<div class="phx-topic abstract-wrapper">With their profitability now firmly established, carriers appear to be placing renewed vigor into growing their contracted cargo base. </div>

With their profitability now firmly established, carriers appear to be placing renewed vigor into growing their contracted cargo base.

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<div>The moves by CMA CGM and Hapag-Lloyd to suspend spot rate increases reflects carriers’ confidence that they will significantly increase contract levels and that spot pricing momentum has slowed, although forwarders counter it has not. The degree to which the moratorium on rate increases is a public relations exercise in response to mounting shipper frustration is unclear, given that carriers still charge so-called premiums of thousands of dollars on top of spot rates to guarantee bookings. “We believe that spot rates have peaked, and we do not pursue further increases,” a spokesman for Hapag-Lloyd told JOC.com Friday, adding that the...

The moves by CMA CGM and Hapag-Lloyd to suspend spot rate increases reflects carriers’ confidence that they will significantly increase contract levels and that spot pricing momentum has slowed, although forwarders counter it has not. The degree to which the moratorium on rate increases is a public relations exercise in response to mounting shipper frustration is unclear, given that carriers still charge so-called premiums of thousands of dollars on top of spot rates to guarantee bookings. “We believe that spot rates have peaked, and we do not pursue further increases,” a spokesman for Hapag-Lloyd told JOC.com Friday, adding that the carrier’s rate increases announced for Sept. 15 and Oct. 1 were being reviewed. Click to enlarge “Our action focuses on the trades where we have seen extremely high FAK [freight all kinds] rate levels, mainly from Asian origins, but also on some other non-Asia related trades where FAK market levels have just gone too high,” the spokesman added. Those comments came just one day after CMA CGM shocked the market by announcing it would immediately cease all spot rate increases until Feb. 1, 2022 to prioritize “its long-term relationship with customers in the face of an unprecedented situation in the shipping industry.” But arguing against the view that spot rate levels are moderating is the worsening underlying condition of the container shipping market that has driven spot rates to record levels on the major east-west trades. There is growing congestion at ports in Asia, the US, and North Europe and bottlenecks across inland logistics chains that will ensure a continuation of upward pressure on rates likely for several months to come. “Velocity is slowing down significantly,” said Jim Newsome, CEO of the South Carolina Ports Authority. He told JOC.com that import, export, and empty containers at the port of Charleston and the inland port at Greer have grown to 56,000 from 35,000 a year ago, and that average dwell times are a week versus four days a year ago. In Los Angeles-Long Beach, a record 49 container ships are waiting at anchor outside the gateway as of Friday, according to the Marine Exchange of Southern California. The average dwell time for local delivery containers in the busiest US port complex’s 12 terminals rose to 5.2 days in July from 4.76 days in June, according to the Pacific Merchant Shipping Association, which represents terminal operators on the West Coast. Dwell times were 2.66 days in July 2019. No sign of weakening spot market Peter Sand, chief shipping analyst at BIMCO, said the current state of the market meant spot rates will likely continue to rise even if carriers do not implement their own general rate increases or hike the FAK levels. Click to enlarge “The heat could be on for a couple more months as retailers seek to stock up ahead of the festive season,” Sand told JOC.com Friday, adding that consumers in the major markets still have money to spend, even though spending on services has also increased. Dominique von Orelli, executive vice president and global head of ocean freight at DHL Global Forwarding, also expressed doubts that the spot market had reached its peak. “I am not convinced that that the spot rates have peaked, although I would hope so. Global trade is still totally out of sync,” he said. With their profitability now firmly established — container shipping industry operating profit reached $42 billion in the first half of the year — carriers are placing renewed vigor into growing their contracted cargo base. “Carriers prefer to look at volume moved on contracts,” Sand said, adding that this sentiment lay behind the move to suspend spot rate increases. Leading this push for contracts is Maersk, which over the past two years has grown its longer-term contracts that provide greater predictability and sustainability of earnings than the volatile spot market. “In this pursuit, we are moving towards a larger share of longer-term contracts, which now has increased to around 60 percent of our total bookings,” Maersk told JOC.com Friday. During the second quarter earnings call in August, Maersk CFO Patrick Jany said more than 1 million FEU of contracted volume in the first half had been signed up for multi-year contracts. Carrier focus on longer-term contracts was confirmed by a trans-Pacific shipper, who told JOC.com that two ocean carriers had offered three-year contracts at double the rate they were currently paying. The shipper’s current contracts are for $3,500 per FEU to the West Coast, but the three-year contract will allow them to lock in capacity for three years at $7,000 per FEU. Data from rate benchmarking platform Xeneta shows average contract rates of 90 days and over on the Asia-US West Coast trade are currently at $2,352 per FEU, up 125 percent on pre-pandemic 2019. Asia-North Europe long-term rates of $2,533 per TEU are 233 percent higher than at this point in 2019. Xeneta said its rate data on both trades did not include additional carrier surcharges of up to $2,500 per container to guarantee space and equipment. Contact Greg Knowler at greg.knowler@ihsmarkit.com and follow him on Twitter: @greg_knowler .

