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<div class="phx-topic abstract-wrapper">Payment of $850 million worth of liability insurance coverage depends on the outcome of a National T</div>

Payment of $850 million worth of liability insurance coverage depends on the outcome of a National T

<div>Payment of $850 million worth of liability insurance coverage depends on the outcome of a National Transportation Safety Board investigation into the cause of the crash of USAir Flight 405.The disaster at New York's La Guardia Airport on Sunday killed 27 people and injured 24.Hull coverage on the USAir plane will definitely cost several insurance companies and Lloyd's of London syndicates more than $13 million, said Nick Doak, a spokesman for Lloyd's, on Thursday.''There is no doubt there was an airplane and it crashed and there will be claims" for the damage to the hull, Mr. Doak added.But whether the...

Payment of $850 million worth of liability insurance coverage depends on the outcome of a National Transportation Safety Board investigation into the cause of the crash of USAir Flight 405. The disaster at New York's La Guardia Airport on Sunday killed 27 people and injured 24.Hull coverage on the USAir plane will definitely cost several insurance companies and Lloyd's of London syndicates more than $13 million, said Nick Doak, a spokesman for Lloyd's, on Thursday. ''There is no doubt there was an airplane and it crashed and there will be claims" for the damage to the hull, Mr. Doak added. But whether the insurers will have to pay USAir $850 million for liability coverage "depends on the wording of the policy and what the investigators determine is the proximate cause" of the crash, he said. Approximately 26 percent of USAir's liability coverage was placed with Lloyd's syndicates and the London company market, he said. If ice on the wing of the aircraft is found to be the cause of the crash, there's a greater chance that the airline will be hit with lawsuits, and a greater possibility that USAir's liability policies will be triggered, said Mr. Doak. It could take months for investigators to determine whether the crew negligently allowed ice to form on the left wing, thus weighing down the aircraft. "It is really too early to talk about lawsuits," said Daniel Izard, president and chief executive of Associated Aviation Underwriters of Short Hills, N.J. "There has been no determination of cause, although there are lots of theories." One theory is the plane, which was late leaving La Guardia for its flight to Cleveland, had been de-iced for the last time more than 30 minutes before it was finally allowed to take off Sunday night. Co-pilot John Rachuba, interviewed by NTSB investigators Wednesday, said the flight crew checked the wings repeatedly from the cockpit, but one passenger, a private pilot, screamed out a warning that ice was still visible on the wing. AAU, an underwriting pool run by Chubb & Sons of Warren, N.J., and Continental Insurance Cos. of New York, supplies 30 percent of USAir's liability coverage. The plane, a Dutch-made twin-engine Fokker F-28, lifted off briefly as it tried to take off during a spring snowstorm, then skidded into Flushing Bay at the end of the runway. The F28 is sensitive to ice because it lacks slats, which help create lift during take-off. USAir purchased its hull and liability coverage through broker Alexander & Alexander Inc., New York, from a number of carriers in France, the United States and Britain. Other insurers providing property and liability coverage to USAir include La Reunion Aerienne and Camat Aviation, both of Paris; Cigna, based in Philadelphia, and USAIG, New York.

LIABILITY INSURERS AWAIT WORD ON AIR CRASH CAUSE

<div class="phx-topic abstract-wrapper">The Omani port operated by APM Terminals is one of the alternative container drop-off points in the region being used by ocean carriers unable to pass through the Strait of Hormuz. </div>

The Omani port operated by APM Terminals is one of the alternative container drop-off points in the region being used by ocean carriers unable to pass through the Strait of Hormuz.

