<div class="phx-topic abstract-wrapper">The Maersk Line has thrown out the gauntlet to competitors with the inauguration of a trans-Atlantic</div>

The Maersk Line has thrown out the gauntlet to competitors with the inauguration of a trans-Atlantic

<div>The Maersk Line has thrown out the gauntlet to competitors with the inauguration of a trans-Atlantic service.Prior to arriving Thursday in New York on its maiden voyage, the newbuilding Marchen Maersk made its first North American port of call Tuesday at Halifax on the non-conference, westbound leg of the new service.It's the biggest containership ever to call at a Canadian port, said Barry Olsen, president of Maersk Line Agency (Canada) Inc.Mr. Olsen indicated that the capacities of the vessels on the North Atlantic run are in excess of 3,500 20-foot equivalent units.We are aiming to serve shippers in all of...

The Maersk Line has thrown out the gauntlet to competitors with the inauguration of a trans-Atlantic service. Prior to arriving Thursday in New York on its maiden voyage, the newbuilding Marchen Maersk made its first North American port of call Tuesday at Halifax on the non-conference, westbound leg of the new service.It's the biggest containership ever to call at a Canadian port, said Barry Olsen, president of Maersk Line Agency (Canada) Inc. Mr. Olsen indicated that the capacities of the vessels on the North Atlantic run are in excess of 3,500 20-foot equivalent units. We are aiming to serve shippers in all of Canada from Halifax, Mr. Olsen said in an interview. But he stressed that Maersk intends to compete on service rather than price. We have no intention of getting into any rate wars. We are selling a service, not rates. Before the first call of the Maersk vessel, the largest containerships to call at Canadian ports were those of the Atlantic Container Line at Halifax, with capacities of nearly 3,000 TEUs. The new service marks the return of Maersk to Halifax after an absence of 13 years. The Danish-based operator discontinued a container and breakbulk service to Halifax in 1975. Westbound import cargo for Canada is discharged at Halifax, and containers destined to points in central and western Canada are forwarded by rail. At Halifax, said Mr. Olsen, we load containers for Europe, the Middle East, the Far East and the East and West coasts of the United States. We will arrive in Halifax every Tuesday evening and sail Wednesday morning. Mr. Olsen said the line serves the European ports of Le Havre, Rotterdam, Bremerhaven and Felixstowe on a direct basis with the fastest and most modern container vessels in the trade. He added that Scandinavia and all inland points in Europe will be served through dedicated feeder and land transportation arrangements.

Maritime

MAERSK BEGINS ATLANTIC SERVICE

<div class="phx-topic abstract-wrapper">The vessels take the carrier’s total order book to 36 ships to be delivered between 2026 and 2030, increasing its owned fleet to 150 ships totaling 927,250 TEUs.</div>

The vessels take the carrier’s total order book to 36 ships to be delivered between 2026 and 2030, increasing its owned fleet to 150 ships totaling 927,250 TEUs.

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<div class="phx-topic">Taiwan's Wan Hai Lines will bolster its owned vessel fleet after approving a deal Tuesday worth almost $500 million for six 6,000-TEU dual-fuel LNG-powered container ships. Wan Hai, ranked 11th in the world in terms of capacity by Alphaliner, said the ships will be built by China's CSSC Huangpu Wenchong Shipbuilding. The vessels are priced between $75.2 million and $82 million each, giving the deal a total value of $451.2 million to $492 million, the carrier said in a Taiwan stock exchange filing. The vessels take Wan Hai's total order book to 36 ships to be delivered between 2026 and 2030, increasing its owned fleet to 150 ships totaling 927,250 TEUs. Its order book includes 12 16,000-TEU ships that will be the largest in Wan Hai’s fleet when they are delivered in 2027 and 2028. Wan Hai gave no details of where the new 6,000-TEU ships will be deployed, although they could join the carrier’s existing 600-series vessels on services between Asia and the Indian sub-continent. The ships further reinforce liquefied natural gas (LNG) as the next generation fuel of choice for ocean carriers, with this latest contract taking the total capacity of LNG-powered vessels on order to almost 4.2 million TEUs. That is double the 2.1 million TEUs of methanol-fueled vessels on order, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b5f12c4e-8754-4025-849c-a8b4e06ae6f9"></dynamic-object></div>The shipbuilding order is part of a move by Wan Hai to expand its service network. In the first of these, the carrier's directors approved a $96 million deal Tuesday with Yokohama-Kawasaki International Port to lease for 20 years the Honmoku-futo D-4 Container Terminal in Japan's second-largest container port. Wan Hai will take over the terminal when CMA CGM, the current operator, moves to Honmoku’s D5 terminal by October next year. The D4 facility, with a quay length of 1,312 feet and three ship-to-shore cranes, has an annual handling capacity of 550,000 TEUs and will augment Wan Hai’s Ohi-5 terminal in Tokyo. The carrier also said it will launch a second trans-Pacific service in conjunction with Ocean Network Express in April or May of next year. The Asia-Pacific 2 loop will be an express service linking North and East China and the US West Coast. The full rotation is Qingdao – Ningbo – Los Angeles – Oakland – Qingdao. The AP2 service “will offer customers with a more comprehensive coverage between Asia and the US West Coast, delivering faster and more reliable transportation solutions to meet customer requirements,” Wan Hai said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

