<div class="phx-topic abstract-wrapper">Mediterranean Shipping Co. is bringing in ex-Maersk COO Soren Toft not because they’ve been unsuccessful, but rather because they know they need an outsider’s view to maintain that success as they enter their second half-century of existence.</div>

Mediterranean Shipping Co. is bringing in ex-Maersk COO Soren Toft not because they’ve been unsuccessful, but rather because they know they need an outsider’s view to maintain that success as they enter their second half-century of existence.

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<div>CLARIFICATION: This story has been updated to reflect comments from MSC that Gianluigi Aponte will remain in his role as chairman.Søren Toft joining Mediterranean Shipping Co. as CEO would be the biggest change at a company that has been private and family-run since its founding 50 years ago. The former Maersk COO, who left the world’s largest container line Nov. 11, brings experience at a transparent, publicly traded company to the most private company in shipping. He comes from a company that has grown by acquisition to one that has been built organically. And he comes from a carrier pursuing...

CLARIFICATION: This story has been updated to reflect comments from MSC that Gianluigi Aponte will remain in his role as chairman. Søren Toft joining Mediterranean Shipping Co. as CEO would be the biggest change at a company that has been private and family-run since its founding 50 years ago. The former Maersk COO, who left the world’s largest container line Nov. 11, brings experience at a transparent, publicly traded company to the most private company in shipping. He comes from a company that has grown by acquisition to one that has been built organically. And he comes from a carrier pursuing a radical transportation into an end-to-end logistics provider to one that for the most part sticks strictly to the bread and butter of container shipping. As reported by multiple media outlets, Toft is taking the CEO job at rival MSC. It would be the first time in its 50-year history that the Aponte family firm has brought in an outsider to head what is now the second-largest container line in terms of deployed capacity. The current president and CEO of MSC is Diego Aponte, son of chairman Gianluigi Aponte, who founded MSC in 1970. Contrary to reports from the Wall Street Journal and other media outlets indicating Gianluigi would step down and hand the chairman’s job to Diego, a spokesperson for MSC tells JOC.com both "will retain a close, hands-on role at the top of the business." "Media reports that Gianluigi Aponte is stepping down are erroneous," the spokesperson said. Toft abruptly resigned from Maersk Nov. 11, telling reporters he would be taking on a CEO role, but declining to provide further details. A spokesperson for MSC declined to comment, but one well-placed source told JOC.com Toft would be taking the helm of MSC and that an announcement would be made soon. “It is a done deal,” a container shipping executive told JOC.com. “I believe he will have a 12-month cooling-off period first.” Company moves at top management levels are usually accompanied by non-compete periods of “gardening leave,” so even if Toft does take the top position at MSC, it could be some time before he hangs his coat in the corner office. Starkly different companies It is impossible to overstate the differences between the company and culture Toft will enter, and the one he leaves behind. Maersk, for starters, has grown through acquisition, swallowing large and mid-sized competitors such as Safmarine, P&O Nedlloyd, Sealand, and most recently Hamburg Sud. MSC has quietly taken stakes in a few forwarders such as Savino Del Bene, but not as part of a broad strategy, and has made no acquisitions in container shipping, growing organically over the 50 years since its founding. That means Maersk, although Danish-led at the top, is a mix of individuals from various corporate backgrounds, while MSC leadership has almost exclusively come up from within the ranks of the company. Strategically, although they cooperate as part of the 2M alliance, the No. 1 and No. 2 carriers are also night and day in how they approach the market. Maersk has long been an establishment carrier, a core member of former shipping conferences such as the TAA in the trans-Atlantic in the 1990s, and an industry pacesetter in areas such as environmental sustainability. MSC, which was an upstart outsider in its early days, has never forgotten its roots as a non-vessel-operating common carrier (NVO), having initially had little access to direct beneficial cargo owner (BCO) cargo and thus maintains