<div class="phx-topic abstract-wrapper">With the recession and the Persian Gulf war hurting imports, cargo volume fell in 1991 for the Port </div>

With the recession and the Persian Gulf war hurting imports, cargo volume fell in 1991 for the Port

<div>With the recession and the Persian Gulf war hurting imports, cargo volume fell in 1991 for the Port of New York and New Jersey.Officials at the Port Authority of New York &amp; New Jersey said they hoped the port's improved rail connections to the Midwest, along with growth in imports from Southeast Asia, would help the port improve its share of the hotly contested North Atlantic ports container market.But according to statistics released Wednesday, the port's market share fell slightly in 1991 to 39.3 percent in 1991 as general cargo volume fell to 12 million long tons from 12.4 million...

With the recession and the Persian Gulf war hurting imports, cargo volume fell in 1991 for the Port of New York and New Jersey. Officials at the Port Authority of New York & New Jersey said they hoped the port's improved rail connections to the Midwest, along with growth in imports from Southeast Asia, would help the port improve its share of the hotly contested North Atlantic ports container market.But according to statistics released Wednesday, the port's market share fell slightly in 1991 to 39.3 percent in 1991 as general cargo volume fell to 12 million long tons from 12.4 million in 1990. A long ton is 2,240 pounds. "It's a tough market," said Lillian C. Liburdi, the authority's port director. "We're continuing to fight it out with each other" on the North Atlantic, she continued. Mrs. Liburdi, however said she expects the port's traffic to grow about 2 percent in 1992 as the U.S. economy pulls out of the recession. "The recession and the (Persian Gulf) war took a toll on us" in 1991 because the port is so dependent on imports, Mrs. Liburdi said. In 1991, about 64 percent of the traffic through New York-New Jersey port was imports. That export-import balance has improved a great deal from just a few years ago when over 80 percent of the port's cargo was imports, said Mrs. Liburdi. Steamship lines prefer a more balanced cargo flow, she explained. Mrs. Liburdi said the port would continue to battle fiercely in an attempt to gain a strong foothold in the market for cargo going to or from the Midwest. Baltimore and Hampton Roads, Va., traditionally have dominated that market. As part of New York's effort to capture Midwest cargo, it will spend about $10 million to build a permanent on-dock rail terminal at its New Jersey facilities that should be operating by the fall of 1993, Mrs. Liburdi said. An interim on-dock facility opened late this summer. To prepare for future growth, the port is also spending $9 million to upgrade its now vacant Howland Hook Container Terminal on Staten Island, N.Y. Although there are no strong prospects for a container tenant at that facility, Mrs. Liburdi said there are discussions going on with some smaller breakbulk operators to use it. The port is not making the same kind of financial commitment to maintain some of its properties it now considers outside of its core business. With the failure to reach a consensus with the Brooklyn Heights community about the use of piers 1-5 in Brooklyn, N.Y., the port authority may sell those properties that boast a spectacular view of lower Manhattan to a private real estate developer, Mrs. Liburdi said. A plan along those lines a few years ago sparked fierce community opposition. There are also plans to sell waterfront properties in Erie Basin, Brooklyn, that are unsuited for container operations, Mrs. Liburdi said. And the authority continues to plan to give up operating the Passenger Ship Terminal on the West Side of Manhattan when its lease there expires at the end of 1994, she said. Exports were the bright spot in the port's 1991 figures, growing 10 percent to 4.3 million long tons from 3.9 million tons, the year before.

Maritime

WAR, RECESSION DEPRESS NY PORT'S CARGO VOLUME

<div class="phx-topic abstract-wrapper">But the conflict in the Middle East and resultant increase in fuel prices could weigh on nearer-term prospects, participants heard Tuesday at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026.</div>

But the conflict in the Middle East and resultant increase in fuel prices could weigh on nearer-term prospects, participants heard Tuesday at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026.

Feature image

<div class="phx-topic">New Orleans — Long-term demand for project cargo and breakbulk capacity is largely healthy and mostly driven by data center construction and electricity projects. But the conflict in the Middle East and resultant increase in fuel prices could weigh on nearer-term prospects, participants heard Tuesday at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026. “The world is hungry for energy, especially electricity,” Felix Schoeller, chief commercial officer at AAL Shipping (AAL), told the conference. “Demand for power generating capability and oil and gas exploration have remained strong. Industries that were written off may come back, like renewables. The biggest challenge for forwarding and shipping companies is, can we execute.” Long-term prospects for large projects remain robust due in part to the artificial intelligence (AI) boom and the need to build data centers to support that trend. But the global volatility caused by the war in the Middle East, layered on top of continued trade policy uncertainty in North America, could have a chilling effect on capacity demand this year. “I feel good about ‘27 and beyond, but late summer this year is going to be ugly,” Michael Ruediger, director of projects/North America at Austria-based logistics company Gebrüder Weiss, said at the conference. “Companies with an abundance of staff will do some bloodletting to get through the summer.” Robert Drew, vice president/North American trade development at German logistics services company Menzell Döhle Logistics Gmbh, said the current market volatility makes it nearly impossible to assemble an accurate project cost assessment. “The challenges of tariffs are a huge one,” Drew said, noting the particular impact US tariffs have had on imported steel products used for projects. “Geopolitical issues, the increase in fuel rates. The process of putting a project together and determining whether it’s viable includes logistics costs and those are a moving target. How do you price on that basis with the increased costs and volatility?” That uncertainty has manifested itself in project deferments and delays, Drew said, adding that the signs of import volume declines for project shipments started showing in late 2025. Still, “Demand has not disappeared for steel,” he said. “It’s been deferred.” Drew said domestic steel manufacturers have stepped in to serve that demand, emboldened by the US’ chilly stance toward imports. “There doesn’t seem to be a lifting of barriers with tariffs,” he said. “Domestics jump in with anti-dumping action as soon as you get a good [import] program going. It’s all about the political aspect and the revenues it’s generating. The demand hasn’t disappeared.” <h3>Data center ‘fad’ </h3>Ruediger echoed those thoughts around broader near-term delays in project demand. He said the data center phenomenon, while powerful, is likely to be a “fad” that will lose steam in two years. But he expects demand to come from industrial gases by 2028. He also pointed to strong demand from equipment manufacturers in Europe serving US customers and structural steel produced in Vietnam and Thailand. He encouraged the breakbulk and project cargo market to not be overly fixated on one sector. “We don’t discriminate,” he said. “We move freight.” Meanwhile, Drew said the industry would benefit from any sort of resolution to the war in Iran and the ongoing conflict between Russia and Ukraine. “I’ve been around this industry a long time, and I can’t tell you how many times we’ve been to the precipice and thankfully the world hasn’t yet come to an end,” he said. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