Maritime

Contract focus behind carrier moves to hold spot market hikes

<div class="phx-topic abstract-wrapper">A new method for billing for chassis usage involves GPS technology and geofencing, something TRAC hopes will encourage truckers and cargo owners to build a resilient fleet of equipment. </div>

A new method for billing for chassis usage involves GPS technology and geofencing, something TRAC hopes will encourage truckers and cargo owners to build a resilient fleet of equipment.

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<div class="phx-topic">TRAC Intermodal, one of the US’ largest providers of marine chassis, has introduced a new pricing program aimed at encouraging trucking companies and beneficial cargo owners (BCOs) to maintain larger fleets of equipment as a buffer for when port volumes surge. The initiative, called “GeoFleet,” uses GPS technology and geofencing to track chassis usage. Under the plan, TRAC customers entering long-term lease agreements would pay a fixed daily rate for the first 50% of their leased chassis, regardless of whether they are used. That is the traditional model of charging for chassis. For the other half of the chassis under contract, charges are based on GPS data and geofencing, a new way to charge for usage. If the trucker or BCO uses the chassis only once per month, then they are billed for a single day. If the chassis leaves the geofenced area 20 times in a month, then the bill reflects 20 days of use. “It gives reassurance to customers that when [container] volume ticks up, they don't need to rush to us and say, ‘Oh, I need more term lease units,’ or ‘Oh I need to utilize pool units for the rail terminal or port’,” Jake Gilene, TRAC’s chief commercial officer, told the Journal of Commerce. Gilene said, for example, a trucker or BCO who regularly uses 500 chassis could lease 1,000 under the program. While the first 500 would be billed under the traditional model, the additional 500 would only incur charges on the days they left the geofence area. In normal market times, many of those units might never leave the geofence, but the surplus fleet would be readily available to the trucker or BCO during demand spikes. While the program benefits customers who have chassis in reserve that they would only pay for when needed, TRAC benefits because fewer chassis are occupying space in its depots and fewer customers would be frantically calling the company seeking equipment during a surge in demand. Customers being proactive rather than reactive reduces the likelihood TRAC will have to reposition chassis between US cities. <h3>Program made small launch in spring </h3>TRAC unveiled the GeoFleet program in the spring, but didn’t want to publicize it until the company determined if the business model worked in a controlled setting before opening it up to a larger group of customers. TRAC competitor DCLI does not offer a comparable pricing program to GeoFleet, but points out other improvements it has made for its long-term customers. DCLI has increased the number of chassis that have received tire upgrades, introduced leasing programs that let customers tailor the size and makeup of their fleets, and created a premium pool that guarantees customers high-quality equipment. “DCLI has been touting the benefits of chassis choice for several years now,” Mike O’Malley, the company’s senior vice president for government and public relations, said in a statement to the Journal of Commerce. “We believe our customers are best positioned to decide which procurement method fits their business.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a> </div>