to this day deep-rooted loyalty to its NVO accounts. In doing so, it has made clear on many occasions that having built its company on the back of NVO cargo, it would not then turn around and compete with them on their own turf. Maersk has long had a more tenuous relationship with NVOs, needing their cargo as NVOs have steadily grown in importance over the years, but not unwilling to edge in on their turf. This was seen most dramatically in the Maersk integrator strategy where it is seeking to challenge NVOs as an end-to-end provider of transportation services, complete with offerings including warehousing, inland transportation, and customs brokerage. While Maersk through its strategy sees the opportunity to create value for customers through enhanced supply chain services, MSC has long taken a more confrontational-at-times attitude toward shippers, occasionally in past years seeing the relationship more as a zero-sum game where the shipper’s gain is the carrier’s loss, and vice-versa. It has clashed openly with some shippers in the past. But in a larger sense, while Maersk has appeared to alter course on multiple occasions over the years, MSC has been more consistent in its strategy, growing into new markets as it sees opportunities, building long-term relationships with key customers — despite knocking heads occasionally — and casting those relationships as an extension of the Aponte family, which describes its employees and customers as an extension of its own family. With a greater degree of turnover — starting with a string of CEOs, but also many upward and lateral moves among key executives both at headquarters and in the regions, as is customary at large corporations — Maersk has been more process-focused and arms-length in its relationship with the market versus MSC. MSC sees need for outside experience But Toft inevitably was brought in to usher in a new era at MSC. MSC turned to an outsider not because it lacks leadership potential within its own ranks — it has several senior executives in Geneva, including top line manager Caroline Becquart and COO Claudio Bozzo, the former head of MSC USA, who have been with the company for years and, in some cases, decades — but rather to bring in experience that MSC does not possess in-house but needs going forward. For example, Toft brings management experience as a member of the executive board of a publicly traded company. At Maersk, regular external communication, whether to investors, media, policymakers, or other stakeholders is part of the company’s DNA. MSC, while becoming more active in marketing and communications over just the past few years, remains doggedly private, beginning with its status as a privately held company that is not required to release financial information and, in fact, over the years has released next to nothing — not even annual revenues, which are believed to be well in excess of $30 billion per year when taking into account the core ocean container business, terminals, and MSC Cruises. It was unclear whether Toft would run the cruise business or whether MSC may be considering breaking that out into a separate company. While MSC has been content to lay low, following other carriers (such as Maersk) in ordering mega-ships or making bold and risky moves in technology, such as its decision to participate in the Maersk-led TradeLens, Maersk over time has become even more aggressive in positioning itself as an industry leader, perhaps no more so than in environmental sustainability. MSC has been low-key in the face of growing dialogue around decarbonization, for example emphasizing the efficiency of its largest vessels, while Maersk made the risky but groundbreaking commitment to fully decarbonize its operations by 2050 and deploy the first commercially viable zero-carbon ship by 2030. Toft was the face of Maersk on those initiatives. While Toft will enter, and lead, an organization and a culture foreign to his experience in many ways, it is likely Toft, rather than MSC, who will be forced to adjust — at least initially. The Aponte family would not be bringing in Toft because they are unsuccessful; on the contrary, it would be hard to argue that MSC has been anything short of spectacularly successful over the past half century, starting from scratch and emerging as the second-largest container line and one of the world’s largest privately held companies. It did that by being bold, visionary, hands-on, and willing to take risks. Its approach of avoiding big bets on strategy or technology has proven prescient, at least so far. Toft can only be seen as someone able to take the company forward, building on what’s been achieved so far.