New Orleans — Long-term demand for project cargo and breakbulk capacity is largely healthy and mostly driven by data center construction and electricity projects. But the conflict in the Middle East and resultant increase in fuel prices could weigh on nearer-term prospects, participants heard Tuesday at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026. “The world is hungry for energy, especially electricity,” Felix Schoeller, chief commercial officer at AAL Shipping (AAL), told the conference. “Demand for power generating capability and oil and gas exploration have remained strong. Industries that were written off may come back, like renewables. The biggest challenge for forwarding and shipping companies is, can we execute.” Long-term prospects for large projects remain robust due in part to the artificial intelligence (AI) boom and the need to build data centers to support that trend. But the global volatility caused by the war in the Middle East, layered on top of continued trade policy uncertainty in North America, could have a chilling effect on capacity demand this year. “I feel good about ‘27 and beyond, but late summer this year is going to be ugly,” Michael Ruediger, director of projects/North America at Austria-based logistics company Gebrüder Weiss, said at the conference. “Companies with an abundance of staff will do some bloodletting to get through the summer.” Robert Drew, vice president/North American trade development at German logistics services company Menzell Döhle Logistics Gmbh, said the current market volatility makes it nearly impossible to assemble an accurate project cost assessment. “The challenges of tariffs are a huge one,” Drew said, noting the particular impact US tariffs have had on imported steel products used for projects. “Geopolitical issues, the increase in fuel rates. The process of putting a project together and determining whether it’s viable includes logistics costs and those are a moving target. How do you price on that basis with the increased costs and volatility?” That uncertainty has manifested itself in project deferments and delays, Drew said, adding that the signs of import volume declines for project shipments started showing in late 2025. Still, “Demand has not disappeared for steel,” he said. “It’s been deferred.” Drew said domestic steel manufacturers have stepped in to serve that demand, emboldened by the US’ chilly stance toward imports. “There doesn’t seem to be a lifting of barriers with tariffs,” he said. “Domestics jump in with anti-dumping action as soon as you get a good [import] program going. It’s all about the political aspect and the revenues it’s generating. The demand hasn’t disappeared.” Data center ‘fad’ Ruediger echoed those thoughts around broader near-term delays in project demand. He said the data center phenomenon, while powerful, is likely to be a “fad” that will lose steam in two years. But he expects demand to come from industrial gases by 2028. He also pointed to strong demand from equipment manufacturers in Europe serving US customers and structural steel produced in Vietnam and Thailand. He encouraged the breakbulk and project cargo market to not be overly fixated on one sector. “We don’t discriminate,” he said. “We move freight.” Meanwhile, Drew said the industry would benefit from any sort of resolution to the war in Iran and the ongoing conflict between Russia and Ukraine. “I’ve been around this industry a long time, and I can’t tell you how many times we’ve been to the precipice and thankfully the world hasn’t yet come to an end,” he said. Contact Eric Johnson at eric.johnson@spglobal.com .

Breakbulk carriers

Energy projects

Breakbulk News

Breakbulk26: Data center, electricity demand buoy project cargo industry

<div class="phx-topic abstract-wrapper">Unveiled at Breakbulk26 in New Orleans this week, the Journal of Commerce’s new Breakbulk Shipper Index tracks a range of indicators including changes in volumes carried by different vessel types, lead time for chartering vessels, and load and discharge regions.</div>

Unveiled at Breakbulk26 in New Orleans this week, the Journal of Commerce’s new Breakbulk Shipper Index tracks a range of indicators including changes in volumes carried by different vessel types, lead time for chartering vessels, and load and discharge regions.