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<div class="phx-topic">A drone strike on Saturday closed the APM Terminals regional hub of Salalah in Oman, disrupting operations at one of the key access points for containers being offloaded and trucked overland to Persian Gulf markets that are otherwise inaccessible by ocean due to the war. One port worker was injured in the attack, and a container terminal crane was damaged. No one has claimed responsibility for the strike, although some media is reporting that the drones were fired by Houthi militants in neighboring Yemen. APMT owner Maersk said in a customer advisory Monday that Salalah will gradually resume operations beginning Tuesday, although operational constraints “might remain for some time.” “Additional precautionary security measures have been implemented at the port, and we remain in contact with the relevant authorities and port stakeholders,” the carrier said. Following the attack, Hapag-Lloyd announced that its vessel Lisbon Express has been moved out of the port “as a precautionary measure.” With the Strait of Hormuz effectively closed to commercial shipping, ocean carriers are discharging containers in ports near the Persian Gulf, such as Salalah and Sohar in Oman and Khor Fakkan and Fujairah in the UAE. The cargo is then trucked vast distances inland to the UAE, Qatar, Bahrain, Kuwait and Iraq. But customer advisories from forwarders and ocean carriers paint a picture of growing congestion across regional overland networks. Crane Worldwide Logistics said Khor Fakkan congestion was at 100% with wait times longer than 11 days and “vessel queues and dwell times unrelenting.” The region’s main port hub of Jebel Ali is experiencing systemic backlogs with DP World’s emergency land corridors to Dammam in Saudi Arabia and Sohar providing only marginal landside relief. Cross-border trucking capacity shortages persist in key corridors and are most acute in Oman, the UAE’s Fujairah, and Saudi Arabia, Crane noted. The landside disruption for cargo was exacerbated by the Eid holidays and flooding from a severe storm that lashed the UAE last week. Rolf Habben Jansen, CEO of Hapag-Lloyd, <a href="https://www.joc.com/article/war-adding-40-50-million-per-week-to-hapag-lloyds-costs-ceo-6193532">told reporters during a briefing last week</a> that the carrier was trying to come up with overland solutions for customer cargo that is stranded short of its Persian Gulf destinations. ”But capacity there is limited, and that means it is possible for things that are urgent or critical, but it is not possible for the volume that normally would be carried via the water,” Habben Jansen said. “There is simply not enough inland infrastructure and there are not enough trucks to support that,” he added. <h3>Trucking costs rising </h3>It is not only inbound containers that are impacted by the ongoing conflict. The Journal of Commerce has been told that a shipper with containers that urgently need exporting from the Persian Gulf in the next two months is paying $15,000 per container to truck 140 boxes across Saudi Arabia to the port of Jeddah on the Red Sea. That figure was far above the current $2,000-$6,000 per container market price for a cross-desert truck journey from the UAE to Jeddah, according to the Middle East CEO for a global forwarder, who added the $15,000 per box was likely escalated by the urgent nature of the shipment. Still, the forwarder said trucking complications across the Gulf Cooperation Council (GCC) countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE — extended well beyond high rates. ”For example, if you have a Saudi truck and want to drive to an Omani port, it’s not possible,” the source told the Journal of Commerce. “They are currently making some exceptions, but we have just learned that Oman will charge an entry fee per tire.” Another problem that has been escalated by the conflict, according to the executive, is the issuing of visas. “There is so much more cross-border trucking now and drivers need to queue for half a day and longer to get a visa,” he said. “That limits the number of journeys a trucker can make, it creates delays and traffic backlogs, and inflates the price.” <h3>Operational restrictions </h3>Crane Worldwide Logistics said a new operational restriction now in effect bars drivers of Syrian, Pakistani and Yemeni nationality from entering Qatar, directly impacting road-based freight operations in an out of the country. With ocean cargo handling suspended in the Qatari port of Doha, the Crane advisory said containers already discharged in the region were accruing storage charges daily and the driver nationality ban was limiting the ability of cargo owners to collect and move their boxes. Michael Aldwell, executive vice president of sea logistics at Kuehne + Nagel, acknowledged that trucking capacity was a challenge, but said the forwarder had a road network in place before the conflict that it was able to utilize. Priority was being given to transporting healthcare and perishable cargo into the Middle East. “To keep cargo moving, we are working on solutions to find alternative gateways and corridors with trucks into the Persian Gulf markets, such as cross-border trucking between Sohar or Khor Fakkan, and via Mersin (Turkey) or Aqaba (Jordan),” Aldwell told the Journal of Commerce. “We are also implementing air-road solutions via airports in Saudi Arabia (Jeddah) and Oman (Salalah) with cross-border trucking to the UAE, Qatar, Bahrain and Kuwait,” he added. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

