<div class="phx-topic abstract-wrapper">The service, if added, would complement existing feeder services by other ocean carriers. A CMA CGM official said the company has held talks about the possible service.</div>

The service, if added, would complement existing feeder services by other ocean carriers. A CMA CGM official said the company has held talks about the possible service.

<div><div><img></div>CMA CGM's service, if added, would complement existing feeder services by other ocean carriers. (Above: A CMA CGM ship in the Pacific Ocean.) Photo credit: Shutterstock.com.With Bangladesh's container-based trade continuing to grow at a rapid rate, <a>CMA CGM</a> plans to reintroduce its feeder service to and from Chittagong.In April 2015, CMA CGM suspended its Chittagong feeder service amid massive congestion at the port.“The business was not satisfactory then. So, we suspended the feeder service temporarily,” said Wahid Alam, general manager of APL (Bangladesh) Private Ltd, a subsidiary of CMA CGM in Bangladesh. CMA CGM purchased APL in February 2017. “But...

CMA CGM's service, if added, would complement existing feeder services by other ocean carriers. (Above: A CMA CGM ship in the Pacific Ocean.) Photo credit: Shutterstock.com. With Bangladesh's container-based trade continuing to grow at a rapid rate, CMA CGM plans to reintroduce its feeder service to and from Chittagong. In April 2015, CMA CGM suspended its Chittagong feeder service amid massive congestion at the port. “The business was not satisfactory then. So, we suspended the feeder service temporarily,” said Wahid Alam, general manager of APL (Bangladesh) Private Ltd, a subsidiary of CMA CGM in Bangladesh. CMA CGM purchased APL in February 2017. “But now I am hopeful of a reintroduction of the service,” at some point in the future, Alam said. He added that if the port situation improves even slightly, “we will re-launch the service from Chittagong. We already have held talks over the issue. We are even thinking about a direct service to China from Chittagong Port.” The service, if added, would complement existing feeder services by other ocean carriers. In March, Hyundai Merchant Marine introduced a new direct feeder service from South Korea, with calls at China ports before reaching Chittagong. HMM's new service has reduced container transport time to 14 days from the prior 25 days. The latter time is via a trade lane that transships containers from ports in Singapore and Colombo. Currently, Maersk Line, “K” Line, Pacific International Lines, Yang Ming Line, the Sea Consortium, Bukit Barisan Line, Samudera Shipping Line, HMM, and Far Shipping dominate feeder services to Chittagong and Mongla ports from transshipment ports in Singapore and Colombo and from selected other major ports. In fiscal 2017-2018, Chittagong Port’s container volume increased 12.2 percent to 2.80 million TEU. Bangladesh’s annual trade with China has grown to nearly $12 billion. Further, Bangladesh is studying a free trade agreement (FTA) with China; bilateral trade is likely to increase if the two nations approve an FTA. China has committed to relocating some of its factories to Bangladesh and making new investments in Bangladesh, once the FTA is signed. The goods, to be produced from Chinese-owned factories in Bangladesh, will be exported back to China — one example of how bilateral trade volume will increase. Chittagong-Singapore feeder service Alam said his company at first will reintroduce the Chittagong-Singapore feeder service. The other destinations, including China, will be connected after that. In Bangladesh , CMA CGM handles about 150,000 TEU containers annually. Alam said the Chittagong Port Authority (CPA) has implemented several capacity-increasing projects, covering such trade functions as equipment collection, yard storage capacity, and terminal capacity. As a result, Chittagong Port is becoming more efficient. What’s more, Chittagong has been operating at a very high productivity level for a considerable period of time, he said. Chittagong’s annual capacity is 1.7 million TEU, but the port currently handles about 2.8 million TEU per year. “It’s a miracle,” Alam said. CPA member Zafar Alam told JOC.com Chittagong Port can handle almost double its designed capacity, due to a refined, efficient handling system and the addition of modern cargo equipment. “The port capacity will grow manyfold once the newly taken projects are implemented. By 2023 several terminals and yards, including a deepsea port in Matarbari [south of Chittagong Port] are expected to start operation,” Zafar Alam said. Mother vessels cannot enter Bangladesh’s water due to its low draft, hence seaborne trade is dependent on small-sized feeder vessels with capacities of about 1,200 TEU. The Matarbari deepsea port, to be built with funding from the Japan International Cooperation Agency, has as its goal a port capable of handling 8,000-TEU vessels in Bangladesh, to help facilitate the nation's growing export-import trade. ** RELATED STORIES: HMM to offer Chittagong direct service Chittagong acts to ensure quicker delivery of LCL cargo

Container lines

CMA CGM to restart Chittagong feeder service

<div class="phx-topic abstract-wrapper">The carrier, as it sends a US-bound vessel through the region, said if security thresholds hold it will take a “stepwise approach” towards gradually resuming navigation on east-west services via the Suez Canal and Red Sea. </div>

The carrier, as it sends a US-bound vessel through the region, said if security thresholds hold it will take a “stepwise approach” towards gradually resuming navigation on east-west services via the Suez Canal and Red Sea.