TRAC Intermodal, one of the US’ largest providers of marine chassis, has introduced a new pricing program aimed at encouraging trucking companies and beneficial cargo owners (BCOs) to maintain larger fleets of equipment as a buffer for when port volumes surge. The initiative, called “GeoFleet,” uses GPS technology and geofencing to track chassis usage. Under the plan, TRAC customers entering long-term lease agreements would pay a fixed daily rate for the first 50% of their leased chassis, regardless of whether they are used. That is the traditional model of charging for chassis. For the other half of the chassis under contract, charges are based on GPS data and geofencing, a new way to charge for usage. If the trucker or BCO uses the chassis only once per month, then they are billed for a single day. If the chassis leaves the geofenced area 20 times in a month, then the bill reflects 20 days of use. “It gives reassurance to customers that when [container] volume ticks up, they don't need to rush to us and say, ‘Oh, I need more term lease units,’ or ‘Oh I need to utilize pool units for the rail terminal or port’,” Jake Gilene, TRAC’s chief commercial officer, told the Journal of Commerce. Gilene said, for example, a trucker or BCO who regularly uses 500 chassis could lease 1,000 under the program. While the first 500 would be billed under the traditional model, the additional 500 would only incur charges on the days they left the geofence area. In normal market times, many of those units might never leave the geofence, but the surplus fleet would be readily available to the trucker or BCO during demand spikes. While the program benefits customers who have chassis in reserve that they would only pay for when needed, TRAC benefits because fewer chassis are occupying space in its depots and fewer customers would be frantically calling the company seeking equipment during a surge in demand. Customers being proactive rather than reactive reduces the likelihood TRAC will have to reposition chassis between US cities. Program made small launch in spring TRAC unveiled the GeoFleet program in the spring, but didn’t want to publicize it until the company determined if the business model worked in a controlled setting before opening it up to a larger group of customers. TRAC competitor DCLI does not offer a comparable pricing program to GeoFleet, but points out other improvements it has made for its long-term customers. DCLI has increased the number of chassis that have received tire upgrades, introduced leasing programs that let customers tailor the size and makeup of their fleets, and created a premium pool that guarantees customers high-quality equipment. “DCLI has been touting the benefits of chassis choice for several years now,” Mike O’Malley, the company’s senior vice president for government and public relations, said in a statement to the Journal of Commerce. “We believe our customers are best positioned to decide which procurement method fits their business.” Contact Ari Ashe at ari.ashe@spglobal.com

Trucking News

New TRAC offering reimagines pricing model for chassis use

<div class="phx-topic abstract-wrapper">The deal comes as freight marketplaces and solutions providers look to expand their services to offer carriers, shippers and brokers end-to-end platforms. </div>

The deal comes as freight marketplaces and solutions providers look to expand their services to offer carriers, shippers and brokers end-to-end platforms.

<div class="phx-topic">Freight marketplace Truckstop.com said Tuesday it is expanding the reach of its spot-market technology platform by acquiring Denim, a financial technology company and factoring service. The deal will speed payments for carriers and freight brokers using Truckstop.com. Terms of the acquisition were not disclosed. The acquisition comes as freight marketplaces and solutions providers look to expand their services to offer carriers, shippers and brokers end-to-end platforms. Truckstop.com rival DAT Freight &amp; Analytics in late July <a href="https://www.joc.com/article/dat-acquiring-convoy-automation-platform-from-flexport-6051850">acquired the Convoy platform</a> from Flexport, two months after it acquired <a href="https://www.joc.com/article/dat-adds-in-house-factoring-services-with-latest-acquisition-6005462">payments and factoring technology provider Outgo</a>. Earlier this year, factoring provider Triumph Financial <a href="https://www.joc.com/article/triumph-acquires-broker-focused-pricing-technology-provider-greenscreensai-5951484">acquired Greenscreens.ai</a>, a spot truckload pricing and analytics provider. The wave of acquisitions is driven in part by the rapid development of artificial intelligence (AI) and the need to protect competitive positions in the logistics technology sector. But it also represents an evolution of the load board model, one in which Truckstop has fiercely competed with DAT over the years. Issues like carrier cash flow, cargo theft and fraud, and rate benchmarking have put load boards under intense scrutiny, so DAT and Truckstop have responded by making acquisitions intended to build stickiness with broker customers and trust from carriers. <h3>Truckstop in midst of ‘strategic realignment’ </h3>Truckstop’s purchase of Denim, founded in 2019, is the first acquisition announced by the company since the <a href="https://www.joc.com/article/truckstop-begins-strategic-realignment-names-founder-as-interim-ceo-6020214">return of its founder</a>, Scott Moscrip, to the CEO’s seat in June. Moscrip, who founded Truckstop.com in 1995, is serving as interim CEO while leading a “strategic realignment” of the company with an emphasis on innovation. Truckstop.com noted that AI and automation have helped reduce the time to process 75% of Denim’s factoring payments to under one minute. Denim is one of a cohort of payment, finance and factoring software companies to have emerged in recent years, alongside companies like Loop, Upwell, BasicBlock and Moneiva. Established players in that space include US Bank, Cass, and Triumph. Contact William B. Cassidy at <a href="mailto://bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>Senior Editor Eric Johnson contributed to this report.</div>