A drone strike on Saturday closed the APM Terminals regional hub of Salalah in Oman, disrupting operations at one of the key access points for containers being offloaded and trucked overland to Persian Gulf markets that are otherwise inaccessible by ocean due to the war. One port worker was injured in the attack, and a container terminal crane was damaged. No one has claimed responsibility for the strike, although some media is reporting that the drones were fired by Houthi militants in neighboring Yemen. APMT owner Maersk said in a customer advisory Monday that Salalah will gradually resume operations beginning Tuesday, although operational constraints “might remain for some time.” “Additional precautionary security measures have been implemented at the port, and we remain in contact with the relevant authorities and port stakeholders,” the carrier said. Following the attack, Hapag-Lloyd announced that its vessel Lisbon Express has been moved out of the port “as a precautionary measure.” With the Strait of Hormuz effectively closed to commercial shipping, ocean carriers are discharging containers in ports near the Persian Gulf, such as Salalah and Sohar in Oman and Khor Fakkan and Fujairah in the UAE. The cargo is then trucked vast distances inland to the UAE, Qatar, Bahrain, Kuwait and Iraq. But customer advisories from forwarders and ocean carriers paint a picture of growing congestion across regional overland networks. Crane Worldwide Logistics said Khor Fakkan congestion was at 100% with wait times longer than 11 days and “vessel queues and dwell times unrelenting.” The region’s main port hub of Jebel Ali is experiencing systemic backlogs with DP World’s emergency land corridors to Dammam in Saudi Arabia and Sohar providing only marginal landside relief. Cross-border trucking capacity shortages persist in key corridors and are most acute in Oman, the UAE’s Fujairah, and Saudi Arabia, Crane noted. The landside disruption for cargo was exacerbated by the Eid holidays and flooding from a severe storm that lashed the UAE last week. Rolf Habben Jansen, CEO of Hapag-Lloyd, told reporters during a briefing last week that the carrier was trying to come up with overland solutions for customer cargo that is stranded short of its Persian Gulf destinations. ”But capacity there is limited, and that means it is possible for things that are urgent or critical, but it is not possible for the volume that normally would be carried via the water,” Habben Jansen said. “There is simply not enough inland infrastructure and there are not enough trucks to support that,” he added. Trucking costs rising It is not only inbound containers that are impacted by the ongoing conflict. The Journal of Commerce has been told that a shipper with containers that urgently need exporting from the Persian Gulf in the next two months is paying $15,000 per container to truck 140 boxes across Saudi Arabia to the port of Jeddah on the Red Sea. That figure was far above the current $2,000-$6,000 per container market price for a cross-desert truck journey from the UAE to Jeddah, according to the Middle East CEO for a global forwarder, who added the $15,000 per box was likely escalated by the urgent nature of the shipment. Still, the forwarder said trucking complications across the Gulf Cooperation Council (GCC) countries — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE — extended well beyond high rates. ”For example, if you have a Saudi truck and want to drive to an Omani port, it’s not possible,” the source told the Journal of Commerce. “They are currently making some exceptions, but we have just learned that Oman will charge an entry fee per tire.” Another problem that has been escalated by the conflict, according to the executive, is the issuing of visas. “There is so much more cross-border trucking now and drivers need to queue for half a day and longer to get a visa,” he said. “That limits the number of journeys a trucker can make, it creates delays and traffic backlogs, and inflates the price.” Operational restrictions Crane Worldwide Logistics said a new operational restriction now in effect bars drivers of Syrian, Pakistani and Yemeni nationality from entering Qatar, directly impacting road-based freight operations in an out of the country. With ocean cargo handling suspended in the Qatari port of Doha, the Crane advisory said containers already discharged in the region were accruing storage charges daily and the driver nationality ban was limiting the ability of cargo owners to collect and move their boxes. Michael Aldwell, executive vice president of sea logistics at Kuehne + Nagel, acknowledged that trucking capacity was a challenge, but said the forwarder had a road network in place before the conflict that it was able to utilize. Priority was being given to transporting healthcare and perishable cargo into the Middle East. “To keep cargo moving, we are working on solutions to find alternative gateways and corridors with trucks into the Persian Gulf markets, such as cross-border trucking between Sohar or Khor Fakkan, and via Mersin (Turkey) or Aqaba (Jordan),” Aldwell told the Journal of Commerce. “We are also implementing air-road solutions via airports in Saudi Arabia (Jeddah) and Oman (Salalah) with cross-border trucking to the UAE, Qatar, Bahrain and Kuwait,” he added. Contact Greg Knowler at greg.knowler@spglobal.com .

Drone strike closes key Middle East transit hub of Salalah

<div class="phx-topic abstract-wrapper">Total transit collapse and escalating infrastructure threats are forcing project cargo shippers to step up their contingency planning. </div>

Total transit collapse and escalating infrastructure threats are forcing project cargo shippers to step up their contingency planning.