Feature image

<div class="phx-topic">Maersk has become the latest carrier to test Red Sea waters, routing a westbound 6,500-TEU vessel through the Bab al-Mandeb Strait at the southern, Houthi-controlled entrance to the waterway. But an advisory from the carrier Friday was quick to point out that this was not the start of a widescale return of its shipping services to the Red Sea, which has been largely off-limits to commercial shipping since attacks from Houthi militants operating in Yemen began two years ago. “While this is a significant step forward, it does not mean that we are at a point where we are considering a wider east-west network change back to the trans-Suez corridor,” Maersk said. The Singapore-flagged Maersk Sebarok on Maersk’s MECL service from India to the US East Coast departed Salalah in Oman earlier this week and sailed through the Bab al-Mandeb Strait Thursday en route to the Port of New Year and New Jersey. Maersk’s advisory said if security thresholds continue to be met, the carrier would continue its “stepwise approach” towards gradually resuming navigation on east-west services via the Suez Canal and Red Sea. “The first step is this initial sailing, followed by a limited number of additional trans-Suez sailings,” it said. “However, there are no planned sailings currently.” Maersk’s advisory on Friday comes after the carrier was forced to correct a Suez Canal Authority statement last month that said the carrier would be returning regular services to the waterway in December. In its own statement at the time, Maersk said transits through the Red Sea would only normalize "as soon as conditions allow, with safety of our crew as the top priority.” The new Maersk sailing follows the launch of a Red Sea-China Service by Thailand’s Regional Container Lines (RCL) last month. <a href="https://www.joc.com/article/one-returns-to-red-sea-under-slot-charter-deal-with-thailands-rcl-partners-6136866">Ocean Network Express (ONE)</a> and Taiwan’s Evergreen Marine are making tentative returns to the Red Sea cargo market under slot charter agreement with regional carriers, including RCL. CMA CGM <a href="https://www.joc.com/article/stretched-logistics-capacity-in-europe-threatened-by-red-sea-return-6129492">is set to resume a Suez-based rotation for its India-USEC “Indamex” service</a> from January, with the first westbound sailing under the “normal” itinerary known to be the 6,039-TEU CMA CGM Verdi, due to depart India’s Nhava Sheva Port Jan. 18 and transit the Suez Canal Feb. 8, available data indicates. The French carrier plans to switch over to a full Suez rotation for the Indamex in the second quarter of 2026 as it continues to realign capacity deployments. The resumption of shipping activity in the Red Sea is driven by a perceived improvement in the security situation given there have been no attacks on vessels since the Israel-Hamas ceasefire was signed in early October, with a corresponding decline in additional war risk maritime insurance premiums. <h3>Risk levels ‘tolerable’ </h3>With attacks paused, the de-escalation suggests operational risks for shipping companies have become more "tolerable" in the waterway, according to security advisory firm Ambrey. This has seen war risk premiums for ships sailing through the Red Sea falling to around 0.2% of hull value from 0.5% before the ceasefire, according to a UK-based insurer, the lowest level since the Houthi attacks on shipping began in late 2023. Still, while carriers may be willing to shoulder the lower premiums, getting support from cargo owners could be difficult, as <a href="https://www.joc.com/article/hapag-lloyd-nixes-suez-return-for-india-usec-loop-amid-customer-pushback-6137557">Hapag-Lloyd found out this week</a> when it asked customers for feedback on plans to route an India-US East Coast service through the Suez. “Expeditors [one of the carrier’s largest forwarders on the route] was unable to persuade many of its core shipper clients to sign on to a letter of intent framework that would have required them to absorb terrorism and war-risk liabilities for vessels transiting the Red Sea,” an India-based shipping executive with knowledge of the matter told the Journal of Commerce. Helge Neuman-Lezius, global head of full container loads (FCL) at Hellmann Worldwide Logistics, said insurance excluded coverage for cargo in the southern Red Sea and Bab al-Mandeb strait. “For that reason, we decided to not offer such routings until this passage is declared as safe,” he said. The supply chain director for a Hong Kong-based Asia–Europe shipper told the Journal of Commerce that a directive from their head office prohibited the use of services via the Red Sea and Suez because of difficulties in obtaining cargo insurance cover. DHL Global Forwarding said decisions on whether to return to the waterway would be jointly determined by carriers, forwarders and cargo owners. "We can see a scenario where certain carriers might be willing to pilot services through the Red Sea and, if this were to prove successful, others could follow suit in order to remain competitive, which along with the reduced transit times could mitigate the possibility of elevated insurance costs,” a DHL spokesperson said. Peter Sand, chief analyst with rate benchmarking platform Xeneta, said shippers were simply not interested in paying the current high war risk premiums. “Nevertheless, carriers need to take the first steps and illustrate that voyages can be performed safely,” Sand told the Journal of Commerce. “Later, they can return the services as well when insurance companies lower the premiums paid for cargo, ships and crew sailing through the area.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. Special correspondent Bency Mathew contributed to this report. </div>

