<div class="phx-topic abstract-wrapper"><p>A new joint venture between Compagnie Generale Maritime, France's largest shipping company, and Sofr</p></div>

A new joint venture between Compagnie Generale Maritime, France's largest shipping company, and Sofr

<div><p>A new joint venture between Compagnie Generale Maritime, France's largest shipping company, and Sofrana Unilines SA has purchased Pacific Australian Direct Line from the Transatlantic Group of Sweden for an undisclosed price.</p><p></p><p></p><p>The PAD Line route between the U.S. West Coast and Australia-New Zealand was the only missing link in the world network operated by CGM, a member of the Atlantic Container Line serving the trade between the U.S. East Coast and northern Europe.The joint venture, PAD Line Overseas SA, is equally owned by CGM and Sofrana. It will continue to participate in the Australian New Zealand Direct Line consortium with...

A new joint venture between Compagnie Generale Maritime, France's largest shipping company, and Sofrana Unilines SA has purchased Pacific Australian Direct Line from the Transatlantic Group of Sweden for an undisclosed price. The PAD Line route between the U.S. West Coast and Australia-New Zealand was the only missing link in the world network operated by CGM, a member of the Atlantic Container Line serving the trade between the U.S. East Coast and northern Europe.The joint venture, PAD Line Overseas SA, is equally owned by CGM and Sofrana. It will continue to participate in the Australian New Zealand Direct Line consortium with the New Zealand Shipping Co. ANZDL officials in California declined to comment on the deal. CGM's partnership with Sofrana, a New Zealand-based carrier that is 40 percent owned by France's second-largest shipping company, Delmas-Vieljeux , involves only the PAD Line business. In a separate deal, CGM has purchased three roll-on roll-off vessels from PAD Line. It will transfer the two that have been operating on Australia-New Zealand route to its Europe-French Polynesia/New Caledonia route, and replace them with chartered ships. PAD Line's third roll-on roll-off ship, which now operates on the Europe- South Africa route, will join the other two. The four vessels now on the Europe-Polynesia run will be placed on the international market after a change of flag. Gilbert Massac, CGM's strategy and development director, said no decision has yet been made on whether to charter container, roll-on roll-off or breakbulk ships for the new service. Various combinations are possible, he said. But we will decide shortly, as we plan to withdraw the vessels within the next three months. CGM reportedly paid 180 million francs (about $32 million) for the three ships.

Maritime

CGM-SOFRANA VENTURE BUYS PAD LINE

<div class="phx-topic abstract-wrapper"><p>The carrier has finalized plans to inject significant incremental westbound capacity into the market on its “MECL” service, multiple industry sources told the <i>Journal of Commerce</i>. </p></div>

The carrier has finalized plans to inject significant incremental westbound capacity into the market on its “MECL” service, multiple industry sources told the Journal of Commerce.

