<div class="phx-topic abstract-wrapper">William Edwards resigned as executive director of the Port of Gulfport, Miss., citing a need to relo</div>

William Edwards resigned as executive director of the Port of Gulfport, Miss., citing a need to relo

<div>William Edwards resigned as executive director of the Port of Gulfport, Miss., citing a need to relocate to tend to a family illness.Mr. Edwards submitted his resignation Friday to the port's board of commissioners, which requested he remain on the job until April 30.Mr. Edwards plans to move his family to North Carolina, where he worked as a consultant for a barge towing company before coming to Mississippi in 1989.The port is in the middle of several expansion projects initiated during Mr. Edwards' term. Among those are a $12 million dredging project to deepen the port's harbor and its entrance...

William Edwards resigned as executive director of the Port of Gulfport, Miss., citing a need to relocate to tend to a family illness. Mr. Edwards submitted his resignation Friday to the port's board of commissioners, which requested he remain on the job until April 30.Mr. Edwards plans to move his family to North Carolina, where he worked as a consultant for a barge towing company before coming to Mississippi in 1989. The port is in the middle of several expansion projects initiated during Mr. Edwards' term. Among those are a $12 million dredging project to deepen the port's harbor and its entrance from 30 feet to 36 feet. Scheduled to get under way in April, the project will be completed by 1994. E.I. du Pont de Nemours & Co., which operates a refinery at Gulfport, is involved in a $10 million joint venture with the port to build three 15,000- ton silos to handle ilmenite ore for Du Pont. Also, two of the port's major cargo handlers, Dole Fresh Fruit Co. and Chiquita Brands Inc., have leased a total of some eight acres that is being developed for additional container storage. Blacktop is being laid and electrical outlets installed. On March 10, local residents will vote on whether to allow dockside gambling in the area, which if approved could bring riverboat gambling to the port. Mr. Edwards assumed the reins at Gulfport in 1989 with the promise that the tiny port, which is less than 100 miles east of New Orleans, could expand into the container trade. During Mr. Edwards' tenure, the port's container trade rose to 639,753 tons last year from 572,324 tons in 1989. General cargo increased to 244,605 tons in 1991 from 118,102 tons in 1989. Mr. Edwards also developed a comprehensive preventive maintenance program for the port that included improvements to rail spurs, warehouse roofs, dock frontage and revamping the port's insurance program for a $2 million savings.

Maritime

EXECUTIVE DIRECTOR STEPS DOWN AT MISS. PORT

<div class="phx-topic abstract-wrapper">Market sources say an estimated 40,000 to 50,000 TEUs have landed at Indian ports thus far, with Nhava Sheva (JNPA) terminals alone accounting for 25,000 TEUs of discharges.</div>

Market sources say an estimated 40,000 to 50,000 TEUs have landed at Indian ports thus far, with Nhava Sheva (JNPA) terminals alone accounting for 25,000 TEUs of discharges.

