<div class="phx-topic abstract-wrapper">How the reduced capacity meets slowing US import volume, which will be reflected in weekly spot rates, will give a preliminary picture of what to expect in supply and demand for the coming year.</div>

How the reduced capacity meets slowing US import volume, which will be reflected in weekly spot rates, will give a preliminary picture of what to expect in supply and demand for the coming year.

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<div><a>Trans-Pacific</a> carriers are canceling sailings to reduce eastbound TEU capacity at a slightly higher rate than last year as they prepare for a steep drop in demand during the Lunar New Year and they position themselves for annual service contract negotiations beginning in March.How the reduced capacity meets slowing US import volume, which will be reflected in weekly spot rates, will give a preliminary picture of what to expect in supply and demand for the coming year. A clearer picture will emerge in March when carriers reveal revamped services and capacity deployments as they launch service contract negotiations with customers...

Trans-Pacific carriers are canceling sailings to reduce eastbound TEU capacity at a slightly higher rate than last year as they prepare for a steep drop in demand during the Lunar New Year and they position themselves for annual service contract negotiations beginning in March. How the reduced capacity meets slowing US import volume, which will be reflected in weekly spot rates, will give a preliminary picture of what to expect in supply and demand for the coming year. A clearer picture will emerge in March when carriers reveal revamped services and capacity deployments as they launch service contract negotiations with customers for the period May 1, 2019, to April 30, 2020. Container lines and alliances are beginning to signal how they’re approaching capacity deployment in the spring. Zim Integrated Shipping Services and 2M partners Maersk Line and Mediterranean Shipping Co. on Jan 10 announced plans to extend their partnership on the trans-Pacific from a vessel-sharing agreement (VSA) for a service to the US East Coast to one calling the west coast of Canada and the United States. According to Alphaliner, the revamped partnership, which features Zim ending its Asia-Mediterranean-US West Coast service, will likely keep capacity through the tie-up largely unchanged, thanks to the deployment of larger 2M ships to handle the Zim volume. Separately, CMA CGM and its Ocean Alliance partners Cosco Shipping, Evergeren Line, and OOCL on Wednesday said they are strengthening their tie-up with a new product dubbed Ocean Alliance Day 3, launching in April. The alliance said it will offer the largest service offering on the trans-Pacific with 19 services. While no formal offers have been made for the 2019 service contracts, carriers are said to have originally targeted contract rates of about $1,500 per FEU to the West Coast and $2,500 per FEU to the East Coast, although those numbers are said to have come down a bit recently. Carriers are also indicating that contracts should include a peak-season surcharge of about $300 per FEU, with allowances for further hikes if warranted during the busiest weeks. Click to enlarge Retailers expect US imports to weaken in the first half of 2019 due to the front-loading of shipments last autumn to get ahead of the Trump administration’s 25 percent tariffs on more than $200 billion of imports from China. US imports in calendar year 2018 increased more than 6 percent, including an exceptional increase of 21.8 percent in December over December 2017, according to PIERS, a JOC.com sister company. The cancellations that carriers announced so far include 22 blank sailings from Asia to the West Coast, which is down from the 28 blank sailings that occurred during the three-week period of Chinese New Year in 2018. Carriers so far have announced 13 blank sailings to the East Coast, up from 11 blank sailings when factories in Asia closed for the 2018 Lunar New Year. The data were compiled by SeaIntelligence and published in its Sunday Spotlight this week. When the actual reduction in TEU capacity of the 35 blank sailings is measured, the short-term impact of the blank sailings is shaping up to be about the same as during the first quarter of 2018. Last year the blank sailings removed 229,300 TEU from the Asia-West Coast route, while this year the capacity reduction will be 222,600 TEU, said Alan Murphy, CEO and partner at SeaIntelligence. This year canceled sailings will remove 127,300 TEU to the East Coast, while last year the blank sailings removed only 88,100 TEU, which indicates the ships involved this year are larger than those removed last year, Murphy said. The blank sailings will turn what had been projected to be a first quarter marked by significant overcapacity into an environment in line with the averages of recent years. Just two weeks ago, capacity to the West Coast in the first quarter of 2019 was projected to be 12.3 percent higher than in the first quarter of 2018 and 11.4 percent higher to the East Coast. Murphy said that due to the blank sailings, eastbound capacity in the first quarter is now projected to be about 6.4 percent higher than it was in the first quarter of 2018. Click to enlarge The picture is even brighter when the 2019 blank sailings are measured against the three-week average of past Lunar New Years. “As far as the current vessel deployment schedules are concerned, carriers are looking in good shape capacity-wise ahead of Chinese New Year, if previous years are used as a guide of how much needs to be blanked,” he said. During the three weeks of this year’s Lunar New Year, carriers to the West Coast already plan to remove about 48,000 additional TEU than the average TEU that was blanked during 2016-2018. Planned capacity reductions to the East Coast are 56,300 TEU higher than the average during the 2016-2018 period, he said. If the blank sailings result in only a modest drop in spot rates, carriers believe they will enter the service contracting period with enough leverage to negotiate annual contracts with at least compensatory rates. While the definition of compensatory varies, the breakeven rate for West Coast services generally falls in the range of $1,200 per FEU at the low end to $1,600 per FEU on the high end, and $2,200 to $2,600 to the East Coast. Carriers attempt to attain profitability through higher spot rates and peak-season surcharges during the busy summer-autumn months. Last November spot rates exceeded $2,500 per FEU to the West Coast and $3,700 to the East Coast. While spot rates play a role in negotiating the eastbound Pacific service contracts, the annual rates paid by steady customers are priced more so on annual supply-demand projections. Projecting total capacity on a trade lane for the peak season that is at least seven months away is difficult. IHS Markit projects that global container capacity in 2019 will increase 2.6 percent, down from a 6.2 percent increase in 2018 over 2017. However, Lawrence Burns, senior vice president of trade and sales at HMM, said vessel deployments in the eastbound Pacific will not begin to take shape until March. Based on the extreme volatility in pricing that occurred last year, carriers and shippers agree that this year their goal is to reach mutually agreeable service contract rates in May and to include in the contracts mutually agreeable peak-season surcharges in the busy summer-autumn months. Last year, fearing overcapacity, carriers agreed to what they called “disappointing” contract rates of roughly $1,200 per FEU to the West Coast and $2,200 to the East Coast. However, disruptions to the supply chain when the front-loading of merchandise began in the summer and accelerated into the autumn fed a spot-rate frenzy that saw West Coast spot rates soar from $945 per FEU in March to $2,606 in November. The East Coast spot rate surged from $1,933 per FEU in March to $3,739 in November. Neither carriers nor shippers have an appetite for such rate volatility this year. “Everybody wants to avoid it,” said Michael Klage, solutions director at TOC Logistics International. Given the fact that some peak-season surcharges last autumn approached $1,000 per FEU, carriers and shippers feel a market-based solution included in the service contracts could avoid extreme volatility during the 2019 peak season. “Ships fill up. The reality is that there are sound economic reasons for peak-season surcharges,” said Bill Rooney, vice president of strategic development at Kuehne & Nagel. Contact Bill Mongelluzzo at bill.mongelluzzo@ihsmarkit.com and follow him on Twitter:@billmongelluzzo.