Maersk has become the latest carrier to test Red Sea waters, routing a westbound 6,500-TEU vessel through the Bab al-Mandeb Strait at the southern, Houthi-controlled entrance to the waterway. But an advisory from the carrier Friday was quick to point out that this was not the start of a widescale return of its shipping services to the Red Sea, which has been largely off-limits to commercial shipping since attacks from Houthi militants operating in Yemen began two years ago. “While this is a significant step forward, it does not mean that we are at a point where we are considering a wider east-west network change back to the trans-Suez corridor,” Maersk said. The Singapore-flagged Maersk Sebarok on Maersk’s MECL service from India to the US East Coast departed Salalah in Oman earlier this week and sailed through the Bab al-Mandeb Strait Thursday en route to the Port of New Year and New Jersey. Maersk’s advisory said if security thresholds continue to be met, the carrier would continue its “stepwise approach” towards gradually resuming navigation on east-west services via the Suez Canal and Red Sea. “The first step is this initial sailing, followed by a limited number of additional trans-Suez sailings,” it said. “However, there are no planned sailings currently.” Maersk’s advisory on Friday comes after the carrier was forced to correct a Suez Canal Authority statement last month that said the carrier would be returning regular services to the waterway in December. In its own statement at the time, Maersk said transits through the Red Sea would only normalize "as soon as conditions allow, with safety of our crew as the top priority.” The new Maersk sailing follows the launch of a Red Sea-China Service by Thailand’s Regional Container Lines (RCL) last month. Ocean Network Express (ONE) and Taiwan’s Evergreen Marine are making tentative returns to the Red Sea cargo market under slot charter agreement with regional carriers, including RCL. CMA CGM is set to resume a Suez-based rotation for its India-USEC “Indamex” service from January, with the first westbound sailing under the “normal” itinerary known to be the 6,039-TEU CMA CGM Verdi, due to depart India’s Nhava Sheva Port Jan. 18 and transit the Suez Canal Feb. 8, available data indicates. The French carrier plans to switch over to a full Suez rotation for the Indamex in the second quarter of 2026 as it continues to realign capacity deployments. The resumption of shipping activity in the Red Sea is driven by a perceived improvement in the security situation given there have been no attacks on vessels since the Israel-Hamas ceasefire was signed in early October, with a corresponding decline in additional war risk maritime insurance premiums. Risk levels ‘tolerable’ With attacks paused, the de-escalation suggests operational risks for shipping companies have become more "tolerable" in the waterway, according to security advisory firm Ambrey. This has seen war risk premiums for ships sailing through the Red Sea falling to around 0.2% of hull value from 0.5% before the ceasefire, according to a UK-based insurer, the lowest level since the Houthi attacks on shipping began in late 2023. Still, while carriers may be willing to shoulder the lower premiums, getting support from cargo owners could be difficult, as Hapag-Lloyd found out this week when it asked customers for feedback on plans to route an India-US East Coast service through the Suez. “Expeditors [one of the carrier’s largest forwarders on the route] was unable to persuade many of its core shipper clients to sign on to a letter of intent framework that would have required them to absorb terrorism and war-risk liabilities for vessels transiting the Red Sea,” an India-based shipping executive with knowledge of the matter told the Journal of Commerce. Helge Neuman-Lezius, global head of full container loads (FCL) at Hellmann Worldwide Logistics, said insurance excluded coverage for cargo in the southern Red Sea and Bab al-Mandeb strait. “For that reason, we decided to not offer such routings until this passage is declared as safe,” he said. The supply chain director for a Hong Kong-based Asia–Europe shipper told the Journal of Commerce that a directive from their head office prohibited the use of services via the Red Sea and Suez because of difficulties in obtaining cargo insurance cover. DHL Global Forwarding said decisions on whether to return to the waterway would be jointly determined by carriers, forwarders and cargo owners. "We can see a scenario where certain carriers might be willing to pilot services through the Red Sea and, if this were to prove successful, others could follow suit in order to remain competitive, which along with the reduced transit times could mitigate the possibility of elevated insurance costs,” a DHL spokesperson said. Peter Sand, chief analyst with rate benchmarking platform Xeneta, said shippers were simply not interested in paying the current high war risk premiums. “Nevertheless, carriers need to take the first steps and illustrate that voyages can be performed safely,” Sand told the Journal of Commerce. “Later, they can return the services as well when insurance companies lower the premiums paid for cargo, ships and crew sailing through the area.” Contact Greg Knowler at greg.knowler@spglobal.com . Special correspondent Bency Mathew contributed to this report.