<div class="phx-topic">New Orleans — The Journal of Commerce has launched an exclusive benchmark for the breakbulk and project cargo sector designed to improve transparency in both ship capacity projections and contract negotiations. Unveiled at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026 taking place this week, the Breakbulk Shipper Index tracks a range of indicators including changes in volumes carried by different vessel types, lead time for chartering vessels and load and discharge regions. The index is based on cargo owner activity rather than data from cargo carriers. Input comes from a range of cargo owner types, including engineering, procurement &amp; construction companies (EPCs), manufacturers of breakbulk and project cargo, project owners, and project freight forwarders. All the data providers are members of the Journal of Commerce Breakbulk Shipper Group (BSG), shippers who control the transportation of breakbulk and project cargo. Susan Oatway, the Journal of Commerce’s senior research analyst for breakbulk and project cargo, has been building the index since July 2024 after requests from EPCs and original equipment manufacturers (OEMs) for an index that they could use to track future freight contract pricing. Although there are freight rate indices available for the sector, Oatway said they are very specific or based on assessments from carriers. “The Journal of Commerce’s index does not incorporate data from carriers or information on rates, making it unique in its assessment,” Oatway said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="dd8e14c5-769e-4133-a9f2-f81a491f47aa"></dynamic-object></div>The Journal of Commerce Breakbulk Shipper Index covers five vessel types: a general cargo ship with single-lift capacity of under 250 tons, project cargo carrier with single-lift capacity of over 250t, container carriers, deck cargo carriers, and roll-on/roll-off vessels. The published index is a consolidated figure, weighted against the five ship types. The index is now active and available for use by the industry. “This is a unique index that is shipper-led and shipper-driven,” Oatway said. “We anticipate that its main use will be in contract negotiations for seaborne capacity. Shippers trying to fix freight rates a year out will be able to add in an index escalation clause. We hope that this index will quickly become a bellwether of capacity in the MPV trades.” Members of the BSG already use the index to benchmark themselves, she added. In the future, the Journal of Commerce will use this index to forecast the direction of the MPV market. <h3>‘Growing’ the index </h3>Oatway said the Breakbulk Shipper Group has been actively involved at every step in the formulation of the index. “Launching the index is only the first step,” she said. “We will be growing and developing the index over time and are extending the invite to the BSG to all shippers who want to join us on this vital journey towards improving transparency in this sector.” Members of the BSG receive a regular monthly report with all data related to the index and access to the proprietary index report. The Breakbulk Shipper Index is not a financial benchmark index, nor is it designed or intended to be used as a reference rate for financial instruments or investment products, such as those produced by S&amp;P Dow Jones Indices (SPDJI). Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com.</a></div>

New Orleans — The Journal of Commerce has launched an exclusive benchmark for the breakbulk and project cargo sector designed to improve transparency in both ship capacity projections and contract negotiations. Unveiled at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026 taking place this week, the Breakbulk Shipper Index tracks a range of indicators including changes in volumes carried by different vessel types, lead time for chartering vessels and load and discharge regions. The index is based on cargo owner activity rather than data from cargo carriers. Input comes from a range of cargo owner types, including engineering, procurement & construction companies (EPCs), manufacturers of breakbulk and project cargo, project owners, and project freight forwarders. All the data providers are members of the Journal of Commerce Breakbulk Shipper Group (BSG), shippers who control the transportation of breakbulk and project cargo. Susan Oatway, the Journal of Commerce’s senior research analyst for breakbulk and project cargo, has been building the index since July 2024 after requests from EPCs and original equipment manufacturers (OEMs) for an index that they could use to track future freight contract pricing. Although there are freight rate indices available for the sector, Oatway said they are very specific or based on assessments from carriers. “The Journal of Commerce’s index does not incorporate data from carriers or information on rates, making it unique in its assessment,” Oatway said. The Journal of Commerce Breakbulk Shipper Index covers five vessel types: a general cargo ship with single-lift capacity of under 250 tons, project cargo carrier with single-lift capacity of over 250t, container carriers, deck cargo carriers, and roll-on/roll-off vessels. The published index is a consolidated figure, weighted against the five ship types. The index is now active and available for use by the industry. “This is a unique index that is shipper-led and shipper-driven,” Oatway said. “We anticipate that its main use will be in contract negotiations for seaborne capacity. Shippers trying to fix freight rates a year out will be able to add in an index escalation clause. We hope that this index will quickly become a bellwether of capacity in the MPV trades.” Members of the BSG already use the index to benchmark themselves, she added. In the future, the Journal of Commerce will use this index to forecast the direction of the MPV market. ‘Growing’ the index Oatway said the Breakbulk Shipper Group has been actively involved at every step in the formulation of the index. “Launching the index is only the first step,” she said. “We will be growing and developing the index over time and are extending the invite to the BSG to all shippers who want to join us on this vital journey towards improving transparency in this sector.” Members of the BSG receive a regular monthly report with all data related to the index and access to the proprietary index report. The Breakbulk Shipper Index is not a financial benchmark index, nor is it designed or intended to be used as a reference rate for financial instruments or investment products, such as those produced by S&P Dow Jones Indices (SPDJI). Contact Carly Fields at carly.fields@spglobal.com.

Project cargo

Slight uptick in Breakbulk Shipper Index signals increase in capacity

<div class="phx-topic abstract-wrapper">Hapag-Lloyd said the changes “reflect the consolidation of capacity into alternative services to ensure continued reliable coverage in the region."</div>

Hapag-Lloyd said the changes “reflect the consolidation of capacity into alternative services to ensure continued reliable coverage in the region."