Container lines

Trans-Pacific carriers accelerate blank sailings

<div class="phx-topic abstract-wrapper">Revamped energy priorities in the US and data-related industrial projects are driving out-of-gauge cargo demand.</div>

Revamped energy priorities in the US and data-related industrial projects are driving out-of-gauge cargo demand.

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<div class="phx-topic">Engineering, procurement and construction (EPC) companies are riding a wave of demand for projects in the nuclear, oil and gas, and semiconductor industries, while also preparing for new work that could become available now that US defense spending is set to cross the trillion-dollar threshold. As large-scale projects materialize, those sectors could become significant drivers of project cargo activity through the end of 2025 and beyond — with US energy priorities shifting to fossil fuels and the rise of artificial intelligence (AI) driving investments in power-hungry data centers and semiconductor chip factories. Four major EPCs — Fluor, KBR, TechnipFMC and Worley — were bullish in reporting results from their latest earnings period. EPCs are key shippers of project cargo, procuring and transporting materials and equipment related to the construction of industrial, energy and defense projects. For Australian engineering group Worley, some of the company’s most significant contracts have come from liquefied natural gas (LNG) projects, along with other work in the energy, chemicals and resources sectors, according to the company’s 2025 fiscal year report issued Aug. 27. Worley increased its year-over-year annual project bookings by 32% to $11.2 billion; that amount includes the first phase of Venture Global’s CP2 project, a major LNG export facility in Louisiana that was given a notice to proceed in July. All told, Worley is involved in the early phases of about five LNG projects, CEO and managing director Chris Ashton said during the company’s most recent earnings call. “The LNG market presents good opportunities, and we are well-positioned for growth in this area,” Ashton said. Worley is also the EPC for ExxonMobil’s Baytown refinery project in Texas, which was included in Worley’s $11 billion project backlog for the year and contributed to a 22% increase over 2024. <h3>Fluor anticipates turnaround </h3>Texas-based engineering and construction company Fluor is looking to nuclear power, the semiconductor and data center markets, and a US mining resurgence for project opportunities after a year-over-year decline in new awards in its most recent quarter. In the company’s second-quarter earnings call, CEO and director James Breur said customers continue to exercise caution because of ongoing trade policy discussions and cost increases. But he expects project investments to accelerate “once the effects of the recently enacted pro-growth policies materialize.” New awards fell 43% to $1.8 billion in the second quarter, with the steepest decline coming from the company’s urban solutions division, which fell 65% to $856 million and includes technology, infrastructure and mining projects. Fluor’s work backlog also fell 13% to $28.2 billion for the quarter. “In semiconductors, our clients’ investment intentions have not yet translated into meaningful new awards,” Breur said of projects to develop microchip facilities. <h3>KBR looks to defense spending boon </h3>Houston-based defense contractor KBR is eyeing project opportunities that could come from the broad spending bill approved by Congress, which became law on July 4 and adds $150 billion in spending to the defense department’s $850 billion baseline budget. “We have line of sight to the first of a $1 trillion defense budget, which is lined up for 2026,” said Stuart Bradie, KBR’s president and CEO. KBR’s year-over-year work backlog grew 5% to $21.6 billion for the second quarter. Major contracts include a $476 million deal to support base operations in Djibouti and a contract extension through 2030 to support the US European Command (EUCOM) and the US Northern Command (NORTHCOM). LNG, ammonia and infrastructure were among other core markets for KBR, with the company in July winning a front-end engineering design (FEED) contract to develop an ammonia and urea production plant in Iraq. Meanwhile, multinational oil and gas services contractor TechnipFMC is on pace to reach its three-year goal of $30 billion in work orders from offshore projects by the end of 2025, according to the company’s latest quarterly earnings report. Among those projects is a five-year contract the company won in July from Vår Energi to provide engineering, procurement, construction and installation services for offshore hydrocarbon developments on the Norwegian continental shelf. “We see strength in offshore continuing, supported by client discussions for projects that are likely to be sanctioned through the end of the decade,” TechnipFMC CEO and chairman Douglas Pferdehirt said during the company’s second-quarter earnings call. TechnipFMC’s year-over-year project backlog for the quarter grew 22% to $15.8 billion in its subsea division, which accounts for over 90% of the company’s business and develops systems for offshore oil and gas projects. Just over half of the subsea backlog comes from projects scheduled for or after 2027. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com.</a></div>