Asia-Europe

Container Shipping News

Maritime

Maersk takes ‘significant step’ towards return to Red Sea transits

<div class="phx-topic abstract-wrapper">The acquisition of Malherbe will enable Geodis to develop the French road freight market for truckload and less-than-truckload, and to increase its presence in the agri-food and mass retail sectors. </div>

The acquisition of Malherbe will enable Geodis to develop the French road freight market for truckload and less-than-truckload, and to increase its presence in the agri-food and mass retail sectors.

<div class="phx-topic">French forwarder Geodis said Friday it has concluded an agreement to acquire road freight specialist Malherbe in a deal that will significantly expand the group’s trucking footprint in the country. The acquisition, terms of which were not disclosed, will enable Geodis to develop the French road freight market for truckload and less-than-truckload (LTL), and to increase its presence in the agri-food and mass retail sectors. “The integration of Malherbe will represent an essential strategic lever in building a more resilient and sustainable nationwide network,” Geodis CEO Marie-Christine Lombard said in a statement. The acquisition of Malherbe will place Geodis among the top three players in the French market for truckload and LTL, with combined revenue of €2 billion ($2.3 billion). The geographical and operational reach of the two companies’ operations will increase the density of Geodis’ national network in France, strengthen its position in the agri-food market and accelerate the growth of European road transport activities within its network, the forwarder said. Malherbe operates in France through an extensive network of 40 branch offices with its own fleet of about 1,500 trucks, employing more than 3,300 people nationwide. In support of its energy transition, Malherbe is gradually electrifying its fleet and installing charging infrastructure. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

French forwarder Geodis said Friday it has concluded an agreement to acquire road freight specialist Malherbe in a deal that will significantly expand the group’s trucking footprint in the country. The acquisition, terms of which were not disclosed, will enable Geodis to develop the French road freight market for truckload and less-than-truckload (LTL), and to increase its presence in the agri-food and mass retail sectors. “The integration of Malherbe will represent an essential strategic lever in building a more resilient and sustainable nationwide network,” Geodis CEO Marie-Christine Lombard said in a statement. The acquisition of Malherbe will place Geodis among the top three players in the French market for truckload and LTL, with combined revenue of €2 billion ($2.3 billion). The geographical and operational reach of the two companies’ operations will increase the density of Geodis’ national network in France, strengthen its position in the agri-food market and accelerate the growth of European road transport activities within its network, the forwarder said. Malherbe operates in France through an extensive network of 40 branch offices with its own fleet of about 1,500 trucks, employing more than 3,300 people nationwide. In support of its energy transition, Malherbe is gradually electrifying its fleet and installing charging infrastructure. Contact Greg Knowler at greg.knowler@spglobal.com .

Trucking News

Truckload

Surface

Geodis inks takeover deal to expand French trucking coverage

<div class="phx-topic abstract-wrapper">The private equity fund that operates New York-New Jersey’s largest marine terminal agreed to the Port Authority’s new requirement to carry the cost of maintaining berths and wharves. </div>

The private equity fund that operates New York-New Jersey’s largest marine terminal agreed to the Port Authority’s new requirement to carry the cost of maintaining berths and wharves.

