topic">CMA CGM on Friday said its first-quarter net profit fell sharply in a volatile container shipping environment marked by persistent geopolitical tensions. The French carrier said it booked net profit of $250 million in the January–March period, down from $1.1 billion in the first quarter of 2025. Earnings before interest, taxes, amortization and depreciation (EBITDA) fell almost 32% to $2.1 billion. First-quarter revenue of $13.2 billion was up a marginal 0.2% year over year. Despite the sharp decline in net profit and EBITDA, Group CEO Rodolphe Saadé described the performance as “resilient” and one that was generated in a market roiled by ongoing tensions in the Middle East, rising oil prices and increasing operating costs. “While tensions in the Middle East and disruptions across global supply chains continued to weigh on the industry, we adjusted our network, implemented alternative logistics corridors and maintained reliable service for our customers,” Saadé said in a statement. For context, Maersk <a href="https://www.joc.com/article/maersk-passing-500-million-monthly-fuel-bill-to-customers-in-full-ceo-6216319">reported first-quarter revenue of $13 billion</a> and a net profit of $100 million. <h3>Revenue per TEU drops sharply </h3>In the group’s container shipping segment, volume in the first quarter was up 1.5% year over year at 5.93 million TEUs, while revenue was down 8.5% to $8 billion. Average revenue per TEU declined almost 10%, which was reflected in the shipping division’s EBITDA that fell 41.3% to $1.49 billion despite a rebound in spot rates at the end of the quarter. First-quarter logistics revenue of $4.6 billion was up 6.6% year over year, while the segment’s EBITDA fell 17.2% to $330 million as a deteriorating market environment and ongoing challenges affecting the automotive sector kept earnings under pressure. The major container shipping companies have now reported their first-quarter results with two carriers — Zim Integrated Shipping Services and its soon-to-be-owner Hapag-Lloyd — posting losses. But there is more financial pain to come, warned Lars Jensen, CEO of Vespucci Consulting. “Anyone with floating bunker surcharges will see the impact in Q3,” <a href="https://www.linkedin.com/feed/update/urn:li:activity:7463177368476545024/">Jensen said in a LinkedIn post</a>, using Wan Hai’s recent third-quarter bunker surcharge announcement as an example. The carrier’s Asia to Mediterranean fuel surcharge will rise from $220/TEU to $605/TEU, with Asia-Red Sea moving from $160/TEU to $440/TEU. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

CMA CGM on Friday said its first-quarter net profit fell sharply in a volatile container shipping environment marked by persistent geopolitical tensions. The French carrier said it booked net profit of $250 million in the January–March period, down from $1.1 billion in the first quarter of 2025. Earnings before interest, taxes, amortization and depreciation (EBITDA) fell almost 32% to $2.1 billion. First-quarter revenue of $13.2 billion was up a marginal 0.2% year over year. Despite the sharp decline in net profit and EBITDA, Group CEO Rodolphe Saadé described the performance as “resilient” and one that was generated in a market roiled by ongoing tensions in the Middle East, rising oil prices and increasing operating costs. “While tensions in the Middle East and disruptions across global supply chains continued to weigh on the industry, we adjusted our network, implemented alternative logistics corridors and maintained reliable service for our customers,” Saadé said in a statement. For context, Maersk reported first-quarter revenue of $13 billion and a net profit of $100 million. Revenue per TEU drops sharply In the group’s container shipping segment, volume in the first quarter was up 1.5% year over year at 5.93 million TEUs, while revenue was down 8.5% to $8 billion. Average revenue per TEU declined almost 10%, which was reflected in the shipping division’s EBITDA that fell 41.3% to $1.49 billion despite a rebound in spot rates at the end of the quarter. First-quarter logistics revenue of $4.6 billion was up 6.6% year over year, while the segment’s EBITDA fell 17.2% to $330 million as a deteriorating market environment and ongoing challenges affecting the automotive sector kept earnings under pressure. The major container shipping companies have now reported their first-quarter results with two carriers — Zim Integrated Shipping Services and its soon-to-be-owner Hapag-Lloyd — posting losses. But there is more financial pain to come, warned Lars Jensen, CEO of Vespucci Consulting. “Anyone with floating bunker surcharges will see the impact in Q3,” Jensen said in a LinkedIn post , using Wan Hai’s recent third-quarter bunker surcharge announcement as an example. The carrier’s Asia to Mediterranean fuel surcharge will rise from $220/TEU to $605/TEU, with Asia-Red Sea moving from $160/TEU to $440/TEU. Contact Greg Knowler at greg.knowler@spglobal.com .