Feature image

<div class="phx-topic"><p>More container capacity is poised to enter the India-US trade lane as carrier executives spot measurable green shoots of volume after the <a href="https://www.joc.com/article/us-agrees-to-slash-tariffs-on-imports-from-india-after-reaching-trade-deal-6162939">recent reset of US tariffs on Indian-made goods</a>. </p><p>Maersk has finalized plans to inject significant incremental westbound capacity into the market through vessel upsizing on its West India-US East Coast (USEC) “MECL” service, multiple industry sources told the <i>Journal of Commerce</i>. That comes as the US has lowered its tariff on Indian goods from 50% to 25%, with a further cut to 18% expected soon.  </p><p>Sources also confirmed that Maersk’s loading space for the Indian region will climb sequentially by up to 3,000 TEUs per week through the year, beginning with an extra 750 TEUS to 800 TEUs of capacity joining the MECL service in the second quarter that typically aligns with the onset of new service contract shipments.  </p><p>The weekly MECL service currently deploys ships with capacities ranging between 6,000 TEUS and 8,000 TEUs, available data shows.  </p><p>A Maersk executive declined to confirm specifics of the carrier’s planned capacity boost on the India-US trade but acknowledged cargo flows would increase on the lane soon. </p><p>“Based on our read of the market, we expect meaningful new cargo flows to begin materializing from April onwards, as buyers and sellers lock in commitments and production cycles align,” Bhavik Mota, Maersk’s director of regional ocean management for India/Middle East/Africa (IMEA), told the <i>Journal of Commerce</i>. “We will then recalibrate our capacity for India-US trade based on customer requirements.” </p><p>Bhavik also said while exporters across the sectors remain bullish about the demand outlook ahead, tariff realignments and new procurement cycles take time to filter through before containers begin moving. </p><p>“This [tariff] reduction meaningfully improves the economics of doing business across this [India-US] lane, and that sentiment is clearly reflected in the conversations we are having with shippers,” he added. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ae1df54b-4003-46b5-a8c3-e0d35707e941"></dynamic-object></div><p>There were some positive signs even before the trade deal between Washington and New Delhi was announced in early February. Exports from India to the US East Coast climbed 20% to 76,550 TEUs in January from December, the first month-over-month increase since last August, according to PIERS, a sister product of the <i>Journal of Commerce</i> within S&amp;P Global. </p><h3>Spot rates on steady decline </h3><p>With the late-January <a href="https://www.joc.com/article/maersk-set-to-resume-regular-suez-transits-on-india-usec-mecl-loop-sources-6152441">reinstatement of regular Red Sea/Suez Canal transits westbound</a>, the MECL now boasts a 25-day transit from Nhava Sheva to Newark, NJ, currently the fastest connection on offer for Indian loads to the US East Coast. </p><p>Maersk wants to reclaim India-USEC market share lost to rivals over the past decade, so capacity expansions now at play build on service upgrades it implemented last year, including the addition of Mundra as a third Indian port of call to enhance export allocations and the removal of Algeciras in Spain to shorten the roundtrip duration. </p><p>Spot rate indicators and capacity utilization data, however, suggest carriers are struggling thus far to tilt the market back to their side. Booking rates from India to the USEC have almost halved since the 50% tariff blow, down to $1,173 per FEU as of Feb. 18 from $2,200 on Aug. 29, according to Platts, a sister company of the <i>Journal of Commerce</i> within S&amp;P Global. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="893ffa5c-0a69-45c7-a555-425e44318711"></dynamic-object></div><p>Additionally, according to rate benchmarking platform Xeneta, monthly average proforma capacity across seven services on the India-US trade lane between August 2025 and January 2026 was approximately 160,000 TEUs, whereas the nominal monthly average of capacity actually deployed by carriers over the period stood at 127,000 TEUs, blanking approximately 21% of scheduled space. </p><p>And sources warn any large capacity influx could also weigh on carrier contract rate negotiations if there is no matching acceleration in demand. </p><p>Meanwhile, Maersk on Wednesday announced a hefty peak season surcharge of $3,000 per container for loads from the Indian subcontinent/Middle East to the US East/Gulf coasts from March 20. </p><p><i>Contact Bency Mathew at </i><a href="mailto:bencyvmathew@gmail.com"><i>bencyvmathew@gmail.com</i></a><i>.</i> </p></div>

More container capacity is poised to enter the India-US trade lane as carrier executives spot measurable green shoots of volume after the recent reset of US tariffs on Indian-made goods . Maersk has finalized plans to inject significant incremental westbound capacity into the market through vessel upsizing on its West India-US East Coast (USEC) “MECL” service, multiple industry sources told the Journal of Commerce. That comes as the US has lowered its tariff on Indian goods from 50% to 25%, with a further cut to 18% expected soon. Sources also confirmed that Maersk’s loading space for the Indian region will climb sequentially by up to 3,000 TEUs per week through the year, beginning with an extra 750 TEUS to 800 TEUs of capacity joining the MECL service in the second quarter that typically aligns with the onset of new service contract shipments. The weekly MECL service currently deploys ships with capacities ranging between 6,000 TEUS and 8,000 TEUs, available data shows. A Maersk executive declined to confirm specifics of the carrier’s planned capacity boost on the India-US trade but acknowledged cargo flows would increase on the lane soon. “Based on our read of the market, we expect meaningful new cargo flows to begin materializing from April onwards, as buyers and sellers lock in commitments and production cycles align,” Bhavik Mota, Maersk’s director of regional ocean management for India/Middle East/Africa (IMEA), told the Journal of Commerce. “We will then recalibrate our capacity for India-US trade based on customer requirements.” Bhavik also said while exporters across the sectors remain bullish about the demand outlook ahead, tariff realignments and new procurement cycles take time to filter through before containers begin moving. “This [tariff] reduction meaningfully improves the economics of doing business across this [India-US] lane, and that sentiment is clearly reflected in the conversations we are having with shippers,” he added. There were some positive signs even before the trade deal between Washington and New Delhi was announced in early February. Exports from India to the US East Coast climbed 20% to 76,550 TEUs in January from December, the first month-over-month increase since last August, according to PIERS, a sister product of the Journal of Commerce within S&P Global. Spot rates on steady decline With the late-January reinstatement of regular Red Sea/Suez Canal transits westbound , the MECL now boasts a 25-day transit from Nhava Sheva to Newark, NJ, currently the fastest connection on offer for Indian loads to the US East Coast. Maersk wants to reclaim India-USEC market share lost to rivals over the past decade, so capacity expansions now at play build on service upgrades it implemented last year, including the addition of Mundra as a third Indian port of call to enhance export allocations and the removal of Algeciras in Spain to shorten the roundtrip duration. Spot rate indicators and capacity utilization data, however, suggest carriers are struggling thus far to tilt the market back to their side. Booking rates from India to the USEC have almost halved since the 50% tariff blow, down to $1,173 per FEU as of Feb. 18 from $2,200 on Aug. 29, according to Platts, a sister company of the Journal of Commerce within S&P Global. Additionally, according to rate benchmarking platform Xeneta, monthly average proforma capacity across seven services on the India-US trade lane between August 2025 and January 2026 was approximately 160,000 TEUs, whereas the nominal monthly average of capacity actually deployed by carriers over the period stood at 127,000 TEUs, blanking approximately 21% of scheduled space. And sources warn any large capacity influx could also weigh on carrier contract rate negotiations if there is no matching acceleration in demand. Meanwhile, Maersk on Wednesday announced a hefty peak season surcharge of $3,000 per container for loads from the Indian subcontinent/Middle East to the US East/Gulf coasts from March 20. Contact Bency Mathew at bencyvmathew@gmail.com .