Feature image

<div class="phx-topic">As Middle East-bound containers sourced from Asia continue to make their way into Indian ports for temporary shelter, container lines are concurrently trying to evacuate them on available shuttle capacity for the final leg of their connection. But carriers are being hobbled by multiple operational and systematic challenges at alternative Persian Gulf gateways, according to industry insights. Market sources say an estimated 40,000 to 50,000 TEUs <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fcarriers-seek-to-offload-stranded-asia-middle-east-containers-at-indian-ports-6185263&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C972081c3ba2f499979eb08de8671235c%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C639096017679329220%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=YDeZjDrpaLFB3%2Fkl5wZnogGsDaNv7ZkjIuMMmkD74Pk%3D&amp;reserved=0">have landed at Indian ports thus far</a>, with Nhava Sheva (JNPA) terminals alone accounting for 25,000 TEUs of discharges. Sohar in Oman and Fujairah and Khor Fakkan in the United Arab Emirates have become the contingency lifeline for supply chain stakeholders following <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fcarriers-pause-india-middle-east-cargo-bookings-amid-persian-gulf-port-chaos-6179223&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C972081c3ba2f499979eb08de8671235c%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C639096017679373330%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=Tmtv68DMGAWGS5a2%2BTCY46RYQCq7O%2F3%2FryQQLFbWW1k%3D&amp;reserved=0">widespread port suspensions and disruptions</a> across the Middle East in the aftermath of hostilities between the US/Israel and Iran. A five million-TEU capacity terminal makes Gulftainer's Khor Fakkan facility the favorite carrier transit option, but limited availability of reefer handling capacity across all the three alternative ports, particularly Fujairah, is a major concern for carriers. “There are only about 120 reefer plug points at Fujairah,” a carrier executive who didn’t want to be identified told the Journal of Commerce. “This severely constrains perishable cargo movements.” Compounding the pain, UAE authorities have directed ocean carriers seeking access at Khor Fakkan to keep the scale of cargo loads meant for cross-border transits significantly low as onward road dispatches massively struggle. According to industry sources, the Khor Fakkan port authority has either turned away some vessels carrying large transshipment volumes or declined offloading permission for those containers. Given that context, vessel operators out of India are understood to have generally been advised to plan or manifest no more than 30% of loads for transshipment discharges. Khor Fakkan is facing severe port congestion and berthing delays, with several vessels forced to wait more than a week — up to 12 days in some cases — to secure discharge windows. Some ad-hoc callers have finally diverted away with waits extending indefinitely, sources said. Additionally, consignees have been given a firm two-day window to clear goods from the UAE docks amid the import rush, with cargo interests facing the risk of hefty port charges on overstaying boxes. Another concern reported by carrier sources is the scramble at terminal gates when importers not holding pre-customs registration status show up to receive goods at the alternative ports. “Unregistered customers turning up for cargo pickups is adding to the chaos,” said another carrier executive. <h3>CMA CGM ‘inland’ fuel fee </h3>CMA CGM is said to have finalized plans to operate three Middle East shuttle sailings out of West India (Nhava Sheva/Mundra) to call at Sohar and Fujairah over the next week in order to clear up its rerouted containers. To that end, JNPA officials at a stakeholder review meeting Thursday reiterated that the port is working proactively with stakeholders to support unexpected transshipment volumes. JNPA officials said the port currently has adequate storage capacity available, with only around 50% of its container holding space presently occupied. At the same time, some congestion signals are emerging. Container truckers serving Nhava Sheva’s PSA terminal (BMCT) on Friday complained to authorities about vehicles experiencing lengthening turn times over the past week, making drivers refuse trips for BMCT, which has handled most of the vessels rerouted to the port. Sunil Vaswani, executive director at the Container Shipping Lines’ Association (India), told the Journal of Commerce carriers are now deploying capacity over the Red Sea in a contingency approach to handle import deliveries into the Middle East, with multimodal solutions for onward movements. That effort is also triggering more cost add-ons for shippers. After raising emergency fuel surcharges previously rolled into the ocean freight side, CMA CGM has announced an “inland” emergency fuel fee for the Middle East beginning March 23, without specifying the amount. “These (fuel cost) increases are impacting not only sea transportation but also inland operations across all modes, affecting the overall cost of moving containers throughout the supply chain,” the Marseille-based liner noted. Meanwhile, Hapag-Lloyd CEO Rolf Habben Jansen, speaking to media in Mumbai this week, said the Middle East crisis has left six Hapag-Lloyd container ships stranded and about 25,000 shipments impacted. He also noted that the carrier continues a pause on acceptance of bookings to and from the Middle East as it remains wary of landside pressures in a war zone. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

