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<div class="phx-topic abstract-wrapper">In an effort to build upon the momentum of an agreement that was reached earlier this month between three waterfront employers and the West Coast office clerical union, the attorney representing 14 other shipping lines and terminal operators in Los Angeles-Long Beach urged his counterpart to strike similar agreements with the remaining employers.</div>

In an effort to build upon the momentum of an agreement that was reached earlier this month between three waterfront employers and the West Coast office clerical union, the attorney representing 14 other shipping lines and terminal operators in Los Angeles-Long Beach urged his counterpart to strike similar agreements with the remaining employers.

<div>In an effort to build upon the momentum of <a>an agreement that was reached earlier this month</a> between three waterfront employers and the West Coast office clerical union, the attorney representing 14 other shipping lines and terminal operators in Los Angeles-Long Beach urged his counterpart to strike similar agreements with the remaining employers.“There should be no reason why we cannot finalize the contracts for all 14 Harbor Employers Association member companies next week and announce this before the holidays,” Stephen L. Berry, lead negotiator for the HEA, stated in a Nov. 12 letter to OCU President John Fageaux.If in fact...

In an effort to build upon the momentum of an agreement that was reached earlier this month between three waterfront employers and the West Coast office clerical union, the attorney representing 14 other shipping lines and terminal operators in Los Angeles-Long Beach urged his counterpart to strike similar agreements with the remaining employers. “There should be no reason why we cannot finalize the contracts for all 14 Harbor Employers Association member companies next week and announce this before the holidays,” Stephen L. Berry, lead negotiator for the HEA, stated in a Nov. 12 letter to OCU President John Fageaux. If in fact the ILWU office clerical workers reach agreements with the remaining employers, the historic settlement would take place seven months before the existing contracts are set to expire on June 30, 2016. By contrast, the existing contracts were reached in late 2012 only after two and one-half years of difficult bargaining. That process was marked by a strike and the dispatching of a federal mediator from Washington. In his letter to Fageaux, Berry said failure to achieve a quick resolution with all employers, following this past year’s contentious contract negotiations between the ILWU dockworkers union and the Pacific Maritime Association, would cause additional loss of cargo to East Coast ports. The contracts for OCU clerical workers are different from the ILWU dockworkers’ coastwide contract. “It has been reported that the ILA (International Longshoremen’s Association) and East Coast terminal operators are working on an extension of their current collective bargaining agreement to demonstrate long-term labor peace and stability in that market, and thereby encourage more shipments there,” Berry said. Office clerical workers process documentation and perform other clerical functions for shipping lines and terminal operators in Southern California. They achieve significant leverage in contract negotiations when they erect picket lines at marine terminals and ILWU dockworkers refuse to cross the lines. That is what happened in late 2012, when about three-quarters of the container terminals in the largest U.S. port complex were shut down for a week. Fageaux announced on Nov. 5 that he had reached contract agreements with three employers — Matson/SSA Marine, Pasha Stevedoring and Ports America Group. Those companies are not members of the HEA group of employers that Berry represents. Berry said in his letter that Fageaux has since told some, but not all of the 14 HEA member companies, that he is willing to settle contracts similar to those signed earlier this month by the three non-HEA members. Berry said Tuesday his member companies are prepared to sign contracts that have the same provisions agreed to by Matson/SSA, Pasha and PAG. However, they will only do so if the OCU agrees to a “Good Faith Guarantee” clause that was attached to the letter. That article guarantees that all companies are treated the same so that no company is given a competitive advantage over others. Likewise, the employers agree not to negotiate a deal that would give a company an advantage over the others. The purpose of the good faith guarantee is to prevent a situation such as existed during previous contract negotiations when the OCU would allegedly place an individual company in the “penalty box” and attempt to squeeze additional concessions from the employer. Fageaux could not be immediately contacted Tuesday, but in a conversation earlier in the month he said there are still a couple of companies that are allegedly using computer technology to outsource OCU work to non-union employers in other states or countries. Berry said there is an established grievance process through which the OCU can file its complaint with the Industry Labor Relations Council for a ruling. “The process is there and should be used,” Berry said, adding that “punitive measures” by the union are not the way to go. Contact Bill Mongelluzzo at bill.mongelluzzo@ihs.com and follow him on Twitter: @billmongelluzzo

ILWU office clerical workers urged to reach deal with employers

<div class="phx-topic abstract-wrapper">Noel Hacegaba says more efficient intermodal rail service to the US interior will help Long Beach grab a greater share of imports from Asia that move to major distribution hubs such as Dallas and Chicago.</div>

Noel Hacegaba says more efficient intermodal rail service to the US interior will help Long Beach grab a greater share of imports from Asia that move to major distribution hubs such as Dallas and Chicago.

