<div class="phx-topic abstract-wrapper">The Port of New Orleans has signed a 50-year lease with Ports America to spend $66.5 million to improve its existing container terminal and perhaps build a new one in the future, doubling the port's capacity.</div>

The Port of New Orleans has signed a 50-year lease with Ports America to spend $66.5 million to improve its existing container terminal and perhaps build a new one in the future, doubling the port's capacity.

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<div class="phx-topic">With the Port of New Orleans riding a double-digit increase in imports, terminal operator Ports America will invest $66.5 million to improve its handling of larger vessels and is on deck to develop a potential separate $300 million terminal that would double the port’s capacity.Upgrades required in the 50-year lease with Ports America — which operates the port’s main container terminal Napoleon Avenue and a break bulk terminal that also handles containers, Nashville Avenue Terminal — would in the short term improve cargo efficiency and maintain the current maximum ship size of 10,000 TEU, the port said. In the longer term, a possible new terminal — and a planned dredging project to 50 feet — could enable calls from 12,000-TEU or larger ships and double the port’s container capacity. The deal requires Ports America to invest in infrastructure and equipment, including up to four 100-foot gauge container cranes at the Napoleon Avenue container terminal. The port expects improvements to the terminal — which has a capacity of 840,000 TEU and space to increase to 1.5 million TEU — to be completed in 24 to 30 months.The terminal operator could also increase container capacity at other New Orleans locations, including the development of a new terminal, if the port and Ports America “determine an expansion project is feasible at a new location,” the port’s release said. The port hopes the new terminal, with a capacity of 1.5 million TEU, will “target” vessels of 12,000 TEU or larger, with the first new berth up and running in five to seven years. The deal also gives Ports America the right to develop a container yard, chassis depot, and intermodal container transfer facility.<h2>Loaded imports stats</h2>Loaded imports through the port increased to 93,512 TEU in the first nine months of 2018, a 16.3 percent increase over the same period in 2017, according to figures from PIERS, a JOC.com sister product. But loaded exports fell by 6.7 percent, to 209,234 TEU, for a total figure of 302,746 containers handled in the nine-month period of 2018, a decline of 0.6 percent, the figures show.The figures helped push the Port of New Orleans’ share of loaded imports cargo on the Gulf Coast from 7.2 percent in 2017 to 7.6 percent in 2018. But the port’s share of the coastal loaded cargo market fell from 13.6 percent to 12.6 percent, the figures show. Napoleon Avenue terminal, with capacity of 840,000 TEU, has two berths totaling 2,000 feet and a depth of 45 feet, according to the port's website. Nashville Avenue, with a single container berth, handles primarily project cargo. The port in 2017 handled 406,420 loaded TEU, according to PIERS, and the port’s resin exports are expected to grow exponentially over the next few years as the industry around it does.The port in January hired a consultant to study the development of a second container terminal that would be 15 miles downstream from the Napoleon Avenue container terminal to accommodate the port's 4.5 percent compound annual growth rate over the last decade by handling larger ships and providing more expansion space.New Orleans officials have long been interested in a container terminal downriver from the city, which is 100 miles up from the river’s delta. The Napoleon terminal, on former breakbulk wharves and rail yards, has undergone several expansions but is hemmed in by city neighborhoods. It also lies upstream from a pair of bridges that restrict ships’ vertical clearance to as little as 153 feet during periods of extreme high water each spring. The air-draft restrictions sometimes force carriers to switch to lower-clearance vessels.The port also is undergoing a series of upgrades. The US Army Corp of Engineers has signed a project to deepen the ship channel to 50 feet. And the port is working with New Orleans Public Belt Railroad to increase its intermodal volume — at present only 11 percent of the port’s containerized cargo goes by rail — through the use of the public belt rail and six Class 1 railroads that connect to the port.Contact Hugh R. Morley at <a href="mailto:Hugh.Morley@ihsmarkit.com">hugh.morley@ihsmarkit.com</a> and follow him on Twitter: <a href="https://twitter.com/hughrmorley_joc">@HughRMorley1</a>.</div>

