<div class="phx-topic abstract-wrapper"><p>A customs change that would have forced shippers to divert cargo away from the port of St. Petersburg has been suspended.</p></div>

A customs change that would have forced shippers to divert cargo away from the port of St. Petersburg has been suspended.

<div><p>A customs change that would have forced shippers to divert cargo away from the port of St. Petersburg, Russia’s busiest container port, to nearby Bronka has been suspended after the arrest of a customs official.</p><p>Bronka <a>was </a>on track to be the single host of the Federal Customs Service’s e-customs clearance in the Russian northwest, which would have added costly delays to customs processing at St. Petersburg, Russia’s busiest port, if documentation were missing or some other issue arose. Terminal operators and shippers opposed the shift of the cargo clearance agency to Bronka.</p><p>“It is currently hard to predict the possible consequences...

A customs change that would have forced shippers to divert cargo away from the port of St. Petersburg, Russia’s busiest container port, to nearby Bronka has been suspended after the arrest of a customs official. Bronka was on track to be the single host of the Federal Customs Service’s e-customs clearance in the Russian northwest, which would have added costly delays to customs processing at St. Petersburg, Russia’s busiest port, if documentation were missing or some other issue arose. Terminal operators and shippers opposed the shift of the cargo clearance agency to Bronka. “It is currently hard to predict the possible consequences of the transfer of customs clearance to Bronka, however, according to our estimates, this may result in the growth of our costs by 10 percent to 15 percent,” Marina Gavrilova, spokesperson of Litis, one of Russia’s leading food retailers, told JOC.com. “The situation is also complicated by the fact that the majority of our stevedores and partners are based in the Big St. Petersburg seaport, so the move to Bronka would also result in higher costs for them.”lat=59.92827399999999~lon=29.693137999999976~map_width=300~map_height=250~zoom=8~map_type=roadmap~css_class=pull-right~map_caption=Truckers using Port Bronka can more easily access the St. Petersburg Ring Road system than those using St. Petersburg.~marker_title=Port Bronka~marker_popup_default=false~marker_popup_title=~marker_popup_text=~marker_centeron_text=59.932482, 29.696746; Sergey Matveev, deputy director of Krasivaya Odezhda, one of Russia’s leading apparel chains, echoed the fears about hire costs and said the move would also generate more paperwork. Moving the customs station would have been a serious challenge for shippers because timely customs clearance is one of the most important considerations for both shippers and transport companies when it comes to choosing a port, according to Sergey Proshin, deputy director general of Venta Group, one of Russia’s largest customs brokers. Shippers will choose a port if there is a clear procedure for customs control and warehousing costs are not too high, he said. The suspension means that Big Port St. Petersburg will remain the center of gravity in Russia’s container trade for several more years, although Bronka was developed to cope with capacity constraints and the challenges posed by ship upsizing at St. Petersburg. Stevedores have argued that Bronka was too far from St. Petersburg to host such an important customs center and that staff at the port lacked the required experience to make the move a success. The FCS has justified the move to Bronka by citing customs corruption at Big Port St. Petersburg and saying that the move would also help increase container traffic in Russia’s Baltic Basin ports because of its advanced infrastructure and ability to handle larger ships. The center did open as planned on Aug. 1, but a scandal involving the now former head of the FCS, Andrei Belyaninov, led to the suspension of operations at Bronka and the resumption of customs processing in St. Petersburg. The suspension could make it harder for Bronka to put its new capacity to use and impact its future development, according to a spokesperson for Maxim Sokolov, Russia’s Minister of Transport. Bronka this year will have a capacity 150,000 to 200,000 twenty-foot-equivalent units, with room for 1.5 million TEUs at full buildout. It will have a final draft of 14.4 meters (47.2 feet) compared with Big Port St. Petersburg, which has a depth of 11.4 meters. Bronka is able to handle post-Panamax ships and Finnstar class ferries and is half the distance from the Gulf of Finland than St. Petersburg, cutting more than a hour from sailing times. Bronka in the first half had 53 ship calls and handled 13,831 TEUs, and these figures should double or triple by year’s end, according to Alexei Shukletsov, executive director of Phoenix, the company that manages Bronka. Finnlines and CMA CGM call the port regularly . Traffic at St. Petersburg shows the disparity between the two ports, as the port handled 738,000 TEUs in the first five months of the year, a decline of 7 percent year-over-year. Contact Eugene Gerden at gerden.eug@gmail.com .

Transport, Trade and Regulation News

International ports

Customs change endangering St. Petersburg port suspended

<div class="phx-topic abstract-wrapper"><p>The 6-3 decision by the nation’s highest court to declare as illegal the global tariffs implemented by the US since last April’s so-called “Liberation Day” is likely to throw the Trump administration’s tariff policy into disarray.</p></div>

The 6-3 decision by the nation’s highest court to declare as illegal the global tariffs implemented by the US since last April’s so-called “Liberation Day” is likely to throw the Trump administration’s tariff policy into disarray.