CMA CGM posts Q1 earnings decline amid volatile ocean trade

<div class="phx-topic abstract-wrapper">Volumes under contract when the Middle East war began were locked into quarterly bunker fuel adjustments, and those costs are set to be passed on to shippers at the start of the third quarter.</div>

Volumes under contract when the Middle East war began were locked into quarterly bunker fuel adjustments, and those costs are set to be passed on to shippers at the start of the third quarter.

<div class="phx-topic">Cargo owners are accelerating shipments on the Asia-Europe ocean trade to get ahead of the next quarterly bunker fuel adjustment due July 1, with strong demand seen into June. Bunker costs rocketed higher following the start of the Middle East war on Feb. 28, and although emergency fuel surcharges were quickly levied on spot shipments, cargo under contract was locked into quarterly bunker adjustment factors (BAFs). Those costs will now be passed on to shippers in the third quarter, according to Thomas Cassuto, senior vice president of air and ocean at forwarder CEVA Logistics. “We are seeing exceptionally strong shipper demand in late May across most major trade lanes, including Asia-North Europe and Asia-Med, with momentum expected to continue through June,” Cassuto told the Journal of Commerce. “The key driver is a sharp acceleration in bookings from major beneficial cargo owners [BCOs] seeking to move cargo ahead of July 1,” he noted. “From that date, most large shippers will face an automatic increase in freight rates linked to quarterly BAF adjustments.” Data from Vizion indicates bookings from China to the Mediterranean are up almost 50% over the past two weeks and 36% higher to North Europe in what looks to be an early start to the peak shipping season. Traditionally, Asia-Europe peak season activity begins in late June and continues to China’s Golden Week in early October. Recent global disruptions have made seasonal patterns increasingly unpredictable, with last year’s peak season barely getting started and this year’s demand picking up strongly in May and June. <h3>Robust forward bookings </h3>Kuehne + Nagel and DHL Global Forwarding both reported robust forward bookings and rising rates on the Asia-Europe trade lane, despite an increase in deployed capacity and a cut in blank sailings. Data from eeSea, part of rate benchmarking platform Xeneta, shows capacity on Asia-North Europe in May will be up 16% from April at 1.2 million TEUs, with blank sailings down 5%. In June, planned capacity will fall to 1.1 million TEUs while planned blank sailings will be halved. “We are observing an increased demand for Asia-Europe, partly driven by an earlier peak season linked to extended transit times and lower capacity due to the rerouting [around the Cape of Good Hope],” Paolo Montrone, head of global sea logistics at Kuehne + Nagel, told the Journal of Commerce. “This is consistent with patterns seen last year,” he added. “Demand is expected to remain strong in the coming months; however, visibility remains limited as energy costs and rates continue to be a concern.” A spokesperson for DHL Global Forwarding said there was “significant demand” on Asia-Europe, accompanied by a substantial increase in rates. “Vessels are operating at full capacity, and bookings need to be made well in advance,” the spokesperson said. “In addition, there are capacity restrictions in place, and securing space requires a mix of NAC [named accounts] and FAK [freight-all-kinds].” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="3e0caaad-ce43-47fa-b859-a779e74cb6a4"></dynamic-object></div>Named accounts are long-term contracts between carriers and customers that guaranteed space and equipment at fixed rates, while cargo moved under FAK is subject to the spot market. Cassuto said vessels out of Asia were fully booked four to five weeks in advance, which has prompted carriers to implement general rate increases and peak season surcharges. “We expect this pattern to extend into July and overlap with what is traditionally the peak season for Christmas shipments, which effectively started earlier this year,” he said. <h3>Hefty rate increases announced for June 1 </h3>Several carriers this week announced June 1 rate increases on eastbound corridors, with Asia to North Europe FAK rates moving to $4,300-$4,700 per FEU and Asia-East Mediterranean rates at $5,500-$5,700/FEU. If they stick, the FAK increases will be at a significant premium to spot rates currently at $2,900/FEU on Asia-North Europe and $4,000/FEU for Asia to the Mediterranean, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. “I would be very surprised if those spot rates are not going to trend up over the upcoming couple of weeks as we see significant overbooking, and as such, there is certainly not a lot of downward pressure on pricing,” Hapag-Lloyd CEO Rolf Habben Jansen said in a media briefing following the carrier’s first-quarter results. “If anything, there is upward pressure, which is probably a little bit later than we would have liked, but I think you will start seeing that.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="af999948-957c-4237-b7e6-873522d9fd5b"></dynamic-object></div>In a market update Friday, HSBC highlighted the demand holding up in container shipping. The bank’s transportation analysts said the global container trade rose 4.4% year over year in the first quarter, with Maersk and Hapag-Lloyd expecting demand to remain strong through the second quarter and the third-quarter peak season because of disruption-related frontloading. Still, fuel and network cost pressures are building, Cassuto noted, which would place European import volumes from Asia under increasing pressure. “We are anticipating higher energy costs, persistent inflation and elevated inventory levels to weigh on trade flows in the second half of 2026, leading to a gradual slowdown in volumes,” the CEVA executive said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com.</a></div>