As Middle East-bound containers sourced from Asia continue to make their way into Indian ports for temporary shelter, container lines are concurrently trying to evacuate them on available shuttle capacity for the final leg of their connection. But carriers are being hobbled by multiple operational and systematic challenges at alternative Persian Gulf gateways, according to industry insights. Market sources say an estimated 40,000 to 50,000 TEUs have landed at Indian ports thus far , with Nhava Sheva (JNPA) terminals alone accounting for 25,000 TEUs of discharges. Sohar in Oman and Fujairah and Khor Fakkan in the United Arab Emirates have become the contingency lifeline for supply chain stakeholders following widespread port suspensions and disruptions across the Middle East in the aftermath of hostilities between the US/Israel and Iran. A five million-TEU capacity terminal makes Gulftainer's Khor Fakkan facility the favorite carrier transit option, but limited availability of reefer handling capacity across all the three alternative ports, particularly Fujairah, is a major concern for carriers. “There are only about 120 reefer plug points at Fujairah,” a carrier executive who didn’t want to be identified told the Journal of Commerce. “This severely constrains perishable cargo movements.” Compounding the pain, UAE authorities have directed ocean carriers seeking access at Khor Fakkan to keep the scale of cargo loads meant for cross-border transits significantly low as onward road dispatches massively struggle. According to industry sources, the Khor Fakkan port authority has either turned away some vessels carrying large transshipment volumes or declined offloading permission for those containers. Given that context, vessel operators out of India are understood to have generally been advised to plan or manifest no more than 30% of loads for transshipment discharges. Khor Fakkan is facing severe port congestion and berthing delays, with several vessels forced to wait more than a week — up to 12 days in some cases — to secure discharge windows. Some ad-hoc callers have finally diverted away with waits extending indefinitely, sources said. Additionally, consignees have been given a firm two-day window to clear goods from the UAE docks amid the import rush, with cargo interests facing the risk of hefty port charges on overstaying boxes. Another concern reported by carrier sources is the scramble at terminal gates when importers not holding pre-customs registration status show up to receive goods at the alternative ports. “Unregistered customers turning up for cargo pickups is adding to the chaos,” said another carrier executive. CMA CGM ‘inland’ fuel fee CMA CGM is said to have finalized plans to operate three Middle East shuttle sailings out of West India (Nhava Sheva/Mundra) to call at Sohar and Fujairah over the next week in order to clear up its rerouted containers. To that end, JNPA officials at a stakeholder review meeting Thursday reiterated that the port is working proactively with stakeholders to support unexpected transshipment volumes. JNPA officials said the port currently has adequate storage capacity available, with only around 50% of its container holding space presently occupied. At the same time, some congestion signals are emerging. Container truckers serving Nhava Sheva’s PSA terminal (BMCT) on Friday complained to authorities about vehicles experiencing lengthening turn times over the past week, making drivers refuse trips for BMCT, which has handled most of the vessels rerouted to the port. Sunil Vaswani, executive director at the Container Shipping Lines’ Association (India), told the Journal of Commerce carriers are now deploying capacity over the Red Sea in a contingency approach to handle import deliveries into the Middle East, with multimodal solutions for onward movements. That effort is also triggering more cost add-ons for shippers. After raising emergency fuel surcharges previously rolled into the ocean freight side, CMA CGM has announced an “inland” emergency fuel fee for the Middle East beginning March 23, without specifying the amount. “These (fuel cost) increases are impacting not only sea transportation but also inland operations across all modes, affecting the overall cost of moving containers throughout the supply chain,” the Marseille-based liner noted. Meanwhile, Hapag-Lloyd CEO Rolf Habben Jansen, speaking to media in Mumbai this week, said the Middle East crisis has left six Hapag-Lloyd container ships stranded and about 25,000 shipments impacted. He also noted that the carrier continues a pause on acceptance of bookings to and from the Middle East as it remains wary of landside pressures in a war zone. Contact Bency Mathew at bencyvmathew@gmail.com.