Engineering, procurement and construction (EPC) companies are riding a wave of demand for projects in the nuclear, oil and gas, and semiconductor industries, while also preparing for new work that could become available now that US defense spending is set to cross the trillion-dollar threshold. As large-scale projects materialize, those sectors could become significant drivers of project cargo activity through the end of 2025 and beyond — with US energy priorities shifting to fossil fuels and the rise of artificial intelligence (AI) driving investments in power-hungry data centers and semiconductor chip factories. Four major EPCs — Fluor, KBR, TechnipFMC and Worley — were bullish in reporting results from their latest earnings period. EPCs are key shippers of project cargo, procuring and transporting materials and equipment related to the construction of industrial, energy and defense projects. For Australian engineering group Worley, some of the company’s most significant contracts have come from liquefied natural gas (LNG) projects, along with other work in the energy, chemicals and resources sectors, according to the company’s 2025 fiscal year report issued Aug. 27. Worley increased its year-over-year annual project bookings by 32% to $11.2 billion; that amount includes the first phase of Venture Global’s CP2 project, a major LNG export facility in Louisiana that was given a notice to proceed in July. All told, Worley is involved in the early phases of about five LNG projects, CEO and managing director Chris Ashton said during the company’s most recent earnings call. “The LNG market presents good opportunities, and we are well-positioned for growth in this area,” Ashton said. Worley is also the EPC for ExxonMobil’s Baytown refinery project in Texas, which was included in Worley’s $11 billion project backlog for the year and contributed to a 22% increase over 2024. Fluor anticipates turnaround Texas-based engineering and construction company Fluor is looking to nuclear power, the semiconductor and data center markets, and a US mining resurgence for project opportunities after a year-over-year decline in new awards in its most recent quarter. In the company’s second-quarter earnings call, CEO and director James Breur said customers continue to exercise caution because of ongoing trade policy discussions and cost increases. But he expects project investments to accelerate “once the effects of the recently enacted pro-growth policies materialize.” New awards fell 43% to $1.8 billion in the second quarter, with the steepest decline coming from the company’s urban solutions division, which fell 65% to $856 million and includes technology, infrastructure and mining projects. Fluor’s work backlog also fell 13% to $28.2 billion for the quarter. “In semiconductors, our clients’ investment intentions have not yet translated into meaningful new awards,” Breur said of projects to develop microchip facilities. KBR looks to defense spending boon Houston-based defense contractor KBR is eyeing project opportunities that could come from the broad spending bill approved by Congress, which became law on July 4 and adds $150 billion in spending to the defense department’s $850 billion baseline budget. “We have line of sight to the first of a $1 trillion defense budget, which is lined up for 2026,” said Stuart Bradie, KBR’s president and CEO. KBR’s year-over-year work backlog grew 5% to $21.6 billion for the second quarter. Major contracts include a $476 million deal to support base operations in Djibouti and a contract extension through 2030 to support the US European Command (EUCOM) and the US Northern Command (NORTHCOM). LNG, ammonia and infrastructure were among other core markets for KBR, with the company in July winning a front-end engineering design (FEED) contract to develop an ammonia and urea production plant in Iraq. Meanwhile, multinational oil and gas services contractor TechnipFMC is on pace to reach its three-year goal of $30 billion in work orders from offshore projects by the end of 2025, according to the company’s latest quarterly earnings report. Among those projects is a five-year contract the company won in July from Vår Energi to provide engineering, procurement, construction and installation services for offshore hydrocarbon developments on the Norwegian continental shelf. “We see strength in offshore continuing, supported by client discussions for projects that are likely to be sanctioned through the end of the decade,” TechnipFMC CEO and chairman Douglas Pferdehirt said during the company’s second-quarter earnings call. TechnipFMC’s year-over-year project backlog for the quarter grew 22% to $15.8 billion in its subsea division, which accounts for over 90% of the company’s business and develops systems for offshore oil and gas projects. Just over half of the subsea backlog comes from projects scheduled for or after 2027. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com.

Breakbulk News

Breakbulk carriers

Energy projects

Heavy-haul transport

Project cargo

Supply chain

EPCs emboldened by investments in energy, tech and defense projects

<div class="phx-topic abstract-wrapper">The days where container ships could be seen as fungible assets used in flexible ways might be coming to an end, leading to inefficiencies — and higher costs — in global liner networks, writes Lars Jensen.</div>

The days where container ships could be seen as fungible assets used in flexible ways might be coming to an end, leading to inefficiencies — and higher costs — in global liner networks, writes Lars Jensen.