Cargo owners are accelerating shipments on the Asia-Europe ocean trade to get ahead of the next quarterly bunker fuel adjustment due July 1, with strong demand seen into June. Bunker costs rocketed higher following the start of the Middle East war on Feb. 28, and although emergency fuel surcharges were quickly levied on spot shipments, cargo under contract was locked into quarterly bunker adjustment factors (BAFs). Those costs will now be passed on to shippers in the third quarter, according to Thomas Cassuto, senior vice president of air and ocean at forwarder CEVA Logistics. “We are seeing exceptionally strong shipper demand in late May across most major trade lanes, including Asia-North Europe and Asia-Med, with momentum expected to continue through June,” Cassuto told the Journal of Commerce. “The key driver is a sharp acceleration in bookings from major beneficial cargo owners [BCOs] seeking to move cargo ahead of July 1,” he noted. “From that date, most large shippers will face an automatic increase in freight rates linked to quarterly BAF adjustments.” Data from Vizion indicates bookings from China to the Mediterranean are up almost 50% over the past two weeks and 36% higher to North Europe in what looks to be an early start to the peak shipping season. Traditionally, Asia-Europe peak season activity begins in late June and continues to China’s Golden Week in early October. Recent global disruptions have made seasonal patterns increasingly unpredictable, with last year’s peak season barely getting started and this year’s demand picking up strongly in May and June. Robust forward bookings Kuehne + Nagel and DHL Global Forwarding both reported robust forward bookings and rising rates on the Asia-Europe trade lane, despite an increase in deployed capacity and a cut in blank sailings. Data from eeSea, part of rate benchmarking platform Xeneta, shows capacity on Asia-North Europe in May will be up 16% from April at 1.2 million TEUs, with blank sailings down 5%. In June, planned capacity will fall to 1.1 million TEUs while planned blank sailings will be halved. “We are observing an increased demand for Asia-Europe, partly driven by an earlier peak season linked to extended transit times and lower capacity due to the rerouting [around the Cape of Good Hope],” Paolo Montrone, head of global sea logistics at Kuehne + Nagel, told the Journal of Commerce. “This is consistent with patterns seen last year,” he added. “Demand is expected to remain strong in the coming months; however, visibility remains limited as energy costs and rates continue to be a concern.” A spokesperson for DHL Global Forwarding said there was “significant demand” on Asia-Europe, accompanied by a substantial increase in rates. “Vessels are operating at full capacity, and bookings need to be made well in advance,” the spokesperson said. “In addition, there are capacity restrictions in place, and securing space requires a mix of NAC [named accounts] and FAK [freight-all-kinds].” Named accounts are long-term contracts between carriers and customers that guaranteed space and equipment at fixed rates, while cargo moved under FAK is subject to the spot market. Cassuto said vessels out of Asia were fully booked four to five weeks in advance, which has prompted carriers to implement general rate increases and peak season surcharges. “We expect this pattern to extend into July and overlap with what is traditionally the peak season for Christmas shipments, which effectively started earlier this year,” he said. Hefty rate increases announced for June 1 Several carriers this week announced June 1 rate increases on eastbound corridors, with Asia to North Europe FAK rates moving to $4,300-$4,700 per FEU and Asia-East Mediterranean rates at $5,500-$5,700/FEU. If they stick, the FAK increases will be at a significant premium to spot rates currently at $2,900/FEU on Asia-North Europe and $4,000/FEU for Asia to the Mediterranean, according to Platts, a sister company of the Journal of Commerce within S&P Global. “I would be very surprised if those spot rates are not going to trend up over the upcoming couple of weeks as we see significant overbooking, and as such, there is certainly not a lot of downward pressure on pricing,” Hapag-Lloyd CEO Rolf Habben Jansen said in a media briefing following the carrier’s first-quarter results. “If anything, there is upward pressure, which is probably a little bit later than we would have liked, but I think you will start seeing that.” In a market update Friday, HSBC highlighted the demand holding up in container shipping. The bank’s transportation analysts said the global container trade rose 4.4% year over year in the first quarter, with Maersk and Hapag-Lloyd expecting demand to remain strong through the second quarter and the third-quarter peak season because of disruption-related frontloading. Still, fuel and network cost pressures are building, Cassuto noted, which would place European import volumes from Asia under increasing pressure. “We are anticipating higher energy costs, persistent inflation and elevated inventory levels to weigh on trade flows in the second half of 2026, leading to a gradual slowdown in volumes,” the CEVA executive said. Contact Greg Knowler at greg.knowler@spglobal.com.