Port News

Container lines

International ports

Container Shipping News

Hurdles in Persian Gulf test carriers moving stranded Asian cargo from India

<div class="phx-topic abstract-wrapper">China’s largest shipping company commented on current geopolitical events as it released its 2025 financial results, which saw net profits plummet 38%.</div>

China’s largest shipping company commented on current geopolitical events as it released its 2025 financial results, which saw net profits plummet 38%.

<div class="phx-topic">Geopolitical tensions, heightened by war in the Middle East, will accelerate the pace of regionalization in global trade and nearshoring this year while “amplifying the volatility of global supply chains,” Cosco Shipping said Thursday. Momentum for global economic growth is weak, and the external environment for the container shipping industry remains severe, the liner shipping and terminals group said in its 2025 results statement filed with the Shanghai stock exchange. “Looking ahead to 2026, the complexity and uncertainty of the container shipping market will further intensify,” Cosco said. More favorably for global trade, Cosco said emerging economies are showing strong growth potential, cooperation among developing countries is warming and tariff uncertainties have temporarily eased. Cosco specifically highlighted Southeast Asia and Latin America, where demand is strengthening, buoyed by the widening implementation of free trade agreements such as the Regional Comprehensive Economic Partnership in Asia. China’s biggest shipping company said the imbalance between cargo demand and fleet growth will also ease this year, with cargo volumes rising by a “low to moderate 2.5%” compared with 3.8% fleet growth, “the lowest in the past three years.” While this increase in capacity is likely to put downward pressure on freight rates, the impact could be mitigated by port congestion caused by the realignment of carrier alliance networks and the war in the Middle East, the carrier said. <h3>Net profit down 38% in 2025 </h3>Cosco saw mixed results last year, largely reflected by volatile US tariff policy, the deteriorating global economy and the crash in freight rates in the fourth quarter. Overall, net profit fell 38% to $4.3 billion last year while operating revenues slipped 6% to $30.7 billion. Cosco said net profit in the fourth quarter was the lowest of all four quarters, falling 60% to $532 million. The carrier said the worst-performing trades last year were the Asia-Europe and Mediterranean services, which saw an 18% decline in total revenues to $5.3 billion. Revenue from trans-Pacific services fell 17% to $7.7 billion, while revenue from intra-Asia routes was unchanged at $7.6 billion. Cosco saw a better performance from its terminals business, with revenue climbing 11% to $1.7 billion last year, supported by a 6% increase in total throughput to 153 million TEUs. Cosco said it would focus the development of its terminal business on emerging markets and trade lanes to reflect the growing trade between Southeast Asia and Latin America and the increasing importance of ports in areas such as North Africa and India. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Geopolitical tensions, heightened by war in the Middle East, will accelerate the pace of regionalization in global trade and nearshoring this year while “amplifying the volatility of global supply chains,” Cosco Shipping said Thursday. Momentum for global economic growth is weak, and the external environment for the container shipping industry remains severe, the liner shipping and terminals group said in its 2025 results statement filed with the Shanghai stock exchange. “Looking ahead to 2026, the complexity and uncertainty of the container shipping market will further intensify,” Cosco said. More favorably for global trade, Cosco said emerging economies are showing strong growth potential, cooperation among developing countries is warming and tariff uncertainties have temporarily eased. Cosco specifically highlighted Southeast Asia and Latin America, where demand is strengthening, buoyed by the widening implementation of free trade agreements such as the Regional Comprehensive Economic Partnership in Asia. China’s biggest shipping company said the imbalance between cargo demand and fleet growth will also ease this year, with cargo volumes rising by a “low to moderate 2.5%” compared with 3.8% fleet growth, “the lowest in the past three years.” While this increase in capacity is likely to put downward pressure on freight rates, the impact could be mitigated by port congestion caused by the realignment of carrier alliance networks and the war in the Middle East, the carrier said. Net profit down 38% in 2025 Cosco saw mixed results last year, largely reflected by volatile US tariff policy, the deteriorating global economy and the crash in freight rates in the fourth quarter. Overall, net profit fell 38% to $4.3 billion last year while operating revenues slipped 6% to $30.7 billion. Cosco said net profit in the fourth quarter was the lowest of all four quarters, falling 60% to $532 million. The carrier said the worst-performing trades last year were the Asia-Europe and Mediterranean services, which saw an 18% decline in total revenues to $5.3 billion. Revenue from trans-Pacific services fell 17% to $7.7 billion, while revenue from intra-Asia routes was unchanged at $7.6 billion. Cosco saw a better performance from its terminals business, with revenue climbing 11% to $1.7 billion last year, supported by a 6% increase in total throughput to 153 million TEUs. Cosco said it would focus the development of its terminal business on emerging markets and trade lanes to reflect the growing trade between Southeast Asia and Latin America and the increasing importance of ports in areas such as North Africa and India. Contact Keith Wallis at keithwallis@hotmail.com .