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<div class="phx-topic">Expanding the Port of Long Beach’s intermodal infrastructure and expediting the handoff of containers from marine terminals to trains will help the port expand its share of the discretionary cargo up for grabs among both West and East coast ports, Long Beach’s incoming CEO says. Noel Hacegaba, now the port’s chief operating officer, <a href="https://www.joc.com/article/hacegaba-nominated-to-be-port-of-long-beach-executive-director-6128762">was confirmed earlier this week by the Board of Harbor Commissioners as Long Beach’s next CEO</a>, effective Jan. 1 upon the retirement of current chief Mario Cordero. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6133963_0.1.jpg"></img></div>Hacegaba said the port that best handles inland point intermodal (IPI) freight in the coming years will be the port of choice on the Asia-US container trades. “For us, rail is the key to our growth,” he told the Journal of Commerce in an interview this week. Long Beach competes with other West Coast ports and especially with East Coast ports in capturing Asia-origin containerized freight that is destined for major inland hubs such as Dallas, Memphis, Chicago, Atlanta and Columbus. That so-called discretionary cargo can move through either coast depending on the speed of transit from the Asian load port to the inland destination. Key to improving transit times from Long Beach will be the Pier B on-dock rail support facility which began construction in 2024 and will be completed in phases into 2032. “Currently, the average time from ship to train is just under four days,” Hacegaba said. “With Pier B, our goal is to bring that down to 24 hours or less.” Containers moving by rail from terminals in the Los Angeles-Long Beach port complex in November dwelled on the docks for an average of 3.73 days, according to the Pacific Merchant Shipping Association. Long Beach is emphasizing its financial support for rail by devoting more than $2 billion of its $3.2 billion capital expenditures in the coming decade to the mode. <h3>Shifting production in Asia a challenge for Long Beach </h3>Fully two-thirds of Long Beach’s containerized cargo moves to the eastern half of the US, mostly by rail. For shipments originating in China, Japan, South Korea and Taiwan, West Coast ports generally have an advantage as trans-Pacific transit times are at least two weeks faster than shipping through the Panama and Suez canals. However, due to tariffs and other factors, production in Asia continues to shift to Southeast Asia and the Indian subcontinent. Ocean transit times from those regions to the East Coast favor load center ports such as New York-New Jersey, Norfolk, Charleston and Savannah. However, when shipping Asian imports on to the Midwest, the containers must move via truck or rail from East Coast ports to the inland destinations, which adds transit time to the all-in moves. Therefore, Hacegaba views those inland destinations as very much in play for West Coast ports, especially when the ports have sufficient on-dock and near-dock capacity and inland rail connectivity to handle the volumes. “That’s why what’s happening at Pier B is so important,” he said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="4c01bcc2-ee44-4296-b189-f980d2fcb434"></dynamic-object></div>When construction is completed in 2032, the Pier B on-dock rail support facility will double in size from 82 acres at present to 171 acres, according to Long Beach’s website. That will more than triple the volume of on-dock rail cargo the port can handle, from 1.5 million TEUs now to 4.7 million TEUs. Included in the project will be a depot for fueling and servicing up to 30 locomotives at the same time and a full-service staging area to assemble and break down trains up to 10,000 feet long. Pier B will allow for more efficient handling of IPI trains, which will improve the velocity of rail containers from the marine terminals, which in turn will increase Long Beach’s total capacity, Hacegaba said. “Efficient velocity leads to greater port capacity,” he said. A second rail project that the port anticipates will achieve similar results is BNSF’s proposed $1.5 billion <a href="https://www.joc.com/article/tpm25-bnsf-believes-barstow-hub-can-improve-service-to-smaller-markets-5955620">Barstow International Gateway</a>. The Barstow inland rail hub, located about 130 miles from Los Angeles-Long Beach, will handle transloaded as well as intact intermodal shipments bound for smaller inland markets. “We see many opportunities to pair with Barstow for greater reach inland,” Hacegaba said. “The key to growing our discretionary cargo is building inland rail connectivity,” he added. “It gives greater access, more efficient access, to importers and exporters in the heartland.” The <a href="https://www.joc.com/article/up-enhances-intermodal-between-la-and-cincinnati-6121497">proposed merger of Union Pacific and Norfolk Southern railroads</a> could also bring new opportunities for intermodal rail connectivity to the Midwest, although Hacegaba said it is too early in the process to comment. “We will control what’s within our control,” he said. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com.</a></div>