Forwarding

Asia-Europe

Demand rising on Asia-Europe ocean trade as July bunker hike looms

<div class="phx-topic abstract-wrapper">A lead time of five to seven years to build up domestic crane manufacturing capacity could cripple the US heavy-lift industry if tariffs on imported products are not reduced, industry stakeholders say. </div>

A lead time of five to seven years to build up domestic crane manufacturing capacity could cripple the US heavy-lift industry if tariffs on imported products are not reduced, industry stakeholders say.

<div class="phx-topic">US heavy-lift lobbyists are pushing the federal government for relief from tariffs amid growing concerns about potential new trade levies and their repercussions for the project cargo sector. The Specialized Carriers &amp; Rigging Association (SC&amp;RA), the largest trade group representing the US heavy-lift industry, is awaiting federal action after testifying in front of the US International Trade Commission with a request to exempt crane and trailer imports from Canada, the EU and Japan from new Section 301 tariffs. The US Section 301 provision authorizes the Office of the US Trade Representative (USTR) to investigate and impose retaliatory tariffs against foreign countries with trade practices it deems “unfair” to US interests. Those efforts have largely been focused on Chinese trade, but the US has also opened investigations into the practices of several other countries, including Canada, Japan and parts of the EU. Joel Dandrea, president and CEO of the SC&amp;RA, told the Journal of Commerce the 1,350-member international trade group is not opposed to tariffs and supports the Trump administration’s efforts to balance trade fairly. But he said the ever-changing succession of tariffs has made it difficult to budget, plan and forecast for equipment purchases, cargo moves and critical infrastructure projects. “The tariffs that are placed upon our industry really need to be fair and reasonable, and what we’re seeing at this point are tariff levels that we believe are not reasonable,” Dandrea said. Testifying on behalf of the SC&amp;RA at a May 5 International Trade Commission (ITC) hearing on tariff investigations, Mike Appling, CEO of LiftHigh Cranes &amp; Rigging, told the ITC that the group supports addressing China’s structural overcapacity. “But the EU, Canada and Japan are proven, trusted allies that do not engage in industrial overcapacity, dumping, forced labor or any other unfair trade practice with respect to these products,” he said. “There is no basis for including their merchandise within the scope of proposed Section 301 action.” Appling said approximately 80% of the cranes used in US construction are imported, and less than 3% of all global all-terrain cranes are manufactured domestically. No US company manufactures tower cranes, and the lead time to build additional domestic manufacturing capacity is five to seven years. “Critical infrastructure projects — data centers, nuclear facilities, LNG terminals, semiconductor fabrication plants, defense installations — cannot pause while that capacity develops,” he said. The problem extends up the supply chain, Appling said, as ultra-high-strength steel grades essential to crane and trailer manufacturing are not produced domestically in sufficient quantities, and US steel manufacturers have indicated there is no compelling business case to do so. During his ITC testimony, Appling outlined a series of requests the SC&amp;RA submitted on April 15 to the USTR: the exemption of cranes, trailers and parts imported from the EU, Canada and Japan from Section 301 tariffs, a 24-month phase-in period for any new tariffs imposed on equipment from those nations, and “proportionate” tariff rates on Chinese products. The proposal included a call for no stacking of Section 301 tariffs on top of existing steel tariffs imposed under Section 232. Citing limited domestic supplies, the SC&amp;RA also proposed tariff exemptions on ultra-high-strength steel, which is used to manufacture cranes and trailers. “This is precisely the wrong moment to impose additional cost burdens on the only viable alternative to Chinese equipment,” Appling said. <h3>High costs, thin margins </h3>The SC&amp;RA’s proposal to the USTR is the latest plea from the association to ease the burdens of tariffs on the heavy-lift and transport industry. Dandrea, who attended the ITC hearing and has been a vocal advocate for tariff relief, said the industry was critical to US construction. “You can have raw steel manufactured, but if there’s no one to transport it, lift it and build with it, it’s of no value,” he said. Dandrea said steel tariffs currently imposed under Section 232, along with related measures, are causing delays for equipment purchases and infrastructure projects while driving up costs — forcing some companies to pause or reconsider those purchases altogether. “When you add $300,000 or $400,000 or $500,000 to the cost of a crane coming from Germany or Japan, or $100,000 or $200,000 to the cost of a highly specialized construction trailer, you can’t just click your fingers from a purchasing standpoint and say we’re going to absorb those costs and quickly turn around and pass those costs onto customers,” he said. The Trump administration in April agreed to adjust Section 232 tariffs on steel derivative products from 50% of their full customs value to 25%. Dandrea said SC&amp;RA would like to see those tariffs reduced further, from 25% to 15%, and for the USTR to ensure that Section 301 tariffs are not stacked on top of those existing tariffs. Dandrea expects it will take until July before the USTR responds to SC&amp;RA’s request, but said the association remains optimistic. “The move to 25% was a move in the right direction,” he said. “But the costs are still too high for an industry operating on thin margins.” Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