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<div class="phx-topic"><p>The US Supreme Court on Friday ruled that President Donald Trump did not have the authority under the International Emergency Economic Powers Act (IEEPA) to implement his wide-ranging global tariffs against US trading partners. </p><p>The 6-3 decision by the nation’s highest court to essentially declare as illegal the tariffs implemented by the US since last April’s so-called “Liberation Day” is likely to throw the Trump administration’s tariff policy into disarray. </p><p><i>(This is a developing story).</i> </p></div>

The US Supreme Court on Friday ruled that President Donald Trump did not have the authority under the International Emergency Economic Powers Act (IEEPA) to implement his wide-ranging global tariffs against US trading partners. The 6-3 decision by the nation’s highest court to essentially declare as illegal the tariffs implemented by the US since last April’s so-called “Liberation Day” is likely to throw the Trump administration’s tariff policy into disarray. (This is a developing story).

Port News

Supply chain

Container Shipping News

Maritime

US Supreme Court rules against Trump in critical IEPPA tariff case

<div class="phx-topic abstract-wrapper"><p>Dray Dog is predominantly used by large drayage carriers serving the Southern California ports and handles a significant portion of appointments made at the 11 Los Angeles and Long Beach marine terminals.</p></div>

Dray Dog is predominantly used by large drayage carriers serving the Southern California ports and handles a significant portion of appointments made at the 11 Los Angeles and Long Beach marine terminals.

<div class="phx-topic"><p>CargoSprint, a payment technology provider that works with US container terminals, on Friday said it has acquired a Southern California-based software vendor that helps drayage companies coordinate appointments at the ports of Los Angeles and Long Beach. </p><p>The acquired company, Dray Dog, is predominantly used by large drayage carriers serving the Southern California ports and handles a significant portion of appointments made at the 11 Los Angeles and Long Beach marine terminals that require appointments to pick up or drop off containers. </p><p>Terms of the acquisition were not disclosed. </p><p>“Dray Dog has become a hidden gem for large dray carriers in San Pedro,” CargoSprint CEO Caro Krissman told the <i>Journal of Commerce</i>. “It’s their secret weapon and enables a material cost reduction (associated with planning and scheduling appointments).” </p><p>The acquisition is CargoSprint’s first since <a href="https://www.joc.com/article/air-cargo-payment-provider-acquires-advent-emodal-5905331">buying Advent eModal in December 2024</a>, a deal that expanded CargoSprint’s scope as a predominantly air cargo-focused payment technology provider serving airport ground handlers into one serving marine terminal operators (MTOs) at the US’ largest port complexes. </p><p>Krissman said Dray Dog fills a niche for dray carriers in Southern California by being “focused on a subset of problems for dray carriers, not the entire [transportation management system] stack.” </p><p>The acquisition not only helps CargoSprint tie together appointment systems operated by its MTO customers with tools used by the dray carriers that interact with those MTOs, but it also helps CargoSprint invest in the driver experience, an area on which it had never previously focused. </p><p>“We needed to invest in the carrier experience,” Krissman said. “Dray carriers don’t pay us; the terminal is our customer and carriers are our users. For a while, we thought Dray Dog was this big thorn in our side. But we realized how coveted this solution was to carriers.”  </p><h3>System handles ‘double moves’ </h3><p>Krissman said Dray Dog has helped carriers in the region evolve from manually scouring disparate appointments systems across Los Angeles and Long Beach to being able to proactively orchestrate those appointments. </p><p>“This system helps them with double moves and accounts for their preferred pickup times and preferences,” he said, referring to when a carrier drops off an empty container and picks up a loaded import box in the same turn. “Before Dray Dog, the carrier would do it themselves and it was brutal, then they would get to scale and get an (outsourced provider) to do it. Then Dray Dog came along and solved that problem.” </p><p>CargoSprint provides the appointment scheduling platform for seven of the 11 terminals in Los Angeles and Long Beach that require appointments. Matson, the 12th terminal in the port complex, doesn’t require appointments. </p><p>Krissman added that CargoSprint is looking at other, potentially larger acquisition opportunities later in the year. </p><p><i>Contact Eric Johnson at </i><a href="mailto:eric.johnson@spglobal.com"><i>eric.johnson@spglobal.com.</i></a></p></div>