Expanding the Port of Long Beach’s intermodal infrastructure and expediting the handoff of containers from marine terminals to trains will help the port expand its share of the discretionary cargo up for grabs among both West and East coast ports, Long Beach’s incoming CEO says. Noel Hacegaba, now the port’s chief operating officer, was confirmed earlier this week by the Board of Harbor Commissioners as Long Beach’s next CEO , effective Jan. 1 upon the retirement of current chief Mario Cordero. Hacegaba said the port that best handles inland point intermodal (IPI) freight in the coming years will be the port of choice on the Asia-US container trades. “For us, rail is the key to our growth,” he told the Journal of Commerce in an interview this week. Long Beach competes with other West Coast ports and especially with East Coast ports in capturing Asia-origin containerized freight that is destined for major inland hubs such as Dallas, Memphis, Chicago, Atlanta and Columbus. That so-called discretionary cargo can move through either coast depending on the speed of transit from the Asian load port to the inland destination. Key to improving transit times from Long Beach will be the Pier B on-dock rail support facility which began construction in 2024 and will be completed in phases into 2032. “Currently, the average time from ship to train is just under four days,” Hacegaba said. “With Pier B, our goal is to bring that down to 24 hours or less.” Containers moving by rail from terminals in the Los Angeles-Long Beach port complex in November dwelled on the docks for an average of 3.73 days, according to the Pacific Merchant Shipping Association. Long Beach is emphasizing its financial support for rail by devoting more than $2 billion of its $3.2 billion capital expenditures in the coming decade to the mode. Shifting production in Asia a challenge for Long Beach Fully two-thirds of Long Beach’s containerized cargo moves to the eastern half of the US, mostly by rail. For shipments originating in China, Japan, South Korea and Taiwan, West Coast ports generally have an advantage as trans-Pacific transit times are at least two weeks faster than shipping through the Panama and Suez canals. However, due to tariffs and other factors, production in Asia continues to shift to Southeast Asia and the Indian subcontinent. Ocean transit times from those regions to the East Coast favor load center ports such as New York-New Jersey, Norfolk, Charleston and Savannah. However, when shipping Asian imports on to the Midwest, the containers must move via truck or rail from East Coast ports to the inland destinations, which adds transit time to the all-in moves. Therefore, Hacegaba views those inland destinations as very much in play for West Coast ports, especially when the ports have sufficient on-dock and near-dock capacity and inland rail connectivity to handle the volumes. “That’s why what’s happening at Pier B is so important,” he said. When construction is completed in 2032, the Pier B on-dock rail support facility will double in size from 82 acres at present to 171 acres, according to Long Beach’s website. That will more than triple the volume of on-dock rail cargo the port can handle, from 1.5 million TEUs now to 4.7 million TEUs. Included in the project will be a depot for fueling and servicing up to 30 locomotives at the same time and a full-service staging area to assemble and break down trains up to 10,000 feet long. Pier B will allow for more efficient handling of IPI trains, which will improve the velocity of rail containers from the marine terminals, which in turn will increase Long Beach’s total capacity, Hacegaba said. “Efficient velocity leads to greater port capacity,” he said. A second rail project that the port anticipates will achieve similar results is BNSF’s proposed $1.5 billion Barstow International Gateway . The Barstow inland rail hub, located about 130 miles from Los Angeles-Long Beach, will handle transloaded as well as intact intermodal shipments bound for smaller inland markets. “We see many opportunities to pair with Barstow for greater reach inland,” Hacegaba said. “The key to growing our discretionary cargo is building inland rail connectivity,” he added. “It gives greater access, more efficient access, to importers and exporters in the heartland.” The proposed merger of Union Pacific and Norfolk Southern railroads could also bring new opportunities for intermodal rail connectivity to the Midwest, although Hacegaba said it is too early in the process to comment. “We will control what’s within our control,” he said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com.

Inland rail connectivity key to Port of Long Beach growth: new CEO

<div class="phx-topic abstract-wrapper">The Australian Competition and Consumer Commission issued a report Friday that found terminal operators were making “historic” profits while their investment in infrastructure lagged far behind.</div>

The Australian Competition and Consumer Commission issued a report Friday that found terminal operators were making “historic” profits while their investment in infrastructure lagged far behind.