Freight marketplace Truckstop.com said Tuesday it is expanding the reach of its spot-market technology platform by acquiring Denim, a financial technology company and factoring service. The deal will speed payments for carriers and freight brokers using Truckstop.com. Terms of the acquisition were not disclosed. The acquisition comes as freight marketplaces and solutions providers look to expand their services to offer carriers, shippers and brokers end-to-end platforms. Truckstop.com rival DAT Freight & Analytics in late July acquired the Convoy platform from Flexport, two months after it acquired payments and factoring technology provider Outgo . Earlier this year, factoring provider Triumph Financial acquired Greenscreens.ai , a spot truckload pricing and analytics provider. The wave of acquisitions is driven in part by the rapid development of artificial intelligence (AI) and the need to protect competitive positions in the logistics technology sector. But it also represents an evolution of the load board model, one in which Truckstop has fiercely competed with DAT over the years. Issues like carrier cash flow, cargo theft and fraud, and rate benchmarking have put load boards under intense scrutiny, so DAT and Truckstop have responded by making acquisitions intended to build stickiness with broker customers and trust from carriers. Truckstop in midst of ‘strategic realignment’ Truckstop’s purchase of Denim, founded in 2019, is the first acquisition announced by the company since the return of its founder , Scott Moscrip, to the CEO’s seat in June. Moscrip, who founded Truckstop.com in 1995, is serving as interim CEO while leading a “strategic realignment” of the company with an emphasis on innovation. Truckstop.com noted that AI and automation have helped reduce the time to process 75% of Denim’s factoring payments to under one minute. Denim is one of a cohort of payment, finance and factoring software companies to have emerged in recent years, alongside companies like Loop, Upwell, BasicBlock and Moneiva. Established players in that space include US Bank, Cass, and Triumph. Contact William B. Cassidy at bill.cassidy@spglobal.com Senior Editor Eric Johnson contributed to this report.

Logistics Technology News

Truckload

Surface

Truckstop.com acquires truckload factoring service Denim

<div class="phx-topic abstract-wrapper">The acquisition will allow Overhaul to incorporate FreightVerify’s visibility data that helps shippers and logistics providers measure when freight is at risk while in transit.</div>

The acquisition will allow Overhaul to incorporate FreightVerify’s visibility data that helps shippers and logistics providers measure when freight is at risk while in transit.