Container lines

Trans-Atlantic

Container Shipping News

Maersk to upsize India-USEC capacity to tap post-trade deal cargo growth  

<div class="phx-topic abstract-wrapper"><p>The monthly year-over-year decline in import TEUs landing in Los Angeles and Long Beach over the past half-year isn’t a cargo swoon, but rather a return to normalcy, according to Larry Gross. </p></div>

The monthly year-over-year decline in import TEUs landing in Los Angeles and Long Beach over the past half-year isn’t a cargo swoon, but rather a return to normalcy, according to Larry Gross.

<div class="phx-topic"><p>Import TEUs arriving in Southern California have come in lower than the prior year for six of the past seven months. But a focus solely on the year-over-year comparisons can be misleading. What is taking place is not a cargo swoon; it’s a return to normalcy.  </p><p>The chart below tracks import TEUs arriving in California over the long term. The green bars indicate the number of TEUs arriving each calendar quarter, in millions. Two trendlines are added: a four-quarter moving average that shows the situation on a rolling basis, and the underlying linear trend.  </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6172265_0.1.jpg"></img></div><p>For a decade, from 2010 to 2020, California imports followed a stable pattern, slowly increasing each year. The two trendlines were closely aligned during this period. The turn of the decade ushered in a period of turbulence that has now extended for five years. The region was buffeted by the pandemic and the subsequent cargo surge, labor instability on both the West and East coasts, and the US’ uneven tariff policy over the past year. This has generated large oscillations in the four-quarter moving average.  </p><p>What this very simplistic analysis tells us is that currently, with the distorting effects of external events largely removed, we are seeing a return to trend. </p><p>There are two main sources for the recent volatility. The first is variation in the total TEU imports arriving into the US. The second is changing import routings into the heartland. It is this “jump ball” freight that can utilize a variety of entry ports on both coasts. Insight into what is happening in this regard can be gleaned from looking at inland point intermodal (IPI, or the inland movement of ISO containers via rail) and transloads emerging from California. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="9a3e536e-8629-4568-b52a-ec7ceb01aeec"></dynamic-object></div><p>From the beginning of 2023 to the end of 2024, import TEUs leaving California via IPI grew steadily, from an estimated 445,000 in the first quarter of 2023 to 817,000 in the fourth quarter of 2024, an increase of 84%. Over the same period, import TEUs arriving each quarter grew by “only” 55%. For 2023, about 23% of import TEUs arriving in California exited the state via IPI. In 2024, that rose to 26%, with IPI peaking in the first quarter of 2025 at over 28%. A substantial share of the overall import increase was generated by IPI movements inland from California. </p><p>But after peaking in early 2025, the situation has changed. IPI share has steadily declined since then, with a 25.3% IPI share in the fourth quarter of 2025.  </p><h3>‘Complex’ transloading lags </h3><p>The story is a bit different for transloads. TEUs exiting California in the form of transloads grew by only 28% over the same 2023–25 period during which IPI grew 84%. Approximately 47% of import TEUs arriving in California exited the state as transloads in 2023. By 2025, this figure had fallen to about 40%. Why the difference? Transloading arrangements are much more complex and harder to change than IPI. It is much simpler to change the port of arrival for a container destined to move inland intact than it is to create additional transloading capacity. </p><p>But here again, normalcy is returning. While IPI volume dropped 16% from the third quarter of 2025 to year-end, transload volume increased for the second consecutive quarter, by over 4%. This divergence is normal seasonal behavior that generally sees increased transload share in the fourth quarter, when fast delivery and speed to market are emphasized. </p><p>Looking forward, in the absence of further disruption (a pretty heroic assumption these days), California imports can expect to see some continuing downward pressure as the Red Sea/Suez Canal route continues to gradually open. This will reduce the cost and time involved in East Coast routings and move the economic dividing line between the West Coast and the East Coast a bit further westward. This will potentially cost the West Coast some additional share of the “jump ball” freight. </p><p><i>Larry Gross is president and founder of Gross Transportation Consulting. Contact him at </i><a href="mailto:lawrencejgross@gmail.com"><i>lawrencejgross@gmail.com</i></a><i>.</i> </p></div>