<div class="phx-topic">Australian shipper groups are welcoming suggestions by the country’s competition watchdog that government policy or regulatory changes are likely needed to rein in soaring terminal access charges and related fees levied by terminal operators. The proposals were made by the Australian Competition and Consumer Commission (ACCC) in its latest container stevedoring monitoring report published Friday, which showed terminal operators “are charging record high prices and making historic profits.” That was happening even though there was “significant spare capacity in ports” and costs and productivity remain relatively stable, the report added. “A government policy or regulatory response is likely required to address apparent market failures and improve Australia’s container freight supply chain to the benefit of households and businesses,” the commission said. “Stevedores are now charging a higher total price per container, in real terms, than at any time since the ACCC began monitoring the container stevedoring industry 27 years ago.” The commission plans to discuss the report’s findings and potential follow-up action with federal government officials early next year. “The ACCC has now confirmed what industry has been warning about for years — stevedores are ramping up prices in an environment where costs are stable, productivity has gone nowhere, and terminals are sitting on spare capacity,” said Tom Jensen, general manager for freight policy and operations at the Australian shippers’ group Freight &amp; Trade Alliance. FTA members include meat, grain and dairy exporters, as well as retailers and industrial equipment companies. “The ACCC has effectively said the quiet part out loud — this market isn’t working,” added Jensen, who also represents the Australian Peak Shippers’ Association. “The regulator has identified the problem, quantified it, and flagged the solution. What’s needed now is for government to act.” <h3>Charges surpass investments </h3>Highlighting the surge in terminal earnings, the ACCC’s 145-page report said operators saw operating profits climb to $538 million (A$809 million) in the 2024-25 financial year, an increase of 131% over five years. Operating margins climbed to an historic high of 34.8% in the same period, the report added. ACCC data showed terminal operators generated $426 million in terminal access charges in 2024-25 and more than $2 billion since 2017-18. That was 2.5 times the total investment made by terminal operators in the same period. “When terminal access charges alone are worth two-and-a-half times the total investment made by terminals, it’s clear these fees have become a profit lever, not a cost recovery tool,” Jensen said. The commission’s report also made clear that shippers, cargo owners and transport interests have little choice but to pay the fees levied by terminal operators, leading to a “likely market failure in the stevedoring industry” and ultimately hurting businesses and consumers. “The ACCC considers that these factors allow stevedores to increase landside charges with limited risk, irrespective of changes in demand, terminal capacity, costs or quality of service,” the report said. “...Where this results in higher total prices and reduced efficiency, this has the potential to be detrimental to Australian businesses and consumers.” The figures in the report do not take into account <a href="https://www.joc.com/article/australian-shipper-groups-call-for-legal-curbs-on-terminal-operator-fee-hikes-6108993">the latest round of increases in terminal access charges (TAC) and empty container fees</a> that operators, including DP World, Patrick Terminals, and Victoria International Container Terminal, will introduce from Jan. 1. Hutchison Port Holdings is set to raise its charges from Feb. 1. The terminal companies did not immediately respond to the ACCC’s report. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Australian shipper groups are welcoming suggestions by the country’s competition watchdog that government policy or regulatory changes are likely needed to rein in soaring terminal access charges and related fees levied by terminal operators. The proposals were made by the Australian Competition and Consumer Commission (ACCC) in its latest container stevedoring monitoring report published Friday, which showed terminal operators “are charging record high prices and making historic profits.” That was happening even though there was “significant spare capacity in ports” and costs and productivity remain relatively stable, the report added. “A government policy or regulatory response is likely required to address apparent market failures and improve Australia’s container freight supply chain to the benefit of households and businesses,” the commission said. “Stevedores are now charging a higher total price per container, in real terms, than at any time since the ACCC began monitoring the container stevedoring industry 27 years ago.” The commission plans to discuss the report’s findings and potential follow-up action with federal government officials early next year. “The ACCC has now confirmed what industry has been warning about for years — stevedores are ramping up prices in an environment where costs are stable, productivity has gone nowhere, and terminals are sitting on spare capacity,” said Tom Jensen, general manager for freight policy and operations at the Australian shippers’ group Freight & Trade Alliance. FTA members include meat, grain and dairy exporters, as well as retailers and industrial equipment companies. “The ACCC has effectively said the quiet part out loud — this market isn’t working,” added Jensen, who also represents the Australian Peak Shippers’ Association. “The regulator has identified the problem, quantified it, and flagged the solution. What’s needed now is for government to act.” Charges surpass investments Highlighting the surge in terminal earnings, the ACCC’s 145-page report said operators saw operating profits climb to $538 million (A$809 million) in the 2024-25 financial year, an increase of 131% over five years. Operating margins climbed to an historic high of 34.8% in the same period, the report added. ACCC data showed terminal operators generated $426 million in terminal access charges in 2024-25 and more than $2 billion since 2017-18. That was 2.5 times the total investment made by terminal operators in the same period. “When terminal access charges alone are worth two-and-a-half times the total investment made by terminals, it’s clear these fees have become a profit lever, not a cost recovery tool,” Jensen said. The commission’s report also made clear that shippers, cargo owners and transport interests have little choice but to pay the fees levied by terminal operators, leading to a “likely market failure in the stevedoring industry” and ultimately hurting businesses and consumers. “The ACCC considers that these factors allow stevedores to increase landside charges with limited risk, irrespective of changes in demand, terminal capacity, costs or quality of service,” the report said. “...Where this results in higher total prices and reduced efficiency, this has the potential to be detrimental to Australian businesses and consumers.” The figures in the report do not take into account the latest round of increases in terminal access charges (TAC) and empty container fees that operators, including DP World, Patrick Terminals, and Victoria International Container Terminal, will introduce from Jan. 1. Hutchison Port Holdings is set to raise its charges from Feb. 1. The terminal companies did not immediately respond to the ACCC’s report. Contact Keith Wallis at keithwallis@hotmail.com .