US heavy-lift lobbyists are pushing the federal government for relief from tariffs amid growing concerns about potential new trade levies and their repercussions for the project cargo sector. The Specialized Carriers & Rigging Association (SC&RA), the largest trade group representing the US heavy-lift industry, is awaiting federal action after testifying in front of the US International Trade Commission with a request to exempt crane and trailer imports from Canada, the EU and Japan from new Section 301 tariffs. The US Section 301 provision authorizes the Office of the US Trade Representative (USTR) to investigate and impose retaliatory tariffs against foreign countries with trade practices it deems “unfair” to US interests. Those efforts have largely been focused on Chinese trade, but the US has also opened investigations into the practices of several other countries, including Canada, Japan and parts of the EU. Joel Dandrea, president and CEO of the SC&RA, told the Journal of Commerce the 1,350-member international trade group is not opposed to tariffs and supports the Trump administration’s efforts to balance trade fairly. But he said the ever-changing succession of tariffs has made it difficult to budget, plan and forecast for equipment purchases, cargo moves and critical infrastructure projects. “The tariffs that are placed upon our industry really need to be fair and reasonable, and what we’re seeing at this point are tariff levels that we believe are not reasonable,” Dandrea said. Testifying on behalf of the SC&RA at a May 5 International Trade Commission (ITC) hearing on tariff investigations, Mike Appling, CEO of LiftHigh Cranes & Rigging, told the ITC that the group supports addressing China’s structural overcapacity. “But the EU, Canada and Japan are proven, trusted allies that do not engage in industrial overcapacity, dumping, forced labor or any other unfair trade practice with respect to these products,” he said. “There is no basis for including their merchandise within the scope of proposed Section 301 action.” Appling said approximately 80% of the cranes used in US construction are imported, and less than 3% of all global all-terrain cranes are manufactured domestically. No US company manufactures tower cranes, and the lead time to build additional domestic manufacturing capacity is five to seven years. “Critical infrastructure projects — data centers, nuclear facilities, LNG terminals, semiconductor fabrication plants, defense installations — cannot pause while that capacity develops,” he said. The problem extends up the supply chain, Appling said, as ultra-high-strength steel grades essential to crane and trailer manufacturing are not produced domestically in sufficient quantities, and US steel manufacturers have indicated there is no compelling business case to do so. During his ITC testimony, Appling outlined a series of requests the SC&RA submitted on April 15 to the USTR: the exemption of cranes, trailers and parts imported from the EU, Canada and Japan from Section 301 tariffs, a 24-month phase-in period for any new tariffs imposed on equipment from those nations, and “proportionate” tariff rates on Chinese products. The proposal included a call for no stacking of Section 301 tariffs on top of existing steel tariffs imposed under Section 232. Citing limited domestic supplies, the SC&RA also proposed tariff exemptions on ultra-high-strength steel, which is used to manufacture cranes and trailers. “This is precisely the wrong moment to impose additional cost burdens on the only viable alternative to Chinese equipment,” Appling said. High costs, thin margins The SC&RA’s proposal to the USTR is the latest plea from the association to ease the burdens of tariffs on the heavy-lift and transport industry. Dandrea, who attended the ITC hearing and has been a vocal advocate for tariff relief, said the industry was critical to US construction. “You can have raw steel manufactured, but if there’s no one to transport it, lift it and build with it, it’s of no value,” he said. Dandrea said steel tariffs currently imposed under Section 232, along with related measures, are causing delays for equipment purchases and infrastructure projects while driving up costs — forcing some companies to pause or reconsider those purchases altogether. “When you add $300,000 or $400,000 or $500,000 to the cost of a crane coming from Germany or Japan, or $100,000 or $200,000 to the cost of a highly specialized construction trailer, you can’t just click your fingers from a purchasing standpoint and say we’re going to absorb those costs and quickly turn around and pass those costs onto customers,” he said. The Trump administration in April agreed to adjust Section 232 tariffs on steel derivative products from 50% of their full customs value to 25%. Dandrea said SC&RA would like to see those tariffs reduced further, from 25% to 15%, and for the USTR to ensure that Section 301 tariffs are not stacked on top of those existing tariffs. Dandrea expects it will take until July before the USTR responds to SC&RA’s request, but said the association remains optimistic. “The move to 25% was a move in the right direction,” he said. “But the costs are still too high for an industry operating on thin margins.” Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Breakbulk carriers