Import TEUs arriving in Southern California have come in lower than the prior year for six of the past seven months. But a focus solely on the year-over-year comparisons can be misleading. What is taking place is not a cargo swoon; it’s a return to normalcy. The chart below tracks import TEUs arriving in California over the long term. The green bars indicate the number of TEUs arriving each calendar quarter, in millions. Two trendlines are added: a four-quarter moving average that shows the situation on a rolling basis, and the underlying linear trend. For a decade, from 2010 to 2020, California imports followed a stable pattern, slowly increasing each year. The two trendlines were closely aligned during this period. The turn of the decade ushered in a period of turbulence that has now extended for five years. The region was buffeted by the pandemic and the subsequent cargo surge, labor instability on both the West and East coasts, and the US’ uneven tariff policy over the past year. This has generated large oscillations in the four-quarter moving average. What this very simplistic analysis tells us is that currently, with the distorting effects of external events largely removed, we are seeing a return to trend. There are two main sources for the recent volatility. The first is variation in the total TEU imports arriving into the US. The second is changing import routings into the heartland. It is this “jump ball” freight that can utilize a variety of entry ports on both coasts. Insight into what is happening in this regard can be gleaned from looking at inland point intermodal (IPI, or the inland movement of ISO containers via rail) and transloads emerging from California. From the beginning of 2023 to the end of 2024, import TEUs leaving California via IPI grew steadily, from an estimated 445,000 in the first quarter of 2023 to 817,000 in the fourth quarter of 2024, an increase of 84%. Over the same period, import TEUs arriving each quarter grew by “only” 55%. For 2023, about 23% of import TEUs arriving in California exited the state via IPI. In 2024, that rose to 26%, with IPI peaking in the first quarter of 2025 at over 28%. A substantial share of the overall import increase was generated by IPI movements inland from California. But after peaking in early 2025, the situation has changed. IPI share has steadily declined since then, with a 25.3% IPI share in the fourth quarter of 2025. ‘Complex’ transloading lags The story is a bit different for transloads. TEUs exiting California in the form of transloads grew by only 28% over the same 2023–25 period during which IPI grew 84%. Approximately 47% of import TEUs arriving in California exited the state as transloads in 2023. By 2025, this figure had fallen to about 40%. Why the difference? Transloading arrangements are much more complex and harder to change than IPI. It is much simpler to change the port of arrival for a container destined to move inland intact than it is to create additional transloading capacity. But here again, normalcy is returning. While IPI volume dropped 16% from the third quarter of 2025 to year-end, transload volume increased for the second consecutive quarter, by over 4%. This divergence is normal seasonal behavior that generally sees increased transload share in the fourth quarter, when fast delivery and speed to market are emphasized. Looking forward, in the absence of further disruption (a pretty heroic assumption these days), California imports can expect to see some continuing downward pressure as the Red Sea/Suez Canal route continues to gradually open. This will reduce the cost and time involved in East Coast routings and move the economic dividing line between the West Coast and the East Coast a bit further westward. This will potentially cost the West Coast some additional share of the “jump ball” freight. Larry Gross is president and founder of Gross Transportation Consulting. Contact him at lawrencejgross@gmail.com .

Surface

North American ports

North-American rail

Southern California imports ‘return to trend’ after lengthy period of turbulence

<div class="phx-topic abstract-wrapper"><p>If trucking rates remain elevated into the spring, carriers will likely move to push prices higher on new and existing contracts in the second half of the year.</p></div>

If trucking rates remain elevated into the spring, carriers will likely move to push prices higher on new and existing contracts in the second half of the year.