Australian government action needed to curb soaring terminal charges: regulator

<div class="phx-topic abstract-wrapper">The Hamburg-based carrier is investing $500 million on eight newbuilds and adding 14 newbuild charters, with the overall goal of making its fleet more fuel efficient and reducing carbon dioxide emissions. </div>

The Hamburg-based carrier is investing $500 million on eight newbuilds and adding 14 newbuild charters, with the overall goal of making its fleet more fuel efficient and reducing carbon dioxide emissions.

<div class="phx-topic">Hapag-Lloyd is making its biggest bet on methanol’s future as a ship fuel with plans to spend $500 million building eight dual-fuel feeder vessels, adding to its alternative fuel fleet that currently leans on liquefied natural gas (LNG). The carrier said in a statement Friday it has contracted with Chinese shipyard CIMC Raffles for the construction of the eight newbuilds, which will have 4,500-TEU capacity. The ships are expected to be delivered in 2028 and 2029. The dual-fuel ships are 30% more efficient than older vessels, Hapag-Lloyd said, noting that under methanol propulsion, the ships will lower their carbon dioxide output by 350,000 metric tons per year, which is the output of roughly 76,000 vehicles. The newbuild order will be Hapag-Lloyd’s second big move into methanol. A year ago, <a href="https://www.joc.com/article/hapag-lloyd-joins-maersk-in-chinese-methanol-supply-deal-5866031">it announced plans to retrofit five of its post-Panamax chartered ships</a> into dual-fuel methanol, along with a long-term supply deal with Chinese methanol producer Goldwind. In addition to the eight newbuilds, Hapag-Lloyd said it entered long-term charters on another 14 newbuilds between 1,800 TEU and 4,500 TEU capacity. CEO Rolf Habben Jansen said in the statement the newbuilds and new charters will put Hapag-Lloyd on track to meet the International Maritime Organization’s target for net-zero shipping emissions by 2045. “The new ships will help replace older tonnage, further decarbonize the Hapag-Lloyd fleet, and reduce our dependence on the charter market,” Habben-Jansen said. “What’s more, operating these state-of-the-art ships will be much more cost-efficient.” <h3>LNG in the mix </h3>Hapag-Lloyd’s main bet so far has been LNG, with some 37 dual-fuel vessels delivered or on order. That fuel appears to have more of a place in mainline trades, with LNG-capable vessels in the 9,100-TEU to 23,800-TEU class. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="82b6ff12-d7ca-420a-abbe-7b9998b29e56"></dynamic-object></div>While LNG has gained a slight edge as far as alternative fuels, those fuels still comprise a tiny portion of the operational fleet. There are some 218 LNG-capable container ships currently operating, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global, representing 3.4% of all ships in operation. Methanol-ready ships total 42, or less than 1%. But dual-fuel vessels make up over half of the current order book, illustrating the future for alternative fuels. Sea-web data shows there are 362 vessels on order that are LNG-capable, about 40% of the total order book. Methanol-capable vessels on order total 151, representing 17% of the order book. On a capacity basis, LNG represents 4.1 million TEUs, with methanol at 2.1 million TEUs, according to Sea-web. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Hapag-Lloyd is making its biggest bet on methanol’s future as a ship fuel with plans to spend $500 million building eight dual-fuel feeder vessels, adding to its alternative fuel fleet that currently leans on liquefied natural gas (LNG). The carrier said in a statement Friday it has contracted with Chinese shipyard CIMC Raffles for the construction of the eight newbuilds, which will have 4,500-TEU capacity. The ships are expected to be delivered in 2028 and 2029. The dual-fuel ships are 30% more efficient than older vessels, Hapag-Lloyd said, noting that under methanol propulsion, the ships will lower their carbon dioxide output by 350,000 metric tons per year, which is the output of roughly 76,000 vehicles. The newbuild order will be Hapag-Lloyd’s second big move into methanol. A year ago, it announced plans to retrofit five of its post-Panamax chartered ships into dual-fuel methanol, along with a long-term supply deal with Chinese methanol producer Goldwind. In addition to the eight newbuilds, Hapag-Lloyd said it entered long-term charters on another 14 newbuilds between 1,800 TEU and 4,500 TEU capacity. CEO Rolf Habben Jansen said in the statement the newbuilds and new charters will put Hapag-Lloyd on track to meet the International Maritime Organization’s target for net-zero shipping emissions by 2045. “The new ships will help replace older tonnage, further decarbonize the Hapag-Lloyd fleet, and reduce our dependence on the charter market,” Habben-Jansen said. “What’s more, operating these state-of-the-art ships will be much more cost-efficient.” LNG in the mix Hapag-Lloyd’s main bet so far has been LNG, with some 37 dual-fuel vessels delivered or on order. That fuel appears to have more of a place in mainline trades, with LNG-capable vessels in the 9,100-TEU to 23,800-TEU class. While LNG has gained a slight edge as far as alternative fuels, those fuels still comprise a tiny portion of the operational fleet. There are some 218 LNG-capable container ships currently operating, according to Sea-web, a sister company of the Journal of Commerce within S&P Global, representing 3.4% of all ships in operation. Methanol-ready ships total 42, or less than 1%. But dual-fuel vessels make up over half of the current order book, illustrating the future for alternative fuels. Sea-web data shows there are 362 vessels on order that are LNG-capable, about 40% of the total order book. Methanol-capable vessels on order total 151, representing 17% of the order book. On a capacity basis, LNG represents 4.1 million TEUs, with methanol at 2.1 million TEUs, according to Sea-web. Contact Michael Angell at michael.angell@spglobal.com .