<div class="phx-topic">The near-total closure of the Strait of Hormuz amid the war in the Middle East will haunt global breakbulk and project markets long after the final missiles are fired, sector specialists say. Speaking during a March 26 Journal of Commerce webcast, José Enrique Sevilla-Macip, senior research analyst for Latin America Country Risk at S&amp;P Global Market Intelligence, said there had been a 97% decrease in transits across the Strait of Hormuz over the past 25 days, noting that on March 25, for the first time since the conflict began, not a single vessel crossed the waterway. The paralysis is triggering a shift from initial price shocks to actual physical shortages of fuel and goods. On the ground, the logistics of moving breakbulk and project cargo goods has become a balancing act of cancellations and rerouting. Marc Cowie, CEO for North America at project cargo forwarder Trans Global Projects (TGP), said that many carriers are refusing to even quote for cargo entering the war region due to skyrocketing insurance premiums. The disruption is also creating a "lag impact" that will persist for months. "There will undoubtedly be ships out of position, cargo out of position, and there's going to be a knock-on effect," Cowie said on the webcast. "It's going to take some time to get back to normality.” For panelist Christian Ohlrich, global director for logistics at energy storage products manufacturer Fluence Energy, the crisis is manifesting most acutely in the energy sector. He described the "fuel shock" as a primary concern, with bunker supplies depleting rapidly, particularly in Asia. This has led to a chaotic environment for manufacturing and project execution. ”It’s creating quite some havoc,” Ohlrich said. “It’s crunching schedules. It’s increasing costs.” He noted that while larger projects can still attract the necessary multipurpose vessels, smaller, less “enticing” shipments are being delayed by weeks. That is not, however, stopping Fluence’s project operations. “We have plenty of buffers,” Ohlrich said. “I'm still making all my commitments. It's just changing the flow of project execution.” This includes changing internal team arrangements to meet the sequence of a project. “It's an inconvenience rather than a hindrance,” he said. <h3>Oil prices expected to remain elevated </h3>The bunker fuel shortage is unlikely to ease in the short term. Sevilla-Macip expects oil prices to remain above $100 per barrel for at least the next month, though he holds out hope they could return to $60 by year-end if hostilities cease soon. However, the path to peace is cluttered with "signposts" of further escalation, he said. These include potential Iranian attacks on US aircraft, the involvement of Tehran-backed Houthi militants in the Bab-el-Mandeb Strait, or the targeting of critical civilian infrastructure like desalination plants. In the face of this volatility, the advice from project shippers and forwarders is a mix of tactical flexibility and rigorous planning. TGP’s Cowie urged shippers to work in close partnership with forwarders to find alternative routes or modes, such as trucking cargo across the Arabian Peninsula to safer ports. ”We have to remain flexible, remain calm,” Cowie said. “Logistics is about challenges. It is about overcoming those challenges.” Ohlrich echoed that, stressing the need for better foresight. ”Tighten up your planning and forecasting as much as possible,” he advised the webcast. “The better you can plan ahead, especially in situations where you see these kinds of disruptions, the better.” Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

The near-total closure of the Strait of Hormuz amid the war in the Middle East will haunt global breakbulk and project markets long after the final missiles are fired, sector specialists say. Speaking during a March 26 Journal of Commerce webcast, José Enrique Sevilla-Macip, senior research analyst for Latin America Country Risk at S&P Global Market Intelligence, said there had been a 97% decrease in transits across the Strait of Hormuz over the past 25 days, noting that on March 25, for the first time since the conflict began, not a single vessel crossed the waterway. The paralysis is triggering a shift from initial price shocks to actual physical shortages of fuel and goods. On the ground, the logistics of moving breakbulk and project cargo goods has become a balancing act of cancellations and rerouting. Marc Cowie, CEO for North America at project cargo forwarder Trans Global Projects (TGP), said that many carriers are refusing to even quote for cargo entering the war region due to skyrocketing insurance premiums. The disruption is also creating a "lag impact" that will persist for months. "There will undoubtedly be ships out of position, cargo out of position, and there's going to be a knock-on effect," Cowie said on the webcast. "It's going to take some time to get back to normality.” For panelist Christian Ohlrich, global director for logistics at energy storage products manufacturer Fluence Energy, the crisis is manifesting most acutely in the energy sector. He described the "fuel shock" as a primary concern, with bunker supplies depleting rapidly, particularly in Asia. This has led to a chaotic environment for manufacturing and project execution. ”It’s creating quite some havoc,” Ohlrich said. “It’s crunching schedules. It’s increasing costs.” He noted that while larger projects can still attract the necessary multipurpose vessels, smaller, less “enticing” shipments are being delayed by weeks. That is not, however, stopping Fluence’s project operations. “We have plenty of buffers,” Ohlrich said. “I'm still making all my commitments. It's just changing the flow of project execution.” This includes changing internal team arrangements to meet the sequence of a project. “It's an inconvenience rather than a hindrance,” he said. Oil prices expected to remain elevated The bunker fuel shortage is unlikely to ease in the short term. Sevilla-Macip expects oil prices to remain above $100 per barrel for at least the next month, though he holds out hope they could return to $60 by year-end if hostilities cease soon. However, the path to peace is cluttered with "signposts" of further escalation, he said. These include potential Iranian attacks on US aircraft, the involvement of Tehran-backed Houthi militants in the Bab-el-Mandeb Strait, or the targeting of critical civilian infrastructure like desalination plants. In the face of this volatility, the advice from project shippers and forwarders is a mix of tactical flexibility and rigorous planning. TGP’s Cowie urged shippers to work in close partnership with forwarders to find alternative routes or modes, such as trucking cargo across the Arabian Peninsula to safer ports. ”We have to remain flexible, remain calm,” Cowie said. “Logistics is about challenges. It is about overcoming those challenges.” Ohlrich echoed that, stressing the need for better foresight. ”Tighten up your planning and forecasting as much as possible,” he advised the webcast. “The better you can plan ahead, especially in situations where you see these kinds of disruptions, the better.” Contact Carly Fields at carly.fields@spglobal.com .