Taiwan's Wan Hai Lines will bolster its owned vessel fleet after approving a deal Tuesday worth almost $500 million for six 6,000-TEU dual-fuel LNG-powered container ships. Wan Hai, ranked 11th in the world in terms of capacity by Alphaliner, said the ships will be built by China's CSSC Huangpu Wenchong Shipbuilding. The vessels are priced between $75.2 million and $82 million each, giving the deal a total value of $451.2 million to $492 million, the carrier said in a Taiwan stock exchange filing. The vessels take Wan Hai's total order book to 36 ships to be delivered between 2026 and 2030, increasing its owned fleet to 150 ships totaling 927,250 TEUs. Its order book includes 12 16,000-TEU ships that will be the largest in Wan Hai’s fleet when they are delivered in 2027 and 2028. Wan Hai gave no details of where the new 6,000-TEU ships will be deployed, although they could join the carrier’s existing 600-series vessels on services between Asia and the Indian sub-continent. The ships further reinforce liquefied natural gas (LNG) as the next generation fuel of choice for ocean carriers, with this latest contract taking the total capacity of LNG-powered vessels on order to almost 4.2 million TEUs. That is double the 2.1 million TEUs of methanol-fueled vessels on order, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. The shipbuilding order is part of a move by Wan Hai to expand its service network. In the first of these, the carrier's directors approved a $96 million deal Tuesday with Yokohama-Kawasaki International Port to lease for 20 years the Honmoku-futo D-4 Container Terminal in Japan's second-largest container port. Wan Hai will take over the terminal when CMA CGM, the current operator, moves to Honmoku’s D5 terminal by October next year. The D4 facility, with a quay length of 1,312 feet and three ship-to-shore cranes, has an annual handling capacity of 550,000 TEUs and will augment Wan Hai’s Ohi-5 terminal in Tokyo. The carrier also said it will launch a second trans-Pacific service in conjunction with Ocean Network Express in April or May of next year. The Asia-Pacific 2 loop will be an express service linking North and East China and the US West Coast. The full rotation is Qingdao – Ningbo – Los Angeles – Oakland – Qingdao. The AP2 service “will offer customers with a more comprehensive coverage between Asia and the US West Coast, delivering faster and more reliable transportation solutions to meet customer requirements,” Wan Hai said. Contact Keith Wallis at keithwallis@hotmail.com.

Container lines

Trans-Pacific

Container Shipping News

Wan Hai inks roughly $500 million deal for six LNG-powered ships

<div class="phx-topic abstract-wrapper">Data from consultants Trade and Transport Group shows the impact of regulatory changes as  de minimis traffic fell significantly while regular air cargo increased.</div>

Data from consultants Trade and Transport Group shows the impact of regulatory changes as  de minimis traffic fell significantly while regular air cargo increased.

<div class="phx-topic">A fundamental shift in trans-Pacific air freight trade flows since the US eliminated the de minimis exemption for low-value goods in May is becoming clearer, with a decline in China-US traffic replaced by booming imports from Taiwan and Vietnam. Data from consultants Trade and Transport Group shows the impact of the regulatory changes as  de minimis traffic fell significantly while regular air cargo increased. “The decline in China to US traffic has been more than offset, particularly by air freight from Taiwan and Vietnam, and it is mainly linked to computers and parts, as well as industrial equipment,” Frederic Horst, managing director of Trade and Transport Group, told the Journal of Commerce. In the first nine months of the year, US imports of air cargo from China were down 10.1% year over year, Trade and Transport data shows. But imports from Northeast Asia as a whole rose 36.4%, while imports from Southeast Asian origins were up almost 50%.  A deeper dive into the data shows US air cargo imports from Taiwan from January through September jumped almost 91% year over year, imports from Vietnam rose almost 80% and imports from Thailand were up more than 40%. Computers and accessories, industrial equipment and parts; audio, video and optical components; and mobile phones comprised the bulk of the air freight shipments. The trend has also been picked up by Taiwan-based Dimerco Express Group, which has urged shippers to factor the supply chain changes into their 2026 shipment plans. “Following changes to US de minimis rules, some direct China-US e-commerce flows have decreased, but more cargo is now routed via alternative hubs and forward-stocking models, making trade lanes more diversified,” Catherine Chien, chairwoman of Dimerco Express Group, said in a market update.  “Demand for high-tech, AI-related and e-commerce shipments continues to drive growth in air freight from the Asia-Pacific region to North America and Europe,” Chien added. “Shippers that can flex between multiple lanes, multiple modes and multiple origin countries will be better positioned than those relying on a single country or mode.” <h3>US import data distorted by e-commerce </h3>The main driver of inbound air cargo from Asia to the US has been e-commerce, which over the past few years has created a growing gap in US air cargo data. But the removal in May of the de minimis exemption for low-value imports from China, followed by the removal of de minimis rules for all US trading partners in August, has led to a fundamental change in the mix of air cargo. “Regular air freight imports – i.e. consignments greater than $2,000 – are up 16.5% for the first nine months, while overall inbound air cargo traffic (to the US) is down 2.5%,” Horst said. Data from air cargo analyst Rotate shows freighter operators have shifted capacity in Asia to follow the moving export trend. Direct air freight capacity offered from Southeast Asia to North America from May 2 – when the de minimis tariff on China imports was eliminated – through November was up 89% at 102,700 tonnes.  <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="8d7ed0b1-01de-471d-b540-bed610465c9a"></dynamic-object></div>However, the analyst pointed out that much of Vietnam’s air freight trade is shipped indirectly through Asian hubs in mainland China, Hong Kong, South Korea and Japan, so the actual volume from Southeast Asia to North America is higher. The Freightos Air Index shows China-US rates at a 2025 high exceeding $8/kg this week, higher than last year's $7.30/kg peak, according to a market update from Freightos Tuesday.  The International Air Transport Association (IATA) expects global air volume growth of 3.1% for 2025 and 2.6% for 2026 despite the impact of the US tariffs on volume flows. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