<div class="phx-topic">For stakeholders in the container shipping supply chain, the past four to five months have been a flurry of rapid changes in relation to US tariff policy. It is easy to be caught up in the turmoil that this has caused, including rapid demand and supply swings as well as likely the sharpest and shortest spike in spot rates ever seen on the trans-Pacific. And it is also clear that this kind of turmoil will continue with the US now focusing on potentially implementing tariffs on furniture, which makes up some 7% of total US imports by container volume. An unresolved tariff situation with China and a significant lack of detail around the trade deals already announced only add to the potential volatility. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6070975_0.1.jpg"></img></div>However, there is a potentially more important change beginning to happen that is more global in nature and goes beyond tariffs, one that, to some degree, will challenge the fundamental workings of how shipping networks are usually operated. For the most part, the vessels themselves are fungible assets. If I have a vessel with a capacity of, say, 5,000 TEUs, I can essentially use this vessel anywhere globally, moving any type of cargo in a container for anyone, as well as changing the flag to almost any nation of my choosing. And if I have no need for the vessel, I can sell or charter it to anyone who, in turn, will have the same high degree of flexibility regarding the usage of the vessel. This makes the fleet of container vessels extremely versatile and allows a highly efficient cascading process whereby, for the most part, vessels are moved to the trades where they are most optimally used. Balancing capacity not only with demand but also the capability of port infrastructure allows for a high degree of asset utilization, and consequently, lower costs for shippers. <h3>Efficiency ‘coming under pressure’ </h3>It is this efficiency that is coming under pressure. Keep in mind that part of the value is the fungibility of the vessels — that they can be used anywhere, by anyone, for anyone. This ensures assets are used where they are most suitable. But consider the developments we have seen here in 2025: The US is placing penalties on vessels built, owned or operated in China. This is already beginning to result in network changes as carriers will either shift some port calls and/or phase in vessels from other trades. This would mean suboptimal usage of vessels and ports in order to reduce this externally imposed cost. India prohibited the call of vessels coming from Pakistan, resulting in a sharp reduction of direct services from Pakistan to the rest of the world. Instead, more feeder services were established — clearly suboptimal vessel usage compared with having large vessels call both nations on major deep-sea services. Turkey is prohibiting Israeli-affiliated vessels from calling Turkish ports and is also prohibiting Turkish-flagged vessels from calling Israel. The conflict between Thailand and Cambodia resulted in the closure of the land border, effectively preventing vessels calling the major port in Laem Chabang from efficiently servicing Cambodian imports and exports. Twenty-five container vessels were placed on the US OFAC sanctions list as they were seen as affiliated with Iranian logistics operations, effectively removing approximately one-third of SeaLead Shipping’s fleet from one day to the next. These are merely a few examples from 2025. We have, of course, seen various restrictions in the past, but the speed and scale with which this is ramping up is new. Later in 2025, we will likely see the results of the US Federal Maritime Commission’s investigation into unfair flag state competition. There are no prizes for guessing that, yes, of course there is a skewed competitive landscape — that is why flags of convenience have been popular for centuries. The only relevant question is which type of additional regulations and restrictions the US will then impose based on nationality. Then comes the debacle concerning the carbon tax on marine fossil fuels, which is likely to be adopted at the October meeting of the International Maritime Organization’s Marine Environment Protection Committee. It is crystal clear that the US will not participate. The open question is how many other countries will side with the US, creating more loopholes based on nationality. All in all, the days where container vessels to a significant degree could be seen as fungible assets might be coming to an end. Not that all flexibility will be lost. However, the flexibility is rapidly being reduced, which leads to inefficiencies in the global container liner networks. And inefficiencies equal costs. Lars Jensen is CEO and partner at Vespucci Maritime. Contact him at <a href="mailto:lars.jensen@vespucci-maritime.com">lars.jensen@vespucci-maritime.com</a>.</div>

For stakeholders in the container shipping supply chain, the past four to five months have been a flurry of rapid changes in relation to US tariff policy. It is easy to be caught up in the turmoil that this has caused, including rapid demand and supply swings as well as likely the sharpest and shortest spike in spot rates ever seen on the trans-Pacific. And it is also clear that this kind of turmoil will continue with the US now focusing on potentially implementing tariffs on furniture, which makes up some 7% of total US imports by container volume. An unresolved tariff situation with China and a significant lack of detail around the trade deals already announced only add to the potential volatility. However, there is a potentially more important change beginning to happen that is more global in nature and goes beyond tariffs, one that, to some degree, will challenge the fundamental workings of how shipping networks are usually operated. For the most part, the vessels themselves are fungible assets. If I have a vessel with a capacity of, say, 5,000 TEUs, I can essentially use this vessel anywhere globally, moving any type of cargo in a container for anyone, as well as changing the flag to almost any nation of my choosing. And if I have no need for the vessel, I can sell or charter it to anyone who, in turn, will have the same high degree of flexibility regarding the usage of the vessel. This makes the fleet of container vessels extremely versatile and allows a highly efficient cascading process whereby, for the most part, vessels are moved to the trades where they are most optimally used. Balancing capacity not only with demand but also the capability of port infrastructure allows for a high degree of asset utilization, and consequently, lower costs for shippers. Efficiency ‘coming under pressure’ It is this efficiency that is coming under pressure. Keep in mind that part of the value is the fungibility of the vessels — that they can be used anywhere, by anyone, for anyone. This ensures assets are used where they are most suitable. But consider the developments we have seen here in 2025: The US is placing penalties on vessels built, owned or operated in China. This is already beginning to result in network changes as carriers will either shift some port calls and/or phase in vessels from other trades. This would mean suboptimal usage of vessels and ports in order to reduce this externally imposed cost. India prohibited the call of vessels coming from Pakistan, resulting in a sharp reduction of direct services from Pakistan to the rest of the world. Instead, more feeder services were established — clearly suboptimal vessel usage compared with having large vessels call both nations on major deep-sea services. Turkey is prohibiting Israeli-affiliated vessels from calling Turkish ports and is also prohibiting Turkish-flagged vessels from calling Israel. The conflict between Thailand and Cambodia resulted in the closure of the land border, effectively preventing vessels calling the major port in Laem Chabang from efficiently servicing Cambodian imports and exports. Twenty-five container vessels were placed on the US OFAC sanctions list as they were seen as affiliated with Iranian logistics operations, effectively removing approximately one-third of SeaLead Shipping’s fleet from one day to the next. These are merely a few examples from 2025. We have, of course, seen various restrictions in the past, but the speed and scale with which this is ramping up is new. Later in 2025, we will likely see the results of the US Federal Maritime Commission’s investigation into unfair flag state competition. There are no prizes for guessing that, yes, of course there is a skewed competitive landscape — that is why flags of convenience have been popular for centuries. The only relevant question is which type of additional regulations and restrictions the US will then impose based on nationality. Then comes the debacle concerning the carbon tax on marine fossil fuels, which is likely to be adopted at the October meeting of the International Maritime Organization’s Marine Environment Protection Committee. It is crystal clear that the US will not participate. The open question is how many other countries will side with the US, creating more loopholes based on nationality. All in all, the days where container vessels to a significant degree could be seen as fungible assets might be coming to an end. Not that all flexibility will be lost. However, the flexibility is rapidly being reduced, which leads to inefficiencies in the global container liner networks. And inefficiencies equal costs. Lars Jensen is CEO and partner at Vespucci Maritime. Contact him at lars.jensen@vespucci-maritime.com .