<div class="phx-topic">Gemini Cooperation is suspending two Mediterranean-Saudi Arabia shuttle services beginning in mid-May, adding to the tally of mainline and regional services the alliance halted last month due to the war in the Middle East. The latest move was confirmed by Gemini partners Hapag-Lloyd and Maersk in separate advisories Tuesday. The affected loops are the JED2/JD2 service calling at Tangier, Port Said East, and Jeddah; and the JED3/JD3 that calls at Port Said East, Aqaba, and Jeddah. ”This change reflects the consolidation of capacity into alternative services to ensure continued reliable coverage in the region,” Hapag-Lloyd said in its notice. Maersk said cargo previously shipped on these shuttle connections would shift to the mainline AE19/SE4 service that was inaugurated on March 13 to largely replace the services that were stopped around the same time. The service connects Jeddah with Gemini’s West Med hub at Damietta in Egypt and the East Med hub at the Tanger Med port complex in Morocco where it continues to Asia with calls at major ports including Tanjung Pelepas, Shanghai, Ningbo, and Busan. The suspension of the two shuttle services was being done to “optimize coverage and enhance overall service efficiency,” Maersk said in its advisory. The last sailings from Jeddah will be the 3,800-TEU Merkur Ocean on May 10 as part of the JED3/JD3 shuttle, and the 5,470-TEU GSL Tinos on the JED2/JD2 service on May 11, the Gemini carriers said. The loops halted last month include the Asia-Middle East FM1/AGX service, the Europe-Middle East ME11/IMX service, plus India-Gulf and regional shuttles. Other services stopped calling at Dubai's Jebel Ali port after rocket and drone attacks made it risky for shipping. Contact Keith Wallis on <a href="mailto:keith.wallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Gemini Cooperation is suspending two Mediterranean-Saudi Arabia shuttle services beginning in mid-May, adding to the tally of mainline and regional services the alliance halted last month due to the war in the Middle East. The latest move was confirmed by Gemini partners Hapag-Lloyd and Maersk in separate advisories Tuesday. The affected loops are the JED2/JD2 service calling at Tangier, Port Said East, and Jeddah; and the JED3/JD3 that calls at Port Said East, Aqaba, and Jeddah. ”This change reflects the consolidation of capacity into alternative services to ensure continued reliable coverage in the region,” Hapag-Lloyd said in its notice. Maersk said cargo previously shipped on these shuttle connections would shift to the mainline AE19/SE4 service that was inaugurated on March 13 to largely replace the services that were stopped around the same time. The service connects Jeddah with Gemini’s West Med hub at Damietta in Egypt and the East Med hub at the Tanger Med port complex in Morocco where it continues to Asia with calls at major ports including Tanjung Pelepas, Shanghai, Ningbo, and Busan. The suspension of the two shuttle services was being done to “optimize coverage and enhance overall service efficiency,” Maersk said in its advisory. The last sailings from Jeddah will be the 3,800-TEU Merkur Ocean on May 10 as part of the JED3/JD3 shuttle, and the 5,470-TEU GSL Tinos on the JED2/JD2 service on May 11, the Gemini carriers said. The loops halted last month include the Asia-Middle East FM1/AGX service, the Europe-Middle East ME11/IMX service, plus India-Gulf and regional shuttles. Other services stopped calling at Dubai's Jebel Ali port after rocket and drone attacks made it risky for shipping. Contact Keith Wallis on keithwallis@hotmail.com .

Port News

Container lines

Asia-Europe

International ports

Container Shipping News

Gemini to suspend two more Middle East shuttles in May due to war

<div class="phx-topic abstract-wrapper">The possibility can’t be ruled out that carrier-controlled port operations will commence in the next few years at Charleston and Savannah, where the state-operated model has prevailed for decades.</div>

The possibility can’t be ruled out that carrier-controlled port operations will commence in the next few years at Charleston and Savannah, where the state-operated model has prevailed for decades.