Container lines

Toft move a dawning of new era at MSC

<div class="phx-topic abstract-wrapper">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>

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.

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<div class="phx-topic">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&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. 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 <a href="">greg.knowler@spglobal.com</a>.   </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 .   

Maritime

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

<div class="phx-topic abstract-wrapper">The success of container lines in keeping vessel utilization high by removing functional capacity weakens the network and ups volatility in ocean reliability.</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">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. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6172263_0.1.jpg"></img></div>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. <h3>Obstacles to reliability ratchet up </h3>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. “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. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="4abe02d4-ed18-461a-ac0b-87ef52e3192b"></dynamic-object></div>“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.” <h3>Finding reliability in service contracts </h3>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, though 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’s 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 <a href="mark.szakonyi@spglobal.com">Szakonyi at mark.szakonyi@spglobal.com</a>. </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, though 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’s 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 .

Trans-Atlantic

Asia-Europe

Trans-Pacific

Container Shipping News

Greater capacity control needs hinder ocean reliability efforts

<div class="phx-topic abstract-wrapper">As volumes of new energy generation and storage technologies increase, shippers expect more documentation, transparency and greater control over risk, according to project forwarders and carriers.</div>

As volumes of new energy generation and storage technologies increase, shippers expect more documentation, transparency and greater control over risk, according to project forwarders and carriers.

<div class="phx-topic">A nascent boom in the transport of new power-related technologies such as large scale battery energy storage system (BESS) units is placing a higher compliance burden on project logistics professionals, from dangerous goods regulations and port processes to biosecurity and onsite safety requirements. Regulators and government authorities are restricting approval pathways, and shippers expect more documentation, more transparency, and greater control over risk, Colin Charnock, group CEO of forwarder Trans Global Projects (TGP), told the Journal of Commerce. “The power sector’s longstanding high expectations are not only continuing but intensifying,” Charnock said. “Logistics providers must operate with deeper technical expertise, stronger quality governance and more structured execution models. “Capacity planning, specialized equipment availability and cross-border regulatory alignment will all become more challenging as demand increases, particularly for remote-area deliveries, renewable energy projects and next-generation storage systems,” he added. And although it may be supercharged, <a href="https://www.joc.com/article/lumpy-project-cargo-demand-to-lead-to-two-tier-mpv-market-6164866">the power drive isn’t likely to be steady or uniform</a>, according to a spokesperson for Chipolbrok who did not want to be identified. The multipurpose and heavy-lift vessel (MPV) operator has seen a “remarkable decline” in oil and gas development <a href="https://www.joc.com/article/reversal-in-us-clean-energy-investment-signals-shift-in-project-cargo-momentum-6169519">outside the US</a>, with traditional power plant equipment volumes now “significantly exceeded” by demand from renewable energy and infrastructure projects, the spokesperson said. Earlier this year, Chipolbrok announced an order for up to 10 60,800-deadweight-ton MPVs that will increase its fleet to more than 40 vessels. The ships, the first of which is scheduled for delivery in November 2027, will be capable of carrying containerized energy storage systems, battery packs and electrical charging equipment, as well as other power-related project cargoes such as wind farm components. Demand is also uneven among geographical regions, the spokesperson said, adding that Chipolbrok is “focusing heavily on developments in the Arab world and the Indian subcontinent.” The situation in Central Europe, however, remains “somewhat unclear,” he said, as infrastructure projects have been overshadowed by military buildup and the war in Ukraine, even though there is a significant need for development there. Investors, developers and logistics providers must also deal with sudden policy upheavals, such as the Trump administration’s decision to cancel five major US offshore wind projects in late 2025. A January court ruling allowed construction to resume on all five sites — Coastal Virginia Offshore Wind-Commercial, Empire Wind 1, Revolution Wind, Sunrise Wind, and Vineyard Wind 1 — but the administration plans to appeal that decision, US Secretary of the Interior Doug Burgum said <a href="https://www.youtube.com/watch?v=JHSzhcphfkc">in an interview with Bloomberg Television.</a><h3>An ‘evolving’ environment </h3>Charnock said the global transition toward lower- and zero-carbon energy sources has further accelerated freight demand from the power generation and storage sector, but noted that TGP’s current cargo pipeline “spans every major segment of the sector: hydrogen, wind, nuclear, traditional generation and emerging technologies.” Although the logistics provider’s approach to transporting renewable power project cargoes does not differ fundamentally from moving conventional energy freight, the variety of equipment is increasing and each technology brings its own regulatory and operational challenges, he said. “Many of the core components, such as transformers, cables and control systems, are identical across both conventional and renewable applications,” Charnock said. “What differs is the regulatory framework around each technology, the sequencing of deliveries and in some cases the level of scrutiny from authorities and investors.” Charnock cited a recent delivery of 48 lithium BESS units from China to a remote site in Western Australia, the region’s first approved lithium battery import, as an example of the more stringent safety, compliance and risk management environment around new power technologies. Operationally, the move involved breakbulk ocean transport, specialized handling equipment and a challenging 90-km final leg across a dirt road. It also required “extensive compliance work,” he said, including a two year consultation process to secure port approval under new International Maritime Organization regulations, strict dangerous goods procedures, high pressure cleaning, and detailed biosecurity and customs controls. <h3>’Elevated safety protocol’ </h3>Jack Zhou, general manager at MPV operator AAL Shipping, said transporting IMO-classified cargo such as BESS units “requires elevated security documentation and safety protocol.” For starters, all AAL vessels hold a Document of Compliance for the Carriage of Dangerous Goods, which includes tailored onboard contingency plans covering spillage, fire and other emergency scenarios involving BESS units. “To further enhance the safety of the vessel and monitor the internal temperature of the BESS units, AAL has invested in flammable-gas detectors, temperature and humidity monitoring systems, portable thermal cameras and high-capacity submersible pumps,” Zhou told the Journal of Commerce. “Crews undergo specific drills prior to each shipment and vessels are equipped with toxic-gas protective gear.” Strict loading controls overseen by the vessel’s Officer of the Watch ensure all dangerous goods signals are displayed and that no “hot work,” such as welding the D-rings used for lashing, is carried out after BESS units are loaded on board. Weather routing experts help the in-house performance optimization team plan voyage routes to minimize vessel motion. During transit, the crew performs regular inspections and activate immediate countermeasures if any irregularities are found. “As BESS technology scales and unit sizes grow, AAL expects regulations to further evolve,” Zhou added. Contact Felicity Landon on <a href="mailto:felicity@felicitylandon.com">felicity@felicitylandon.com.</a></div>