Hapag-Lloyd to expand feeder fleet with new methanol-ready ships

<div class="phx-topic abstract-wrapper">The two Japanese vehicle carriers are the last to agree to a settlement figure in a long-running price-fixing case. </div>

The two Japanese vehicle carriers are the last to agree to a settlement figure in a long-running price-fixing case.

<div class="phx-topic">Two of Japan’s largest vehicle carrier operators, NYK and Mitsui OSK Lines, will pay $72 million (£54 million) to settle a collective action brought over high shipment fees for vehicles imported to Britain.  Mark McLaren, the lead attorney who brought the action on behalf of businesses and consumers, said the settlement is expected to be approved by Britain’s Competition Appeal Tribunal at a hearing in January. The settlement followed a trial against MOL and NYK held by the tribunal that started last January and lasted a total of nine weeks. The carriers were the last to finalize a settlement in the case after “K” Line and Wallenius Wilhelmsen and its South Korean affiliate EUKOR agreed to pay a combined $50 million in 2024, while CSAV paid $2 million in 2023. The carriers had been facing claims totaling $201 million for allegedly fixing prices for vehicle shipments to the UK between October 2006 and September 2015. Law firm Scott + Scott, which helped bring the action, claimed the five carriers were involved in a cartel that affected shipments of 17 million new automobiles and vans brought to the UK from a raft of major brands, including BMW, Ford, Mercedes-Benz, Nissan, Toyota and Volkswagen. McLaren, who launched the class action case five years ago, said the settlement “not only resolves wrongful anti-competitive, cartelist actions, but also allows for class members to finally be compensated for their financial losses.” NYK and MOL did not respond to requests for comment. The action in Britain is the latest price collusion case involving vehicle carrier operators over the last 10 years, with the US Department of Justice and authorities in Australia and Mexico all imposing fines for alleged price collusion on vehicle shipments. <h3>Demand growth expected to continue </h3>The settlement comes as light vehicle sales are expected to continue to climb this year even as China, already the world’s largest light vehicle exporter, accelerates overseas manufacturing in the face of tariff pressures. Global light vehicle sales are set to reach 90 million units this year, up 1.5% compared with 2024, according to figures from S&amp;P Global Mobility and ING Research. Of these, more than 15 million will be shipped overseas, with China accounting for more than 6.5 million units this year, according to S&amp;P Global Mobility figures. Highlighting the shift to overseas manufacturing, Abby Chun Tu, S&amp;P Global Mobility’s principal research analyst, said China’s five largest light vehicle exporters — BYD, Chery, Changan, SAIC and Geely — have expanded manufacturing operations to 19 sites in Southeast and Central Asia over the past three years to offset tariffs and higher costs. “The combined output of new energy vehicles [cars powered by alternative fuels] by Chinese car manufacturers in ASEAN [the Association of Southeast Asian Nations] is expected to account for 68% of the Southeast Asia region’s total new energy vehicle production by 2030 — a jump from 20% in 2024,” she said, quoting S&amp;P Global Mobility’s light-vehicle production forecast.  Chun Tu said BYD is also building two electric vehicle manufacturing plants in Europe to circumvent the region’s tariffs on imported Chinese-built EVs. Other automakers such as Chery, Geely and Leapmotor have launched joint ventures with local manufacturers in Spain, Poland, Malaysia and Brazil, she said in a Nov. 24 commentary.   Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Two of Japan’s largest vehicle carrier operators, NYK and Mitsui OSK Lines, will pay $72 million (£54 million) to settle a collective action brought over high shipment fees for vehicles imported to Britain.  Mark McLaren, the lead attorney who brought the action on behalf of businesses and consumers, said the settlement is expected to be approved by Britain’s Competition Appeal Tribunal at a hearing in January. The settlement followed a trial against MOL and NYK held by the tribunal that started last January and lasted a total of nine weeks. The carriers were the last to finalize a settlement in the case after “K” Line and Wallenius Wilhelmsen and its South Korean affiliate EUKOR agreed to pay a combined $50 million in 2024, while CSAV paid $2 million in 2023. The carriers had been facing claims totaling $201 million for allegedly fixing prices for vehicle shipments to the UK between October 2006 and September 2015. Law firm Scott + Scott, which helped bring the action, claimed the five carriers were involved in a cartel that affected shipments of 17 million new automobiles and vans brought to the UK from a raft of major brands, including BMW, Ford, Mercedes-Benz, Nissan, Toyota and Volkswagen. McLaren, who launched the class action case five years ago, said the settlement “not only resolves wrongful anti-competitive, cartelist actions, but also allows for class members to finally be compensated for their financial losses.” NYK and MOL did not respond to requests for comment. The action in Britain is the latest price collusion case involving vehicle carrier operators over the last 10 years, with the US Department of Justice and authorities in Australia and Mexico all imposing fines for alleged price collusion on vehicle shipments. Demand growth expected to continue The settlement comes as light vehicle sales are expected to continue to climb this year even as China, already the world’s largest light vehicle exporter, accelerates overseas manufacturing in the face of tariff pressures. Global light vehicle sales are set to reach 90 million units this year, up 1.5% compared with 2024, according to figures from S&P Global Mobility and ING Research. Of these, more than 15 million will be shipped overseas, with China accounting for more than 6.5 million units this year, according to S&P Global Mobility figures. Highlighting the shift to overseas manufacturing, Abby Chun Tu, S&P Global Mobility’s principal research analyst, said China’s five largest light vehicle exporters — BYD, Chery, Changan, SAIC and Geely — have expanded manufacturing operations to 19 sites in Southeast and Central Asia over the past three years to offset tariffs and higher costs. “The combined output of new energy vehicles [cars powered by alternative fuels] by Chinese car manufacturers in ASEAN [the Association of Southeast Asian Nations] is expected to account for 68% of the Southeast Asia region’s total new energy vehicle production by 2030 — a jump from 20% in 2024,” she said, quoting S&P Global Mobility’s light-vehicle production forecast.  Chun Tu said BYD is also building two electric vehicle manufacturing plants in Europe to circumvent the region’s tariffs on imported Chinese-built EVs. Other automakers such as Chery, Geely and Leapmotor have launched joint ventures with local manufacturers in Spain, Poland, Malaysia and Brazil, she said in a Nov. 24 commentary.   Contact Keith Wallis at keithwallis@hotmail.com .