<div class="phx-topic">Cargo routed through East Coast ports, including in the Southeast, will likely move increasingly through carrier-controlled terminals, the result of a long-term transformation of the regional port industry now in full swing. The possibility can’t be ruled out, for example, that carrier-controlled port operations will commence in the next few years at Charleston and Savannah, where the state-operated model has prevailed for decades. Meanwhile, Maher Terminals, the largest terminal at the Port of New York and New Jersey, <a href="https://www.joc.com/article/mahers-next-buyer-faces-billions-in-upgrades-decisions-on-capacity-6165792">is being prepped for sale</a> by Macquarie Infrastructure Partners with a possible price tag of $4 billion to $5 billion, according to one source, a sum within reach for terminal-hungry carriers flush with cash after a six-year run of profitability since the pandemic. A more favorable climate for expansion of carrier-controlled terminals along the East Coast stems from three main changes: deep-pocketed carriers aggressively pursuing terminal deals; favorable lease terms achieved by the Port of New York and New Jersey at multiple terminals, which is inspiring other East Coast ports to consider similar deals; and clarity around the dockworker union gaining jobs at new terminals once they are opened. That means the Savannah Container Terminal being developed across the river from the Georgia Ports Authority’s sprawling Garden City Terminal as a newly opened facility is guaranteed to be manned by workers represented by the International Longshoremen’s Association (ILA) under the current collective bargaining agreement. Since the state cannot by law employ unionized dockworkers directly, the facility may be leased out to a third-party operator, possibly one aligned to an ocean carrier. It also means the Hugh Leatherman terminal at Charleston, <a href="https://www.joc.com/article/sc-ports-strikes-deal-with-ila-to-fully-open-leatherman-marine-terminal-5192280">where the port waged an unsuccessful legal battle to keep the ILA out</a>, could fall into the hands of a carrier under a lease process being considered by the port. In Baltimore, Mediterranean Shipping Co.’s Terminal Investment Limited (TiL) is a partner in a project to develop Sparrows Point, a former industrial site, into a 165-acre terminal. <h3>Terminals mean stable, profitable assets </h3>Ultimately, carrier investment in East Coast terminals will expand capacity in a region that has seen little of it while providing shippers in certain cases with the potential for improved service stemming from carriers’ direct control over their facilities. For carriers, controlling terminals means investing in typically stable and profitable assets made more attractive by their own volumes, as well as priority berthing and cargo handling rates. Carriers directing ships and volumes to their own facilities puts the ports where they are located at an advantage versus those ports where carriers are just customers. The natural strategic alignment between carriers and terminals is why carrier-controlled facilities go back years. At New York-New Jersey, such operations go back to the origins of container shipping in the late 1950s. Maersk has been a terminal operator at the port since the 1970s, while OOCL controlled Howland Hook on Staten Island from 1995-2006. In pursuing terminal deals, carriers are hardly dissuaded by a 62% pay increase achieved by dockworkers <a href="https://www.joc.com/article/ila-ratifies-new-six-year-deal-with-higher-entry-pay-automation-protection-5951338">in the last contract ratified in early 2025</a>, nor their inability in the US market to collect terminal handling charges to offset what many carriers say are the highest longshore costs in the world. <h3>Southeast ports noticing recent NY-NJ success </h3>Recent deals at NY-NJ that have been favorable to the port have caught the attention of ports in the Southeast. The 2023 sale of Global Container Terminals’ <a href="https://www.joc.com/article/cma-cgm-closes-deal-for-two-new-york-new-jersey-marine-terminals-5226315">Bayonne and Howland Hook terminals to CMA CGM</a>, which outbid other carriers including Hapag-Lloyd, was noteworthy because it committed the world’s third-largest carrier to infrastructure improvements, normally the responsibility of the port, while CMA CGM also agreed to share detention and demurrage revenues with the port authority. Macquarie in December of last year <a href="https://www.joc.com/article/macquarie-seals-deal-for-new-maher-lease-at-nynj-through-2063-6137751">renewed its lease for Maher terminals through 2063</a>, agreeing to terms that include responsibility for upkeep of its wharves and berths, while committing to increase capacity at the largest East Coast port by volume. That lease renewal will set the stage for a formal sale process now getting under way, according to multiple sources. While NY-NJ is in a strong negotiating position due to the lack of efficient alternatives to serve the large and wealthy New York metropolitan region, how much leverage other ports will have is an open question. For example, allowing an independent or carrier-controlled terminal operator free reign to compete for cargo could undermine states’ common user ports, yet curtailing their activities within lease terms could make those leases less attractive, sources tell JOC.com. For NY-NJ, the lease terms demanded in return for approving the CMA-CGM purchase stem from the 2000 effort by what was then called Maersk Sealand to bid out its East Coast hub operations, which ultimately secured a favorable lease at New York-New Jersey. According to one source, the controversial move by the carrier led to below-market lease rates that the port was determined to reverse in recent lease negotiations and sale approvals. Such insistence by the port <a href="https://www.stattimes.com/news/apm-terminals-to-retain-full-ownership-of-port-elizabeth-facility">led to the 2014 collapse of deal by APM Terminals</a> to sell a stake in its Elizabeth terminal to Brookfield, an infrastructure investor. At Savannah, GPA President and CEO Griff Lynch said in an interview that the port authority is hoping to secure a permit for Savannah Container Terminal this year, with construction slated to begin a few years later in advance of the facility going online sometime in the early 2030s, depending on an assessment of demand. Lynch said the port is exploring a “partnership” approach whereby the GPA becomes a landlord, leasing the terminal to a third-party terminal operator, not an operator closely aligned to the port like the approach at the Port of Virginia, where the port owns the terminal operator, Virginia International Terminals. There would be less concern about the possibility of a third-party operator aggressively competing with Garden City, he said, if the overall result is more cargo, jobs and economic development opportunity for the state of Georgia. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>. </div>