A nascent boom in the transport of new power-related technologies such as large scale battery energy storage system (BESS) units is placing a higher compliance burden on project logistics professionals, from dangerous goods regulations and port processes to biosecurity and onsite safety requirements. Regulators and government authorities are restricting approval pathways, and shippers expect more documentation, more transparency, and greater control over risk, Colin Charnock, group CEO of forwarder Trans Global Projects (TGP), told the Journal of Commerce. “The power sector’s longstanding high expectations are not only continuing but intensifying,” Charnock said. “Logistics providers must operate with deeper technical expertise, stronger quality governance and more structured execution models. “Capacity planning, specialized equipment availability and cross-border regulatory alignment will all become more challenging as demand increases, particularly for remote-area deliveries, renewable energy projects and next-generation storage systems,” he added. And although it may be supercharged, the power drive isn’t likely to be steady or uniform , according to a spokesperson for Chipolbrok who did not want to be identified. The multipurpose and heavy-lift vessel (MPV) operator has seen a “remarkable decline” in oil and gas development outside the US , with traditional power plant equipment volumes now “significantly exceeded” by demand from renewable energy and infrastructure projects, the spokesperson said. Earlier this year, Chipolbrok announced an order for up to 10 60,800-deadweight-ton MPVs that will increase its fleet to more than 40 vessels. The ships, the first of which is scheduled for delivery in November 2027, will be capable of carrying containerized energy storage systems, battery packs and electrical charging equipment, as well as other power-related project cargoes such as wind farm components. Demand is also uneven among geographical regions, the spokesperson said, adding that Chipolbrok is “focusing heavily on developments in the Arab world and the Indian subcontinent.” The situation in Central Europe, however, remains “somewhat unclear,” he said, as infrastructure projects have been overshadowed by military buildup and the war in Ukraine, even though there is a significant need for development there. Investors, developers and logistics providers must also deal with sudden policy upheavals, such as the Trump administration’s decision to cancel five major US offshore wind projects in late 2025. A January court ruling allowed construction to resume on all five sites — Coastal Virginia Offshore Wind-Commercial, Empire Wind 1, Revolution Wind, Sunrise Wind, and Vineyard Wind 1 — but the administration plans to appeal that decision, US Secretary of the Interior Doug Burgum said in an interview with Bloomberg Television. An ‘evolving’ environment Charnock said the global transition toward lower- and zero-carbon energy sources has further accelerated freight demand from the power generation and storage sector, but noted that TGP’s current cargo pipeline “spans every major segment of the sector: hydrogen, wind, nuclear, traditional generation and emerging technologies.” Although the logistics provider’s approach to transporting renewable power project cargoes does not differ fundamentally from moving conventional energy freight, the variety of equipment is increasing and each technology brings its own regulatory and operational challenges, he said. “Many of the core components, such as transformers, cables and control systems, are identical across both conventional and renewable applications,” Charnock said. “What differs is the regulatory framework around each technology, the sequencing of deliveries and in some cases the level of scrutiny from authorities and investors.” Charnock cited a recent delivery of 48 lithium BESS units from China to a remote site in Western Australia, the region’s first approved lithium battery import, as an example of the more stringent safety, compliance and risk management environment around new power technologies. Operationally, the move involved breakbulk ocean transport, specialized handling equipment and a challenging 90-km final leg across a dirt road. It also required “extensive compliance work,” he said, including a two year consultation process to secure port approval under new International Maritime Organization regulations, strict dangerous goods procedures, high pressure cleaning, and detailed biosecurity and customs controls. ’Elevated safety protocol’ Jack Zhou, general manager at MPV operator AAL Shipping, said transporting IMO-classified cargo such as BESS units “requires elevated security documentation and safety protocol.” For starters, all AAL vessels hold a Document of Compliance for the Carriage of Dangerous Goods, which includes tailored onboard contingency plans covering spillage, fire and other emergency scenarios involving BESS units. “To further enhance the safety of the vessel and monitor the internal temperature of the BESS units, AAL has invested in flammable-gas detectors, temperature and humidity monitoring systems, portable thermal cameras and high-capacity submersible pumps,” Zhou told the Journal of Commerce. “Crews undergo specific drills prior to each shipment and vessels are equipped with toxic-gas protective gear.” Strict loading controls overseen by the vessel’s Officer of the Watch ensure all dangerous goods signals are displayed and that no “hot work,” such as welding the D-rings used for lashing, is carried out after BESS units are loaded on board. Weather routing experts help the in-house performance optimization team plan voyage routes to minimize vessel motion. During transit, the crew performs regular inspections and activate immediate countermeasures if any irregularities are found. “As BESS technology scales and unit sizes grow, AAL expects regulations to further evolve,” Zhou added. Contact Felicity Landon on felicity@felicitylandon.com.