Hormuz closure triggers ‘havoc’ for project logistics supply chain

<div class="phx-topic abstract-wrapper">Agency Chairman Laura DiBella said the “intensified inspections” of the vessels appear to be retaliation for Panama canceling the port concessions held at Balboa and Cristóbal by a subsidiary of Hong Kong-based Hutchison. </div>

Agency Chairman Laura DiBella said the “intensified inspections” of the vessels appear to be retaliation for Panama canceling the port concessions held at Balboa and Cristóbal by a subsidiary of Hong Kong-based Hutchison.

<div class="phx-topic">The US Federal Maritime Commission (FMC) is “closely monitoring” an apparent “surge” in detentions of Panama-flag ships by Chinese port authorities and the effect it could have on US container trade, according to the agency’s chairman. Laura DiBella says the moves appear to be retaliation <a href="https://www.joc.com/article/panama-court-voids-ck-hutchison-canal-terminal-leases-6161145">for the Panamanian Supreme Court recently nullifying</a> the operating concessions at Panama’s Balboa and Cristóbal ports that were held for 28 years by Panama Ports Company (PPC), which is 90% owned by Hong Kong-based conglomerate CK Hutchison Holdings. DiBella, in a statement Thursday she said represented her views and not the FMC’s, said the detentions of Panama-flag ships in Chinese ports far exceed “historical norms.” “These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets,” she said. “Given that Panama‑flagged ships carry a meaningful share of US containerized trade, these actions could result in significant commercial and strategic consequences to US shipping.” DiBella did not say the FMC was doing anything other than monitoring the situation, but noted the agency’s laws give it authority to investigate “whether regulations or practices of foreign governments result in conditions unfavorable to shipping in the foreign trade of the United States.” With PPC removed from its operatorship, Maersk’s APM Terminals <a href="https://www.joc.com/article/maersk-msc-units-begin-interim-management-of-panama-canal-terminals-6175167">was given a transitory concession contract</a> for the Balboa terminal on the Pacific side of the Panama Canal by the Panama Maritime Authority (PMA), while MSC’s Terminal Investment Limited was given the same for Cristóbal on the Atlantic coast. Both contracts are for 18 months. Hutchison has responded by <a href="https://www.joc.com/article/hutchison-seeks-2-billion-in-damages-from-panama-after-terminal-deal-canceled-6183273">filing an international arbitration claim</a> against the Panamanian government and PMA in which it seeks more than $2 billion in damages. China’s Cosco Shipping Lines earlier this month <a href="https://www.joc.com/article/cosco-halts-balboa-calls-in-latest-twist-over-panama-port-row-6185309">halted calls at Balboa</a> and instead is redirecting its services to Manzanillo on the Atlantic side of the canal. Contact Kevin Saville at <a href="mailto:kevin.saville2@spglobal.com">kevin.saville2@spglobal.com</a>. </div>