Cargo routed through East Coast ports, including in the Southeast, will likely move increasingly through carrier-controlled terminals, the result of a long-term transformation of the regional port industry now in full swing. The possibility can’t be ruled out, for example, that carrier-controlled port operations will commence in the next few years at Charleston and Savannah, where the state-operated model has prevailed for decades. Meanwhile, Maher Terminals, the largest terminal at the Port of New York and New Jersey, is being prepped for sale by Macquarie Infrastructure Partners with a possible price tag of $4 billion to $5 billion, according to one source, a sum within reach for terminal-hungry carriers flush with cash after a six-year run of profitability since the pandemic. A more favorable climate for expansion of carrier-controlled terminals along the East Coast stems from three main changes: deep-pocketed carriers aggressively pursuing terminal deals; favorable lease terms achieved by the Port of New York and New Jersey at multiple terminals, which is inspiring other East Coast ports to consider similar deals; and clarity around the dockworker union gaining jobs at new terminals once they are opened. That means the Savannah Container Terminal being developed across the river from the Georgia Ports Authority’s sprawling Garden City Terminal as a newly opened facility is guaranteed to be manned by workers represented by the International Longshoremen’s Association (ILA) under the current collective bargaining agreement. Since the state cannot by law employ unionized dockworkers directly, the facility may be leased out to a third-party operator, possibly one aligned to an ocean carrier. It also means the Hugh Leatherman terminal at Charleston, where the port waged an unsuccessful legal battle to keep the ILA out , could fall into the hands of a carrier under a lease process being considered by the port. In Baltimore, Mediterranean Shipping Co.’s Terminal Investment Limited (TiL) is a partner in a project to develop Sparrows Point, a former industrial site, into a 165-acre terminal. Terminals mean stable, profitable assets Ultimately, carrier investment in East Coast terminals will expand capacity in a region that has seen little of it while providing shippers in certain cases with the potential for improved service stemming from carriers’ direct control over their facilities. For carriers, controlling terminals means investing in typically stable and profitable assets made more attractive by their own volumes, as well as priority berthing and cargo handling rates. Carriers directing ships and volumes to their own facilities puts the ports where they are located at an advantage versus those ports where carriers are just customers. The natural strategic alignment between carriers and terminals is why carrier-controlled facilities go back years. At New York-New Jersey, such operations go back to the origins of container shipping in the late 1950s. Maersk has been a terminal operator at the port since the 1970s, while OOCL controlled Howland Hook on Staten Island from 1995-2006. In pursuing terminal deals, carriers are hardly dissuaded by a 62% pay increase achieved by dockworkers in the last contract ratified in early 2025 , nor their inability in the US market to collect terminal handling charges to offset what many carriers say are the highest longshore costs in the world. Southeast ports noticing recent NY-NJ success Recent deals at NY-NJ that have been favorable to the port have caught the attention of ports in the Southeast. The 2023 sale of Global Container Terminals’ Bayonne and Howland Hook terminals to CMA CGM , which outbid other carriers including Hapag-Lloyd, was noteworthy because it committed the world’s third-largest carrier to infrastructure improvements, normally the responsibility of the port, while CMA CGM also agreed to share detention and demurrage revenues with the port authority. Macquarie in December of last year renewed its lease for Maher terminals through 2063 , agreeing to terms that include responsibility for upkeep of its wharves and berths, while committing to increase capacity at the largest East Coast port by volume. That lease renewal will set the stage for a formal sale process now getting under way, according to multiple sources. While NY-NJ is in a strong negotiating position due to the lack of efficient alternatives to serve the large and wealthy New York metropolitan region, how much leverage other ports will have is an open question. For example, allowing an independent or carrier-controlled terminal operator free reign to compete for cargo could undermine states’ common user ports, yet curtailing their activities within lease terms could make those leases less attractive, sources tell JOC.com. For NY-NJ, the lease terms demanded in return for approving the CMA-CGM purchase stem from the 2000 effort by what was then called Maersk Sealand to bid out its East Coast hub operations, which ultimately secured a favorable lease at New York-New Jersey. According to one source, the controversial move by the carrier led to below-market lease rates that the port was determined to reverse in recent lease negotiations and sale approvals. Such insistence by the port led to the 2014 collapse of deal by APM Terminals to sell a stake in its Elizabeth terminal to Brookfield, an infrastructure investor. At Savannah, GPA President and CEO Griff Lynch said in an interview that the port authority is hoping to secure a permit for Savannah Container Terminal this year, with construction slated to begin a few years later in advance of the facility going online sometime in the early 2030s, depending on an assessment of demand. Lynch said the port is exploring a “partnership” approach whereby the GPA becomes a landlord, leasing the terminal to a third-party terminal operator, not an operator closely aligned to the port like the approach at the Port of Virginia, where the port owns the terminal operator, Virginia International Terminals. There would be less concern about the possibility of a third-party operator aggressively competing with Garden City, he said, if the overall result is more cargo, jobs and economic development opportunity for the state of Georgia. Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

North American ports

Marine terminals

More carrier-controlled terminal operations could be coming to the East Coast

<div class="phx-topic abstract-wrapper">The less-than-truckload market is stabilizing, with opportunities for higher prices and profits in the second quarter, but the long-term outlook is still clouded by tariffs and geopolitical conflict.</div>

The less-than-truckload market is stabilizing, with opportunities for higher prices and profits in the second quarter, but the long-term outlook is still clouded by tariffs and geopolitical conflict.