<div class="phx-topic">Supply chain management software vendor Overhaul on Tuesday said it has acquired a visibility provider that caters predominantly to automotive and healthcare shippers in a bid to extend its value from risk management to inventory control. The deal for Michigan-based FreightVerify, terms of which were not disclosed, will see Overhaul incorporating FreightVerify’s part-level visibility data into its platform that helps shippers and logistics providers measure when freight is at risk while in transit. Transportation visibility has traditionally been centered around container or truckload-level tracking, whereas most shippers tend to need more granular information at a part, pallet, or product-level basis. “Enterprises need dynamic inventory control,” Overhaul CEO Barry Conlon told the Journal of Commerce. “It’s not telling them there’s a problem; it’s telling them what was done to resolve the problem.” Conlon said the demand from shippers, in particular, is managed services, not purely a software-as-a-service (SaaS) platform, and that the FreightVerify acquisition helps Overhaul move further in that direction. “Putting all these data streams together is compelling,” he said. FreightVerify was founded in 2014 by Larne Dornell and Yossi Sheffi to help shippers with complex supply chains receive granular visibility into parts and stock-keeping units (SKUs). Sheffi is better known as the director of the MIT Center for Transportation &amp; Logistics. FreightVerify has found particular success in the automotive and healthcare verticals. Conlon said incorporating part-level data into Overhaul’s platform will expose FreightVerify’s product to a wider market beyond industries such as automotive and healthcare. Overhaul customers typically use the platform to help track freight and identify security risks that could compromise production schedules or in-store availability. <h3>Goods in motion harder to track </h3>In particular, the merged application will help shippers get a warehouse level of tracking for goods in motion, which are generally harder to track. The solution will be targeted at “high-consequence cargo across the high-tech, consumer, automotive, healthcare, and life sciences industries, where visibility, precision, and protection are non-negotiable,” Overhaul said in a statement. Overhaul nominally competes in the freight visibility category with names such as project44, FourKites, and Shippeo, although it has always been more focused on the risk management end of the visibility spectrum, as it was developed as a tool to help monitor cargo security. Moving into the broader market of risk management pits it against companies such as Everstream Analytics and Resilinc. Overhaul’s last acquisition came in 2023 with its purchase of competitor SensiGuard. Conlon said Overhaul’s strong customer base in high-tech and pharmaceuticals complements FreightVerify’s industry focus, and that there is little existing customer overlap. “It’s a nice tuck-in for us,” Conlon said. “They needed a home, and we won’t break stride.” Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Supply chain management software vendor Overhaul on Tuesday said it has acquired a visibility provider that caters predominantly to automotive and healthcare shippers in a bid to extend its value from risk management to inventory control. The deal for Michigan-based FreightVerify, terms of which were not disclosed, will see Overhaul incorporating FreightVerify’s part-level visibility data into its platform that helps shippers and logistics providers measure when freight is at risk while in transit. Transportation visibility has traditionally been centered around container or truckload-level tracking, whereas most shippers tend to need more granular information at a part, pallet, or product-level basis. “Enterprises need dynamic inventory control,” Overhaul CEO Barry Conlon told the Journal of Commerce. “It’s not telling them there’s a problem; it’s telling them what was done to resolve the problem.” Conlon said the demand from shippers, in particular, is managed services, not purely a software-as-a-service (SaaS) platform, and that the FreightVerify acquisition helps Overhaul move further in that direction. “Putting all these data streams together is compelling,” he said. FreightVerify was founded in 2014 by Larne Dornell and Yossi Sheffi to help shippers with complex supply chains receive granular visibility into parts and stock-keeping units (SKUs). Sheffi is better known as the director of the MIT Center for Transportation & Logistics. FreightVerify has found particular success in the automotive and healthcare verticals. Conlon said incorporating part-level data into Overhaul’s platform will expose FreightVerify’s product to a wider market beyond industries such as automotive and healthcare. Overhaul customers typically use the platform to help track freight and identify security risks that could compromise production schedules or in-store availability. Goods in motion harder to track In particular, the merged application will help shippers get a warehouse level of tracking for goods in motion, which are generally harder to track. The solution will be targeted at “high-consequence cargo across the high-tech, consumer, automotive, healthcare, and life sciences industries, where visibility, precision, and protection are non-negotiable,” Overhaul said in a statement. Overhaul nominally competes in the freight visibility category with names such as project44, FourKites, and Shippeo, although it has always been more focused on the risk management end of the visibility spectrum, as it was developed as a tool to help monitor cargo security. Moving into the broader market of risk management pits it against companies such as Everstream Analytics and Resilinc. Overhaul’s last acquisition came in 2023 with its purchase of competitor SensiGuard. Conlon said Overhaul’s strong customer base in high-tech and pharmaceuticals complements FreightVerify’s industry focus, and that there is little existing customer overlap. “It’s a nice tuck-in for us,” Conlon said. “They needed a home, and we won’t break stride.” Contact Eric Johnson at eric.johnson@spglobal.com .

Supply chain

Overhaul dives deeper into ‘part-level’ tracking with FreightVerify deal

<div class="phx-topic abstract-wrapper">The NMFTA’s preliminary freight charges API helps notify shippers of changes to charges, including reweighing and classification, before delivery and final invoicing.</div>

The NMFTA’s preliminary freight charges API helps notify shippers of changes to charges, including reweighing and classification, before delivery and final invoicing.