<div class="phx-topic">Infrastructure fund Macquarie has renewed its lease of the largest container terminal at the Port of New York and New Jersey through 2063, agreeing to the port’s new terms for tenant terminals that include taking over the upkeep of its wharves and berths and pledging to increase capacity at the busiest East Coast seaport. The board of commissioners for the Port Authority of New York and New Jersey on Thursday voted to approve the amendment to Macquarie’s existing lease for Maher Terminals that was set to expire in 2030. The Port Authority entered negotiations for a new lease last year due to the expected liquidation date for the specific fund that owns Maher and the potential for a sale of the terminal to another operator. Investors in the fund, however, <a href="https://www.joc.com/article/macquarie-looks-to-keep-hold-on-ny-nj-terminal-amid-lease-talks-6043502">opted not to liquidate</a>. While <a href="https://www.joc.com/article/ssa-marine-looks-to-expand-into-new-us-ports-with-deal-for-ceres-5221078">the fund shed its stake in Ceres Terminals in 2023</a>, Macquarie still owns the Long Beach Container Terminal and ITS Terminal in Long Beach and has stakes in Yusen Terminals in Los Angeles and TraPac terminals, which operates in Los Angeles and Oakland. The Maher lease is the latest to be revamped by the Port Authority. Following <a href="https://www.joc.com/article/cma-cgm-adds-terminal-assets-in-new-yorknew-jersey-5217593">CMA CGM’s 2022 purchase of Global Container Terminals’ US assets</a>, the agency has changed the lease terms to move away from a flat annual rent with cost escalators to a rent that is based on actual container throughput, subject to an annual minimum. Terminals will also have to share with the Port Authority any excess demurrage revenue and commit to the agency’s environmental and sustainability goals. <a href="https://www.joc.com/article/apm-to-spend-500-million-to-enhance-cargo-handling-at-elizabeth-terminal-5969027">APM Terminals signed a similar lease agreement in March</a>, extending its tenancy of the Elizabeth Marine Terminal to 2062. <h3>Maher could face $2 billion in wharf maintenance costs</h3>Along with the new terms, the biggest financial burden for terminal operators under the new leases will be responsibility for maintaining their berths and wharves, which was previously handled by the Port Authority. Some of the berths and wharves at New York/New Jersey are 60 years old, with many of the wood pilings also being damaged by marine borer worms. Port Executive Director Beth Rooney said Thursday the combined bill for maintaining the berths and wharves at GCT, APM and Maher could reach $6 billion. With 10,000 linear feet of berth space, Maher could face as much as $2 billion in costs for berth and wharf maintenance. The new leases also include commitments to increase capacity as part of the Port Authority’s expectations that container volumes will double by 2050. Rooney said Maher committed to “demand induced” capacity improvements over the course of the new lease.Maher, which handled 1.8 million container lifts in 2024, is the largest terminal at the port with 450 acres of space. However, similar to other terminals in New Jersey, it is land constrained with little available acreage near the port. Despite the land constraints, Rooney said Maher could eventually double its capacity by switching over from using straddle carriers to rubber tire gantry cranes, which would allow higher density stacks. “By having a 33-year lease, it gives Maher the lanes they need to invest in additional infrastructure and equipment and amortize that cost,” Rooney said. “Our estimates are that within Maher’s footprint they could almost double the capacity of the terminal through densification.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

Infrastructure fund Macquarie has renewed its lease of the largest container terminal at the Port of New York and New Jersey through 2063, agreeing to the port’s new terms for tenant terminals that include taking over the upkeep of its wharves and berths and pledging to increase capacity at the busiest East Coast seaport. The board of commissioners for the Port Authority of New York and New Jersey on Thursday voted to approve the amendment to Macquarie’s existing lease for Maher Terminals that was set to expire in 2030. The Port Authority entered negotiations for a new lease last year due to the expected liquidation date for the specific fund that owns Maher and the potential for a sale of the terminal to another operator. Investors in the fund, however, opted not to liquidate . While the fund shed its stake in Ceres Terminals in 2023 , Macquarie still owns the Long Beach Container Terminal and ITS Terminal in Long Beach and has stakes in Yusen Terminals in Los Angeles and TraPac terminals, which operates in Los Angeles and Oakland. The Maher lease is the latest to be revamped by the Port Authority. Following CMA CGM’s 2022 purchase of Global Container Terminals’ US assets , the agency has changed the lease terms to move away from a flat annual rent with cost escalators to a rent that is based on actual container throughput, subject to an annual minimum. Terminals will also have to share with the Port Authority any excess demurrage revenue and commit to the agency’s environmental and sustainability goals. APM Terminals signed a similar lease agreement in March , extending its tenancy of the Elizabeth Marine Terminal to 2062. Maher could face $2 billion in wharf maintenance costs Along with the new terms, the biggest financial burden for terminal operators under the new leases will be responsibility for maintaining their berths and wharves, which was previously handled by the Port Authority. Some of the berths and wharves at New York/New Jersey are 60 years old, with many of the wood pilings also being damaged by marine borer worms. Port Executive Director Beth Rooney said Thursday the combined bill for maintaining the berths and wharves at GCT, APM and Maher could reach $6 billion. With 10,000 linear feet of berth space, Maher could face as much as $2 billion in costs for berth and wharf maintenance. The new leases also include commitments to increase capacity as part of the Port Authority’s expectations that container volumes will double by 2050. Rooney said Maher committed to “demand induced” capacity improvements over the course of the new lease. Maher, which handled 1.8 million container lifts in 2024, is the largest terminal at the port with 450 acres of space. However, similar to other terminals in New Jersey, it is land constrained with little available acreage near the port. Despite the land constraints, Rooney said Maher could eventually double its capacity by switching over from using straddle carriers to rubber tire gantry cranes, which would allow higher density stacks. “By having a 33-year lease, it gives Maher the lanes they need to invest in additional infrastructure and equipment and amortize that cost,” Rooney said. “Our estimates are that within Maher’s footprint they could almost double the capacity of the terminal through densification.” Contact Michael Angell at michael.angell@spglobal.com .