A fundamental shift in trans-Pacific air freight trade flows since the US eliminated the de minimis exemption for low-value goods in May is becoming clearer, with a decline in China-US traffic replaced by booming imports from Taiwan and Vietnam.  Data from consultants Trade and Transport Group shows the impact of the regulatory changes as  de minimis traffic fell significantly while regular air cargo increased.  “The decline in China to US traffic has been more than offset, particularly by air freight from Taiwan and Vietnam, and it is mainly linked to computers and parts, as well as industrial equipment,” Frederic Horst, managing director of Trade and Transport Group, told the Journal of Commerce.  In the first nine months of the year, US imports of air cargo from China were down 10.1% year over year, Trade and Transport data shows. But imports from Northeast Asia as a whole rose 36.4%, while imports from Southeast Asian origins were up almost 50%.   A deeper dive into the data shows US air cargo imports from Taiwan from January through September jumped almost 91% year over year, imports from Vietnam rose almost 80% and imports from Thailand were up more than 40%. Computers and accessories, industrial equipment and parts; audio, video and optical components; and mobile phones comprised the bulk of the air freight shipments.  The trend has also been picked up by Taiwan-based Dimerco Express Group, which has urged shippers to factor the supply chain changes into their 2026 shipment plans.  “Following changes to US de minimis rules, some direct China-US e-commerce flows have decreased, but more cargo is now routed via alternative hubs and forward-stocking models, making trade lanes more diversified,” Catherine Chien, chairwoman of Dimerco Express Group, said in a market update.   “Demand for high-tech, AI-related and e-commerce shipments continues to drive growth in air freight from the Asia-Pacific region to North America and Europe,” Chien added. “Shippers that can flex between multiple lanes, multiple modes and multiple origin countries will be better positioned than those relying on a single country or mode.”  US import data distorted by e-commerce  The main driver of inbound air cargo from Asia to the US has been e-commerce, which over the past few years has created a growing gap in US air cargo data. But the removal in May of the de minimis exemption for low-value imports from China, followed by the removal of de minimis rules for all US trading partners in August, has led to a fundamental change in the mix of air cargo.  “Regular air freight imports – i.e. consignments greater than $2,000 – are up 16.5% for the first nine months, while overall inbound air cargo traffic (to the US) is down 2.5%,” Horst said.  Data from air cargo analyst Rotate shows freighter operators have shifted capacity in Asia to follow the moving export trend. Direct air freight capacity offered from Southeast Asia to North America from May 2 – when the de minimis tariff on China imports was eliminated – through November was up 89% at 102,700 tonnes.   However, the analyst pointed out that much of Vietnam’s air freight trade is shipped indirectly through Asian hubs in mainland China, Hong Kong, South Korea and Japan, so the actual volume from Southeast Asia to North America is higher.  The Freightos Air Index shows China-US rates at a 2025 high exceeding $8/kg this week, higher than last year's $7.30/kg peak, according to a market update from Freightos Tuesday.   The International Air Transport Association (IATA) expects global air volume growth of 3.1% for 2025 and 2.6% for 2026 despite the impact of the US tariffs on volume flows.  Contact Greg Knowler at  greg.knowler@spglobal.com . 

Air Cargo Forwarder News

Air Cargo

Rising US air freight imports from Taiwan, Vietnam offset drop in China trade 

<div class="phx-topic abstract-wrapper">The US Department of Transportation estimates there are about 200,000 holders of non-domiciled commercial driver’s licenses, most of whom would lose eligibility under a proposed rule that would bar certain immigrants from operating commercial vehicles.</div>

The US Department of Transportation estimates there are about 200,000 holders of non-domiciled commercial driver’s licenses, most of whom would lose eligibility under a proposed rule that would bar certain immigrants from operating commercial vehicles.