<div class="phx-topic">Fast-rising fuel costs and a long-awaited uptick in demand are pushing less-than-truckload (LTL) pricing toward record highs, adding to shipper supply chain costs. Even if fuel costs drop in coming weeks, shippers shouldn’t expect LTL rates to follow. Both the TD Cowen/AFS LTL Freight Index and the US long-haul LTL producer price index (PPI) last week jumped to record highs, with no sign of decline ahead. Anecdotal reports show daily shipment counts turning north after a long decline in 2024 and 2025. The LTL PPI rose 1.8% in March from February after climbing 0.8% month over month in February and 1.3% in January. On an annualized basis, the PPI rose 7.2% in March, compared with 5.3% and 5.2% year-over-year gains in February and January, respectively. The PPI is a measure of all-inclusive “selling prices,” and fuel surcharges certainly contributed to March’s gain. But LTL costs and rates have remained elevated since 2022, with carrier yield management balancing reduced volumes, according to AFS Logistics.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="8afcfdff-15ff-4ec3-8c50-af1aba47062e"></dynamic-object></div>Although the TD Cowen/AFS LTL Freight Index dropped slightly from the fourth quarter to the first quarter, the index rose year over year and is expected to climb to a new four-year high of 68.4% in the second quarter. “The LTL carriers are in a very unique position — their buckets are being filled from both ends,” said Andy Dyer, CEO of AFS, a third-party freight management company. Those “ends” are the truckload and parcel markets, both of which have seen substantial rate hikes, Dyer said. That’s pushing more freight to the LTL sector. Shippers are “managing the freight, not just paying the freight,” he said. That means they’re more willing to deconsolidate truckload shipments and consolidate parcel moves, and LTL rates that looked high last year now seem more reasonable. <h3>Persistent uncertainty </h3>It’s not clear if the increase in LTL demand will be long-lasting or short-term, or whether it signals a stronger industrial revival or tariff-related inventory reshuffling. For now, the LTL outlook — for providers — is brighter. At regional carrier Pitt Ohio, “bill count is picking up and now revenue is, too,” said Geoff Muessig, the company’s chief marketing officer. In the Northeast, the year got off to an “uneven start,” as successive winter storms swept the region, he said. In February, the Pittsburgh-based carrier saw better results, and demand got stronger in March through the start of the second quarter, Muessig said. “April’s bill count is solid,” he said. “Our same-store sales [shipments with existing customers] are rising. It’s a pleasant place to be.” The change is not a return to the heady years of 2021 through 2023, when post-COVID-19 demand and disruption from <a href="https://www.joc.com/article/ongoing-yellow-terminal-auction-seen-reshaping-a-smaller-us-ltl-sector-5200878">the failure of LTL provider Yellow</a> sent pricing up by double-digit percentages. But it’s a respite from the freight doldrums of 2023 to 2025. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="92fdaed8-3fc0-4c2e-930f-c63d25bb8976"></dynamic-object></div>An industrial uptick benefiting Pitt Ohio shows in Manufacturing Purchasing Managers’ Indexes (PMIs) from the Institute of Supply Management (ISM) and S&amp;P Global. The ISM PMI rose 0.3 percentage point to 52.7% in March, the third month for the PMI above the 50% no-change mark. ISM’s new order index remained positive but dropped from 55.8% in February to 53.5% last month. ISM’s production index was 55.1%. The S&amp;P Global US Manufacturing PMI has been above 50% since last August, and higher output and new orders pushed it up 0.7 percentage point to 52.3% in March. That gradual industrial expansion is putting more freight in LTL trailers. XPO and Saia, the US’ fourth- and sixth-largest LTL providers, respectively, both reported an annualized gain in daily shipments in February. Full first-quarter data will be available later this month. Daily shipment counts at FedEx Freight, the largest US LTL provider in terms of revenue, have fallen 14% since 2023 and dropped 5.7% year over year in the quarter that ended Feb. 28. But the company expects volume to grow again in the midterm. “There are absolutely GDP [gross domestic product] and PMI correlations, and as the market goes, we’ll feel that impact,” CFO Marshall W. Witt said during an <a href="https://www.joc.com/article/fedex-freight-plans-diversification-as-spin-off-date-approaches-6201281">April 8 investor day presentation</a> to Wall Street analysts. Carriers are vying more for profit than revenue or pure market share. “Profitable growth is now our North Star,” Witt said. “It aligns our decision-making in our organization around profitability rather than just revenue in isolation.” But they’re also looking for new sources of freight, beyond traditional industrial LTL shippers. LTL providers such as FedEx Freight are adjusting their freight mix, said AFS’ Dyer. “We’re seeing some mix changes in the stuff we’re handing to the LTLs,” he said. <h3>‘Not time to add capacity’ </h3>How long current volume trends will continue is an open question. The LTL market has improved, “but it’s a combination of truckload capacity coming out plus the fuel prices,” said Satish Jindel, president of SJ Consulting Group. “LTL carriers should be looking at this as a perfect time to ask how they can use the various forms of technology available right now, including AI [artificial intelligence], to handle more freight with the same physical network,” Jindel said. “It’s not a time to add capacity.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="16105334-c54a-4d51-9403-6d5bac8369c4"></dynamic-object></div>There are signs that higher LTL volume comes from inventory rebalancing, not new demand, said Keith Prather, managing director of Armada Corporate Intelligence. The US-Israel conflict with Iran may squeeze already lean inventories, putting pressure on supply chains and inbound freight, both globally and domestically, Prather said. “I’m not calling for a global supply chain crisis, but I do think stock-outs and some scrambling will take place over the next few quarters,” he said. The closure of the Strait of Hormuz “killed everything way upstream,” Prather said. “All of a sudden, you get inventories that are too lean.” That could spur demand but also crimp production and shipments. “Q2 has the potential to be robust, but do we pay for it in Q3?” he said. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>. </div>