Port infrastructure

Marine terminals

North American ports

Macquarie seals deal for new Maher lease at NY/NJ through 2063

<div class="phx-topic abstract-wrapper">The US’ de minimis program, which ended in May, allowed importers one shipment per day valued at $800 or less to clear customs duty-free and with minimal data elements. </div>

The US’ de minimis program, which ended in May, allowed importers one shipment per day valued at $800 or less to clear customs duty-free and with minimal data elements.

<div class="phx-topic">US Customs and Border Protection (CBP) has collected more than $1 billion in duties on low-value imports since the May end of the duty-free de minimis provision. The duties collected were generated from more than 246 million low-cost, US-bound shipments since the Trump administration began phasing out the de minimis provision, also known as Section 321 shipments, earlier this year, CBP said in a statement Wednesday. The US’ de minimis program allowed importers one shipment per day valued at $800 or less to clear customs duty-free and with minimal data elements. “Reaching the $1 billion milestone so quickly shows just how much revenue was slipping away under the old rules,” CBP Commissioner Rodney Scott said in the statement. “With this change, American businesses don’t have to compete with duty-free foreign goods, and CBP has stronger oversight of what comes into our country.” The Trump administration began phasing out the de minimis rule on May 2 on shipments from China and Hong Kong and extended the ban globally on Aug. 29. The value threshold of the de minimis provision was increased from $200 to $800 in 2016, based largely on lobbying from parcel integrators interested in facilitating more frictionless e-commerce cross-border shipments. The higher threshold has been cited as the key driver in the huge growth of those shipments, especially in tandem with CBP’s Type 86 entry program, which allowed de minimis shipments to be cleared faster if moved via intermediaries that partnered with the agency to provide more robust details on the characteristics of the shipments than normal Section 321 entries. Low-cost e-commerce giants such as China-based Shein and Temu have used the higher threshold to grow revenue exponentially during and after the pandemic. <h3>Safety element </h3>US customs brokers have long argued that raising the de minimis value threshold created more security vulnerability for CBP, given that the limited customs entries associated with 321 filings were not robust enough. Customs brokers lost revenue because of broader use of the de minimis rule, as those shipments did not require formal customs entry, a process that brokers generally charge a fee for. CBP in its statement touted the safety element of ending the de minimis rule, saying seizures of unsafe and non-compliant low-value goods have increased by 82%, including counterfeits, narcotics, faulty electronics and goods containing hazardous chemicals. “With increased visibility into data for these low-value shipments, we’re better equipped to detect and disrupt criminal networks from smuggling drugs, counterfeits, and other illegal items — making our country safer,” Susan Thomas, acting executive assistant commissioner for CBP’s Office of Trade, said in the statement. The amount collected in duties from shipments once protected under the de minimis provision is a fraction of the overall amount of tariff revenue collected by CBP in 2025. The Trump administration stated in recent court filings that it has collected more than $125 billion in tariffs since the White House announced global tariffs under the International Emergency Economic Powers Act in the spring. But the legality of those tariffs is being challenged before the US Supreme Court, and a ruling against the administration could trigger massive refunds to importers. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