<div class="phx-topic">The trucking industry differs on how much of any impact stricter federal rules on immigrants driving in the US will have, with one side arguing that a crackdown will move the needle on subdued pricing and the other warning that only a demand rebound will end the three-year freight slump. The US Department of Transportation (USDOT) estimates there are about 200,000 holders of non-domiciled commercial driver’s licenses (CDLs), most of whom would lose eligibility under a proposed rule that would bar certain immigrants, including asylum seekers, from operating commercial vehicles. No one has confirmed the number in the Federal Motor Carrier Safety Administration’s (FMCSA’s) emergency interim rule; states issue CDLs, not the federal government. “There is a lack of clarity on where the 200,000 figure comes from in the first place,” Jason Miller, professor of supply chain management for Michigan State University, told the Journal of Commerce. Under the DOT’s proposed rule, only drivers holding H-2A, H-2B or E-2 visas would be permitted to retain non-domiciled CDLs. But the US Court of Appeals for the District of Columbia Circuit has placed the rule on hold indefinitely. Even so, some industry executives argue that enforcement activity — rather than the rule itself — could have a more immediate effect on trucking capacity. Thom Albrecht, chief revenue officer of insurer Reliance Partners, said he believes up to 15% of current US truckload capacity may be tied to illegitimate operations, including cargo theft and carriers operating outside of US rules and regulations. Albrecht emphasized that the figure is an estimate based on publicly available CDL data, not an exact count. “That doesn’t mean we have 15% excess capacity. I would suggest it’s probably 2% to 3%. It would not take a whole lot for the industry to start feeling better,” he said during a webinar last week hosted by Deutsche Bank. “There have been so many bad actors let into this industry over the last few years. That’s the single-biggest deterrent for this industry to get healthy.” Ryan Joyce, CEO of cargo security firm Genlogs, said his company found nearly 1,000 Mexican trucking companies that are legally allowed to cross the border with international freight, but also operating far beyond the permitted zone inside the US. Joyce said those carriers are engaging in cabotage — legally delivering an international load, then illegally hauling a domestic load between two US locations. “The top violator, for example, was observed hundreds of times operating as far north as Minnesota, Wisconsin, and New York,” Joyce said on the Deutsche Bank webinar. He also said the non-domiciled CDL problem is tied to cargo theft, with some unsafe carriers shutting down one day, paying cash to obtain a new motor carrier number, and then reopening the next day, often referred to as “chameleon carriers.” Albrecht and Joyce are among those who expect a swift market response as insurers and USDOT increase scrutiny of illegitimate operations. “I follow certain threads of truck drivers online, and there are discussions that a lot of these non-domiciled CDLs coming up for renewal won’t be renewed,” Albrecht said on the webinar. “A lot of them have said that post-Christmas, that’s it for them. That this is the last hurrah.” Others, however, argue that the non-domiciled CDL and cabotage crackdowns will not produce a sudden spike in trucking rates. <h3>Skepticism abounds </h3>In audits conducted of Minnesota and New York, most of the violations cited by USDOT involved otherwise properly issued non-domiciled CDLs in which the license expiration date extended beyond the driver’s employment authorization, rather than wholesale ineligibility. And even when drivers with a valid non-domiciled CDL fail an English-language proficiency exam, many continue operating once highway patrol leaves the scene. Police cannot immobilize the vehicle because it is the driver, not the truck, who is taken out of service. “The driver will just wait a little bit and once the officer leaves, he’ll just drive off as if nothing happened,” said Cliff Bates, former owner of Capital City Trucking, a trucking company that went out of business within the last two years. “Even when the driver is dropped off at the next exit, the minute the patrol leaves, he’s walking back down the highway to the truck again.” While Bates agrees that reckless driving by some non-domiciled CDL holders is a major problem, he questions how quickly the Trump administration can act. “I think they’re going to cut off the spigot for new CDLs, but I question the assumption that this administration will act swiftly with midterms coming in less than a year,” Bates told the Journal of Commerce. He said rapid enforcement could raise rates and, by extension, consumer prices. Still, broader macroeconomic factors may limit how much enforcement alone can shift the market. Slashing capacity does not address weak US manufacturing data that has softened truckload demand, according to Miller. He noted, for example, that single-family building permits have fallen 10% from last year, as of the last update before the US government shutdown, and that fracking activity isn’t going to rebound with crude oil at current prices. “There are also individuals out there with the requisite background who could re-enter the [trucking] industry rather quickly if conditions significantly improve from a pricing standpoint, which would blunt any loss of non-domiciled capacity,” Miller said. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

The trucking industry differs on how much of any impact stricter federal rules on immigrants driving in the US will have, with one side arguing that a crackdown will move the needle on subdued pricing and the other warning that only a demand rebound will end the three-year freight slump. The US Department of Transportation (USDOT) estimates there are about 200,000 holders of non-domiciled commercial driver’s licenses (CDLs), most of whom would lose eligibility under a proposed rule that would bar certain immigrants, including asylum seekers, from operating commercial vehicles. No one has confirmed the number in the Federal Motor Carrier Safety Administration’s (FMCSA’s) emergency interim rule; states issue CDLs, not the federal government. “There is a lack of clarity on where the 200,000 figure comes from in the first place,” Jason Miller, professor of supply chain management for Michigan State University, told the Journal of Commerce. Under the DOT’s proposed rule, only drivers holding H-2A, H-2B or E-2 visas would be permitted to retain non-domiciled CDLs. But the US Court of Appeals for the District of Columbia Circuit has placed the rule on hold indefinitely. Even so, some industry executives argue that enforcement activity — rather than the rule itself — could have a more immediate effect on trucking capacity. Thom Albrecht, chief revenue officer of insurer Reliance Partners, said he believes up to 15% of current US truckload capacity may be tied to illegitimate operations, including cargo theft and carriers operating outside of US rules and regulations. Albrecht emphasized that the figure is an estimate based on publicly available CDL data, not an exact count. “That doesn’t mean we have 15% excess capacity. I would suggest it’s probably 2% to 3%. It would not take a whole lot for the industry to start feeling better,” he said during a webinar last week hosted by Deutsche Bank. “There have been so many bad actors let into this industry over the last few years. That’s the single-biggest deterrent for this industry to get healthy.” Ryan Joyce, CEO of cargo security firm Genlogs, said his company found nearly 1,000 Mexican trucking companies that are legally allowed to cross the border with international freight, but also operating far beyond the permitted zone inside the US. Joyce said those carriers are engaging in cabotage — legally delivering an international load, then illegally hauling a domestic load between two US locations. “The top violator, for example, was observed hundreds of times operating as far north as Minnesota, Wisconsin, and New York,” Joyce said on the Deutsche Bank webinar. He also said the non-domiciled CDL problem is tied to cargo theft, with some unsafe carriers shutting down one day, paying cash to obtain a new motor carrier number, and then reopening the next day, often referred to as “chameleon carriers.” Albrecht and Joyce are among those who expect a swift market response as insurers and USDOT increase scrutiny of illegitimate operations. “I follow certain threads of truck drivers online, and there are discussions that a lot of these non-domiciled CDLs coming up for renewal won’t be renewed,” Albrecht said on the webinar. “A lot of them have said that post-Christmas, that’s it for them. That this is the last hurrah.” Others, however, argue that the non-domiciled CDL and cabotage crackdowns will not produce a sudden spike in trucking rates. Skepticism abounds In audits conducted of Minnesota and New York, most of the violations cited by USDOT involved otherwise properly issued non-domiciled CDLs in which the license expiration date extended beyond the driver’s employment authorization, rather than wholesale ineligibility. And even when drivers with a valid non-domiciled CDL fail an English-language proficiency exam, many continue operating once highway patrol leaves the scene. Police cannot immobilize the vehicle because it is the driver, not the truck, who is taken out of service. “The driver will just wait a little bit and once the officer leaves, he’ll just drive off as if nothing happened,” said Cliff Bates, former owner of Capital City Trucking, a trucking company that went out of business within the last two years. “Even when the driver is dropped off at the next exit, the minute the patrol leaves, he’s walking back down the highway to the truck again.” While Bates agrees that reckless driving by some non-domiciled CDL holders is a major problem, he questions how quickly the Trump administration can act. “I think they’re going to cut off the spigot for new CDLs, but I question the assumption that this administration will act swiftly with midterms coming in less than a year,” Bates told the Journal of Commerce. He said rapid enforcement could raise rates and, by extension, consumer prices. Still, broader macroeconomic factors may limit how much enforcement alone can shift the market. Slashing capacity does not address weak US manufacturing data that has softened truckload demand, according to Miller. He noted, for example, that single-family building permits have fallen 10% from last year, as of the last update before the US government shutdown, and that fracking activity isn’t going to rebound with crude oil at current prices. “There are also individuals out there with the requisite background who could re-enter the [trucking] industry rather quickly if conditions significantly improve from a pricing standpoint, which would blunt any loss of non-domiciled capacity,” Miller said. Contact Ari Ashe at ari.ashe@spglobal.com .