<div class="phx-topic"><p>US trucking executives are beginning to feel better about the state of the freight economy, hoping tighter capacity will lead to higher rates and, ultimately, an end to the long freight recession.  </p><p>The increasingly upbeat mood comes as spot dry-van rates, as compiled by DAT Freight and Analytics, remain elevated compared with a year ago, even after the disruptive winter weather of January subsided. The average rate, excluding fuel, on DAT’s top 50 US lanes has hovered near $2.30 per mile this month, up 18% to 20% compared with the same period a year ago. </p><p>Adam Miller, CEO of Knight-Swift Transportation, told the <i>Journal of Commerce</i> that the market is balanced between carriers and shippers. He noted that the reaction to the winter storms and frigid temperatures last month were in stark contrast to January 2025, when a similar snowstorm had zero impact on spot market rates. </p><p>“It kind of feels like a little bit of Goldilocks right now,” Miller said. “Inflation seems to be under control. I think it’s positioning for demand to see some life because it’s been relatively muted. While capacity continues to exit, I think that puts the supply-demand relationship in a much better position [for trucking companies].” </p><p>The snow and ice from the heavy winter storm that blanketed a large portion of the US in late January are melting, and trucks that were sidelined are now back in business.  </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="f7dc31b8-1e1c-4a59-907f-2391c69d4e9f"></dynamic-object></div><p>Trucking executives say there is a feeling that the next two or three weeks will indicate whether this is really the beginning of the end of the three-year freight recession, something that could determine if trucking companies can push contract rate increases on shippers in the coming months.  </p><p>“The farther we can get from storms, if we continue to see that strength, then it’s going to feel a little bit different this year than the last few years,” Brad Hicks, president of Dedicated Contract Services at J.B. Hunt, said Tuesday at Barclays’ Annual Industrial Select Conference in Miami. “We have had a lot of disruptions from winter weather. We’ve had a lot of customer meetings over the last several weeks, and I would say it should be no surprise that no customer is raising their hands saying, ‘can’t wait to pay you more.’” </p><h3>Gain in Cass Index for January </h3><p>The Cass Freight Index suggests the changes taking place in the truckload market might be more than a weather disruption. The Cass Truckload Linehaul Index, a measurement of rates, rose 3.2% year over year in January. </p><p>“This index is mostly comprised of contract rates, and anecdotally we hear about more shippers initiating one-year bids, suggesting movement in the cycle beyond just weather effects,” Tim Denoyer, author of the Cass Freight Index, wrote Tuesday. </p><p>The 3.2% hike is consistent with what carrier Werner Enterprises is seeing. </p><p>“Low to mid-single digits on our contract renewals would be really the starting point there,” Chris Neal, Werner’s senior vice president of pricing, said at the Citi Global Industrial Tech &amp; Mobility Conference Tuesday. "We’ve had some good success already early in the year with some of those renewals.” </p><p>Werner CEO Derek Leathers admitted while the winter weather played a role, the recovery is also supply-driven <a href="https://www.joc.com/article/usdot-releases-interim-final-rule-on-non-domiciled-cdl-holders-6169023">as the federal government cracks down on non-domiciled commercial drivers’ licenses</a> and English language proficiency of truckers in the US.  </p><p>“You’re finally starting to see a cleansing of some of the capacity out there that needed to be addressed,” Leathers said at the Citi Global conference. “It’s been mostly supply-driven up until now, and with some signs now of a little bit of demand spark coupled with that, it puts us in a pretty optimistic position.” </p><p><i>Contact Dan Ronan at </i><a href="mailto:contactdanronan@gmail.com"><i>contactdanronan@gmail.com</i></a>.</p></div>

US trucking executives are beginning to feel better about the state of the freight economy, hoping tighter capacity will lead to higher rates and, ultimately, an end to the long freight recession. The increasingly upbeat mood comes as spot dry-van rates, as compiled by DAT Freight and Analytics, remain elevated compared with a year ago, even after the disruptive winter weather of January subsided. The average rate, excluding fuel, on DAT’s top 50 US lanes has hovered near $2.30 per mile this month, up 18% to 20% compared with the same period a year ago. Adam Miller, CEO of Knight-Swift Transportation, told the Journal of Commerce that the market is balanced between carriers and shippers. He noted that the reaction to the winter storms and frigid temperatures last month were in stark contrast to January 2025, when a similar snowstorm had zero impact on spot market rates. “It kind of feels like a little bit of Goldilocks right now,” Miller said. “Inflation seems to be under control. I think it’s positioning for demand to see some life because it’s been relatively muted. While capacity continues to exit, I think that puts the supply-demand relationship in a much better position [for trucking companies].” The snow and ice from the heavy winter storm that blanketed a large portion of the US in late January are melting, and trucks that were sidelined are now back in business. Trucking executives say there is a feeling that the next two or three weeks will indicate whether this is really the beginning of the end of the three-year freight recession, something that could determine if trucking companies can push contract rate increases on shippers in the coming months. “The farther we can get from storms, if we continue to see that strength, then it’s going to feel a little bit different this year than the last few years,” Brad Hicks, president of Dedicated Contract Services at J.B. Hunt, said Tuesday at Barclays’ Annual Industrial Select Conference in Miami. “We have had a lot of disruptions from winter weather. We’ve had a lot of customer meetings over the last several weeks, and I would say it should be no surprise that no customer is raising their hands saying, ‘can’t wait to pay you more.’” Gain in Cass Index for January The Cass Freight Index suggests the changes taking place in the truckload market might be more than a weather disruption. The Cass Truckload Linehaul Index, a measurement of rates, rose 3.2% year over year in January. “This index is mostly comprised of contract rates, and anecdotally we hear about more shippers initiating one-year bids, suggesting movement in the cycle beyond just weather effects,” Tim Denoyer, author of the Cass Freight Index, wrote Tuesday. The 3.2% hike is consistent with what carrier Werner Enterprises is seeing. “Low to mid-single digits on our contract renewals would be really the starting point there,” Chris Neal, Werner’s senior vice president of pricing, said at the Citi Global Industrial Tech & Mobility Conference Tuesday. "We’ve had some good success already early in the year with some of those renewals.” Werner CEO Derek Leathers admitted while the winter weather played a role, the recovery is also supply-driven as the federal government cracks down on non-domiciled commercial drivers’ licenses and English language proficiency of truckers in the US. “You’re finally starting to see a cleansing of some of the capacity out there that needed to be addressed,” Leathers said at the Citi Global conference. “It’s been mostly supply-driven up until now, and with some signs now of a little bit of demand spark coupled with that, it puts us in a pretty optimistic position.” Contact Dan Ronan at contactdanronan@gmail.com .