NYK, MOL to pay $72 million to settle UK vehicle shipment claims

<div class="phx-topic abstract-wrapper">A boost in project cargo demand is expected as delayed mining projects in the country start to come onstream in the coming years. </div>

A boost in project cargo demand is expected as delayed mining projects in the country start to come onstream in the coming years.

<div class="phx-topic">The release of several previously stalled permits is setting up a mining boom across Mexico that could trigger a wave of breakbulk and project cargo activity. Restarting these mine projects could necessitate shipments of power generation equipment, heavy machinery and other project cargo in the near term, while mine operations and production could result in ongoing shipments of minerals and maintenance supplies. Over $11 billion in mining projects was reactivated in November following Mexican federal policy changes related to the approval of environmental and water permits needed for the projects to move forward. The mining projects are focused in the Mexican states of Zacatecas, Sonora, Chihuahua and Durango. Mexico is a key global producer of gold, copper, zinc and critical minerals. Fernando Aboitiz, head of the Coordination Unit for Extractive Industries at Mexico’s Ministry of Economy, told attendees at the International Mining Convention 2025 in Acapulco in November that 110 of 176 previously blocked permits in the mining sector have been approved so far, leaving 66 still pending. Aboitiz said the backlog could be cleared by mid-2026. According to the latest data from Mexican industry association Cámara Minera de Mexico (CAMIMEX), there were 574 mining projects in 30 states in Mexico in 2024. Of those, 225 were in the exploration phase, another 225 were in the production phase, 27 were in development, 85 were suspended, and 12 were in the closure phase. <h3>‘Sustained surge’ in cargo expected </h3>Juan Ignacio Lopez, CEO of King Ocean Gulf Alliance LLC (KOGA), a Houston-based multipurpose carrier that transports cargoes including mining supplies, steel, bulk chemicals, power generation equipment, and heavy machinery, told the Journal of Commerce that he anticipates growth in both short- and long-term cargo activity as Mexico’s mining activity picks up. “The good thing about a mining boom is that it creates a sustained surge in breakbulk and project cargo demands,” he said. Constructing these mines will require significant amounts of structural steel, heavy equipment for processing and excavating, and power generation equipment for the plants that supply power to the mines, Lopez said. “For us in particular, I think we’ll see increased moves of large mining equipment — from the US, from Brazil, Columbia and Panama — and higher volumes of cargo moving through the main Mexican ports for mining,” he said, citing the ports of Altamira and Veracruz along the Gulf and Manzanillo on the Pacific. Once the mines begin operations, Lopez expects to see more outbound shipments of minerals and other commodities. “That will also allow us to secure some contracts that will tie us to these mines and the suppliers, and to have a regular flow of those cargo movements between the Americas and into and out of Mexico,” he said. The mines will need to consistently import consumables to operate, Lopez said. That includes regularly replacing trucks, tires and spare parts for heavy equipment, while coal-burning power plants will require continuous shipments of coal and other supplies. “Those are things we’ll continuously move while the mine is working,” he said. As the mines produce minerals and other commodities, that output will need to be transported. “That creates an opportunity for carriers to move thousands of tons of minerals coming out of those mines,” Lopez said. Before mining activity picks up, carriers will need to prepare for the mines’ long-term cargo needs by securing regular sailings into and out of Mexico, Lopez said. That’s because whereas mine construction will produce enough project cargo and heavy equipment to fill up ships in the short term, sustaining operational needs and production output will require smaller shipments going to and from these mines. “Those are not volumes that can justify an entire ship. So you want to start looking for base cargoes that will put you in Mexico with certain regularity,” Lopez said, adding that KOGA already has regular customers in Mexico that ship other commodities. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