Trucking News

Trucking labor

Surface

Impact of non-domiciled CDL enforcement splits US trucking sector

<div class="phx-topic abstract-wrapper">Although major US gateways have made some progress in promoting data sharing on vessel arrivals, port authorities say more systemic thinking must take place among carriers and their supply chain partners to avoid a repeat of the meltdown that occurred in 2021–22.</div>

Although major US gateways have made some progress in promoting data sharing on vessel arrivals, port authorities say more systemic thinking must take place among carriers and their supply chain partners to avoid a repeat of the meltdown that occurred in 2021–22.

<div class="phx-topic">US container ports are receiving better buy-in from their supply chain partners, including ocean carriers, in sharing shipment information in advance to avoid a repeat of the congestion issues experienced during the post-pandemic cargo tsunami of 2021–22. But greater cooperation will be needed to handle the next cargo surge when it happens, port officials say. Managers of the Northwest Seaport Alliance (NWSA), the Port of Long Beach, the South Carolina Ports Authority and the Port Authority of New York and New Jersey told the Journal of Commerce Port Performance webcast last week their data-sharing efforts are still hung up on the question of what proprietary data is. “We’re getting better buy-in from the carriers, but the issue is every sector of the supply chain thinks its information is proprietary,” said Beth Rooney, port director of the Port Authority of New York and New Jersey. “If we are going to provide efficiency, we must think more systemically and cohesively rather than just focusing on your aspect of the supply chain,” she added. In retrospect, the vessel backlogs, congested marine terminals, displaced chassis, rail car shortages and fill-to-capacity warehouses that ports faced in 2021–22 were due to a lack of communication among supply chain partners, said Joel Britt, vice president-terminal operations at the South Carolina Ports Authority. The answer is greater data sharing among the supply chain partners, he said. “We’re trying to help them to help themselves,” Britt said. <h3>Capacity utilization a key factor in port performance </h3>A key indicator of the congestion ports experienced in 2021–22 was that the major gateways were operating at 90% to 95% capacity utilization, each of the four panelists said. Rooney noted that the industry standard for fluidity is that ports experience congestion after they reach 85% because then they have no buffer to handle cargo surges. Today, the Northwest Seaport Alliance (NWSA) of Seattle and Tacoma is operating at 55% to 60% utilization, Long Beach at 54%, Charleston at 50% and New York-New Jersey 65%, the port officials said. A key difference in today’s supply chain fluidity is that warehouses in those regions are moving each season’s merchandise smoothly through their facilities to make room for the subsequent seasonal shipments, the port managers said. In 2021–22, the warehouses were filled to capacity, which forced importers to store inbound containers where they didn’t belong, such as at rail facilities, in truckers’ yards and on marine terminals. “It takes a long time to claw out of that,” said Jeff Bellerud, chief operating officer of the NWSA. Over the past several years, Seattle-Tacoma has developed or is in the process of locating near-dock yards for temporary storage of containers until they are needed. A second berth was added to the T-5 container terminal, a densification project at the Husky Terminal is underway and the port authority is working with railroads to develop support infrastructure to assemble longer trains and enable quicker train arrivals and departures, Bellerud said. Charleston’s Wando Terminal densification project has doubled the annual capacity of the port’s largest container terminal to 2.4 million TEUs a year, Britt said. And the Hugh Leatherman Terminal expansion project will have three berths with an annual capacity of 2.4 million TEUs, while the port’s near-dock rail project will accommodate 1 million rail moves upon completion, Britt said. Although Long Beach is a landlord port, in some ways it is resembling an operating port, said Noel Hacegaba, chief operating officer at the port. Long Beach is not taking over the operations, but rather is encouraging and contributing to measures that will improve operational efficiency. The Pier S facility is contributing to port fluidity as a logistics center for temporary storage of containers. Long Beach is developing the Pier B on-dock rail support facility for building longer inland point intermodal (IPI) trains to the US interior, a project that will be introduced in phases through 2032, Hacegaba said. In New York-New Jersey, every terminal is densifying its operations to increase capacity because the port authority has no more waterfront property to build on, Rooney said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