Maritime

External pressures putting ‘fungibility’ of container shipping at risk: analyst

<div class="phx-topic abstract-wrapper">Robert Primus has been vocal in his opposition to consolidation in the rail industry, voting against the Canadian Pacific-Kansas City Southern merger in 2023 and Canadian National Railway’s acquisition of Iowa Northern Railway earlier this year.</div>

Robert Primus has been vocal in his opposition to consolidation in the rail industry, voting against the Canadian Pacific-Kansas City Southern merger in 2023 and Canadian National Railway’s acquisition of Iowa Northern Railway earlier this year.

<div class="phx-topic">President Donald Trump’s move to oust Robert Primus from the US Surface Transportation Board (STB) would seem to eliminate a key obstacle to securing regulatory approval for Union Pacific Railroad’s $85 billion acquisition of Norfolk Southern Railway (NS). Trump “fired” Primus from the STB on Wednesday, according to <a href="https://www.wsj.com/politics/policy/trump-fires-board-member-of-regulator-weighing-rail-merger-4b108713?mod=Searchresults&amp;pos=1&amp;page=1">The Wall Street Journal</a>. But Primus, who called the move “legally invalid,” said he would continue performing his duties as a member of the board, The Journal reported. His removal, if upheld, comes as the board prepares to evaluate Union Pacific’s proposed acquisition of Norfolk Southern in the coming months, a deal that would create the nation’s first transcontinental freight railroad. It also sets up a potential legal showdown, similar to the one Trump faces in the aftermath of his move earlier this week to fire Lisa Cook from the board of the Federal Reserve. Trump, since his return to office in January, has acted on several occasions to remove members from boards and regulatory agencies and replace them with people seen as loyal to his agenda. Ironically, it was Trump who appointed Primus, a Democrat, to the STB in 2020. His apparent ouster means there are now two Republicans and only one Democrat on the board, which can have up to five members. The International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART), the largest rail labor union, criticized the firing. SMART-TD, the transportation division covering rail engineers, has come out against UP’s acquisition of NS. “This action is unprecedented, unlawful in spirit, and reeks of direct interference from hedge funds and the nation’s largest rail carriers,” the union said in a statement Thursday. “The timing of this move cannot be ignored. Prior to its submission to the board, Mr. Primus has made clear his opposition to the so-called ‘merger’ that would be a corporate takeover combining Union Pacific Railroad and Norfolk Southern Railroad.” <h3>Voted against CP-KCS deal </h3>Primus has been vocal in his opposition to consolidation in the rail industry, voting against the Canadian Pacific-Kansas City Southern merger in 2023 and Canadian National Railway’s acquisition of Iowa Northern Railway earlier this year. Removing him from the STB would seem to give the UP-NS deal a far easier avenue to gain the required approval from federal regulators. “We believe the move comes in an effort to clear the path for the potential transcontinental merger,” Jason Seidl, a transportation analyst with TD Securities, wrote in an investor’s note Thursday. “We believe a Republican appointment could still be forthcoming as channel checks indicated four candidates in contention, potentially leaving the [STB] with a 3-1 Republican majority by the time a decision has to be made.” By law, no single political party can have more than three out of the five available seats on the Surface Transportation Board. Chairman Patrick Fuchs and member Michelle Schultz are Republicans, while member Karen Hedlund is a Democrat. There is already an existing vacancy on the board. UP and NS will file their formal merger application by January, kicking off an STB review that would likely not result in a final vote until the spring of 2027, if not later. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

President Donald Trump’s move to oust Robert Primus from the US Surface Transportation Board (STB) would seem to eliminate a key obstacle to securing regulatory approval for Union Pacific Railroad’s $85 billion acquisition of Norfolk Southern Railway (NS). Trump “fired” Primus from the STB on Wednesday, according to The Wall Street Journal . But Primus, who called the move “legally invalid,” said he would continue performing his duties as a member of the board, The Journal reported. His removal, if upheld, comes as the board prepares to evaluate Union Pacific’s proposed acquisition of Norfolk Southern in the coming months, a deal that would create the nation’s first transcontinental freight railroad. It also sets up a potential legal showdown, similar to the one Trump faces in the aftermath of his move earlier this week to fire Lisa Cook from the board of the Federal Reserve. Trump, since his return to office in January, has acted on several occasions to remove members from boards and regulatory agencies and replace them with people seen as loyal to his agenda. Ironically, it was Trump who appointed Primus, a Democrat, to the STB in 2020. His apparent ouster means there are now two Republicans and only one Democrat on the board, which can have up to five members. The International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART), the largest rail labor union, criticized the firing. SMART-TD, the transportation division covering rail engineers, has come out against UP’s acquisition of NS. “This action is unprecedented, unlawful in spirit, and reeks of direct interference from hedge funds and the nation’s largest rail carriers,” the union said in a statement Thursday. “The timing of this move cannot be ignored. Prior to its submission to the board, Mr. Primus has made clear his opposition to the so-called ‘merger’ that would be a corporate takeover combining Union Pacific Railroad and Norfolk Southern Railroad.” Voted against CP-KCS deal Primus has been vocal in his opposition to consolidation in the rail industry, voting against the Canadian Pacific-Kansas City Southern merger in 2023 and Canadian National Railway’s acquisition of Iowa Northern Railway earlier this year. Removing him from the STB would seem to give the UP-NS deal a far easier avenue to gain the required approval from federal regulators. “We believe the move comes in an effort to clear the path for the potential transcontinental merger,” Jason Seidl, a transportation analyst with TD Securities, wrote in an investor’s note Thursday. “We believe a Republican appointment could still be forthcoming as channel checks indicated four candidates in contention, potentially leaving the [STB] with a 3-1 Republican majority by the time a decision has to be made.” By law, no single political party can have more than three out of the five available seats on the Surface Transportation Board. Chairman Patrick Fuchs and member Michelle Schultz are Republicans, while member Karen Hedlund is a Democrat. There is already an existing vacancy on the board. UP and NS will file their formal merger application by January, kicking off an STB review that would likely not result in a final vote until the spring of 2027, if not later. Contact Ari Ashe at ari.ashe@spglobal.com .