CargoSprint, a payment technology provider that works with US container terminals, on Friday said it has acquired a Southern California-based software vendor that helps drayage companies coordinate appointments at the ports of Los Angeles and Long Beach. The acquired company, Dray Dog, is predominantly used by large drayage carriers serving the Southern California ports and handles a significant portion of appointments made at the 11 Los Angeles and Long Beach marine terminals that require appointments to pick up or drop off containers. Terms of the acquisition were not disclosed. “Dray Dog has become a hidden gem for large dray carriers in San Pedro,” CargoSprint CEO Caro Krissman told the Journal of Commerce. “It’s their secret weapon and enables a material cost reduction (associated with planning and scheduling appointments).” The acquisition is CargoSprint’s first since buying Advent eModal in December 2024 , a deal that expanded CargoSprint’s scope as a predominantly air cargo-focused payment technology provider serving airport ground handlers into one serving marine terminal operators (MTOs) at the US’ largest port complexes. Krissman said Dray Dog fills a niche for dray carriers in Southern California by being “focused on a subset of problems for dray carriers, not the entire [transportation management system] stack.” The acquisition not only helps CargoSprint tie together appointment systems operated by its MTO customers with tools used by the dray carriers that interact with those MTOs, but it also helps CargoSprint invest in the driver experience, an area on which it had never previously focused. “We needed to invest in the carrier experience,” Krissman said. “Dray carriers don’t pay us; the terminal is our customer and carriers are our users. For a while, we thought Dray Dog was this big thorn in our side. But we realized how coveted this solution was to carriers.” System handles ‘double moves’ Krissman said Dray Dog has helped carriers in the region evolve from manually scouring disparate appointments systems across Los Angeles and Long Beach to being able to proactively orchestrate those appointments. “This system helps them with double moves and accounts for their preferred pickup times and preferences,” he said, referring to when a carrier drops off an empty container and picks up a loaded import box in the same turn. “Before Dray Dog, the carrier would do it themselves and it was brutal, then they would get to scale and get an (outsourced provider) to do it. Then Dray Dog came along and solved that problem.” CargoSprint provides the appointment scheduling platform for seven of the 11 terminals in Los Angeles and Long Beach that require appointments. Matson, the 12th terminal in the port complex, doesn’t require appointments. Krissman added that CargoSprint is looking at other, potentially larger acquisition opportunities later in the year. Contact Eric Johnson at eric.johnson@spglobal.com.

Drayage

North American ports

Marine terminals

CargoSprint acquires key appointment scheduling tool for LA-LB dray carriers

<div class="phx-topic abstract-wrapper"><p>Asset-based carriers offer a layer of security for shippers concerned with the English language proficiency of drivers and non-domiciled CDL regulatory compliance, but it doesn’t eliminate the risk fully.</p></div>

Asset-based carriers offer a layer of security for shippers concerned with the English language proficiency of drivers and non-domiciled CDL regulatory compliance, but it doesn’t eliminate the risk fully.