US container ports are receiving better buy-in from their supply chain partners, including ocean carriers, in sharing shipment information in advance to avoid a repeat of the congestion issues experienced during the post-pandemic cargo tsunami of 2021–22. But greater cooperation will be needed to handle the next cargo surge when it happens, port officials say. Managers of the Northwest Seaport Alliance (NWSA), the Port of Long Beach, the South Carolina Ports Authority and the Port Authority of New York and New Jersey told the Journal of Commerce Port Performance webcast last week their data-sharing efforts are still hung up on the question of what proprietary data is. “We’re getting better buy-in from the carriers, but the issue is every sector of the supply chain thinks its information is proprietary,” said Beth Rooney, port director of the Port Authority of New York and New Jersey. “If we are going to provide efficiency, we must think more systemically and cohesively rather than just focusing on your aspect of the supply chain,” she added. In retrospect, the vessel backlogs, congested marine terminals, displaced chassis, rail car shortages and fill-to-capacity warehouses that ports faced in 2021–22 were due to a lack of communication among supply chain partners, said Joel Britt, vice president-terminal operations at the South Carolina Ports Authority. The answer is greater data sharing among the supply chain partners, he said. “We’re trying to help them to help themselves,” Britt said. Capacity utilization a key factor in port performance A key indicator of the congestion ports experienced in 2021–22 was that the major gateways were operating at 90% to 95% capacity utilization, each of the four panelists said. Rooney noted that the industry standard for fluidity is that ports experience congestion after they reach 85% because then they have no buffer to handle cargo surges. Today, the Northwest Seaport Alliance (NWSA) of Seattle and Tacoma is operating at 55% to 60% utilization, Long Beach at 54%, Charleston at 50% and New York-New Jersey 65%, the port officials said. A key difference in today’s supply chain fluidity is that warehouses in those regions are moving each season’s merchandise smoothly through their facilities to make room for the subsequent seasonal shipments, the port managers said. In 2021–22, the warehouses were filled to capacity, which forced importers to store inbound containers where they didn’t belong, such as at rail facilities, in truckers’ yards and on marine terminals. “It takes a long time to claw out of that,” said Jeff Bellerud, chief operating officer of the NWSA. Over the past several years, Seattle-Tacoma has developed or is in the process of locating near-dock yards for temporary storage of containers until they are needed. A second berth was added to the T-5 container terminal, a densification project at the Husky Terminal is underway and the port authority is working with railroads to develop support infrastructure to assemble longer trains and enable quicker train arrivals and departures, Bellerud said. Charleston’s Wando Terminal densification project has doubled the annual capacity of the port’s largest container terminal to 2.4 million TEUs a year, Britt said. And the Hugh Leatherman Terminal expansion project will have three berths with an annual capacity of 2.4 million TEUs, while the port’s near-dock rail project will accommodate 1 million rail moves upon completion, Britt said. Although Long Beach is a landlord port, in some ways it is resembling an operating port, said Noel Hacegaba, chief operating officer at the port. Long Beach is not taking over the operations, but rather is encouraging and contributing to measures that will improve operational efficiency. The Pier S facility is contributing to port fluidity as a logistics center for temporary storage of containers. Long Beach is developing the Pier B on-dock rail support facility for building longer inland point intermodal (IPI) trains to the US interior, a project that will be introduced in phases through 2032, Hacegaba said. In New York-New Jersey, every terminal is densifying its operations to increase capacity because the port authority has no more waterfront property to build on, Rooney said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port News

North American ports

Marine terminals

More data sharing crucial to avoiding future port congestion: officials

<div class="phx-topic abstract-wrapper">As economists question whether the US consumer is finally pulling back as tariff costs increasingly show in store prices, another major generator of freight manufacturing orders is showing signs of sputtering.</div>

As economists question whether the US consumer is finally pulling back as tariff costs increasingly show in store prices, another major generator of freight manufacturing orders is showing signs of sputtering.