With the Port of New Orleans riding a double-digit increase in imports, terminal operator Ports America will invest $66.5 million to improve its handling of larger vessels and is on deck to develop a potential separate $300 million terminal that would double the port’s capacity. Upgrades required in the 50-year lease with Ports America — which operates the port’s main container terminal Napoleon Avenue and a break bulk terminal that also handles containers, Nashville Avenue Terminal — would in the short term improve cargo efficiency and maintain the current maximum ship size of 10,000 TEU, the port said. In the longer term, a possible new terminal — and a planned dredging project to 50 feet — could enable calls from 12,000-TEU or larger ships and double the port’s container capacity. The deal requires Ports America to invest in infrastructure and equipment, including up to four 100-foot gauge container cranes at the Napoleon Avenue container terminal. The port expects improvements to the terminal — which has a capacity of 840,000 TEU and space to increase to 1.5 million TEU — to be completed in 24 to 30 months. The terminal operator could also increase container capacity at other New Orleans locations, including the development of a new terminal, if the port and Ports America “determine an expansion project is feasible at a new location,” the port’s release said. The port hopes the new terminal, with a capacity of 1.5 million TEU, will “target” vessels of 12,000 TEU or larger, with the first new berth up and running in five to seven years. The deal also gives Ports America the right to develop a container yard, chassis depot, and intermodal container transfer facility. Loaded imports stats Loaded imports through the port increased to 93,512 TEU in the first nine months of 2018, a 16.3 percent increase over the same period in 2017, according to figures from PIERS, a JOC.com sister product. But loaded exports fell by 6.7 percent, to 209,234 TEU, for a total figure of 302,746 containers handled in the nine-month period of 2018, a decline of 0.6 percent, the figures show. The figures helped push the Port of New Orleans’ share of loaded imports cargo on the Gulf Coast from 7.2 percent in 2017 to 7.6 percent in 2018. But the port’s share of the coastal loaded cargo market fell from 13.6 percent to 12.6 percent, the figures show. Napoleon Avenue terminal, with capacity of 840,000 TEU, has two berths totaling 2,000 feet and a depth of 45 feet, according to the port's website. Nashville Avenue, with a single container berth, handles primarily project cargo. The port in 2017 handled 406,420 loaded TEU, according to PIERS, and the port’s resin exports are expected to grow exponentially over the next few years as the industry around it does. The port in January hired a consultant to study the development of a second container terminal that would be 15 miles downstream from the Napoleon Avenue container terminal to accommodate the port's 4.5 percent compound annual growth rate over the last decade by handling larger ships and providing more expansion space. New Orleans officials have long been interested in a container terminal downriver from the city, which is 100 miles up from the river’s delta. The Napoleon terminal, on former breakbulk wharves and rail yards, has undergone several expansions but is hemmed in by city neighborhoods. It also lies upstream from a pair of bridges that restrict ships’ vertical clearance to as little as 153 feet during periods of extreme high water each spring. The air-draft restrictions sometimes force carriers to switch to lower-clearance vessels. The port also is undergoing a series of upgrades. The US Army Corp of Engineers has signed a project to deepen the ship channel to 50 feet. And the port is working with New Orleans Public Belt Railroad to increase its intermodal volume — at present only 11 percent of the port’s containerized cargo goes by rail — through the use of the public belt rail and six Class 1 railroads that connect to the port. Contact Hugh R. Morley at hugh.morley@ihsmarkit.com and follow him on Twitter: @HughRMorley1 .

North American ports

Marine terminals

Growth fuels New Orleans plan to double port capacity

<div class="phx-topic abstract-wrapper">The delays began last month after the railroad transitioned its Louisville ramp to grounded operations, but NS says it is taking steps to mitigate the backups.</div>

The delays began last month after the railroad transitioned its Louisville ramp to grounded operations, but NS says it is taking steps to mitigate the backups.