US Customs and Border Protection (CBP) has collected more than $1 billion in duties on low-value imports since the May end of the duty-free de minimis provision. The duties collected were generated from more than 246 million low-cost, US-bound shipments since the Trump administration began phasing out the de minimis provision, also known as Section 321 shipments, earlier this year, CBP said in a statement Wednesday. The US’ de minimis program allowed importers one shipment per day valued at $800 or less to clear customs duty-free and with minimal data elements. “Reaching the $1 billion milestone so quickly shows just how much revenue was slipping away under the old rules,” CBP Commissioner Rodney Scott said in the statement. “With this change, American businesses don’t have to compete with duty-free foreign goods, and CBP has stronger oversight of what comes into our country.” The Trump administration began phasing out the de minimis rule on May 2 on shipments from China and Hong Kong and extended the ban globally on Aug. 29. The value threshold of the de minimis provision was increased from $200 to $800 in 2016, based largely on lobbying from parcel integrators interested in facilitating more frictionless e-commerce cross-border shipments. The higher threshold has been cited as the key driver in the huge growth of those shipments, especially in tandem with CBP’s Type 86 entry program, which allowed de minimis shipments to be cleared faster if moved via intermediaries that partnered with the agency to provide more robust details on the characteristics of the shipments than normal Section 321 entries. Low-cost e-commerce giants such as China-based Shein and Temu have used the higher threshold to grow revenue exponentially during and after the pandemic. Safety element US customs brokers have long argued that raising the de minimis value threshold created more security vulnerability for CBP, given that the limited customs entries associated with 321 filings were not robust enough. Customs brokers lost revenue because of broader use of the de minimis rule, as those shipments did not require formal customs entry, a process that brokers generally charge a fee for. CBP in its statement touted the safety element of ending the de minimis rule, saying seizures of unsafe and non-compliant low-value goods have increased by 82%, including counterfeits, narcotics, faulty electronics and goods containing hazardous chemicals. “With increased visibility into data for these low-value shipments, we’re better equipped to detect and disrupt criminal networks from smuggling drugs, counterfeits, and other illegal items — making our country safer,” Susan Thomas, acting executive assistant commissioner for CBP’s Office of Trade, said in the statement. The amount collected in duties from shipments once protected under the de minimis provision is a fraction of the overall amount of tariff revenue collected by CBP in 2025. The Trump administration stated in recent court filings that it has collected more than $125 billion in tariffs since the White House announced global tariffs under the International Emergency Economic Powers Act in the spring. But the legality of those tariffs is being challenged before the US Supreme Court, and a ruling against the administration could trigger massive refunds to importers. Contact Eric Johnson at eric.johnson@spglobal.com .

Transport, Trade and Regulation News

Revenue from low-value shipment duties crosses $1 billion mark: CBP

<div class="phx-topic abstract-wrapper">The resistance came primarily from Expeditors International, with sources saying the forwarder flagged ongoing uncertainty around the insurance premium implications of a Suez routing. </div>

The resistance came primarily from Expeditors International, with sources saying the forwarder flagged ongoing uncertainty around the insurance premium implications of a Suez routing.

<div class="phx-topic">Hapag-Lloyd has dropped plans to reinstate a Suez Canal routing for its India-US East Coast “TPI” service after failing to secure sufficient customer backing due to cargo insurance concerns, local industry sources, including within Hapag-Lloyd India, told the Journal of Commerce. The pushback came primarily from Expeditors International, said to be the German carrier’s largest freight forwarder account for India-US volumes. The US-based forwarder is understood to have flagged ongoing uncertainty around the insurance premium implications of a Suez routing in response to Hapag-Lloyd’s outreach for customer feedback. “Expeditors was unable to persuade many of its core shipper clients to sign on to a letter of intent framework that would have required them to absorb terrorism and war-risk liabilities for vessels transiting the Red Sea,” said a Hapag-Lloyd India executive who didn’t want to be identified. “Forwarders without this requirement are more willing to ship as they are able to manage the necessary insurance coverage for Suez transits.” When contacted by the Journal of Commerce for comment, a global spokesperson for Hapag-Lloyd said no timeline has been set for a return to the Suez route. “We continue to monitor developments very closely and maintain a detailed plan for a potential return, but any decision will only be taken when the security situation is sustainably safe,” the spokesperson said. “We need to see constant stability and tangible progress before routing vessels back through the Suez Canal.” Expeditors’ support is critical as it moves approximately 400 TEUs per week on Hapag-Lloyd’s India-US network, mostly on the TPI. The carrier is believed to have received positive signals for a Suez return from other major global forwarders such as DSV, Kuehne + Nagel and C.H. Robinson. Sources across European carriers agree that extra insurance exposure remains a sticking point in customer engagement on Suez resumption efforts. US retailer Costco is said to be among the Indian goods buyers reluctant to commit cargo support for Suez transits. Hapag-Lloyd is a predominant operator on the India-USEC trade. Out of an estimated 1.3 million TEUs shipped from India to the US this year through November, the carrier handled approximately 303,500 TEUs, representing about 23% of the market, according to industry data. <h3>Carriers weigh Red Sea return </h3>Ocean carriers have been weighing a resumption of mainline Red Sea/Suez Canal transits in the aftermath of what has been a shaky ceasefire between Israel and Hamas in Gaza, but most shipping executives say the security situation is still too unsettled, forcing continued diversions around southern Africa. The Premier Alliance <a href="https://www.joc.com/article/premier-alliances-2026-network-to-maintain-red-sea-diversions-6134989">unveiled its updated 2026 network this week</a> with services from Asia to Europe, the Mediterranean and the US East Coast continuing to divert around the Cape of Good Hope to avoid passing through the Red Sea. Still, Ocean Network Express <a href="https://www.joc.com/article/one-returns-to-red-sea-under-slot-charter-deal-with-thailands-rcl-partners-6136866">confirmed Wednesday</a> it will make a tentative return to the Red Sea cargo market under a slot charter agreement with three regional carriers. Sunil Vaswani, executive director of the Container Shipping Lines Association (India), said while there have been some eastbound sailing attempts over the Suez, most lines want to “test the Red Sea waters” ahead of implementing drastic network changes, given the persistent geopolitical volatility. Meanwhile, CMA CGM <a href="https://www.joc.com/article/stretched-logistics-capacity-in-europe-threatened-by-red-sea-return-6129492">is set to resume a Suez-based rotation for its India-USEC “Indamex” service</a> from January, with the first westbound sailing under the “normal” itinerary known to be the 6,039-TEU CMA CGM Verdi departing India’s Nhava Sheva Port Jan. 18 and transiting the Suez Canal Feb. 8, available data indicates. The French carrier plans to switch over to a full Suez rotation for the Indamex in the second quarter of 2026 as it continues to realign capacity deployments. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