<div class="phx-topic">The following is the cover story for the Journal of Commerce’s 2026 Annual Review and Outlook.US freight demand enters 2026 with import container volumes in retraction and surface freight demand in a three-year slump.  Container volumes will be flat to down next year, according to forecasts from S&amp;P Global Ratings and Moody’s, while truckload and less-than-truckload (LTL) operators steel themselves for another so-so year. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6135159_0.1.jpg"></img></div>US air cargo growth is declining, with volumes down on a year-over-year basis for six straight months through October, according to the International Air Transport Association. Intermodal growth, meanwhile, has notably fared well, rising in the mid-single digits.  Importantly, and despite negative headlines on unemployment and retail confidence, economists expect the US economy to muster on, most likely avoiding a recession. US real gross domestic product (GDP) will grow 2.2% in 2026 after climbing 2% in 2025 and 2.8% in 2024, according to economists from S&amp;P Global, the parent company of the Journal of Commerce.   But while the US economy expands, US inventory levels are not. And following months of frontloading imports, US retailers and other importers are replenishing gingerly. US inventory levels mildly expanded in November, according to the Logistics Managers Index. But companies have plenty of incentives to keep inventories lean, as the index shows that carrying costs have been increasing monthly since the beginning of 2025.   Attention is focused on US consumers as they show signs of cutting back amid stubborn inflation. The major consumer pricing indicators — via the University of Michigan’s index and the Consumer Board’s survey — paint a picture of an increasingly jittery consumer, a picture that is no longer exclusive to low-income Americans. The latest US unemployment numbers from the US Labor Department show hiring expanded in October, but at a slower pace, while more workers are staying put in their current roles. As economists question whether the near-unstoppable US consumer is finally pulling back as tariff costs increasingly show in store prices, another major generator of freight is showing signs of sputtering. New US manufacturing orders in November fell to their lowest point since May, according to the US manufacturing ISM. <h3>Warehouses ‘filled with unsold stock’ </h3>A Conference Board survey on Nov. 22 revealed that falling US consumer confidence had reached its lowest since April, when the US began its tariff onslaught. “Manufacturers are making more goods but often not finding buyers for these products,” said Chris Williamson, chief business economist at S&amp;P Global. “For two successive months now, warehouses have filled with unsold stock to a degree not previously seen since comparable data was available in 2007. This unplanned accumulation of stock is usually a precursor to reduced production in the coming months.”  Another major driver of freight demand — housing — isn’t looking too good, either. Privately owned housing starts were down 11.1% year over year in August, the latest month for which data is available from the US Census Bureau following the US government shutdown.  The US economy in 2026 “entirely hinges on the housing industrial complex unlocking itself, and I don’t see that happening quickly,” Jason Miller, a Michigan State University supply chain professor, told the Journal of Commerce. Interest rates need to drop to allow house buyers to unlock lower financing, he said.  Keith Prather, co-founder and managing partner of consultancy Armada Corporate Intelligence, has a more positive outlook but doesn’t expect an immediate jolt to the economy.  “There are a lot of different moving parts in the US economy right now,” Prather said. He pointed to the reshoring of manufacturing in the US as a trend that will — eventually — create more domestic freight demand, although not in the short term.  <h3>Feel familiar?   </h3>The weakening demand indicators and downbeat freight forecasts suggest a first half of 2026 that resembles much of 2025. The for-hire trucking ton-mile index inched up just 0.4% in the first eight months of 2025 compared with the same period in 2024.   The supply-demand imbalance in trucking seemed to become more punishing as 2025 progressed, with little sign of a resolution or turning point ahead.  “We really thought toward the end of last year, 2024, that we had reached an equilibrium,” said Jeff Tucker, CEO of Tucker Company Worldwide, the largest family-owned US freight brokerage. “We felt 2025 showed some promise ... [but] nobody saw the breadth and depth of the impact of the tariff regime. “ Despite the slump, intermodal volume has been resilient. Domestic container volume, excluding trailers, rose 3.5% year over year between January and October, while international intermodal increased 4.3% during the same period, according to the Intermodal Association of North America (IANA).   Intermodal demand in 2026, though, will continue to be heavily tied to tariffs, trucking and ports. There is a strong nexus between international intermodal and Asian imports to West Coast ports. Domestic intermodal demand is often tied to how easy it is to procure trucks and how much cost is a factor in procurement decisions. If tariffs, for example, are squeezing overall margins, then a shipper might convert less service-sensitive freight to intermodal to meet their budget targets.  <h3>Lurching into 2026  </h3>No import growth is rare in US ocean shipping. There have been just two periods in which US containerized import volumes have declined to the extent seen in recent months, said analyst John McCown. The most recent was in the spring of 2020, when retailers and other importers slashed orders on fears that retail consumption would plunge in the early days of the pandemic, and the first was 2008–09 in the wake of the financial crisis, he said.  “I think we’re looking at perhaps the worst performance year that I can recall, in 2026, in terms of volume growth,” McCown said.  S&amp;P Global Ratings on Dec. 10 forecast that US container volumes will be down 2% in 2026 from 2025, while Moody’s Ratings on Nov. 20 predicted flat to negative import volume growth. The S&amp;P Global outlook calls for a rebound in volume of 6% in 2027 on the hopes of a more stable trade policy. For all of 2025, imports are estimated to be down 1.4% from 2024 at 25.2 million TEUs, according to the National Retail Federation (NRF). US retailers are signaling they will be keeping volumes at a significant year-over-year deficit at least through April. Volumes in January, February, March and April are expected to be, respectively, 10.3%, 8.5%,16.8%, and 11% lower than the corresponding months in 2025, according to the Global Port Tracker, which is created by Hackett Associates on behalf of the NRF. Port operators, too, are budgeting for declines or only slow growth in 2026. The Port Authority of New York and New Jersey said in November it is budgeting for total container volumes of 8.5 million TEUs in 2026, which would be just over a 2% decline from 2024. Since 2016, NY-NJ port container volumes have grown at an annual average of 4.2%. Remarkably, US containerized exports have been resilient. Volumes in the first nine months of 2025 were up 2.1% from a year earlier, with containerized agricultural exports 1.2% higher in the same period, according to the latest available data from PIERS, a sister product of the Journal of Commerce within S&amp;P Global. In a twist of trade, US export growth is outpacing gains in imports, or a lack thereof. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.Journal of Commerce editorial staff contributed to this report. </div>