Trucking News

Truckload

Trucking executives buoyed by market signals as winter exit nears

<div class="phx-topic abstract-wrapper"><p>CEO Rodolphe Saadé said the deal deepened a strategic partnership between the carrier and India that has existed for almost 40 years, adding the liner would also expand its engagement in container manufacturing and ship recycling.</p></div>

CEO Rodolphe Saadé said the deal deepened a strategic partnership between the carrier and India that has existed for almost 40 years, adding the liner would also expand its engagement in container manufacturing and ship recycling.

<div class="phx-topic"><p>CMA CGM has signed a deal with India’s Cochin Shipyard Limited for six dual-fuel liquefied natural gas-powered ships of 1,700-TEU capacity, the carrier announced Wednesday. </p><p>The order was made during a visit to New Delhi by CMA CGM executives that included a pledge to add another 1,500 seafarer recruits to the 1,000 already employed by CMA Ships in the country. </p><p>CMA CGM CEO Rodolphe Saadé said the deal deepened a strategic partnership between the carrier and India that has existed for almost 40 years, noting CMA CGM would also expand its engagement in container manufacturing and ship recycling.  </p><p>“This is fully aligned with Prime Minister Modi’s Maritime Vision 2047 to position India as a major maritime nation,” Saadé said. “As corridors such as India-Middle East-Europe Economic Corridor (IMEC) develop ... CMA CGM stands ready to contribute to this new phase of global trade.”  </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="9a6c3727-a34d-4589-aa4a-e7d495b101d4"></dynamic-object></div><p>In partnership with technology and digital consultant Capgemini, CMA CGM has also established a dedicated research and development (R&amp;D) hub in India, positioning the country as a key global center for innovation within the group. The India R&amp;D hub is involved in developing next-generation digital and AI-enabled solutions that support CMA CGM’s worldwide operations. </p><p>New Delhi in recent years has invested heavily in freight infrastructure modernization through public-private partnerships and pushed digital logistics solutions along with sweeping policy reforms to ease trade processes. </p><p><i>Contact Greg Knowler at </i><a href=""><i>greg.knowler@spglobal.com</i></a><i>.</i>   </p></div>

CMA CGM has signed a deal with India’s Cochin Shipyard Limited for six dual-fuel liquefied natural gas-powered ships of 1,700-TEU capacity, the carrier announced Wednesday. The order was made during a visit to New Delhi by CMA CGM executives that included a pledge to add another 1,500 seafarer recruits to the 1,000 already employed by CMA Ships in the country. CMA CGM CEO Rodolphe Saadé said the deal deepened a strategic partnership between the carrier and India that has existed for almost 40 years, noting CMA CGM would also expand its engagement in container manufacturing and ship recycling. “This is fully aligned with Prime Minister Modi’s Maritime Vision 2047 to position India as a major maritime nation,” Saadé said. “As corridors such as India-Middle East-Europe Economic Corridor (IMEC) develop ... CMA CGM stands ready to contribute to this new phase of global trade.” In partnership with technology and digital consultant Capgemini, CMA CGM has also established a dedicated research and development (R&D) hub in India, positioning the country as a key global center for innovation within the group. The India R&D hub is involved in developing next-generation digital and AI-enabled solutions that support CMA CGM’s worldwide operations. New Delhi in recent years has invested heavily in freight infrastructure modernization through public-private partnerships and pushed digital logistics solutions along with sweeping policy reforms to ease trade processes. Contact Greg Knowler at  greg.knowler@spglobal.com .   