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<div class="phx-topic">Truck drivers have been facing multi-hour delays when picking up ocean containers at Norfolk Southern’s Appliance Park terminal in Louisville, Ky., though the railroad says conditions are expected to improve this week. To help ease the backups, Norfolk Southern opened a satellite lot early Monday at a nearby ContainerPort Group facility about nine miles away, according to a customer advisory issued Jan. 10. The delays at Appliance Park began after NS converted international intermodal operations at the Louisville terminal to grounded stacks in mid-December, and began requiring appointments to pick up loads. It’s the latest in a series of conversions across the railroad’s network, including in Atlanta, Chicago and Memphis. “At the same time, we launched a major repaving project (in Louisville) to improve pad conditions and stacking efficiency, while expanding our overall international footprint,” a Norfolk Southern spokesperson told the Journal of Commerce. “The holiday surge also contributed to the initial capacity influx, adding complexity to the transition.” Until last month, Norfolk Southern typically handled imports in Louisville using “wheeled” operations, in which ocean containers are placed on chassis and parked in designated spots. The shift to a grounded model, standard at most marine terminals, is intended to support long-term import growth. But the transition resulted in significant delays for truck drivers, often lasting several hours, particularly after the Christmas holiday. Drivers have been routed to staging areas inside the terminal and instructed to wait until directed to join long pickup lines. The Louisville terminal is a major inland hub for cargo moving through the Port of Virginia. <h3>Four-hour turn times </h3>An executive at a large drayage provider told the Journal of Commerce there were four-hour turn times and not enough lift machines in late December, and that conditions only worsened last week. “Trains are unable to get in; storage fees (are) still being charged; eight-hour turn times; lost containers,” the source wrote in a Jan. 10 message to the Journal of Commerce. Norfolk Southern said the satellite lot at the ContainerPort Group yard should quickly ease congestion at the main terminal. “We expect to reduce inventory at the main facility by approximately 50% and significantly cut driver dwell times,” the railroad said in its advisory. “As always, we will closely monitor performance throughout this process and pull additional levers to ensure long-term stability and support for this growing market.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a></div>

Truck drivers have been facing multi-hour delays when picking up ocean containers at Norfolk Southern’s Appliance Park terminal in Louisville, Ky., though the railroad says conditions are expected to improve this week. To help ease the backups, Norfolk Southern opened a satellite lot early Monday at a nearby ContainerPort Group facility about nine miles away, according to a customer advisory issued Jan. 10. The delays at Appliance Park began after NS converted international intermodal operations at the Louisville terminal to grounded stacks in mid-December, and began requiring appointments to pick up loads. It’s the latest in a series of conversions across the railroad’s network, including in Atlanta, Chicago and Memphis. “At the same time, we launched a major repaving project (in Louisville) to improve pad conditions and stacking efficiency, while expanding our overall international footprint,” a Norfolk Southern spokesperson told the Journal of Commerce. “The holiday surge also contributed to the initial capacity influx, adding complexity to the transition.” Until last month, Norfolk Southern typically handled imports in Louisville using “wheeled” operations, in which ocean containers are placed on chassis and parked in designated spots. The shift to a grounded model, standard at most marine terminals, is intended to support long-term import growth. But the transition resulted in significant delays for truck drivers, often lasting several hours, particularly after the Christmas holiday. Drivers have been routed to staging areas inside the terminal and instructed to wait until directed to join long pickup lines. The Louisville terminal is a major inland hub for cargo moving through the Port of Virginia. Four-hour turn times An executive at a large drayage provider told the Journal of Commerce there were four-hour turn times and not enough lift machines in late December, and that conditions only worsened last week. “Trains are unable to get in; storage fees (are) still being charged; eight-hour turn times; lost containers,” the source wrote in a Jan. 10 message to the Journal of Commerce. Norfolk Southern said the satellite lot at the ContainerPort Group yard should quickly ease congestion at the main terminal. “We expect to reduce inventory at the main facility by approximately 50% and significantly cut driver dwell times,” the railroad said in its advisory. “As always, we will closely monitor performance throughout this process and pull additional levers to ensure long-term stability and support for this growing market.” Contact Ari Ashe at ari.ashe@spglobal.com

Rail News

North-American rail

Surface

Drivers battling delays at Norfolk Southern terminal in Louisville

<div class="phx-topic abstract-wrapper">The reinstated service connecting the port with Colombia and the Dominican Republic will be supported by Savannah’s new customs facility that specializes in reefer cargoes. </div>

The reinstated service connecting the port with Colombia and the Dominican Republic will be supported by Savannah’s new customs facility that specializes in reefer cargoes.