The US Federal Maritime Commission (FMC) is “closely monitoring” an apparent “surge” in detentions of Panama-flag ships by Chinese port authorities and the effect it could have on US container trade, according to the agency’s chairman. Laura DiBella says the moves appear to be retaliation for the Panamanian Supreme Court recently nullifying the operating concessions at Panama’s Balboa and Cristóbal ports that were held for 28 years by Panama Ports Company (PPC), which is 90% owned by Hong Kong-based conglomerate CK Hutchison Holdings. DiBella, in a statement Thursday she said represented her views and not the FMC’s, said the detentions of Panama-flag ships in Chinese ports far exceed “historical norms.” “These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets,” she said. “Given that Panama‑flagged ships carry a meaningful share of US containerized trade, these actions could result in significant commercial and strategic consequences to US shipping.” DiBella did not say the FMC was doing anything other than monitoring the situation, but noted the agency’s laws give it authority to investigate “whether regulations or practices of foreign governments result in conditions unfavorable to shipping in the foreign trade of the United States.” With PPC removed from its operatorship, Maersk’s APM Terminals was given a transitory concession contract for the Balboa terminal on the Pacific side of the Panama Canal by the Panama Maritime Authority (PMA), while MSC’s Terminal Investment Limited was given the same for Cristóbal on the Atlantic coast. Both contracts are for 18 months. Hutchison has responded by filing an international arbitration claim against the Panamanian government and PMA in which it seeks more than $2 billion in damages. China’s Cosco Shipping Lines earlier this month halted calls at Balboa and instead is redirecting its services to Manzanillo on the Atlantic side of the canal. Contact Kevin Saville at kevin.saville2@spglobal.com .

FMC ‘monitoring’ recent detention of Panama-flag ships at Chinese ports

<div class="phx-topic abstract-wrapper">Wary of potential US actions to undermine the agreement, EU lawmakers inserted three clauses into the deal that provide “strong and clear safeguards.”</div>

Wary of potential US actions to undermine the agreement, EU lawmakers inserted three clauses into the deal that provide “strong and clear safeguards.”

<div class="phx-topic">The European Union has approved a trade deal with the US that was agreed to last year, but set conditions aimed at protecting the European Commission from the frequent and unpredictable adjustments of US President Donald Trump’s tariffs. Members of the European Parliament (MEPs) on Thursday <a href="https://www.europarl.europa.eu/news/en/press-room/20260323IPR38830/eu-us-trade-deal-meps-set-conditions-for-lowering-tariffs-on-us-products">approved the EU-US Turnberry</a> trade deal that was struck in July last year but delayed as tensions between the two parties rose over Trump’s musings about a proposed US takeover of Greenland. Wary of potential US action to undermine the agreement, the EU lawmakers inserted three clauses into the deal — the “suspension clause,” “sunrise clause,” and “sunset clause” — that German MEP Bernd Lange said would be “firmly” defended. “MEPs will only be able to sign up to the trade terms of the deal if the regulation contains very strong and clear safeguards, and only after the US has fully respected the terms of the deal,” Lange said in a statement. “They include a sunrise clause requiring full US compliance before the regulation can take effect, and a sunset clause ensuring full parliamentary oversight of any extension of the concessions, all the while remaining World Trade Organization-compliant,” he added. Lange warned that any further tariff threats from the US, or failure of the deal to deliver for EU producers and consumers, would lead to the expiry of the legislation. “I intend to defend this mandate firmly in the negotiations,” he said. The trade deal now requires agreement from member states, and if passed as is, will set tariffs at 15% for most EU goods, down from the threatened 30%, in exchange for European investment in the US and the removal of EU import duties on US industrial goods. It will also give preferential European market access for a wide range of US seafood and agricultural goods. In a “safeguard mechanism,” the European Commission will be tasked with monitoring the impact of the new rules and will be able to suspend the new tariffs temporarily “should US imports reach a level that could cause serious harm to EU industry, for instance in the event of a 10% increase in imports of a particular group of products,” the statement said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The European Union has approved a trade deal with the US that was agreed to last year, but set conditions aimed at protecting the European Commission from the frequent and unpredictable adjustments of US President Donald Trump’s tariffs. Members of the European Parliament (MEPs) on Thursday approved the EU-US Turnberry trade deal that was struck in July last year but delayed as tensions between the two parties rose over Trump’s musings about a proposed US takeover of Greenland. Wary of potential US action to undermine the agreement, the EU lawmakers inserted three clauses into the deal — the “suspension clause,” “sunrise clause,” and “sunset clause” — that German MEP Bernd Lange said would be “firmly” defended. “MEPs will only be able to sign up to the trade terms of the deal if the regulation contains very strong and clear safeguards, and only after the US has fully respected the terms of the deal,” Lange said in a statement. “They include a sunrise clause requiring full US compliance before the regulation can take effect, and a sunset clause ensuring full parliamentary oversight of any extension of the concessions, all the while remaining World Trade Organization-compliant,” he added. Lange warned that any further tariff threats from the US, or failure of the deal to deliver for EU producers and consumers, would lead to the expiry of the legislation. “I intend to defend this mandate firmly in the negotiations,” he said. The trade deal now requires agreement from member states, and if passed as is, will set tariffs at 15% for most EU goods, down from the threatened 30%, in exchange for European investment in the US and the removal of EU import duties on US industrial goods. It will also give preferential European market access for a wide range of US seafood and agricultural goods. In a “safeguard mechanism,” the European Commission will be tasked with monitoring the impact of the new rules and will be able to suspend the new tariffs temporarily “should US imports reach a level that could cause serious harm to EU industry, for instance in the event of a 10% increase in imports of a particular group of products,” the statement said. Contact Greg Knowler at greg.knowler@spglobal.com .