<div class="phx-topic"><p>US shippers negotiating truckload contracts in 2026 are weighing the implications of the <a href="https://www.joc.com/article/usdot-releases-interim-final-rule-on-non-domiciled-cdl-holders-6169023">federal crackdown</a> on non-domiciled commercial driver’s licenses (CDLs) and the English language proficiency of drivers, exploring how to best mitigate their exposure. </p><p>Coupled with the rise in strategic cargo theft in recent years, risk mitigation is increasingly becoming part of contract negotiations between shippers and truckload carriers. </p><p>As a hedge, some shippers have chosen to use fewer non-asset brokers and tender more freight to asset-owning carriers, according to comments by Knight-Swift Transportation Holdings on its fourth-quarter earnings call last month. </p><p>But not every shipper views the risk-generating issues as urgent. Companies shipping big, bulky freight and carrying ample safety stock tend to express less concern than those moving electronics, food and beverage, and other just-in-time freight that must be delivered on time and in full. </p><p>Marc Blubaugh, an attorney with transportation law firm Benesch, Friedlander, Colan &amp; Aronoff, said his clients fall into two categories: shippers who engage in conversations with their carriers and shippers who want to write language into their contracts. </p><p>“There’s an over-drafting camp that says, ‘Hey, we’re going to specifically call out these two issues and maybe some others in our compliance section of the contract,’” Blubaugh told the <i>Journal of Commerce</i>. “There’s another camp that does not believe additional language is necessary, only a conversation, because brokers and carriers already agree to comply with all US laws and regulations in the standard contract.” </p><p>At the center of the debate is a structural question: How much incremental risk exists when a third-party carrier hauls a load compared with a company driver employed by large truckload carriers such as Knight-Swift, Schneider National and Werner Enterprises? </p><p>Some shippers argue the risk gap is wider today than it was five years ago, before strategic cargo theft and regulatory scrutiny of non-domiciled CDLs and English proficiency moved to the forefront. </p><h3>Asset-based carriers have their own exposure, too </h3><p>The conversation is complicated by the fact that most large asset-based carriers operate “hybrid” models. Company drivers haul some freight, while other loads may be brokered to third parties through “power-only” arrangements. </p><p>Power-only models offer operational benefits. They allow drop-and-hook operations in which third-party drivers can grab the larger carrier trailer and immediately get back on the road. They also provide flexible capacity during cargo surges, preventing freight from sitting on docks or forcing shippers to pay to reposition company drivers from other markets. </p><p>Knight-Swift CEO Adam Miller said the company employs extensive vetting for third-party carriers who haul their company-branded trailers. </p><p>“We have probably the most robust security team, an industry-leading security team vetting our third-party carriers,” Miller said in an interview with the <i>Journal of Commerce</i>. “We vet to the greatest ability on who is going to be hauling that load. We do things internally to reduce that risk, but we can’t necessarily eliminate it.” </p><p>That acknowledgment underscores the operational distinction. Asset-based carriers directly hire, vet, and oversee their company drivers. When freight moves to a third party, the carrier may vet against the contracted motor carrier, but not necessarily the individual driver behind the wheel. </p><p>A logistics executive at another large carrier who did not want to be identified said brand exposure creates a different incentive structure. When a company’s name is emblazoned on the trailer, the reputational consequences of a serious roadside incident are immediate and visible, creating strong motivation to scrutinize third-party capacity. </p><p>Craig Ingram, owner of Asset-Based Intermodal in Dallas, said the issue is not whether vetting occurs, but what level of vetting occurs. He described a case in which freight he previously hauled was shifted to a lower-cost carrier operating under an agency structure. Ingram said some of the Somali drivers involved had previously worked for him and that he terminated them after discovering they weren’t “legal citizens.” </p><p>“Are they vetting the driver showing up, or are they vetting the agent who gives it to the driver, that’s the key question,” he told the <i>Journal of Commerce.</i> </p><p>Ingram argues that when freight is routed through layered structures, safety ratings and insurance may be assessed at the entity level, potentially obscuring who is behind the wheel. </p><h3>What can a shipper do </h3><p>Executives across the trucking and logistics spectrum encourage shippers to ask detailed questions about how carriers and brokers vet third-party capacity. </p><p>Werner Enterprises, for example, uses multi-factor authentication through an app called Okta Verify before releasing load details to third parties. Such measures are primarily designed to address cargo theft rather than regulatory compliance issues tied to non-domiciled CDLs or English language proficiency. </p><p>A shipper who did not want to be identified said peers should memorialize expectations in service level agreements (SLAs) or standard operating procedures. </p><p>“If you want to move loads with only company drivers, you should have structures that require the carrier to report when they’re using third parties, and clearly define your expectations,” the shipper told the <i>Journal of Commerce</i>. “The SLA is basically saying the carrier will perform to this level, this way, or else. The ‘or else’ might be penalties or reminding the carrier your commitment to the carrier is not guaranteed; that I won’t continue to honor my minimum quantity commitments.” </p><p>Miller said Knight-Swift can accommodate shipper preferences, but cautioned that restricting freight to company drivers comes with operational and cost implications. </p><p>“If a customer says, ‘I want you to only use company drivers,’ we can do that,” he said. But doing so may mean a load sits on the dock longer or requires repositioning a company driver from another market, something charged as an accessorial fee. </p><p>The risk calculus, trucking executives say, ultimately depends on cargo sensitivity, tolerance for disruption, and how much flexibility and cost the shipper would be willing to trade for control. </p><p><i>Contact Ari Ashe at </i><a href="mailto:ari.ashe@spglobal.com"><i>ari.ashe@spglobal.com</i></a>.</p></div>