Asia-Europe

Trans-Pacific

Middle East war will ‘amplify’ volatility in global supply chains: Cosco

<div class="phx-topic abstract-wrapper">Norfolk’s dredging to a 55-foot depth will allow ocean carriers to offer more capacity on big ships that have to load lightly due to draft constraints. </div>

Norfolk’s dredging to a 55-foot depth will allow ocean carriers to offer more capacity on big ships that have to load lightly due to draft constraints.

<div class="phx-topic">The Port of Virginia has completed a dredging project that brings Norfolk Harbor to a 55-foot depth, making it the deepest port on the US East Coast and allowing ocean carriers to better utilize the ultra-large container vessels increasingly deployed on the coast’s long-haul services.The Virginia Port Authority (VPA) said Wednesday the dredging of an additional five feet of navigable depth in its harbor was completed Feb. 28, with the remaining work on official depth soundings and updated navigation charts expected to be finished in late spring. Portions of the ship channel were also widened to allow two-way vessel traffic, with the VPA expecting a 15% improvement in ship turnover, according to a spokesperson. The dredging was part of a $1.4 billion capacity upgrade for Virginia that began in 2023. The upgrades include expansion of the port’s intermodal rail capacity and ongoing development of a new ultra-large container vessel berth on the northern side of Norfolk International Terminals.With the expected completion of the north berth in mid-2027, Virginia will have nominal capacity of 5.8 million TEUs and be capable of handling five large ships simultaneously. VPA’s interim Chief Executive Sarah McCoy said in a statement the dredging and other expansion projects allow ocean carriers and shippers to “expand their operations and cargo volumes at the Port of Virginia without concern for outgrowing our capabilities.”At 52 feet, the Port of Charleston had been the deepest on the East Coast since 2022. The Port of New York and New Jersey, which dredged to 50 feet in 2016, is studying <a href="NY-NJ port takes next steps to study dredging amid larger ship calls | Journal of Commerce">further dredging to a 55-foot depth</a>. <h3>Big ships partially filled</h3>While Virginia and other East Coast ports are already handling ultra-large container vessels (ULCVs), current harbor depths put a limit on the amount of cargo space those larger ships can offer. Since last March, ships over 14,000 TEUs in capacity have made 599 calls to the four largest US East Coast ports, according to Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. Those vessels have an average maximum draft of 16 meters, just over 52 feet. However, the average draft at arrival has been just under 13 meters, or 42 feet. Cargo mix and operational constraints make every vessel loading situation different. But one industry rule of thumb has been that every meter of loaded draft amounts to $3 million to $4 million of available cargo space. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="79349f5e-726b-41eb-b8cb-724e259bae44"></dynamic-object></div>Ocean Network Express’ ULCVs have been the most frequent visitors to the East Coast, with some 149 calls over the past 12 months, followed by Evergreen Marine’s 133 ULCV calls and Zim Integrated Shipping Service’s 109, according to Sea-web data. During 2025, Virginia handled 1.47 million TEUs in loaded imports, a 5.6% drop from a year earlier, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global. Exports through the gateway during that time were 959,889 TEUs, a 1.5% drop from 2024.The 2.43 million TEUs in total volume, which was down 4% from 2024, made Virginia the sixth-busiest port in the US last year, according to PIERS.Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Port of Virginia has completed a dredging project that brings Norfolk Harbor to a 55-foot depth, making it the deepest port on the US East Coast and allowing ocean carriers to better utilize the ultra-large container vessels increasingly deployed on the coast’s long-haul services. The Virginia Port Authority (VPA) said Wednesday the dredging of an additional five feet of navigable depth in its harbor was completed Feb. 28, with the remaining work on official depth soundings and updated navigation charts expected to be finished in late spring. Portions of the ship channel were also widened to allow two-way vessel traffic, with the VPA expecting a 15% improvement in ship turnover, according to a spokesperson. The dredging was part of a $1.4 billion capacity upgrade for Virginia that began in 2023. The upgrades include expansion of the port’s intermodal rail capacity and ongoing development of a new ultra-large container vessel berth on the northern side of Norfolk International Terminals. With the expected completion of the north berth in mid-2027, Virginia will have nominal capacity of 5.8 million TEUs and be capable of handling five large ships simultaneously. VPA’s interim Chief Executive Sarah McCoy said in a statement the dredging and other expansion projects allow ocean carriers and shippers to “expand their operations and cargo volumes at the Port of Virginia without concern for outgrowing our capabilities.” At 52 feet, the Port of Charleston had been the deepest on the East Coast since 2022. The Port of New York and New Jersey, which dredged to 50 feet in 2016, is studying further dredging to a 55-foot depth . Big ships partially filled While Virginia and other East Coast ports are already handling ultra-large container vessels (ULCVs), current harbor depths put a limit on the amount of cargo space those larger ships can offer. Since last March, ships over 14,000 TEUs in capacity have made 599 calls to the four largest US East Coast ports, according to Sea-web, a sister product of the Journal of Commerce within S&P Global. Those vessels have an average maximum draft of 16 meters, just over 52 feet. However, the average draft at arrival has been just under 13 meters, or 42 feet. Cargo mix and operational constraints make every vessel loading situation different. But one industry rule of thumb has been that every meter of loaded draft amounts to $3 million to $4 million of available cargo space. Ocean Network Express’ ULCVs have been the most frequent visitors to the East Coast, with some 149 calls over the past 12 months, followed by Evergreen Marine’s 133 ULCV calls and Zim Integrated Shipping Service’s 109, according to Sea-web data. During 2025, Virginia handled 1.47 million TEUs in loaded imports, a 5.6% drop from a year earlier, according to PIERS, a sister company of the Journal of Commerce within S&P Global. Exports through the gateway during that time were 959,889 TEUs, a 1.5% drop from 2024. The 2.43 million TEUs in total volume, which was down 4% from 2024, made Virginia the sixth-busiest port in the US last year, according to PIERS. Contact Michael Angell at michael.angell@spglobal.com .

Port infrastructure

North American ports

Virginia’s deeper harbor could allow higher usage on ULCVs

<div class="phx-topic abstract-wrapper">Containers that were inbound when the war started have been plugged into reefer slots in terminals outside the Gulf, accruing mounting storage charges as cargo owners either wait for the Strait of Hormuz to reopen or start looking for new markets</div>

Containers that were inbound when the war started have been plugged into reefer slots in terminals outside the Gulf, accruing mounting storage charges as cargo owners either wait for the Strait of Hormuz to reopen or start looking for new markets