<div class="phx-topic">A new technical standard aims to plug a gap in less-than-truckload (LTL) visibility by giving shippers a better view of how LTL charges may change as shipments cross docks. The release of the preliminary freight charges application programming interface (API) standard last week comes as <a href="https://www.joc.com/article/us-ltl-rates-still-rising-after-muted-response-to-shipment-reclassification-6063877">LTL charges are in flux</a>. Changes to the National Motor Freight Classification (NMFC) may increase, or decrease, the rates shippers pay. “It remains to be seen how many invoices will be changed because of the NMFC reclassification,” said Brian Thompson, chairman of the Digital LTL Council, a division of the National Motor Freight Traffic Association (NMFTA). ”We really wanted to get out in the forefront of those NMFC changes,” said Thompson, who also is chief commercial officer for SMC3, an LTL association and data solutions provider. Revisions to the NMFC that took effect July 19 shifted more than 2,000 products or commodities into classes determined by density alone, rather than other shipping characteristics. The new API brings the NMFTA closer to offering a set of digital standards covering LTL shipping processes from a shipper’s dock to final delivery at a consignee. The preliminary freight charges API follows an electronic bill of lading standard and a standard for pickup requests and visibility, Thompson said. An in-transit visibility API standard is slated for release by the Digital LTL Council later this year, he said. <h3>Changes in transit </h3>The preliminary freight charges standard addresses a problem for shippers that has grown as new technology becomes available for carriers: invoices that change in transit. More and more carriers have dimensioners and scales used to reweigh shipments and reclassify them after they reach a carrier’s dock. That can lead to <a href="https://www.joc.com/article/us-ltl-carriers-laying-groundwork-for-higher-pricing-in-2025-5822094">changes in billed charges</a> that a shipper may not see until an invoice is reviewed weeks later. “This is really valuable for shippers and third-party logistics providers,” said Scooter Sayers, director of business development/LTL solutions for Cubiscan. “It’s all about early visibility, passing information back and forth and getting everybody on the same page.” Cubiscan develops dimensioning equipment and is not part of the LTL Digital Council. Logistics providers and carriers are already providing preliminary data on freight charges to shippers, but “putting a standard out there makes things easier for everybody,” Sayers said. Contact William B. Cassidy at <a href="mailto://bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

A new technical standard aims to plug a gap in less-than-truckload (LTL) visibility by giving shippers a better view of how LTL charges may change as shipments cross docks. The release of the preliminary freight charges application programming interface (API) standard last week comes as LTL charges are in flux . Changes to the National Motor Freight Classification (NMFC) may increase, or decrease, the rates shippers pay. “It remains to be seen how many invoices will be changed because of the NMFC reclassification,” said Brian Thompson, chairman of the Digital LTL Council, a division of the National Motor Freight Traffic Association (NMFTA). ”We really wanted to get out in the forefront of those NMFC changes,” said Thompson, who also is chief commercial officer for SMC3, an LTL association and data solutions provider. Revisions to the NMFC that took effect July 19 shifted more than 2,000 products or commodities into classes determined by density alone, rather than other shipping characteristics. The new API brings the NMFTA closer to offering a set of digital standards covering LTL shipping processes from a shipper’s dock to final delivery at a consignee. The preliminary freight charges API follows an electronic bill of lading standard and a standard for pickup requests and visibility, Thompson said. An in-transit visibility API standard is slated for release by the Digital LTL Council later this year, he said. Changes in transit The preliminary freight charges standard addresses a problem for shippers that has grown as new technology becomes available for carriers: invoices that change in transit. More and more carriers have dimensioners and scales used to reweigh shipments and reclassify them after they reach a carrier’s dock. That can lead to changes in billed charges that a shipper may not see until an invoice is reviewed weeks later. “This is really valuable for shippers and third-party logistics providers,” said Scooter Sayers, director of business development/LTL solutions for Cubiscan. “It’s all about early visibility, passing information back and forth and getting everybody on the same page.” Cubiscan develops dimensioning equipment and is not part of the LTL Digital Council. Logistics providers and carriers are already providing preliminary data on freight charges to shippers, but “putting a standard out there makes things easier for everybody,” Sayers said. Contact William B. Cassidy at bill.cassidy@spglobal.com .