Breakbulk carriers

Energy projects

Heavy-haul transport

Project cargo

Breakbulk News

Growing energy cargo demand brings higher compliance burden

<div class="phx-topic abstract-wrapper">China export forecasts could top 8 million vehicles this year, providing a steady flow of cargo for the expected 8% increase in the global ro/ro fleet.</div>

China export forecasts could top 8 million vehicles this year, providing a steady flow of cargo for the expected 8% increase in the global ro/ro fleet.

<div class="phx-topic">Surging vehicle exports from China to developing markets will offset looming fears of overcapacity in the vehicle carrier market, the head of one of the roll-on/roll-off sector’s biggest operators said. Lasse Kristoffersen, president and CEO of Wallenius Wilhelmsen, predicted the growth in vehicle exports, especially from China, will match the influx of new vehicle carrier capacity this year based on manufacturers’ sales forecasts. He said China’s top seven manufacturers, including BYD, Geely, Chery and Nio, planned to ship an extra 2.3 million vehicles to overseas markets this year on top of official total vehicle exports of 5.9 million units. That followed a 24% rise in China’s vehicle exports to 6.9 million last year, up from 5 million in the year prior, Kristoffersen said during a results briefing last week. Kristoffersen noted the peak in pure car and truck carrier (PCTC) deliveries last year with 75 ships totaling 600,000 car equivalent units (CEU) joining the global fleet. A further 67 vessels are set for delivery this year, adding to the current fleet of 899 ships, according to figures from maritime consultant AXS Marine and British shipbroking house Clarksons.   This year’s new vessel deliveries equate to an 8% rise in total fleet capacity to 5.3 million CEUs this year, adding to the 13% increase last year. “This extra export volume more or less matches the extra capacity coming out of shipyards,” Kristoffersen said during the briefing. “That’s why we believe China will surprise on the upside.” Both Mitsui OSK Lines and “K” Line, in earnings statements last week, said they expected “solid demand” for vehicle exports to continue this year. <h3>Focus on emerging markets </h3>Kristoffersen said China’s vehicle export boom is being driven by a surge in exports to emerging markets including Latin America, where volumes are expected to grow 40% this year, and the Middle East, where 14% growth is expected. These developing markets call for longer two-month voyages, which reduces the impact of the influx of new shipping capacity, he said. Kristoffersen was commenting after several analysts, including Clarksons and AXS Marine, recently warned that the vehicle carrier market faces overcapacity, falling freight rates and lackluster demand growth on the back of limited scrapping. “While Chinese car and vehicle exports continue to record strong [volumes], the expansion of the PCTC fleet has become increasingly disproportionate to underlying market fundamentals, “ASX RoRo said in its February market report. “While Chinese vehicle exports continue to expand and are unlikely to slow materially, this growth largely reflects a shift in production and export patterns rather than a meaningful increase in global vehicle demand,” the report added. China’s vehicle exports continue to outpace Japan, which it overtook as the world’s biggest vehicle exporter in 2023. Japan and South Korea have both seen vehicle exports fall by almost 2% over the last two years, while Western manufacturers saw a steeper decline of between 4% and 10% in exports to Asia last year. “Unless demolition activity picks up more decisively, utilization and earnings are likely to come under pressure,” the AXS RoRo report said. Clarksons was slightly more upbeat, saying while one-year vessel charter rates had fallen 63% at the end of last year from “exceptional highs” in 2024, carriers generally continue to report “healthy earnings as cargo continues to be moved under contracts renegotiated at higher levels.” Highlighting the potential for vessel scrapping, Mitsui OSK Lines said in an earnings report this month that 29%, or 239 vehicle carriers, of the existing fleet of 819 ships is over 20 years old, while 18% is more than 26 years old. Kristoffersen said the decline in rates, from $115,000 per day for a 6,500-CEU ship in the first half of 2024 to almost $45,000 per day last month, has also opened opportunities to charter ships at more realistic levels for ad hoc spot vehicle and high-and-heavy cargoes. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Surging vehicle exports from China to developing markets will offset looming fears of overcapacity in the vehicle carrier market, the head of one of the roll-on/roll-off sector’s biggest operators said. Lasse Kristoffersen, president and CEO of Wallenius Wilhelmsen, predicted the growth in vehicle exports, especially from China, will match the influx of new vehicle carrier capacity this year based on manufacturers’ sales forecasts. He said China’s top seven manufacturers, including BYD, Geely, Chery and Nio, planned to ship an extra 2.3 million vehicles to overseas markets this year on top of official total vehicle exports of 5.9 million units. That followed a 24% rise in China’s vehicle exports to 6.9 million last year, up from 5 million in the year prior, Kristoffersen said during a results briefing last week. Kristoffersen noted the peak in pure car and truck carrier (PCTC) deliveries last year with 75 ships totaling 600,000 car equivalent units (CEU) joining the global fleet. A further 67 vessels are set for delivery this year, adding to the current fleet of 899 ships, according to figures from maritime consultant AXS Marine and British shipbroking house Clarksons.   This year’s new vessel deliveries equate to an 8% rise in total fleet capacity to 5.3 million CEUs this year, adding to the 13% increase last year. “This extra export volume more or less matches the extra capacity coming out of shipyards,” Kristoffersen said during the briefing. “That’s why we believe China will surprise on the upside.” Both Mitsui OSK Lines and “K” Line, in earnings statements last week, said they expected “solid demand” for vehicle exports to continue this year. Focus on emerging markets Kristoffersen said China’s vehicle export boom is being driven by a surge in exports to emerging markets including Latin America, where volumes are expected to grow 40% this year, and the Middle East, where 14% growth is expected. These developing markets call for longer two-month voyages, which reduces the impact of the influx of new shipping capacity, he said. Kristoffersen was commenting after several analysts, including Clarksons and AXS Marine, recently warned that the vehicle carrier market faces overcapacity, falling freight rates and lackluster demand growth on the back of limited scrapping. “While Chinese car and vehicle exports continue to record strong [volumes], the expansion of the PCTC fleet has become increasingly disproportionate to underlying market fundamentals, “ASX RoRo said in its February market report. “While Chinese vehicle exports continue to expand and are unlikely to slow materially, this growth largely reflects a shift in production and export patterns rather than a meaningful increase in global vehicle demand,” the report added. China’s vehicle exports continue to outpace Japan, which it overtook as the world’s biggest vehicle exporter in 2023. Japan and South Korea have both seen vehicle exports fall by almost 2% over the last two years, while Western manufacturers saw a steeper decline of between 4% and 10% in exports to Asia last year. “Unless demolition activity picks up more decisively, utilization and earnings are likely to come under pressure,” the AXS RoRo report said. Clarksons was slightly more upbeat, saying while one-year vessel charter rates had fallen 63% at the end of last year from “exceptional highs” in 2024, carriers generally continue to report “healthy earnings as cargo continues to be moved under contracts renegotiated at higher levels.” Highlighting the potential for vessel scrapping, Mitsui OSK Lines said in an earnings report this month that 29%, or 239 vehicle carriers, of the existing fleet of 819 ships is over 20 years old, while 18% is more than 26 years old. Kristoffersen said the decline in rates, from $115,000 per day for a 6,500-CEU ship in the first half of 2024 to almost $45,000 per day last month, has also opened opportunities to charter ships at more realistic levels for ad hoc spot vehicle and high-and-heavy cargoes. Contact Keith Wallis at keithwallis@hotmail.com .