<div class="phx-topic">Düsseldorf — Cold chain shippers with containers destined for the Middle East are in a state of suspended animation with reefer boxes offloaded early at other ports in the region and no timeline on when their voyages will be able to resume through the war zone. Ocean carriers have suspended the acceptance of reefer, dangerous goods and special cargo in and out of the UAE, Oman, Iraq, Kuwait, Qatar, Bahrain and Saudi Arabia until further notice. Reefer containers that were inbound when the war started on Feb. 28 have been dropped off and plugged into reefer slots in terminals outside the Persian Gulf, accruing mounting storage charges and leaving cargo owners waiting until shipping can again pass through the Strait of Hormuz. Alternatively, cargo owners will need to start looking for new markets. One such shipper with reefers out of position is Tyson Foods. The Middle East is a major market for the global protein producer that brings in halal chicken from Brazil, but Gulf-bound reefer containers were offloaded before reaching their destination, according to Juliana Violato, Tyson’s senior manager of procurement in Europe. “In Brazil we have slowed down production because all containers that were on the water are now sitting in ports near the Gulf or in India or Singapore,” Violato told the Journal of Commerce at the Global Cold Chain Association (GCCA) Europe conference in Dusseldorf this week. “They will be there until they find a new trade lane that could be through Oman or Saudi Arabia, but we don’t know how or when because of the war,” she added. “What we do know is that the market is still there.” Thomas Eskesen, founder of cold chain industry consultants Eskesen Advisory, said the fate of frozen food shipments and perishables with a limited shelf life has been the number one issue for the global cold chain since the Middle East war began. “This has a massive cascading effect with equipment tied up and booking stops affecting carriers individually,” Eskesen told the Journal of Commerce. “Lots of cargo is being diverted via the Jeddah back door [in Saudi Arabia], but it is more difficult if dumped in India and Sri Lanka.” <h3>Land-based options under pressure </h3>The land options via Khor Fakkan and Fujairah in the UAE, Sohar in Oman and Jeddah that are being offered by ocean carriers and forwarders <a href="https://www.joc.com/article/rising-road-volume-puts-middle-east-land-based-options-under-pressure-6187755">are creaking under the heavy demand</a>. Port delays are growing fast, as are trucking bottlenecks, with one forwarder reporting a 20-mile line of trucks waiting to get into Dubai’s Jebel Ali container port. Violato said the clock was ticking as reefers could not wait forever and new markets will need to be found if Hormuz remains unpassable “in the coming weeks,” a move that would bring its own set of problems. “There will be a decision to bring back the containers [to origin] or to sell the products in different markets,” she said. “If it’s chicken breast it can be sold in Europe, and if it’s dark meat it can be sold in Africa, but if the war continues, they will need to find another destination.” Kevin Marchetti, co-founder of Lineage Logistics, said although he had no customers with reefers stuck in the region, those shippers are in a difficult position as there will need to be a different solution depending on the customer, the product and the destination. “Some of the products are pre-approved for certain markets where some traders have licenses and some don’t, so it is a really complicated issue,” Marchetti said on the sidelines of the GCCA conference. “The bigger question is that you produce goods thinking you have the end markets open and the goods will just flow, but now reefers are backing up,” he added. “There is also a limited amount of equipment and although we don’t have shortages yet, people have started to talk about it.” <h3>Holding back shipments from Europe </h3>Andrew Mates, managing director of Europe for temperature-controlled warehousing and food logistics specialist Americold, said shipments from Europe to the Middle East have been held back because of the war. “Our Dubai joint venture has reported the UAE government is being very active in redirecting cargo coming in from ports in Oman and Saudi Arabia and arranging land-based routes to keep the supply chain moving,” Mates said. “But there are trucking constraints where all of a sudden containers need to go thousands of kilometers,” he added. “The UAE government realizes that if the situation stays as it is for a few more weeks, they will simply have to get products in somehow.” While exceptions are being made for critical foodstuffs, pharma and other essential goods, <a href="https://www.joc.com/article/maersk-forced-to-ship-fuel-from-us-europe-as-asia-bunkers-start-to-run-dry-6184651">in a recent interview with the Journal of Commerce</a>, Maersk CCO Karsten Kildahl said that at some point “all cargo becomes urgent,” including aluminum, petrochemicals and polyethylene that are all raw materials for plastics production. Persian Gulf states import more than 90% of their goods, and while the closure of the Strait of Hormuz has long been factored into their scenario planning, a long-term closure will start to hit the shelves. Another fast-developing problem is outward-bound cargo, particularly fertilizer from the Middle East that comprises about 30% of the global market and is crucial for food production, according to Violato. “If the war takes longer, we will not have fertilizer for planting and grain production will drop,” she said. “When we impact grain, we impact animal feed and protein becomes more expensive and inflation is impossible to avoid. But again, everything depends on how long the war goes on for.