US shippers negotiating truckload contracts in 2026 are weighing the implications of the federal crackdown on non-domiciled commercial driver’s licenses (CDLs) and the English language proficiency of drivers, exploring how to best mitigate their exposure. Coupled with the rise in strategic cargo theft in recent years, risk mitigation is increasingly becoming part of contract negotiations between shippers and truckload carriers. As a hedge, some shippers have chosen to use fewer non-asset brokers and tender more freight to asset-owning carriers, according to comments by Knight-Swift Transportation Holdings on its fourth-quarter earnings call last month. But not every shipper views the risk-generating issues as urgent. Companies shipping big, bulky freight and carrying ample safety stock tend to express less concern than those moving electronics, food and beverage, and other just-in-time freight that must be delivered on time and in full. Marc Blubaugh, an attorney with transportation law firm Benesch, Friedlander, Colan & Aronoff, said his clients fall into two categories: shippers who engage in conversations with their carriers and shippers who want to write language into their contracts. “There’s an over-drafting camp that says, ‘Hey, we’re going to specifically call out these two issues and maybe some others in our compliance section of the contract,’” Blubaugh told the Journal of Commerce. “There’s another camp that does not believe additional language is necessary, only a conversation, because brokers and carriers already agree to comply with all US laws and regulations in the standard contract.” At the center of the debate is a structural question: How much incremental risk exists when a third-party carrier hauls a load compared with a company driver employed by large truckload carriers such as Knight-Swift, Schneider National and Werner Enterprises? Some shippers argue the risk gap is wider today than it was five years ago, before strategic cargo theft and regulatory scrutiny of non-domiciled CDLs and English proficiency moved to the forefront. Asset-based carriers have their own exposure, too The conversation is complicated by the fact that most large asset-based carriers operate “hybrid” models. Company drivers haul some freight, while other loads may be brokered to third parties through “power-only” arrangements. Power-only models offer operational benefits. They allow drop-and-hook operations in which third-party drivers can grab the larger carrier trailer and immediately get back on the road. They also provide flexible capacity during cargo surges, preventing freight from sitting on docks or forcing shippers to pay to reposition company drivers from other markets. Knight-Swift CEO Adam Miller said the company employs extensive vetting for third-party carriers who haul their company-branded trailers. “We have probably the most robust security team, an industry-leading security team vetting our third-party carriers,” Miller said in an interview with the Journal of Commerce. “We vet to the greatest ability on who is going to be hauling that load. We do things internally to reduce that risk, but we can’t necessarily eliminate it.” That acknowledgment underscores the operational distinction. Asset-based carriers directly hire, vet, and oversee their company drivers. When freight moves to a third party, the carrier may vet against the contracted motor carrier, but not necessarily the individual driver behind the wheel. A logistics executive at another large carrier who did not want to be identified said brand exposure creates a different incentive structure. When a company’s name is emblazoned on the trailer, the reputational consequences of a serious roadside incident are immediate and visible, creating strong motivation to scrutinize third-party capacity. Craig Ingram, owner of Asset-Based Intermodal in Dallas, said the issue is not whether vetting occurs, but what level of vetting occurs. He described a case in which freight he previously hauled was shifted to a lower-cost carrier operating under an agency structure. Ingram said some of the Somali drivers involved had previously worked for him and that he terminated them after discovering they weren’t “legal citizens.” “Are they vetting the driver showing up, or are they vetting the agent who gives it to the driver, that’s the key question,” he told the Journal of Commerce. Ingram argues that when freight is routed through layered structures, safety ratings and insurance may be assessed at the entity level, potentially obscuring who is behind the wheel. What can a shipper do Executives across the trucking and logistics spectrum encourage shippers to ask detailed questions about how carriers and brokers vet third-party capacity. Werner Enterprises, for example, uses multi-factor authentication through an app called Okta Verify before releasing load details to third parties. Such measures are primarily designed to address cargo theft rather than regulatory compliance issues tied to non-domiciled CDLs or English language proficiency. A shipper who did not want to be identified said peers should memorialize expectations in service level agreements (SLAs) or standard operating procedures. “If you want to move loads with only company drivers, you should have structures that require the carrier to report when they’re using third parties, and clearly define your expectations,” the shipper told the Journal of Commerce. “The SLA is basically saying the carrier will perform to this level, this way, or else. The ‘or else’ might be penalties or reminding the carrier your commitment to the carrier is not guaranteed; that I won’t continue to honor my minimum quantity commitments.” Miller said Knight-Swift can accommodate shipper preferences, but cautioned that restricting freight to company drivers comes with operational and cost implications. “If a customer says, ‘I want you to only use company drivers,’ we can do that,” he said. But doing so may mean a load sits on the dock longer or requires repositioning a company driver from another market, something charged as an accessorial fee. The risk calculus, trucking executives say, ultimately depends on cargo sensitivity, tolerance for disruption, and how much flexibility and cost the shipper would be willing to trade for control. Contact Ari Ashe at ari.ashe@spglobal.com .

Trucking News

Truckload

Trucking labor

Surface

Truckload shippers look to minimize growing regulatory risks

<div class="phx-topic abstract-wrapper"><p>The carrier has finalized plans to inject significant incremental westbound capacity into the market on its “MECL” service, multiple industry sources told the <i>Journal of Commerce</i>. </p></div>

The carrier has finalized plans to inject significant incremental westbound capacity into the market on its “MECL” service, multiple industry sources told the Journal of Commerce.