Ro/ro cargo

Surging China auto exports to counter carrier overcapacity fears: Wilhelmsen CEO

<div class="phx-topic abstract-wrapper">The increase in volume that would result across the trans-Atlantic and trans-Pacific corridors was particularly welcome, according to Hapag-Lloyd’s CEO.</div>

The increase in volume that would result across the trans-Atlantic and trans-Pacific corridors was particularly welcome, according to Hapag-Lloyd’s CEO.

<div class="phx-topic">Hapag-Lloyd’s $4.2 billion acquisition of Zim Integrated Shipping Services that was announced Monday will significantly improve the Hamburg-based carrier’s position on several major trade lanes. While cementing the buyer’s position <a href="https://www.joc.com/article/hapag-lloyds-plan-to-acquire-zim-would-deepen-shipping-oligopoly-6170073">as the world’s fifth-largest container shipping company</a>, the takeover will grow Hapag-Lloyd’s volume share on the trans-Atlantic from 24% to 27%, on the trans-Pacific from 7% to 12%, in Asia from 9% to 11%, on Asia-Latin America from 11% to 14%, and from 2% to 7% on the intra-Europe trade, according to data from Container Trades Statistics (CTS) cited by Hapag-Lloyd. Hapag-Lloyd CEO Rolf Habben Jansen highlighted as particularly welcome the increase in volume that would result across the trans-Atlantic and trans-Pacific corridors. “When we look for a minute at the trade portfolios on the Atlantic and trans-Pacific, if we joined forces we would really get into very strong position,” he told reporters during an online briefing Monday shortly after signing the Zim deal in Tel Aviv. A 27% market share on the trans-Atlantic would put Hapag-Lloyd in second place behind Mediterranean Shipping Co. at 29%, according to the CTS figures cited by Hapag-Lloyd. According to PIERS, a sister company of the Journal of Commerce within S&amp;P Global, Hapag-Lloyd had a market share of 19.6% on the trans-Atlantic in January, behind MSC’s 22.6%. But Hapag-Lloyd held the top position throughout the fourth quarter of 2025 with a share that exceeded 25% in October and December. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ce24ca8a-5149-4e8e-a00a-5743e4d2abba"></dynamic-object></div>On the trans-Pacific, the addition of Zim would put Hapag-Lloyd level with Ocean Network Express in third position behind MSC at 13%, according to CTS. Habben Jansen said the Asia-Latin America trade has long been a corridor he has wanted to expand. In 2023, Hapag-Lloyd strengthened its position with the acquisition of SM SAAM terminal business while growing dedicated service networks on the trade lane. “Zim has done really well on Asia-Latin America in the last couple of years and this would allow us to get closer to the 15%, 16% [volume share] that we’ve always aspired to,” Habben Jansen told reporters. MSC holds the largest market share on the trade at 21%. <h3>Intra-Europe share ‘too small’ </h3>The Zim volume added on the intra-Europe trade would put Hapag-Lloyd level with Cosco Shipping at 7%, although considering it is a home market for the Hamburg-based carrier, Habben Jansen indicated there is still room to grow. “Intra-Europe for Hapag-Lloyd is too small in my view,” he said. “We would like to get to a market share of around 10%, and this would help us make a good step in that direction.” The Zim deal is expected to be completed by the end of the year, subject to approval of the Israeli carrier’s shareholders and regulatory approval in several jurisdictions. The acquisition comes as container shipping moves into a supply-driven downcycle, with the declining market sharply illustrated in Hapag-Lloyd’s preliminary results for 2025 <a href="https://www.joc.com/article/fourth-quarter-rate-slump-drags-down-hapag-lloyds-2025-financials-6166755">that included a steep drop in profitability</a>. Zim’s earnings have yet to be announced. Hapag-Lloyd’s estimated 2025 revenue for the combined entity would be $28 billion, a $1.1 billion drop from 2024. In earnings before interest and taxes, the $5.3 billion reported in 2024 by both carriers is expected to plummet to $2 billion should Zim hit the higher end of its 2025 forecast. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Hapag-Lloyd’s $4.2 billion acquisition of Zim Integrated Shipping Services that was announced Monday will significantly improve the Hamburg-based carrier’s position on several major trade lanes. While cementing the buyer’s position as the world’s fifth-largest container shipping company , the takeover will grow Hapag-Lloyd’s volume share on the trans-Atlantic from 24% to 27%, on the trans-Pacific from 7% to 12%, in Asia from 9% to 11%, on Asia-Latin America from 11% to 14%, and from 2% to 7% on the intra-Europe trade, according to data from Container Trades Statistics (CTS) cited by Hapag-Lloyd. Hapag-Lloyd CEO Rolf Habben Jansen highlighted as particularly welcome the increase in volume that would result across the trans-Atlantic and trans-Pacific corridors. “When we look for a minute at the trade portfolios on the Atlantic and trans-Pacific, if we joined forces we would really get into very strong position,” he told reporters during an online briefing Monday shortly after signing the Zim deal in Tel Aviv. A 27% market share on the trans-Atlantic would put Hapag-Lloyd in second place behind Mediterranean Shipping Co. at 29%, according to the CTS figures cited by Hapag-Lloyd. According to PIERS, a sister company of the Journal of Commerce within S&P Global, Hapag-Lloyd had a market share of 19.6% on the trans-Atlantic in January, behind MSC’s 22.6%. But Hapag-Lloyd held the top position throughout the fourth quarter of 2025 with a share that exceeded 25% in October and December. On the trans-Pacific, the addition of Zim would put Hapag-Lloyd level with Ocean Network Express in third position behind MSC at 13%, according to CTS. Habben Jansen said the Asia-Latin America trade has long been a corridor he has wanted to expand. In 2023, Hapag-Lloyd strengthened its position with the acquisition of SM SAAM terminal business while growing dedicated service networks on the trade lane. “Zim has done really well on Asia-Latin America in the last couple of years and this would allow us to get closer to the 15%, 16% [volume share] that we’ve always aspired to,” Habben Jansen told reporters. MSC holds the largest market share on the trade at 21%. Intra-Europe share ‘too small’ The Zim volume added on the intra-Europe trade would put Hapag-Lloyd level with Cosco Shipping at 7%, although considering it is a home market for the Hamburg-based carrier, Habben Jansen indicated there is still room to grow. “Intra-Europe for Hapag-Lloyd is too small in my view,” he said. “We would like to get to a market share of around 10%, and this would help us make a good step in that direction.” The Zim deal is expected to be completed by the end of the year, subject to approval of the Israeli carrier’s shareholders and regulatory approval in several jurisdictions. The acquisition comes as container shipping moves into a supply-driven downcycle, with the declining market sharply illustrated in Hapag-Lloyd’s preliminary results for 2025 that included a steep drop in profitability . Zim’s earnings have yet to be announced. Hapag-Lloyd’s estimated 2025 revenue for the combined entity would be $28 billion, a $1.1 billion drop from 2024. In earnings before interest and taxes, the $5.3 billion reported in 2024 by both carriers is expected to plummet to $2 billion should Zim hit the higher end of its 2025 forecast. Contact Greg Knowler at greg.knowler@spglobal.com .

Zim deal to strengthen Hapag-Lloyd’s market share across key trade lanes

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