North-American rail

Rail News

Trump move to oust STB’s Primus boosts likelihood of UP-NS approval

<div class="phx-topic abstract-wrapper">The Chinese state-controlled carrier said in an interim earnings statement the industry experienced a volatile first half of 2025 due to “tariff swings and lingering geopolitical tensions.”</div>

The Chinese state-controlled carrier said in an interim earnings statement the industry experienced a volatile first half of 2025 due to “tariff swings and lingering geopolitical tensions.”

<div class="phx-topic">Container shipping is undergoing an unprecedented transformation as economic and trade policies, geopolitical issues, technological innovation and ecological demands reshape the industry’s competitive landscape, Cosco Shipping Holdings said Thursday. The Chinese state-controlled carrier said in an interim earnings statement the industry experienced a volatile first half of 2025 due to “tariff swings and lingering geopolitical tensions, creating a generally complex and ever-changing situation.” The carrier launched a raft of new services between China and emerging markets to help offset the impact of fast-changing US tariff polices. These included three mainline and three feeder services that better connected China and the West Coast of South America utilizing Cosco’s hub port at Chancay, Peru, plus new routes connecting Southeast and South Asia with its Yangpu hub port following the launch of the Hainan free trade zone in Southwest China. The focus on emerging trades helped drive double-digit growth in revenue and liftings from those regions compared with more modest results from trans-Pacific, Asia-Europe and Asia-Mediterranean services. Group figures, which comprise Cosco Shipping Lines and its Hong Kong-headquartered affiliate OOCL, show overall net profit increased 4% to $2.5 billion in the first half, while revenues rose 7% to $15 billion. That included an $819 million revenue contribution from Cosco Shipping Ports that was 15% higher than the first six months of 2024. Total throughput at the group’s domestic and international terminals increased 6% to 74 million TEUs. Reflecting the lackluster performance on the trans-Pacific, revenues on that trade edged up 1% to almost $4 billion in the first six months, while liftings were up 5% to 2.4 million TEUs. Cosco confirmed it has a vessel order backlog totaling 910,000 TEUs, including 42 methanol dual-fuel-powered vessels with a total capacity of 780,000 TEUs. The carrier also intends to retrofit a series of existing vessels with methanol-powered systems, but did not say how many container ships would be upgraded. Contact Keith Wallis at <a href="https://www.joc.com/article/keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Container shipping is undergoing an unprecedented transformation as economic and trade policies, geopolitical issues, technological innovation and ecological demands reshape the industry’s competitive landscape, Cosco Shipping Holdings said Thursday. The Chinese state-controlled carrier said in an interim earnings statement the industry experienced a volatile first half of 2025 due to “tariff swings and lingering geopolitical tensions, creating a generally complex and ever-changing situation.” The carrier launched a raft of new services between China and emerging markets to help offset the impact of fast-changing US tariff polices. These included three mainline and three feeder services that better connected China and the West Coast of South America utilizing Cosco’s hub port at Chancay, Peru, plus new routes connecting Southeast and South Asia with its Yangpu hub port following the launch of the Hainan free trade zone in Southwest China. The focus on emerging trades helped drive double-digit growth in revenue and liftings from those regions compared with more modest results from trans-Pacific, Asia-Europe and Asia-Mediterranean services. Group figures, which comprise Cosco Shipping Lines and its Hong Kong-headquartered affiliate OOCL, show overall net profit increased 4% to $2.5 billion in the first half, while revenues rose 7% to $15 billion. That included an $819 million revenue contribution from Cosco Shipping Ports that was 15% higher than the first six months of 2024. Total throughput at the group’s domestic and international terminals increased 6% to 74 million TEUs. Reflecting the lackluster performance on the trans-Pacific, revenues on that trade edged up 1% to almost $4 billion in the first six months, while liftings were up 5% to 2.4 million TEUs. Cosco confirmed it has a vessel order backlog totaling 910,000 TEUs, including 42 methanol dual-fuel-powered vessels with a total capacity of 780,000 TEUs. The carrier also intends to retrofit a series of existing vessels with methanol-powered systems, but did not say how many container ships would be upgraded. Contact Keith Wallis at keithwallis@hotmail.com .

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Cosco H1 net profit ticks 4% higher amid ‘complex’ container shipping market

<div class="phx-topic abstract-wrapper">The opening of the first phase of the port’s new on-dock rail yard will be delayed until next year, while the project faces a 42% increase in budgeted costs. </div>

The opening of the first phase of the port’s new on-dock rail yard will be delayed until next year, while the project faces a 42% increase in budgeted costs.