<div class="phx-topic"><p>More container capacity is poised to enter the India-US trade lane as carrier executives spot measurable green shoots of volume after the <a href="https://www.joc.com/article/us-agrees-to-slash-tariffs-on-imports-from-india-after-reaching-trade-deal-6162939">recent reset of US tariffs on Indian-made goods</a>. </p><p>Maersk has finalized plans to inject significant incremental westbound capacity into the market through vessel upsizing on its West India-US East Coast (USEC) “MECL” service, multiple industry sources told the <i>Journal of Commerce</i>. That comes as the US has lowered its tariff on Indian goods from 50% to 25%, with a further cut to 18% expected soon.  </p><p>Sources also confirmed that Maersk’s loading space for the Indian region will climb sequentially by up to 3,000 TEUs per week through the year, beginning with an extra 750 TEUS to 800 TEUs of capacity joining the MECL service in the second quarter that typically aligns with the onset of new service contract shipments.  </p><p>The weekly MECL service currently deploys ships with capacities ranging between 6,000 TEUS and 8,000 TEUs, available data shows.  </p><p>A Maersk executive declined to confirm specifics of the carrier’s planned capacity boost on the India-US trade but acknowledged cargo flows would increase on the lane soon. </p><p>“Based on our read of the market, we expect meaningful new cargo flows to begin materializing from April onwards, as buyers and sellers lock in commitments and production cycles align,” Bhavik Mota, Maersk’s director of regional ocean management for India/Middle East/Africa (IMEA), told the <i>Journal of Commerce</i>. “We will then recalibrate our capacity for India-US trade based on customer requirements.” </p><p>Bhavik also said while exporters across the sectors remain bullish about the demand outlook ahead, tariff realignments and new procurement cycles take time to filter through before containers begin moving. </p><p>“This [tariff] reduction meaningfully improves the economics of doing business across this [India-US] lane, and that sentiment is clearly reflected in the conversations we are having with shippers,” he added. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ae1df54b-4003-46b5-a8c3-e0d35707e941"></dynamic-object></div><p>There were some positive signs even before the trade deal between Washington and New Delhi was announced in early February. Exports from India to the US East Coast climbed 20% to 76,550 TEUs in January from December, the first month-over-month increase since last August, according to PIERS, a sister product of the <i>Journal of Commerce</i> within S&amp;P Global. </p><h3>Spot rates on steady decline </h3><p>With the late-January <a href="https://www.joc.com/article/maersk-set-to-resume-regular-suez-transits-on-india-usec-mecl-loop-sources-6152441">reinstatement of regular Red Sea/Suez Canal transits westbound</a>, the MECL now boasts a 25-day transit from Nhava Sheva to Newark, NJ, currently the fastest connection on offer for Indian loads to the US East Coast. </p><p>Maersk wants to reclaim India-USEC market share lost to rivals over the past decade, so capacity expansions now at play build on service upgrades it implemented last year, including the addition of Mundra as a third Indian port of call to enhance export allocations and the removal of Algeciras in Spain to shorten the roundtrip duration. </p><p>Spot rate indicators and capacity utilization data, however, suggest carriers are struggling thus far to tilt the market back to their side. Booking rates from India to the USEC have almost halved since the 50% tariff blow, down to $1,173 per FEU as of Feb. 18 from $2,200 on Aug. 29, according to Platts, a sister company of the <i>Journal of Commerce</i> within S&amp;P Global. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="893ffa5c-0a69-45c7-a555-425e44318711"></dynamic-object></div><p>Additionally, according to rate benchmarking platform Xeneta, monthly average proforma capacity across seven services on the India-US trade lane between August 2025 and January 2026 was approximately 160,000 TEUs, whereas the nominal monthly average of capacity actually deployed by carriers over the period stood at 127,000 TEUs, blanking approximately 21% of scheduled space. </p><p>And sources warn any large capacity influx could also weigh on carrier contract rate negotiations if there is no matching acceleration in demand. </p><p>Meanwhile, Maersk on Wednesday announced a hefty peak season surcharge of $3,000 per container for loads from the Indian subcontinent/Middle East to the US East/Gulf coasts from March 20. </p><p><i>Contact Bency Mathew at </i><a href="mailto:bencyvmathew@gmail.com"><i>bencyvmathew@gmail.com</i></a><i>.</i> </p></div>