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Düsseldorf — Cold chain shippers with containers destined for the Middle East are in a state of suspended animation with reefer boxes offloaded early at other ports in the region and no timeline on when their voyages will be able to resume through the war zone. Ocean carriers have suspended the acceptance of reefer, dangerous goods and special cargo in and out of the UAE, Oman, Iraq, Kuwait, Qatar, Bahrain and Saudi Arabia until further notice. Reefer containers that were inbound when the war started on Feb. 28 have been dropped off and plugged into reefer slots in terminals outside the Persian Gulf, accruing mounting storage charges and leaving cargo owners waiting until shipping can again pass through the Strait of Hormuz. Alternatively, cargo owners will need to start looking for new markets. One such shipper with reefers out of position is Tyson Foods. The Middle East is a major market for the global protein producer that brings in halal chicken from Brazil, but Gulf-bound reefer containers were offloaded before reaching their destination, according to Juliana Violato, Tyson’s senior manager of procurement in Europe. “In Brazil we have slowed down production because all containers that were on the water are now sitting in ports near the Gulf or in India or Singapore,” Violato told the Journal of Commerce at the Global Cold Chain Association (GCCA) Europe conference in Dusseldorf this week. “They will be there until they find a new trade lane that could be through Oman or Saudi Arabia, but we don’t know how or when because of the war,” she added. “What we do know is that the market is still there.” Thomas Eskesen, founder of cold chain industry consultants Eskesen Advisory, said the fate of frozen food shipments and perishables with a limited shelf life has been the number one issue for the global cold chain since the Middle East war began. “This has a massive cascading effect with equipment tied up and booking stops affecting carriers individually,” Eskesen told the Journal of Commerce. “Lots of cargo is being diverted via the Jeddah back door [in Saudi Arabia], but it is more difficult if dumped in India and Sri Lanka.” Land-based options under pressure The land options via Khor Fakkan and Fujairah in the UAE, Sohar in Oman and Jeddah that are being offered by ocean carriers and forwarders are creaking under the heavy demand . Port delays are growing fast, as are trucking bottlenecks, with one forwarder reporting a 20-mile line of trucks waiting to get into Dubai’s Jebel Ali container port. Violato said the clock was ticking as reefers could not wait forever and new markets will need to be found if Hormuz remains unpassable “in the coming weeks,” a move that would bring its own set of problems. “There will be a decision to bring back the containers [to origin] or to sell the products in different markets,” she said. “If it’s chicken breast it can be sold in Europe, and if it’s dark meat it can be sold in Africa, but if the war continues, they will need to find another destination.” Kevin Marchetti, co-founder of Lineage Logistics, said although he had no customers with reefers stuck in the region, those shippers are in a difficult position as there will need to be a different solution depending on the customer, the product and the destination. “Some of the products are pre-approved for certain markets where some traders have licenses and some don’t, so it is a really complicated issue,” Marchetti said on the sidelines of the GCCA conference. “The bigger question is that you produce goods thinking you have the end markets open and the goods will just flow, but now reefers are backing up,” he added. “There is also a limited amount of equipment and although we don’t have shortages yet, people have started to talk about it.” Holding back shipments from Europe Andrew Mates, managing director of Europe for temperature-controlled warehousing and food logistics specialist Americold, said shipments from Europe to the Middle East have been held back because of the war. “Our Dubai joint venture has reported the UAE government is being very active in redirecting cargo coming in from ports in Oman and Saudi Arabia and arranging land-based routes to keep the supply chain moving,” Mates said. “But there are trucking constraints where all of a sudden containers need to go thousands of kilometers,” he added. “The UAE government realizes that if the situation stays as it is for a few more weeks, they will simply have to get products in somehow.” While exceptions are being made for critical foodstuffs, pharma and other essential goods, in a recent interview with the Journal of Commerce, Maersk CCO Karsten Kildahl said that at some point “all cargo becomes urgent,” including aluminum, petrochemicals and polyethylene that are all raw materials for plastics production. Persian Gulf states import more than 90% of their goods, and while the closure of the Strait of Hormuz has long been factored into their scenario planning, a long-term closure will start to hit the shelves. Another fast-developing problem is outward-bound cargo, particularly fertilizer from the Middle East that comprises about 30% of the global market and is crucial for food production, according to Violato. “If the war takes longer, we will not have fertilizer for planting and grain production will drop,” she said. “When we impact grain, we impact animal feed and protein becomes more expensive and inflation is impossible to avoid. But again, everything depends on how long the war goes on for.” Contact Greg Knowler at  greg.knowler@spglobal.com . 