New API standard advances LTL billing transparency

<div class="phx-topic abstract-wrapper">The upbeat results have led several carriers to invest in new tonnage, with vessels scheduled for delivery in 2027 and 2028.</div>

The upbeat results have led several carriers to invest in new tonnage, with vessels scheduled for delivery in 2027 and 2028.

<div class="phx-topic">Intra-Asia carriers saw net profits surge in the first half of the year on the back of strong gains in freight rates and cargo volumes. The upbeat results have led several carriers to invest in new tonnage, with vessels scheduled for delivery in 2027 and 2028. Forwarders said rates and container volumes have been supported by tight capacity partly caused by mainline carriers blanking sailings in April and May. Highlighting the buoyant trading environment, Hong Kong-listed SITC said average revenue per TEU in the first half increased 23% to $776 per TEU from $632/TEU in the prior year. This helped the carrier post an 80% increase in first-half net profit to $630 million, SITC said in a stock exchange filing. Cargo volumes rose 7% to 1.8 million TEUs. Rival Hong Kong-listed regional carrier TS Lines said it expected interim net profit to surge by up to 225% to between $180 million and $200 million, from $56 million last year, when it reports its results on Aug. 25. The increase was due to higher freight rates and an “increase in charter hire revenue” from vessels chartered to other carriers, TS said. Thailand’s Regional Container Lines (RCL) saw its net profit soar 130% to $124 million in the first half, driven by a 28% increase in freight income and a 12% rise in liftings, the carrier said. The strong results, meanwhile, have led some intra-Asia carriers to expand their fleets with new vessel orders and launch new services, including long-haul loops. TS Lines, SITC and South Korean carriers Sinokor Merchant Marine and CK Line have recently placed orders for a total of 16 ships. The largest order, worth $612 million, was awarded by Sinokor for four 13,000-TEU ships with delivery in 2028. RCL completed the delivery of six 7,000-TEU and 12,000-TEU vessels earlier this year as part of a plan to expand its network beyond Asia with the launch of an Asia-Mexico service with six other carriers including TS Lines, Sinokor, Korea Marine Transport Company (KMTC) and China’s Sinotrans Container Line. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Intra-Asia carriers saw net profits surge in the first half of the year on the back of strong gains in freight rates and cargo volumes. The upbeat results have led several carriers to invest in new tonnage, with vessels scheduled for delivery in 2027 and 2028. Forwarders said rates and container volumes have been supported by tight capacity partly caused by mainline carriers blanking sailings in April and May. Highlighting the buoyant trading environment, Hong Kong-listed SITC said average revenue per TEU in the first half increased 23% to $776 per TEU from $632/TEU in the prior year. This helped the carrier post an 80% increase in first-half net profit to $630 million, SITC said in a stock exchange filing. Cargo volumes rose 7% to 1.8 million TEUs. Rival Hong Kong-listed regional carrier TS Lines said it expected interim net profit to surge by up to 225% to between $180 million and $200 million, from $56 million last year, when it reports its results on Aug. 25. The increase was due to higher freight rates and an “increase in charter hire revenue” from vessels chartered to other carriers, TS said. Thailand’s Regional Container Lines (RCL) saw its net profit soar 130% to $124 million in the first half, driven by a 28% increase in freight income and a 12% rise in liftings, the carrier said. The strong results, meanwhile, have led some intra-Asia carriers to expand their fleets with new vessel orders and launch new services, including long-haul loops. TS Lines, SITC and South Korean carriers Sinokor Merchant Marine and CK Line have recently placed orders for a total of 16 ships. The largest order, worth $612 million, was awarded by Sinokor for four 13,000-TEU ships with delivery in 2028. RCL completed the delivery of six 7,000-TEU and 12,000-TEU vessels earlier this year as part of a plan to expand its network beyond Asia with the launch of an Asia-Mexico service with six other carriers including TS Lines, Sinokor, Korea Marine Transport Company (KMTC) and China’s Sinotrans Container Line. Contact Keith Wallis at keithwallis@hotmail.com .

Container Shipping News

Container lines

Intra-Asia carriers see H1 profits surge on higher freight rates, cargo volumes

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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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SSA Marine Mexico: True Commitment to Sustainability

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