Fast-rising fuel costs and a long-awaited uptick in demand are pushing less-than-truckload (LTL) pricing toward record highs, adding to shipper supply chain costs. Even if fuel costs drop in coming weeks, shippers shouldn’t expect LTL rates to follow. Both the TD Cowen/AFS LTL Freight Index and the US long-haul LTL producer price index (PPI) last week jumped to record highs, with no sign of decline ahead. Anecdotal reports show daily shipment counts turning north after a long decline in 2024 and 2025. The LTL PPI rose 1.8% in March from February after climbing 0.8% month over month in February and 1.3% in January. On an annualized basis, the PPI rose 7.2% in March, compared with 5.3% and 5.2% year-over-year gains in February and January, respectively. The PPI is a measure of all-inclusive “selling prices,” and fuel surcharges certainly contributed to March’s gain. But LTL costs and rates have remained elevated since 2022, with carrier yield management balancing reduced volumes, according to AFS Logistics. Although the TD Cowen/AFS LTL Freight Index dropped slightly from the fourth quarter to the first quarter, the index rose year over year and is expected to climb to a new four-year high of 68.4% in the second quarter. “The LTL carriers are in a very unique position — their buckets are being filled from both ends,” said Andy Dyer, CEO of AFS, a third-party freight management company. Those “ends” are the truckload and parcel markets, both of which have seen substantial rate hikes, Dyer said. That’s pushing more freight to the LTL sector. Shippers are “managing the freight, not just paying the freight,” he said. That means they’re more willing to deconsolidate truckload shipments and consolidate parcel moves, and LTL rates that looked high last year now seem more reasonable. Persistent uncertainty It’s not clear if the increase in LTL demand will be long-lasting or short-term, or whether it signals a stronger industrial revival or tariff-related inventory reshuffling. For now, the LTL outlook — for providers — is brighter. At regional carrier Pitt Ohio, “bill count is picking up and now revenue is, too,” said Geoff Muessig, the company’s chief marketing officer. In the Northeast, the year got off to an “uneven start,” as successive winter storms swept the region, he said. In February, the Pittsburgh-based carrier saw better results, and demand got stronger in March through the start of the second quarter, Muessig said. “April’s bill count is solid,” he said. “Our same-store sales [shipments with existing customers] are rising. It’s a pleasant place to be.” The change is not a return to the heady years of 2021 through 2023, when post-COVID-19 demand and disruption from the failure of LTL provider Yellow sent pricing up by double-digit percentages. But it’s a respite from the freight doldrums of 2023 to 2025. An industrial uptick benefiting Pitt Ohio shows in Manufacturing Purchasing Managers’ Indexes (PMIs) from the Institute of Supply Management (ISM) and S&P Global. The ISM PMI rose 0.3 percentage point to 52.7% in March, the third month for the PMI above the 50% no-change mark. ISM’s new order index remained positive but dropped from 55.8% in February to 53.5% last month. ISM’s production index was 55.1%. The S&P Global US Manufacturing PMI has been above 50% since last August, and higher output and new orders pushed it up 0.7 percentage point to 52.3% in March. That gradual industrial expansion is putting more freight in LTL trailers. XPO and Saia, the US’ fourth- and sixth-largest LTL providers, respectively, both reported an annualized gain in daily shipments in February. Full first-quarter data will be available later this month. Daily shipment counts at FedEx Freight, the largest US LTL provider in terms of revenue, have fallen 14% since 2023 and dropped 5.7% year over year in the quarter that ended Feb. 28. But the company expects volume to grow again in the midterm. “There are absolutely GDP [gross domestic product] and PMI correlations, and as the market goes, we’ll feel that impact,” CFO Marshall W. Witt said during an April 8 investor day presentation to Wall Street analysts. Carriers are vying more for profit than revenue or pure market share. “Profitable growth is now our North Star,” Witt said. “It aligns our decision-making in our organization around profitability rather than just revenue in isolation.” But they’re also looking for new sources of freight, beyond traditional industrial LTL shippers. LTL providers such as FedEx Freight are adjusting their freight mix, said AFS’ Dyer. “We’re seeing some mix changes in the stuff we’re handing to the LTLs,” he said. ‘Not time to add capacity’ How long current volume trends will continue is an open question. The LTL market has improved, “but it’s a combination of truckload capacity coming out plus the fuel prices,” said Satish Jindel, president of SJ Consulting Group. “LTL carriers should be looking at this as a perfect time to ask how they can use the various forms of technology available right now, including AI [artificial intelligence], to handle more freight with the same physical network,” Jindel said. “It’s not a time to add capacity.” There are signs that higher LTL volume comes from inventory rebalancing, not new demand, said Keith Prather, managing director of Armada Corporate Intelligence. The US-Israel conflict with Iran may squeeze already lean inventories, putting pressure on supply chains and inbound freight, both globally and domestically, Prather said. “I’m not calling for a global supply chain crisis, but I do think stock-outs and some scrambling will take place over the next few quarters,” he said. The closure of the Strait of Hormuz “killed everything way upstream,” Prather said. “All of a sudden, you get inventories that are too lean.” That could spur demand but also crimp production and shipments. “Q2 has the potential to be robust, but do we pay for it in Q3?” he said. Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

Surface

Truckload

Truck brokers

Freight returning to US LTL market as pricing, fuel costs climb higher

Use code GTT26W at checkout and save $900 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Use code SSFTW30 at checkout to save 30% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

SPRING SALE!

Use code GW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

SAVE $900 ON A GOLD SUBSCRIPTION

Use code SSLW30 at checkout and save 30% on an annual Silver or Silver Plus subscription!

Subscribe Now - Anonymous to S/SP - Wide Box

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code SSGFTW895 at checkout to save $600 on first year of a Gold subscription!

Subscribe Now - FT to Gold - Wide Box

Use code SSLW895 at checkout and save $600 on first year of a Gold subscription!

Subscribe Now - Anonymous to Gold - Wide Box

SPRING SALE: Use code SSFTW30 to save 30% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

SPRING SALE: Use code SSLW30 at checkout and save 30% on an annual Silver or Silver Plus subscription!

Subscribe Now - Anonymous to S/SP - Offer Box

SUBSCRIBE TODAY

UPGRADE TO GOLD AND SAVE: Use code GTT26W at checkout and save $900 on first year of a Gold subscription!

Upgrade Subscription

SPRING SALE: Use code SSLW895 at checkout and save $600 on an annual Gold subscription!

Subscribe Now - Anonymous to Gold - Offer Box

SAVE $900 ON A GOLD SUBSCRIPTION: Use code GW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

SPRING SALE: Use code SSGFTW895 and save $600 on the first year of a Gold subscription!

Subscribe Now - FT to Gold - Offer Box

SUBSCRIBE AND SAVE

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The only editorially independent conference for the breakbulk & project cargo industry

Breakbulk Conference - Rectangle Box

Attend Breakbulk26

The Journal of Commerce is the industry’s source for maritime news and analysis about ocean container shipping, logistics, supply chains, global shipping ports, shipping technology solutions and end-to-end connectivity. Coverage tracks the movement of containerized cargo — from origin to destination — handled by marine terminals in the US and abroad, depots, container ports, container lines, drayage, consignees and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers, as well as pricing, capacity, volume and reliability on the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South American and intra-Asia trades.

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Breakbulk News shipping | Journal of Commerce

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

Latest News

More News & Analysis

Breakbulk26: Data center, electricity demand buoy project cargo industry

Slight uptick in Breakbulk Shipper Index signals increase in capacity

Gemini to suspend two more Middle East shuttles in May due to war