Forwarding

Reefer shippers play waiting game with boxes stuck outside Persian Gulf

<div class="phx-topic abstract-wrapper">The multi-pronged program includes reflagging four of the carrier’s container ships to the Indian registry and participating in terminal infrastructure development at Vadhavan.</div>

The multi-pronged program includes reflagging four of the carrier’s container ships to the Indian registry and participating in terminal infrastructure development at Vadhavan.

<div class="phx-topic">Hapag-Lloyd is moving to expand its business profile in India via an investment of about $1 billion in a move designed to play catch up with competitors while aligning with local regulatory changes. The German liner announced the multi-pronged growth plan on Thursday as a contingent of company executives, including CEO Rolf Habben Jansen, visited Mumbai. The expansion program includes reflagging four of Hapag-Lloyd’s container ships to the Indian registry and participating in terminal infrastructure development at Vadhavan, a greenfield deepwater harbor project about 100 miles north of Mumbai, the carrier said in a statement. “India is one of the most important growth markets in global trade and a key strategic partner for Hapag-Lloyd,” Habben Jansen said. “We want to further strengthen our long-standing relationships with India and support the country’s ambitions to expand its maritime capabilities, enhance global connectivity and advance sustainable shipping.” While the carrier did not provide specifics of the flag transition, Habben Jansen said it will involve the type of tonnage suitable for short-haul trades. Hapag-Lloyd joins CMA CGM, Maersk and Mediterranean Shipping Co. <a href="https://nam11.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.joc.com%2Farticle%2Fmsc-agrees-to-reflag-12-container-ships-in-india-in-diversification-push-6108526&amp;data=05%7C02%7Ckevin.saville2%40spglobal.com%7C74f5ecd618184ac0524908de85b97d44%7C8f3e36ea80394b4081a77dc0599e8645%7C1%7C0%7C639095228896173730%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&amp;sdata=gDljRvjLsRJ%2Byz4QLEDtm5p1ez6WkLQ8sP5%2B5znWkR4%3D&amp;reserved=0">in making such a move in the Indian market</a>.Hapag-Lloyd is primed to drive projects in India linked to terminal capacity and ship recycling via its local partner JM Baxi Ports &amp; Logistics (JMBPL), which operates a clutch of marine terminals across the country, including Nhava Sheva (JNPA). The carrier holds a controlling stake in JMBPL via equity acquisitions made in stages since 2023. “India’s port and logistics infrastructure is developing at remarkable speed and scale,” said Dheeraj Bhatia, CEO of Hapag-Lloyd subsidiary Hanseatic Global Terminals. “Projects such as Vadhavan Port have the potential to significantly strengthen India’s role in global supply chains.” Meanwhile, speaking on the sidelines of a Mumbai media briefing, Habben Jansen reiterated Hapag-Lloyd’s stated position to continue operating vessels via the Cape of Good of Hope in southern Africa until the security situation in the Middle East and Red Sea region is sustainably safe. <h3>Regulatory pressures </h3>A wave of investments by liner heavyweights in India beyond port-to-port shipping comes as the industry there faces a seesaw of <a href="https://www.joc.com/article/indias-renewed-protectionist-policies-threaten-foreign-liner-network-expansions-5751795">regulatory and government pressures</a>. Last month, New Delhi reversed cabotage relaxations granted to foreign-flag vessels in 2018 for the movement of laden containers for transshipment and empty boxes for repositioning between domestic ports. The move raises cargo scalability concerns for major carriers as vessel sizes on Indian long-haul trades rapidly grow. Indian lawmakers appear firm on the revised policy implementation beginning in late April despite foreign liners strongly appealing for a review. “The [Indian] cabotage policy reversal is a major supply chain hurdle for mainline carriers,” an industry representative who didn’t want to be identified told the Journal of Commerce. “This will have a detrimental effect on transshipment trade, especially at the Vizhinjam hub [in southern India].” Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Hapag-Lloyd is moving to expand its business profile in India via an investment of about $1 billion in a move designed to play catch up with competitors while aligning with local regulatory changes. The German liner announced the multi-pronged growth plan on Thursday as a contingent of company executives, including CEO Rolf Habben Jansen, visited Mumbai. The expansion program includes reflagging four of Hapag-Lloyd’s container ships to the Indian registry and participating in terminal infrastructure development at Vadhavan, a greenfield deepwater harbor project about 100 miles north of Mumbai, the carrier said in a statement. “India is one of the most important growth markets in global trade and a key strategic partner for Hapag-Lloyd,” Habben Jansen said. “We want to further strengthen our long-standing relationships with India and support the country’s ambitions to expand its maritime capabilities, enhance global connectivity and advance sustainable shipping.” While the carrier did not provide specifics of the flag transition, Habben Jansen said it will involve the type of tonnage suitable for short-haul trades. Hapag-Lloyd joins CMA CGM, Maersk and Mediterranean Shipping Co. in making such a move in the Indian market . Hapag-Lloyd is primed to drive projects in India linked to terminal capacity and ship recycling via its local partner JM Baxi Ports & Logistics (JMBPL), which operates a clutch of marine terminals across the country, including Nhava Sheva (JNPA). The carrier holds a controlling stake in JMBPL via equity acquisitions made in stages since 2023. “India’s port and logistics infrastructure is developing at remarkable speed and scale,” said Dheeraj Bhatia, CEO of Hapag-Lloyd subsidiary Hanseatic Global Terminals. “Projects such as Vadhavan Port have the potential to significantly strengthen India’s role in global supply chains.” Meanwhile, speaking on the sidelines of a Mumbai media briefing, Habben Jansen reiterated Hapag-Lloyd’s stated position to continue operating vessels via the Cape of Good of Hope in southern Africa until the security situation in the Middle East and Red Sea region is sustainably safe. Regulatory pressures A wave of investments by liner heavyweights in India beyond port-to-port shipping comes as the industry there faces a seesaw of regulatory and government pressures . Last month, New Delhi reversed cabotage relaxations granted to foreign-flag vessels in 2018 for the movement of laden containers for transshipment and empty boxes for repositioning between domestic ports. The move raises cargo scalability concerns for major carriers as vessel sizes on Indian long-haul trades rapidly grow. Indian lawmakers appear firm on the revised policy implementation beginning in late April despite foreign liners strongly appealing for a review. “The [Indian] cabotage policy reversal is a major supply chain hurdle for mainline carriers,” an industry representative who didn’t want to be identified told the Journal of Commerce. “This will have a detrimental effect on transshipment trade, especially at the Vizhinjam hub [in southern India].” Contact Bency Mathew at bencyvmathew@gmail.com .

Hapag-Lloyd to invest $1 billion across Indian maritime verticals

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