More container capacity is poised to enter the India-US trade lane as carrier executives spot measurable green shoots of volume after the recent reset of US tariffs on Indian-made goods . Maersk has finalized plans to inject significant incremental westbound capacity into the market through vessel upsizing on its West India-US East Coast (USEC) “MECL” service, multiple industry sources told the Journal of Commerce. That comes as the US has lowered its tariff on Indian goods from 50% to 25%, with a further cut to 18% expected soon. Sources also confirmed that Maersk’s loading space for the Indian region will climb sequentially by up to 3,000 TEUs per week through the year, beginning with an extra 750 TEUS to 800 TEUs of capacity joining the MECL service in the second quarter that typically aligns with the onset of new service contract shipments. The weekly MECL service currently deploys ships with capacities ranging between 6,000 TEUS and 8,000 TEUs, available data shows. A Maersk executive declined to confirm specifics of the carrier’s planned capacity boost on the India-US trade but acknowledged cargo flows would increase on the lane soon. “Based on our read of the market, we expect meaningful new cargo flows to begin materializing from April onwards, as buyers and sellers lock in commitments and production cycles align,” Bhavik Mota, Maersk’s director of regional ocean management for India/Middle East/Africa (IMEA), told the Journal of Commerce. “We will then recalibrate our capacity for India-US trade based on customer requirements.” Bhavik also said while exporters across the sectors remain bullish about the demand outlook ahead, tariff realignments and new procurement cycles take time to filter through before containers begin moving. “This [tariff] reduction meaningfully improves the economics of doing business across this [India-US] lane, and that sentiment is clearly reflected in the conversations we are having with shippers,” he added. There were some positive signs even before the trade deal between Washington and New Delhi was announced in early February. Exports from India to the US East Coast climbed 20% to 76,550 TEUs in January from December, the first month-over-month increase since last August, according to PIERS, a sister product of the Journal of Commerce within S&P Global. Spot rates on steady decline With the late-January reinstatement of regular Red Sea/Suez Canal transits westbound , the MECL now boasts a 25-day transit from Nhava Sheva to Newark, NJ, currently the fastest connection on offer for Indian loads to the US East Coast. Maersk wants to reclaim India-USEC market share lost to rivals over the past decade, so capacity expansions now at play build on service upgrades it implemented last year, including the addition of Mundra as a third Indian port of call to enhance export allocations and the removal of Algeciras in Spain to shorten the roundtrip duration. Spot rate indicators and capacity utilization data, however, suggest carriers are struggling thus far to tilt the market back to their side. Booking rates from India to the USEC have almost halved since the 50% tariff blow, down to $1,173 per FEU as of Feb. 18 from $2,200 on Aug. 29, according to Platts, a sister company of the Journal of Commerce within S&P Global. Additionally, according to rate benchmarking platform Xeneta, monthly average proforma capacity across seven services on the India-US trade lane between August 2025 and January 2026 was approximately 160,000 TEUs, whereas the nominal monthly average of capacity actually deployed by carriers over the period stood at 127,000 TEUs, blanking approximately 21% of scheduled space. And sources warn any large capacity influx could also weigh on carrier contract rate negotiations if there is no matching acceleration in demand. Meanwhile, Maersk on Wednesday announced a hefty peak season surcharge of $3,000 per container for loads from the Indian subcontinent/Middle East to the US East/Gulf coasts from March 20. Contact Bency Mathew at bencyvmathew@gmail.com .

Container lines

Trans-Atlantic

Maersk to upsize India-USEC capacity to tap post-trade deal cargo growth  

<div class="phx-topic abstract-wrapper"><p>The monthly year-over-year decline in import TEUs landing in Los Angeles and Long Beach over the past half-year isn’t a cargo swoon, but rather a return to normalcy, according to Larry Gross. </p></div>

The monthly year-over-year decline in import TEUs landing in Los Angeles and Long Beach over the past half-year isn’t a cargo swoon, but rather a return to normalcy, according to Larry Gross.

<div class="phx-topic"><p>Import TEUs arriving in Southern California have come in lower than the prior year for six of the past seven months. But a focus solely on the year-over-year comparisons can be misleading. What is taking place is not a cargo swoon; it’s a return to normalcy.  </p><p>The chart below tracks import TEUs arriving in California over the long term. The green bars indicate the number of TEUs arriving each calendar quarter, in millions. Two trendlines are added: a four-quarter moving average that shows the situation on a rolling basis, and the underlying linear trend.  </p><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6172265_0.1.jpg"></img></div><p>For a decade, from 2010 to 2020, California imports followed a stable pattern, slowly increasing each year. The two trendlines were closely aligned during this period. The turn of the decade ushered in a period of turbulence that has now extended for five years. The region was buffeted by the pandemic and the subsequent cargo surge, labor instability on both the West and East coasts, and the US’ uneven tariff policy over the past year. This has generated large oscillations in the four-quarter moving average.  </p><p>What this very simplistic analysis tells us is that currently, with the distorting effects of external events largely removed, we are seeing a return to trend. </p><p>There are two main sources for the recent volatility. The first is variation in the total TEU imports arriving into the US. The second is changing import routings into the heartland. It is this “jump ball” freight that can utilize a variety of entry ports on both coasts. Insight into what is happening in this regard can be gleaned from looking at inland point intermodal (IPI, or the inland movement of ISO containers via rail) and transloads emerging from California. </p><div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="9a3e536e-8629-4568-b52a-ec7ceb01aeec"></dynamic-object></div><p>From the beginning of 2023 to the end of 2024, import TEUs leaving California via IPI grew steadily, from an estimated 445,000 in the first quarter of 2023 to 817,000 in the fourth quarter of 2024, an increase of 84%. Over the same period, import TEUs arriving each quarter grew by “only” 55%. For 2023, about 23% of import TEUs arriving in California exited the state via IPI. In 2024, that rose to 26%, with IPI peaking in the first quarter of 2025 at over 28%. A substantial share of the overall import increase was generated by IPI movements inland from California. </p><p>But after peaking in early 2025, the situation has changed. IPI share has steadily declined since then, with a 25.3% IPI share in the fourth quarter of 2025.  </p><h3>‘Complex’ transloading lags </h3><p>The story is a bit different for transloads. TEUs exiting California in the form of transloads grew by only 28% over the same 2023–25 period during which IPI grew 84%. Approximately 47% of import TEUs arriving in California exited the state as transloads in 2023. By 2025, this figure had fallen to about 40%. Why the difference? Transloading arrangements are much more complex and harder to change than IPI. It is much simpler to change the port of arrival for a container destined to move inland intact than it is to create additional transloading capacity. </p><p>But here again, normalcy is returning. While IPI volume dropped 16% from the third quarter of 2025 to year-end, transload volume increased for the second consecutive quarter, by over 4%. This divergence is normal seasonal behavior that generally sees increased transload share in the fourth quarter, when fast delivery and speed to market are emphasized. </p><p>Looking forward, in the absence of further disruption (a pretty heroic assumption these days), California imports can expect to see some continuing downward pressure as the Red Sea/Suez Canal route continues to gradually open. This will reduce the cost and time involved in East Coast routings and move the economic dividing line between the West Coast and the East Coast a bit further westward. This will potentially cost the West Coast some additional share of the “jump ball” freight. </p><p><i>Larry Gross is president and founder of Gross Transportation Consulting. Contact him at </i><a href="mailto:lawrencejgross@gmail.com"><i>lawrencejgross@gmail.com</i></a><i>.</i> </p></div>