CMA CGM inks order for six dual-fuel LNG ships with India yard

<div class="phx-topic abstract-wrapper"><p>The success of container lines in keeping vessel utilization high by removing functional capacity weakens the network and ups volatility in ocean reliability.</p></div>

The success of container lines in keeping vessel utilization high by removing functional capacity weakens the network and ups volatility in ocean reliability.

<div class="phx-topic"><p>The high level of port-to-port ocean reliability the Gemini Cooperation has delivered since its launch a year ago is pressuring other carriers and alliances to up their game.  </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6172263_0.1.jpg"></img></div><p>Yet the obstacles for ocean carriers to remain profitable are only expanding as liners cycle deeper into overcapacity in the coming years. To protect their profitability, container lines have become better at managing short-term demand and supply and removing functional capacity. Their success in keeping utilization high, paradoxically, weakens the network, said Trine Nielsen, vice president of ocean/global at forwarder Flexport.</p><p>“As ‘micro-events’ [e.g., localized port congestion, labor strikes] are expected to increase due to shifting trade patterns and introducing more mega-ships, we expect network instability to rise,” she said. “In fact, as more capacity enters the market, we anticipate even further instability because we should expect more aggressive capacity management actions by carriers to protect their profitability.” </p><p>Facing congestion at Asia load centers such as Shanghai or Ningbo, ocean carriers may have the vessel omit the port entirely to not throw off the rest of their schedule. In some cases, vessels “swap” calls with one vessel covering Shanghai rather than Ningbo, and vice versa, Nielsen said.  </p><p>“While this maximizes asset utilization and prevents a vessel backlog, it triggers blank sailings and forces customers to deal with rolled cargo and unpredictable transit times,” she said.  </p><h3>Obstacles to reliability ratchet up  </h3><p>Port productivity globally is worsening, with S&amp;P Global’s Container Port Performance Index falling from a reading of 38 in 2020 to zero in 2024. The number of tropical storms has increased in recent years, and the intensity and unpredictability of cyclones has increased in the last decade, said Craig West, CEO/Europe at forecasting company Weathernews.  </p><p>“Volatility is not confined to extreme events. Conditions in the Central Atlantic have recently been practically impassable, with persistent weather patterns across the Bay of Biscay and English Channel leaving vessels drifting for multiple days,” West told the <i>Journal of Commerce</i>. “There is no headline-grabbing storm in these situations, yet the commercial damage to uptime and schedule reliability is significant.”  </p><p>Optimistically, the volatility from an overall shambolic network offers increased incentives for ocean carriers to improve their reliability, allowing them to stand out more in a volatile, oft-commoditized market and gain higher and more stable pricing in return. After launching in February 2025, Gemini members Maersk and Hapag-Lloyd are making the case that their joint network’s better than 90% reliability is giving customers enough certainty to reduce their inventories by two weeks.  </p><p>Vessels operated within the alliance hit 81% reliability in 2025, according to online benchmarking platform Xeneta’s eeSea data. Global ocean reliability for the entire industry has been falling since July, notching a reading of 25.4% thus far in February, according to eeSea.  </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="4abe02d4-ed18-461a-ac0b-87ef52e3192b"></dynamic-object></div><p>“Shippers are also telling us that one of their priorities for 2026 is service reliability,” said Kelly Buckley, deputy director of ocean procurement at Drewry Supply Chain advisors. “Gemini has really raised the profile of that topic, and we can expect shippers to assess much more carefully on-time performance and lead times as part of their [trans-Pacific service contracting] tender process this year.” </p><h3>Finding reliability in service contracts  </h3><p>The last few years of shipping disruptions due to the pandemic, Suez Canal diversions, and then tariffs left small and medium-size shippers with little time to focus on reliability as they tried to keep their business afloat, Buckley said. Mounting overcapacity gives these shippers more leverage in service contract negotiations and allows them, she said, to “actually start to take a step back and ask questions without fear of the fact that your cargo then may not make it on the vessel the next week.” </p><p>Transparency on schedule changes remains an issue, Buckley said. Shippers still struggle to keep up with nearly last-minute blank notice announcements, and she said some Drewry customers learned after that fact that their cargo was routed through the Suez Canal via the perilous waters of the Red Sea.  </p><p>Meanwhile, although transit time reliability is critical for Sanmar’s new product launches and deliveries from new vendors, it’s only one element of service, said John Janson, global logistics director at the apparel shipper.  </p><p>“Normally, transit reliability is not as important to us if it is within a reasonable timeframe,” he said. “Having the equipment and space is more critical as our origins are counting on being able to load as most do not have storage.”  </p><p>Janson noted that ocean carriers allowed Sanmar — the US’ 79th-largest importer, according to the <i>Journal of Commerce</i>’s 2024 rankings — to exceed forecast volumes for emergencies and guaranteed that shipments would beat tariffs deadlines, saving the company hundreds of thousands of dollars.  </p><p>“No surprise, the folks that stepped up were the ones where we have made the most serious investment in relationships,” he said.  </p><p><i>Contact Mark Szakonyi at </i><a href="mark.szakonyi@spglobal.com"><i>mark.szakonyi@spglobal.com</i></a><i>.</i> </p></div>

