Maritime

Breakbulk and project cargo industry stakeholders must take note of the far-reaching potential ramifications of the recently reintroduced US SHIPS Act, writes Associate Editor Carly Fields.

Greater interplay between US drayage and truckload markets may appear as imports fluctuate due to shifting tariff deadlines, but little impact is expected on pricing.

MSC plans to provide all of the tonnage in a US Gulf service, with Zim slated to get a lower share of slot space as weaker demand forces service changes.

The carriers want to raise prices by more than 50% in a bid to stem the slide in rates that began at the end of December and is showing no signs of slowing.

With less than half of CMA CGM’s fleet built in China, CFO Ramon Fernandez believes US services can be structured to avoid the incoming tonnage fees.

The Denmark-based carrier has been growing its multipurpose vessel fleet since entering the project cargo sector with the acquisition of Thorco Projects in 2023.

Caterpillar and Deere are counting the sizable costs of tariff-related expenses, even with the announced 90-day tariff pause between the US and China.

Container lines are looking to capitalize on a ramp-up in Asia-US bookings during the 90-day tariff reduction that followed Monday’s deal between the Trump administration and China.

Industry backlash mitigated the costliest components of the US Trade Representative’s proposed fees, but surcharges from some carriers are still likely on the way, writes Executive Editor Mark Szakonyi.

Rates are climbing quickly amid fresh Chinese volumes headed to the US, with an expected crunch in vessel capacity and the potential for port congestion driving the gains. 

The canal agency highlighted data that refutes Trump administration claims about unfair treatment at the waterway, while the International Chamber of Shipping said freedom of navigation is a global responsibility.

On top of the persistent pressure of overcapacity and muted demand, industry sources have also linked the market softening to the historical seasonal pattern of the Indian export trade.

The predicted rush to get US imports from China on the water has begun as shippers take advantage of the 90-day cut in tariffs, according to CEO Rolf Habben Jansen.

The carrier was commenting after reporting its first-quarter results along with Taiwan’s other two mainline carriers, Evergreen Marine and Wan Hai Lines.

Wallenius Wilhelmsen, the world’s largest car carrier operator, said its vessels make between 300 and 350 voyages a year to the US, potentially generating annual voyage fees of about $300 million.

The investment will increase the Port of Caucedo’s capacity by 24% while expanding an adjacent Free Trade Zone, the terminal operator said.

Much of the volume that has been locked up over the past month will come flooding back into the market after Washington and Beijing agreed to significantly slash their respective tariffs for 90 days.

Despite a ceasefire announced over the weekend between India and Pakistan, the combined impact of the recent tensions and enhanced port security protocols has left container supply chains out of India’s west coast corridor in a state of flux.

The National Retail Federation also warned the negative growth will accelerate, with imports through the summer expected to be at least 20% lower than the corresponding month last year. 

There remains no guarantee of safety for ships, crew and cargo passing through the waterway, which means it would likely be out of bounds for the rest of the year, says CEO Vincent Clerc.

The tight supply of warehousing for frontloaded freight is diverting truck shipments as shippers reposition inventory.

The main heavy-lift components needed for datacenters are cooling infrastructure such as large-scale air conditioners and backup power infrastructure such as batteries, diesel generators and transformers.

Importers in the US are rewiring their supply chains and drawing extra inventory from Canada, Mexico and domestically in a “wait and see” response to the trans-Pacific trade war, according to Vincent Clerc.

Sources anticipate the additional rerouting costs in the region will force other ocean carriers to follow suit on similar surcharges.

The world’s largest shipping company said Wednesday the service suspensions and network changes were “in response to the recent changes in demand for cargo transport from Asia to the US.”

Stephen Carmel’s nomination to lead the agency comes after the White House withdrew previous nominee Brent Sadler from consideration for the post.

US imports rebounded to a record high in 2024 amid widespread frontloading, while exports expanded slightly for the second straight year.

A slip in a key sentiment index reveals the MPV sector’s vulnerability to general market uncertainty, but operators remain optimistic that the cargo pipeline is still robust.

With the status of a federal multimodal freight network unclear, heavy haulers are forging ahead with their own push for processes, highway improvements and infrastructure specific to the transport of oversized and overweight loads.

A divergence from the weakening container sector has seen the MPV trade hold steady, although the potential for a breakbulk cargo grab by container lines cannot be discounted.

PSA BDP acquired a majority stake in Mexico-based forwarder ED International, expanding PSA’s cross-border forwarding network.

The freeing up of vessel capacity that has been diverted around southern Africa for the past 18 months could inject as much as 2 million TEUs of functional capacity into the global container shipping market.

The forwarder offered an unsettled outlook for the trans-Pacific in 2025 as shippers navigate the Trump administration’s 145% tariffs on goods made in China.

While the Jones Act carrier added another service from Vietnam in the first quarter, it says volumes from that country won’t replace what’s lost from China.

Interest in FTZs, where shippers can store goods while deferring the payment of duties, has increased dramatically since President Donald Trump implemented tariffs in April.

A swing from renewables to fossil fuels in the US and new opportunities for wind cargoes internationally could overhaul traditional MPV trade lanes over time.

The restrictions have “effectively” made direct vessel calls to either Karachi or Port Qasim on India services operationally impossible, according to major container lines.

Paper and forest product exports climbed for the first time in more than five years in 2024, but various headwinds will challenge demand in 2025.

The broader goal of NYSHEX’s new container index is to provide rate information that will support the use of hedging tools for shippers, NVOs and carriers against increased volatility.

While ongoing port congestion in North Europe and longer voyages around the Cape of Good Hope will help to absorb incoming vessels, it will also leave the trade lane open to volatile shifts in capacity that cannot be planned for, a Journal of Commerce webinar was told.