Import TEUs arriving in Southern California have come in lower than the prior year for six of the past seven months. But a focus solely on the year-over-year comparisons can be misleading. What is taking place is not a cargo swoon; it’s a return to normalcy. The chart below tracks import TEUs arriving in California over the long term. The green bars indicate the number of TEUs arriving each calendar quarter, in millions. Two trendlines are added: a four-quarter moving average that shows the situation on a rolling basis, and the underlying linear trend. For a decade, from 2010 to 2020, California imports followed a stable pattern, slowly increasing each year. The two trendlines were closely aligned during this period. The turn of the decade ushered in a period of turbulence that has now extended for five years. The region was buffeted by the pandemic and the subsequent cargo surge, labor instability on both the West and East coasts, and the US’ uneven tariff policy over the past year. This has generated large oscillations in the four-quarter moving average. What this very simplistic analysis tells us is that currently, with the distorting effects of external events largely removed, we are seeing a return to trend. There are two main sources for the recent volatility. The first is variation in the total TEU imports arriving into the US. The second is changing import routings into the heartland. It is this “jump ball” freight that can utilize a variety of entry ports on both coasts. Insight into what is happening in this regard can be gleaned from looking at inland point intermodal (IPI, or the inland movement of ISO containers via rail) and transloads emerging from California. From the beginning of 2023 to the end of 2024, import TEUs leaving California via IPI grew steadily, from an estimated 445,000 in the first quarter of 2023 to 817,000 in the fourth quarter of 2024, an increase of 84%. Over the same period, import TEUs arriving each quarter grew by “only” 55%. For 2023, about 23% of import TEUs arriving in California exited the state via IPI. In 2024, that rose to 26%, with IPI peaking in the first quarter of 2025 at over 28%. A substantial share of the overall import increase was generated by IPI movements inland from California. But after peaking in early 2025, the situation has changed. IPI share has steadily declined since then, with a 25.3% IPI share in the fourth quarter of 2025. ‘Complex’ transloading lags The story is a bit different for transloads. TEUs exiting California in the form of transloads grew by only 28% over the same 2023–25 period during which IPI grew 84%. Approximately 47% of import TEUs arriving in California exited the state as transloads in 2023. By 2025, this figure had fallen to about 40%. Why the difference? Transloading arrangements are much more complex and harder to change than IPI. It is much simpler to change the port of arrival for a container destined to move inland intact than it is to create additional transloading capacity. But here again, normalcy is returning. While IPI volume dropped 16% from the third quarter of 2025 to year-end, transload volume increased for the second consecutive quarter, by over 4%. This divergence is normal seasonal behavior that generally sees increased transload share in the fourth quarter, when fast delivery and speed to market are emphasized. Looking forward, in the absence of further disruption (a pretty heroic assumption these days), California imports can expect to see some continuing downward pressure as the Red Sea/Suez Canal route continues to gradually open. This will reduce the cost and time involved in East Coast routings and move the economic dividing line between the West Coast and the East Coast a bit further westward. This will potentially cost the West Coast some additional share of the “jump ball” freight. Larry Gross is president and founder of Gross Transportation Consulting. Contact him at lawrencejgross@gmail.com .

North-American rail

Southern California imports ‘return to trend’ after lengthy period of turbulence

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