Europe Union approves US trade deal, but sets firm conditions

<div class="phx-topic abstract-wrapper">The deals come as regional rate indexes are trending at multi-month highs for key markets including Southeast Asia, South Korea, Japan and China.</div>

The deals come as regional rate indexes are trending at multi-month highs for key markets including Southeast Asia, South Korea, Japan and China.

<div class="phx-topic">Intra-Asia carriers, buoyed by higher rates and consistent demand, have placed a flurry of new vessel orders over the past month totaling more than $1 billion. The deals come as regional rate indexes produced by the Shanghai Shipping Exchange (SSE) and Korea Ocean Business Corporation (KOBC) are trending at multi-month highs for key markets including Southeast Asia, South Korea, Japan and China. Rates from Shanghai to South Korea of $164 per TEU are the highest since July 2024, according to SSE data carried on the Journal of Commerce’s Gateway platform. SSE data also shows that although Shanghai-Singapore rates have fallen from a pre-Lunar New Year peak in December and January, at $500/TEU they are still higher now than they were between February and October of last year. KOBC’s Korea-China index is at its highest since August 2023, while its Korea-Southeast Asia index is at its highest since last July. That comes as intra-Asia container volumes are expected to grow by about 3% this year following last year’s 5% increase to almost 50 million TEUs, solidifying the region’s position as the world’s biggest container shipping market. China and Vietnam remain the biggest regional trade lane, with volumes growing 16% last year to 2.8 million TEUs, according to maritime consultancy Drewry. <h3>SITC orders six vessels to expand owned fleet </h3>The growth in the intra-Asia trade was highlighted by Hong Kong-listed SITC on Thursday, which said it was ordering six 1,100-TEU vessels to expand its owned fleet of container ships to meet increasing demand. That came after it saw an 8% increase in container volumes last year to almost 3.9 million TEUs, while average freight rates rose 4.5% to $753/TEU. The carrier said the ships, costing $137 million in total, would be built by Jiangsu Yangzi Hongyuan Shipbuilding Co. and Jiangsu New Yangzi Shipbuilding Co., both subsidiaries of China’s largest privately owned shipyard, Yangzijiang Shipbuilding. The ships will be delivered between March and August 2028, SITC said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="5439cd86-4e96-4e60-8206-85350f1635ec"></dynamic-object></div>SITC is the biggest intra-Asia container line in terms of capacity, with a fleet of 119 ships totaling 184,961 TEUs that ranks 14th largest globally, according to Alphaliner. Fellow Hong Kong-listed regional carrier TS Lines also highlighted Asia-Pacific growth opportunities for its decision to order six 2,900-TEU ships at a total cost of $253 million from Fujian Mawei Shipbuilding and Xiamen Shipbuilding Industry Co. The ships would also strengthen the carrier’s ability to provide more frequent services and help it achieve long-term cost advantages, the carrier said in an announcement confirming the orders on March 20. The ships are scheduled for delivery in June and August 2028 and May 2029. Two South Korean carriers — Korea Marine Transport Company (KMTC) and HMM — are also expanding their regional fleets. KMTC said it has ordered six 1,800-TEU ships at a cost of $259 million from HD Hyundai (Medium) that are expected to increase its fleet to more than 70 ships with total capacity of over 165,000 TEUs. The new vessels will be delivered between August 2027 and June 2028. HMM, meanwhile, placed a $168 million order this month, also with HD Hyundai (Medium), for three 2,800-TEU ships that will join the carrier’s regional fleet in June, August, and October 2027. China’s Shanghai Jinjiang Shipping (JJ Shipping) confirmed on March 10 it had contracted Jiangsu New Yangzi Shipbuilding to build up to eight 1,900-TEU ships costing a combined $240 million. The ships will be deployed on Southeast Asia services upon delivery between June 2028 and July 2029. Separately, Indonesia-headquartered, Singapore-listed Samudera Shipping said it would launch operations at its regional Blue Ocean Shipping joint venture in Japan with Imoto Lines shortly following the delivery of two container ships on March 17. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Intra-Asia carriers, buoyed by higher rates and consistent demand, have placed a flurry of new vessel orders over the past month totaling more than $1 billion. The deals come as regional rate indexes produced by the Shanghai Shipping Exchange (SSE) and Korea Ocean Business Corporation (KOBC) are trending at multi-month highs for key markets including Southeast Asia, South Korea, Japan and China. Rates from Shanghai to South Korea of $164 per TEU are the highest since July 2024, according to SSE data carried on the Journal of Commerce’s Gateway platform. SSE data also shows that although Shanghai-Singapore rates have fallen from a pre-Lunar New Year peak in December and January, at $500/TEU they are still higher now than they were between February and October of last year. KOBC’s Korea-China index is at its highest since August 2023, while its Korea-Southeast Asia index is at its highest since last July. That comes as intra-Asia container volumes are expected to grow by about 3% this year following last year’s 5% increase to almost 50 million TEUs, solidifying the region’s position as the world’s biggest container shipping market. China and Vietnam remain the biggest regional trade lane, with volumes growing 16% last year to 2.8 million TEUs, according to maritime consultancy Drewry. SITC orders six vessels to expand owned fleet The growth in the intra-Asia trade was highlighted by Hong Kong-listed SITC on Thursday, which said it was ordering six 1,100-TEU vessels to expand its owned fleet of container ships to meet increasing demand. That came after it saw an 8% increase in container volumes last year to almost 3.9 million TEUs, while average freight rates rose 4.5% to $753/TEU. The carrier said the ships, costing $137 million in total, would be built by Jiangsu Yangzi Hongyuan Shipbuilding Co. and Jiangsu New Yangzi Shipbuilding Co., both subsidiaries of China’s largest privately owned shipyard, Yangzijiang Shipbuilding. The ships will be delivered between March and August 2028, SITC said. SITC is the biggest intra-Asia container line in terms of capacity, with a fleet of 119 ships totaling 184,961 TEUs that ranks 14th largest globally, according to Alphaliner. Fellow Hong Kong-listed regional carrier TS Lines also highlighted Asia-Pacific growth opportunities for its decision to order six 2,900-TEU ships at a total cost of $253 million from Fujian Mawei Shipbuilding and Xiamen Shipbuilding Industry Co. The ships would also strengthen the carrier’s ability to provide more frequent services and help it achieve long-term cost advantages, the carrier said in an announcement confirming the orders on March 20. The ships are scheduled for delivery in June and August 2028 and May 2029. Two South Korean carriers — Korea Marine Transport Company (KMTC) and HMM — are also expanding their regional fleets. KMTC said it has ordered six 1,800-TEU ships at a cost of $259 million from HD Hyundai (Medium) that are expected to increase its fleet to more than 70 ships with total capacity of over 165,000 TEUs. The new vessels will be delivered between August 2027 and June 2028. HMM, meanwhile, placed a $168 million order this month, also with HD Hyundai (Medium), for three 2,800-TEU ships that will join the carrier’s regional fleet in June, August, and October 2027. China’s Shanghai Jinjiang Shipping (JJ Shipping) confirmed on March 10 it had contracted Jiangsu New Yangzi Shipbuilding to build up to eight 1,900-TEU ships costing a combined $240 million. The ships will be deployed on Southeast Asia services upon delivery between June 2028 and July 2029. Separately, Indonesia-headquartered, Singapore-listed Samudera Shipping said it would launch operations at its regional Blue Ocean Shipping joint venture in Japan with Imoto Lines shortly following the delivery of two container ships on March 17. Contact Keith Wallis at keithwallis@hotmail.com .

Intra-Asia carriers spend $1 billion on new ships amid buoyant trade, rate growth

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