The following is the cover story for the Journal of Commerce’s 2026 Annual Review and Outlook. US freight demand enters 2026 with import container volumes in retraction and surface freight demand in a three-year slump.  Container volumes will be flat to down next year, according to forecasts from S&P Global Ratings and Moody’s, while truckload and less-than-truckload (LTL) operators steel themselves for another so-so year. US air cargo growth is declining, with volumes down on a year-over-year basis for six straight months through October, according to the International Air Transport Association. Intermodal growth, meanwhile, has notably fared well, rising in the mid-single digits.  Importantly, and despite negative headlines on unemployment and retail confidence, economists expect the US economy to muster on, most likely avoiding a recession. US real gross domestic product (GDP) will grow 2.2% in 2026 after climbing 2% in 2025 and 2.8% in 2024, according to economists from S&P Global, the parent company of the Journal of Commerce.   But while the US economy expands, US inventory levels are not. And following months of frontloading imports, US retailers and other importers are replenishing gingerly. US inventory levels mildly expanded in November, according to the Logistics Managers Index. But companies have plenty of incentives to keep inventories lean, as the index shows that carrying costs have been increasing monthly since the beginning of 2025.   Attention is focused on US consumers as they show signs of cutting back amid stubborn inflation. The major consumer pricing indicators — via the University of Michigan’s index and the Consumer Board’s survey — paint a picture of an increasingly jittery consumer, a picture that is no longer exclusive to low-income Americans. The latest US unemployment numbers from the US Labor Department show hiring expanded in October, but at a slower pace, while more workers are staying put in their current roles. As economists question whether the near-unstoppable US consumer is finally pulling back as tariff costs increasingly show in store prices, another major generator of freight is showing signs of sputtering. New US manufacturing orders in November fell to their lowest point since May, according to the US manufacturing ISM. Warehouses ‘filled with unsold stock’ A Conference Board survey on Nov. 22 revealed that falling US consumer confidence had reached its lowest since April, when the US began its tariff onslaught. “Manufacturers are making more goods but often not finding buyers for these products,” said Chris Williamson, chief business economist at S&P Global. “For two successive months now, warehouses have filled with unsold stock to a degree not previously seen since comparable data was available in 2007. This unplanned accumulation of stock is usually a precursor to reduced production in the coming months.”  Another major driver of freight demand — housing — isn’t looking too good, either. Privately owned housing starts were down 11.1% year over year in August, the latest month for which data is available from the US Census Bureau following the US government shutdown.  The US economy in 2026 “entirely hinges on the housing industrial complex unlocking itself, and I don’t see that happening quickly,” Jason Miller, a Michigan State University supply chain professor, told the Journal of Commerce. Interest rates need to drop to allow house buyers to unlock lower financing, he said.  Keith Prather, co-founder and managing partner of consultancy Armada Corporate Intelligence, has a more positive outlook but doesn’t expect an immediate jolt to the economy.  “There are a lot of different moving parts in the US economy right now,” Prather said. He pointed to the reshoring of manufacturing in the US as a trend that will — eventually — create more domestic freight demand, although not in the short term.  Feel familiar?   The weakening demand indicators and downbeat freight forecasts suggest a first half of 2026 that resembles much of 2025. The for-hire trucking ton-mile index inched up just 0.4% in the first eight months of 2025 compared with the same period in 2024.   The supply-demand imbalance in trucking seemed to become more punishing as 2025 progressed, with little sign of a resolution or turning point ahead.  “We really thought toward the end of last year, 2024, that we had reached an equilibrium,” said Jeff Tucker, CEO of Tucker Company Worldwide, the largest family-owned US freight brokerage. “We felt 2025 showed some promise ... [but] nobody saw the breadth and depth of the impact of the tariff regime. “ Despite the slump, intermodal volume has been resilient. Domestic container volume, excluding trailers, rose 3.5% year over year between January and October, while international intermodal increased 4.3% during the same period, according to the Intermodal Association of North America (IANA).   Intermodal demand in 2026, though, will continue to be heavily tied to tariffs, trucking and ports. There is a strong nexus between international intermodal and Asian imports to West Coast ports. Domestic intermodal demand is often tied to how easy it is to procure trucks and how much cost is a factor in procurement decisions. If tariffs, for example, are squeezing overall margins, then a shipper might convert less service-sensitive freight to intermodal to meet their budget targets.  Lurching into 2026  No import growth is rare in US ocean shipping. There have been just two periods in which US containerized import volumes have declined to the extent seen in recent months, said analyst John McCown. The most recent was in the spring of 2020, when retailers and other importers slashed orders on fears that retail consumption would plunge in the early days of the pandemic, and the first was 2008–09 in the wake of the financial crisis, he said.  “I think we’re looking at perhaps the worst performance year that I can recall, in 2026, in terms of volume growth,” McCown said.  S&P Global Ratings on Dec. 10 forecast that US container volumes will be down 2% in 2026 from 2025, while Moody’s Ratings on Nov. 20 predicted flat to negative import volume growth. The S&P Global outlook calls for a rebound in volume of 6% in 2027 on the hopes of a more stable trade policy. For all of 2025, imports are estimated to be down 1.4% from 2024 at 25.2 million TEUs, according to the National Retail Federation (NRF). US retailers are signaling they will be keeping volumes at a significant year-over-year deficit at least through April. Volumes in January, February, March and April are expected to be, respectively, 10.3%, 8.5%,16.8%, and 11% lower than the corresponding months in 2025, according to the Global Port Tracker, which is created by Hackett Associates on behalf of the NRF. Port operators, too, are budgeting for declines or only slow growth in 2026. The Port Authority of New York and New Jersey said in November it is budgeting for total container volumes of 8.5 million TEUs in 2026, which would be just over a 2% decline from 2024. Since 2016, NY-NJ port container volumes have grown at an annual average of 4.2%. Remarkably, US containerized exports have been resilient. Volumes in the first nine months of 2025 were up 2.1% from a year earlier, with containerized agricultural exports 1.2% higher in the same period, according to the latest available data from PIERS, a sister product of the Journal of Commerce within S&P Global. In a twist of trade, US export growth is outpacing gains in imports, or a lack thereof. Contact William B. Cassidy at bill.cassidy@spglobal.com .Journal of Commerce editorial staff contributed to this report.

Supply chain

US freight industry enters 2026 with low growth expectations

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