The release of several previously stalled permits is setting up a mining boom across Mexico that could trigger a wave of breakbulk and project cargo activity. Restarting these mine projects could necessitate shipments of power generation equipment, heavy machinery and other project cargo in the near term, while mine operations and production could result in ongoing shipments of minerals and maintenance supplies. Over $11 billion in mining projects was reactivated in November following Mexican federal policy changes related to the approval of environmental and water permits needed for the projects to move forward. The mining projects are focused in the Mexican states of Zacatecas, Sonora, Chihuahua and Durango. Mexico is a key global producer of gold, copper, zinc and critical minerals. Fernando Aboitiz, head of the Coordination Unit for Extractive Industries at Mexico’s Ministry of Economy, told attendees at the International Mining Convention 2025 in Acapulco in November that 110 of 176 previously blocked permits in the mining sector have been approved so far, leaving 66 still pending. Aboitiz said the backlog could be cleared by mid-2026. According to the latest data from Mexican industry association Cámara Minera de Mexico (CAMIMEX), there were 574 mining projects in 30 states in Mexico in 2024. Of those, 225 were in the exploration phase, another 225 were in the production phase, 27 were in development, 85 were suspended, and 12 were in the closure phase. ‘Sustained surge’ in cargo expected Juan Ignacio Lopez, CEO of King Ocean Gulf Alliance LLC (KOGA), a Houston-based multipurpose carrier that transports cargoes including mining supplies, steel, bulk chemicals, power generation equipment, and heavy machinery, told the Journal of Commerce that he anticipates growth in both short- and long-term cargo activity as Mexico’s mining activity picks up. “The good thing about a mining boom is that it creates a sustained surge in breakbulk and project cargo demands,” he said. Constructing these mines will require significant amounts of structural steel, heavy equipment for processing and excavating, and power generation equipment for the plants that supply power to the mines, Lopez said. “For us in particular, I think we’ll see increased moves of large mining equipment — from the US, from Brazil, Columbia and Panama — and higher volumes of cargo moving through the main Mexican ports for mining,” he said, citing the ports of Altamira and Veracruz along the Gulf and Manzanillo on the Pacific. Once the mines begin operations, Lopez expects to see more outbound shipments of minerals and other commodities. “That will also allow us to secure some contracts that will tie us to these mines and the suppliers, and to have a regular flow of those cargo movements between the Americas and into and out of Mexico,” he said. The mines will need to consistently import consumables to operate, Lopez said. That includes regularly replacing trucks, tires and spare parts for heavy equipment, while coal-burning power plants will require continuous shipments of coal and other supplies. “Those are things we’ll continuously move while the mine is working,” he said. As the mines produce minerals and other commodities, that output will need to be transported. “That creates an opportunity for carriers to move thousands of tons of minerals coming out of those mines,” Lopez said. Before mining activity picks up, carriers will need to prepare for the mines’ long-term cargo needs by securing regular sailings into and out of Mexico, Lopez said. That’s because whereas mine construction will produce enough project cargo and heavy equipment to fill up ships in the short term, sustaining operational needs and production output will require smaller shipments going to and from these mines. “Those are not volumes that can justify an entire ship. So you want to start looking for base cargoes that will put you in Mexico with certain regularity,” Lopez said, adding that KOGA already has regular customers in Mexico that ship other commodities. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Policy shift clears way for surge in Mexican mining projects, cargo activity

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If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

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