Breakbulk News

Heavy-lift trade group lobbies USTR for relief from crane, trailer tariffs

Use code GTT26W at checkout and save $900 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code FTW25 at checkout to save 25% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

SUBSCRIBE AND SAVE

Use code GW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

SAVE $900 ON A GOLD SUBSCRIPTION

Choose a subscription plan that works best for you!

Subscribe Now - Anonymous to S/SP - Wide Box

Subscribe Today

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code GW995 at checkout to save $500 on first year of a Gold subscription!

Subscribe Now - FT to Gold - Wide Box

Subscribe Now - Anonymous to Gold - Wide Box

SUBSCRIBE TODAY

Subscribe and Save: Use code FTW25 to save 25% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

SUBSCRIBE TODAY: Choose a subscription plan that works best for you!

Subscribe Now - Anonymous to S/SP - Offer Box

UPGRADE TO GOLD AND SAVE: Use code GTT26W at checkout and save $900 on first year of a Gold subscription!

Upgrade Subscription

Subscribe Now - Anonymous to Gold - Offer Box

SAVE $900 ON A GOLD SUBSCRIPTION: Use code GW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

SUBSCRIBE AND SAVE: Use code GW995 and save $500 on the first year of a Gold subscription!

Subscribe Now - FT to Gold - Offer Box

A must-attend conference for shippers & logistics providers moving goods inland

Inland Conference - Rectangle Box

Attend Inland26

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The latest container shipping news and analysis of ocean container shipping, logistics, supply chains, technology solutions and end-to-end connectivity. Coverage includes the movement of containerized cargo handled by marine terminals and container ports, depots, container lines, drayage, consignees, importers and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers. The Journal of Commerce's container shipping news includes news from the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South America trades, and intra-Asia trades.

Trans-Atlantic

Trans-Pacific

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

The Journal of Commerce is the industry’s source for maritime news and analysis about ocean container shipping, logistics, supply chains, global shipping ports, shipping technology solutions and end-to-end connectivity. Coverage tracks the movement of containerized cargo — from origin to destination — handled by marine terminals in the US and abroad, depots, container ports, container lines, drayage, consignees and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers, as well as pricing, capacity, volume and reliability on the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South American and intra-Asia trades.

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Breakbulk News shipping | Journal of Commerce

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

Port News

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

Latest News

More News & Analysis

US ag shippers navigate creaky supply chain not built for modern disruption

Local East Coast freight leading charge on intermodal rebound

CMA CGM posts Q1 earnings decline amid volatile ocean trade