Hapag-Lloyd has dropped plans to reinstate a Suez Canal routing for its India-US East Coast “TPI” service after failing to secure sufficient customer backing due to cargo insurance concerns, local industry sources, including within Hapag-Lloyd India, told the Journal of Commerce. The pushback came primarily from Expeditors International, said to be the German carrier’s largest freight forwarder account for India-US volumes. The US-based forwarder is understood to have flagged ongoing uncertainty around the insurance premium implications of a Suez routing in response to Hapag-Lloyd’s outreach for customer feedback. “Expeditors was unable to persuade many of its core shipper clients to sign on to a letter of intent framework that would have required them to absorb terrorism and war-risk liabilities for vessels transiting the Red Sea,” said a Hapag-Lloyd India executive who didn’t want to be identified. “Forwarders without this requirement are more willing to ship as they are able to manage the necessary insurance coverage for Suez transits.” When contacted by the Journal of Commerce for comment, a global spokesperson for Hapag-Lloyd said no timeline has been set for a return to the Suez route. “We continue to monitor developments very closely and maintain a detailed plan for a potential return, but any decision will only be taken when the security situation is sustainably safe,” the spokesperson said. “We need to see constant stability and tangible progress before routing vessels back through the Suez Canal.” Expeditors’ support is critical as it moves approximately 400 TEUs per week on Hapag-Lloyd’s India-US network, mostly on the TPI. The carrier is believed to have received positive signals for a Suez return from other major global forwarders such as DSV, Kuehne + Nagel and C.H. Robinson. Sources across European carriers agree that extra insurance exposure remains a sticking point in customer engagement on Suez resumption efforts. US retailer Costco is said to be among the Indian goods buyers reluctant to commit cargo support for Suez transits. Hapag-Lloyd is a predominant operator on the India-USEC trade. Out of an estimated 1.3 million TEUs shipped from India to the US this year through November, the carrier handled approximately 303,500 TEUs, representing about 23% of the market, according to industry data. Carriers weigh Red Sea return Ocean carriers have been weighing a resumption of mainline Red Sea/Suez Canal transits in the aftermath of what has been a shaky ceasefire between Israel and Hamas in Gaza, but most shipping executives say the security situation is still too unsettled, forcing continued diversions around southern Africa. The Premier Alliance unveiled its updated 2026 network this week with services from Asia to Europe, the Mediterranean and the US East Coast continuing to divert around the Cape of Good Hope to avoid passing through the Red Sea. Still, Ocean Network Express confirmed Wednesday it will make a tentative return to the Red Sea cargo market under a slot charter agreement with three regional carriers. Sunil Vaswani, executive director of the Container Shipping Lines Association (India), said while there have been some eastbound sailing attempts over the Suez, most lines want to “test the Red Sea waters” ahead of implementing drastic network changes, given the persistent geopolitical volatility. Meanwhile, CMA CGM is set to resume a Suez-based rotation for its India-USEC “Indamex” service from January, with the first westbound sailing under the “normal” itinerary known to be the 6,039-TEU CMA CGM Verdi departing India’s Nhava Sheva Port Jan. 18 and transiting the Suez Canal Feb. 8, available data indicates. The French carrier plans to switch over to a full Suez rotation for the Indamex in the second quarter of 2026 as it continues to realign capacity deployments. Contact Bency Mathew at bencyvmathew@gmail.com .

Trans-Atlantic

Hapag-Lloyd nixes Suez return for India-USEC loop amid customer pushback

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