The high level of port-to-port ocean reliability the Gemini Cooperation has delivered since its launch a year ago is pressuring other carriers and alliances to up their game. Yet the obstacles for ocean carriers to remain profitable are only expanding as liners cycle deeper into overcapacity in the coming years. To protect their profitability, container lines have become better at managing short-term demand and supply and removing functional capacity. Their success in keeping utilization high, paradoxically, weakens the network, said Trine Nielsen, vice president of ocean/global at forwarder Flexport. “As ‘micro-events’ [e.g., localized port congestion, labor strikes] are expected to increase due to shifting trade patterns and introducing more mega-ships, we expect network instability to rise,” she said. “In fact, as more capacity enters the market, we anticipate even further instability because we should expect more aggressive capacity management actions by carriers to protect their profitability.” Facing congestion at Asia load centers such as Shanghai or Ningbo, ocean carriers may have the vessel omit the port entirely to not throw off the rest of their schedule. In some cases, vessels “swap” calls with one vessel covering Shanghai rather than Ningbo, and vice versa, Nielsen said. “While this maximizes asset utilization and prevents a vessel backlog, it triggers blank sailings and forces customers to deal with rolled cargo and unpredictable transit times,” she said. Obstacles to reliability ratchet up Port productivity globally is worsening, with S&P Global’s Container Port Performance Index falling from a reading of 38 in 2020 to zero in 2024. The number of tropical storms has increased in recent years, and the intensity and unpredictability of cyclones has increased in the last decade, said Craig West, CEO/Europe at forecasting company Weathernews. “Volatility is not confined to extreme events. Conditions in the Central Atlantic have recently been practically impassable, with persistent weather patterns across the Bay of Biscay and English Channel leaving vessels drifting for multiple days,” West told the Journal of Commerce. “There is no headline-grabbing storm in these situations, yet the commercial damage to uptime and schedule reliability is significant.” Optimistically, the volatility from an overall shambolic network offers increased incentives for ocean carriers to improve their reliability, allowing them to stand out more in a volatile, oft-commoditized market and gain higher and more stable pricing in return. After launching in February 2025, Gemini members Maersk and Hapag-Lloyd are making the case that their joint network’s better than 90% reliability is giving customers enough certainty to reduce their inventories by two weeks. Vessels operated within the alliance hit 81% reliability in 2025, according to online benchmarking platform Xeneta’s eeSea data. Global ocean reliability for the entire industry has been falling since July, notching a reading of 25.4% thus far in February, according to eeSea. “Shippers are also telling us that one of their priorities for 2026 is service reliability,” said Kelly Buckley, deputy director of ocean procurement at Drewry Supply Chain advisors. “Gemini has really raised the profile of that topic, and we can expect shippers to assess much more carefully on-time performance and lead times as part of their [trans-Pacific service contracting] tender process this year.” Finding reliability in service contracts The last few years of shipping disruptions due to the pandemic, Suez Canal diversions, and then tariffs left small and medium-size shippers with little time to focus on reliability as they tried to keep their business afloat, Buckley said. Mounting overcapacity gives these shippers more leverage in service contract negotiations and allows them, she said, to “actually start to take a step back and ask questions without fear of the fact that your cargo then may not make it on the vessel the next week.” Transparency on schedule changes remains an issue, Buckley said. Shippers still struggle to keep up with nearly last-minute blank notice announcements, and she said some Drewry customers learned after that fact that their cargo was routed through the Suez Canal via the perilous waters of the Red Sea. Meanwhile, although transit time reliability is critical for Sanmar’s new product launches and deliveries from new vendors, it’s only one element of service, said John Janson, global logistics director at the apparel shipper. “Normally, transit reliability is not as important to us if it is within a reasonable timeframe,” he said. “Having the equipment and space is more critical as our origins are counting on being able to load as most do not have storage.” Janson noted that ocean carriers allowed Sanmar — the US’ 79th-largest importer, according to the Journal of Commerce’s 2024 rankings — to exceed forecast volumes for emergencies and guaranteed that shipments would beat tariffs deadlines, saving the company hundreds of thousands of dollars. “No surprise, the folks that stepped up were the ones where we have made the most serious investment in relationships,” he said. Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

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Greater capacity control needs hinder ocean reliability efforts

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