<div class="phx-topic">The opening of a major project to add on-dock rail to the Port of Charleston is delayed about six months and will only handle CSX Transportation trains initially due to design changes requested by Norfolk Southern Railway (NS). Inflation, redesigns, stalled permits, missed grants and even port crane tariffs have resulted in $232 million of cost overruns, making the project’s troubles a likely factor in the port’s chief executive recently resigning.<a href="https://www.joc.com/article/charleston-moves-ahead-with-plans-for-near-dock-intermodal-facility-5194359">The Navy Base Intermodal Facility</a> was originally budgeted at about $550 million. The brownfield development, adjacent to Charleston’s Hugh K. Leatherman terminal, is designed for handling 1 million container lifts per year and aimed <a href="https://www.joc.com/article/sc-ports-chief-outlines-plans-for-charleston-to-hit-10-million-teu-mark-5749894">to build upon Charleston’s development of inland ports at Greer and Dillon, South Carolina.</a>Since its original proposal in 2021, cost estimates have risen to $782 million, now-former South Carolina State Ports Authority (SC Ports) Chief Executive Barbara Melvin told a state legislative committee in July. South Carolina appropriated $550 million over 2021 and 2022 for the project. “We are seeing challenges in materials, labor and equipment to build these types of projects,” Melvin told the committee. “All of those have escalated over the last three years of this project.” The Navy Base project, which includes a barge service for moving containers to and from Charleson’s Wando Welch Terminal for rail service, was expected to open this summer. The rail yard will now open in January 2026, with some features not yet ready until 2027. Melvin, who was the port’s chief operating officer before becoming chief executive, announced <a href="https://www.joc.com/article/melvin-steps-down-as-sc-ports-chief-6067001">her resignation from SC Ports last week</a>, without citing a reason. South Carolina State Sen. Sean Bennett, one of the members of the fiscal oversight committee briefed on the project, said in a statement Thursday to the Journal of Commerce the rail yard “remains viable and essential, but the execution has clearly fallen short.”“Cost overruns can’t simply be dismissed as inflation — they reflect deeper issues,” Bennett said. “The Port Authority’s board must step up its responsibilities and provide the leadership and accountability this project requires.” SC Ports said in a statement to the Journal of Commerce it is still moving forward with the project as originally envisioned. Most of the yard’s construction is complete and its six gantry cranes have been installed. Cost overages for the remaining parts of the project are now part of the port’s 2026 capital plan. “This project will boost SC Ports’ already robust intermodal connectivity between the Port of Charleston and inland port markets in the Southeast and beyond,” SC Ports said in the statement. <h3>NS needs more access</h3>The rail yard itself, originally budgeted at about $400 million in 2021, is now expected to cost $544 million. Improvements to Charleston’s two terminals for barge service, originally budgeted at $150 million, have since increased to $237 million. Across all those, SC Ports faces higher material and labor costs, Melvin told the committee, adding that Leatherman terminal improvement costs have risen 44% since its initial construction in 2019, while nationwide warehouse and concrete construction costs have increased at rates of 25% and 32%, respectively, between 2021 and 2023.Construction costs on the rail yard itself, a former naval base, have also risen due to unexpectedly soft soil, environmental remediation and unforeseen buried infrastructure. Key features of the project will also not be ready in time for the January opening. A one-mile dedicated drayage road between the rail yard and the Leatherman terminal was redesigned after SC Ports did a land swap with a nearby US Coast Guard base. Until that road opens in November 2026, containers will be drayed on 2.5 miles of another industrial road near the port.Some 80,000 feet of rail track connecting to the rail yard from the south to CSX and NS’s main tracks also won’t be fully ready until March 2027, Melvin said, citing the extensive design challenges involving both railroads and various public entities. The tracks have eight street-level crossings through North Charleston. A construction award for the trackage is expected this October. “The southern connection has been the most challenging piece of the project,” Melvin told the committee, adding that steel tariffs will also raise its cost. Until the southern connection opens, only CSX will be able to access the rail yard through its north tracks. In addition to the south access, NS needs four miles of siding for passing trains, the railroad unexpectedly informed SC Ports this summer, Melvin said. The siding is expected to cost about $28 million and was originally thought to be part of NS’ own capital plans, she said. NS said in a statement to the Journal of Commerce that it has informed SC Ports for the last decade about what it needs to utilize the site, specifically “tracks leading into the facility as well as construction of a passing siding in North Charleston.” “We remain committed to the success of the Navy Base intermodal facility and to collaborating to get this facility online as quickly as possible,” NS said. Melvin told the state senate committee she expects NS could use the facility as early as October 2026 when the first phase of the southern access is ready. <h3>Tariff hit on cranes</h3>For barges, SC Ports planned to build a 700-foot berth extension at Wando Welch. But since applying for a permit in 2018 and after four follow-ups, the US Army Corps of Engineers has yet to issue a permit for the berth, Melvin said. She said the berth hoped to win some $45 million in federal grants applied for under the Biden administration, but did not receive the funding. Melvin told the state senate committee SC Ports expects Wando’s barge berth could cost $76 million, “if we can get a permit quickly and proceed, but if we cannot, that price won’t hold.” “We could still operate a barge [at Wando’s existing berths], but it’s not ideal,” she said. <a href="https://www.joc.com/article/charlestons-leatherman-terminal-eyes-second-berth-by-late-2026-6066963">The Leatherman terminal’s plans to build another 1,600 feet of berth</a> will allow it to handle a barge along with an additional container ship, Melvin said. However, the original plan only called for adding half that length. Melvin said that given the overall cost increases, SC Ports decided to move ahead with a full extension, adding $53 million to Leatherman’s budget. SC Ports originally budgeted $25 million to purchase ZPMC cranes for the Leatherman extension. But due to <a href="https://www.joc.com/article/looming-us-tariffs-put-economic-viability-of-sts-cranes-in-doubt-6055678">the Trump administration’s proposed tariffs on Chinese-made cranes</a>, Melvin said SC Ports increased its crane budget to $34 million based on estimates from four non-Chinese crane makers, but the price could increase further.“You are paying a premium to order non-Chinese cranes,” Melvin said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The opening of a major project to add on-dock rail to the Port of Charleston is delayed about six months and will only handle CSX Transportation trains initially due to design changes requested by Norfolk Southern Railway (NS). Inflation, redesigns, stalled permits, missed grants and even port crane tariffs have resulted in $232 million of cost overruns, making the project’s troubles a likely factor in the port’s chief executive recently resigning. The Navy Base Intermodal Facility was originally budgeted at about $550 million. The brownfield development, adjacent to Charleston’s Hugh K. Leatherman terminal, is designed for handling 1 million container lifts per year and aimed to build upon Charleston’s development of inland ports at Greer and Dillon, South Carolina. Since its original proposal in 2021, cost estimates have risen to $782 million, now-former South Carolina State Ports Authority (SC Ports) Chief Executive Barbara Melvin told a state legislative committee in July. South Carolina appropriated $550 million over 2021 and 2022 for the project. “We are seeing challenges in materials, labor and equipment to build these types of projects,” Melvin told the committee. “All of those have escalated over the last three years of this project.” The Navy Base project, which includes a barge service for moving containers to and from Charleson’s Wando Welch Terminal for rail service, was expected to open this summer. The rail yard will now open in January 2026, with some features not yet ready until 2027. Melvin, who was the port’s chief operating officer before becoming chief executive, announced her resignation from SC Ports last week , without citing a reason. South Carolina State Sen. Sean Bennett, one of the members of the fiscal oversight committee briefed on the project, said in a statement Thursday to the Journal of Commerce the rail yard “remains viable and essential, but the execution has clearly fallen short.” “Cost overruns can’t simply be dismissed as inflation — they reflect deeper issues,” Bennett said. “The Port Authority’s board must step up its responsibilities and provide the leadership and accountability this project requires.” SC Ports said in a statement to the Journal of Commerce it is still moving forward with the project as originally envisioned. Most of the yard’s construction is complete and its six gantry cranes have been installed. Cost overages for the remaining parts of the project are now part of the port’s 2026 capital plan. “This project will boost SC Ports’ already robust intermodal connectivity between the Port of Charleston and inland port markets in the Southeast and beyond,” SC Ports said in the statement. NS needs more access The rail yard itself, originally budgeted at about $400 million in 2021, is now expected to cost $544 million. Improvements to Charleston’s two terminals for barge service, originally budgeted at $150 million, have since increased to $237 million. Across all those, SC Ports faces higher material and labor costs, Melvin told the committee, adding that Leatherman terminal improvement costs have risen 44% since its initial construction in 2019, while nationwide warehouse and concrete construction costs have increased at rates of 25% and 32%, respectively, between 2021 and 2023. Construction costs on the rail yard itself, a former naval base, have also risen due to unexpectedly soft soil, environmental remediation and unforeseen buried infrastructure. Key features of the project will also not be ready in time for the January opening. A one-mile dedicated drayage road between the rail yard and the Leatherman terminal was redesigned after SC Ports did a land swap with a nearby US Coast Guard base. Until that road opens in November 2026, containers will be drayed on 2.5 miles of another industrial road near the port. Some 80,000 feet of rail track connecting to the rail yard from the south to CSX and NS’s main tracks also won’t be fully ready until March 2027, Melvin said, citing the extensive design challenges involving both railroads and various public entities. The tracks have eight street-level crossings through North Charleston. A construction award for the trackage is expected this October. “The southern connection has been the most challenging piece of the project,” Melvin told the committee, adding that steel tariffs will also raise its cost. Until the southern connection opens, only CSX will be able to access the rail yard through its north tracks. In addition to the south access, NS needs four miles of siding for passing trains, the railroad unexpectedly informed SC Ports this summer, Melvin said. The siding is expected to cost about $28 million and was originally thought to be part of NS’ own capital plans, she said. NS said in a statement to the Journal of Commerce that it has informed SC Ports for the last decade about what it needs to utilize the site, specifically “tracks leading into the facility as well as construction of a passing siding in North Charleston.” “We remain committed to the success of the Navy Base intermodal facility and to collaborating to get this facility online as quickly as possible,” NS said. Melvin told the state senate committee she expects NS could use the facility as early as October 2026 when the first phase of the southern access is ready. Tariff hit on cranes For barges, SC Ports planned to build a 700-foot berth extension at Wando Welch. But since applying for a permit in 2018 and after four follow-ups, the US Army Corps of Engineers has yet to issue a permit for the berth, Melvin said. She said the berth hoped to win some $45 million in federal grants applied for under the Biden administration, but did not receive the funding. Melvin told the state senate committee SC Ports expects Wando’s barge berth could cost $76 million, “if we can get a permit quickly and proceed, but if we cannot, that price won’t hold.” “We could still operate a barge [at Wando’s existing berths], but it’s not ideal,” she said. The Leatherman terminal’s plans to build another 1,600 feet of berth will allow it to handle a barge along with an additional container ship, Melvin said. However, the original plan only called for adding half that length. Melvin said that given the overall cost increases, SC Ports decided to move ahead with a full extension, adding $53 million to Leatherman’s budget. SC Ports originally budgeted $25 million to purchase ZPMC cranes for the Leatherman extension. But due to the Trump administration’s proposed tariffs on Chinese-made cranes , Melvin said SC Ports increased its crane budget to $34 million based on estimates from four non-Chinese crane makers, but the price could increase further. “You are paying a premium to order non-Chinese cranes,” Melvin said. Contact Michael Angell at michael.angell@spglobal.com .

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: https://www.ssamarine.mx/

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