<div class="phx-topic">Seaboard Marine is resuming a weekly service connecting the Port of Savannah to the Caribbean and South America. The service comes as Savannah prepares to open a new on-site customs facility intended to serve cold-chain shippers that are likely customers for the service. The Georgia Ports Authority (GPA) said Thursday that Seaboard has reinstated its direct, weekly shipping service between Savannah and the Colombian ports of Cartagena, Barranquilla and Santa Marta, along with Rio Haina in the Dominican Republic. The first Savannah call was on Jan. 7 by the 1,781-TEU Seaboard Gemini. The ship is expected to make its southbound sailing on Jan. 14, officially launching its schedule. “We are providing importers and exporters across the Southeast with improved transit times, greater schedule integrity, and the reliability they need to grow their businesses,” Piero Buitano, Seaboard’s senior vice president, said in a joint statement. Georgia Ports Chief Commercial Officer Flavio Batista said the service will offer cold-chain and transshipment options to and from the West Coast of South America. The service offers weekly Wednesday arrivals and departures in Savannah. The service will be supported by a US Customs exam site the GPA will open at its Garden City Terminal by the spring. The $44 million facility will offer on-terminal agricultural inspections in temperature-controlled environments, direct vessel discharge to inspection sites and multi-temperature zones designed for various produce types, allowing for 16 inspections per day, the GPA said. In 2025, Savannah handled 12,412 TEUs of imports from Colombia and the Dominicam Republic, a 21% drop from the year earlier, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. Exports to the two countries out of Savannah totaled 10,923 TEUs through November 2025, PIERS data show, a 25% drop from the comparable 2024 period. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Seaboard Marine is resuming a weekly service connecting the Port of Savannah to the Caribbean and South America. The service comes as Savannah prepares to open a new on-site customs facility intended to serve cold-chain shippers that are likely customers for the service. The Georgia Ports Authority (GPA) said Thursday that Seaboard has reinstated its direct, weekly shipping service between Savannah and the Colombian ports of Cartagena, Barranquilla and Santa Marta, along with Rio Haina in the Dominican Republic. The first Savannah call was on Jan. 7 by the 1,781-TEU Seaboard Gemini. The ship is expected to make its southbound sailing on Jan. 14, officially launching its schedule. “We are providing importers and exporters across the Southeast with improved transit times, greater schedule integrity, and the reliability they need to grow their businesses,” Piero Buitano, Seaboard’s senior vice president, said in a joint statement. Georgia Ports Chief Commercial Officer Flavio Batista said the service will offer cold-chain and transshipment options to and from the West Coast of South America. The service offers weekly Wednesday arrivals and departures in Savannah. The service will be supported by a US Customs exam site the GPA will open at its Garden City Terminal by the spring. The $44 million facility will offer on-terminal agricultural inspections in temperature-controlled environments, direct vessel discharge to inspection sites and multi-temperature zones designed for various produce types, allowing for 16 inspections per day, the GPA said. In 2025, Savannah handled 12,412 TEUs of imports from Colombia and the Dominicam Republic, a 21% drop from the year earlier, according to PIERS, a sister product of the Journal of Commerce within S&P Global. Exports to the two countries out of Savannah totaled 10,923 TEUs through November 2025, PIERS data show, a 25% drop from the comparable 2024 period. Contact Michael Angell at michael.angell@spglobal.com .

Cool Cargo News

Container lines

Seaboard restarts South America service calling at Savannah

<div class="phx-topic abstract-wrapper">The commission’s review of an administrative law judge’s earlier decision on late fees that MSC charged for non-operating reefers found the overcharges amounted to a “practice” by the carrier.</div>

The commission’s review of an administrative law judge’s earlier decision on late fees that MSC charged for non-operating reefers found the overcharges amounted to a “practice” by the carrier.

<div class="phx-topic">The Federal Maritime Commission (FMC) has increased the total civil penalty Mediterranean Shipping Co. will have to pay for overcharging late fees on non-operating reefer containers from $16 million to over $22 million. In changing the penalty, the FMC determined that the overcharges were too frequent and persistent to be considered a billing mistake. In an order issued this week, the FMC’s three sitting commissioners reversed part of an administrative law judge’s February 2025 decision stemming from an agency investigation into MSC’s detention and demurrage charges for non-operating reefers (NORs). The investigation found that during 2021, MSC sometimes charged shippers late fees on NORs at the higher rate of an operating reefer container. MSC’s tariff did not outline the late fees for NORs. But it had an unofficial policy of billing customers the same late fees as a standard dry container as NORs served the same purpose. MSC said the overcharges were the result of problems with its billing software, which didn’t distinguish between operating and non-operating reefers. MSC refunded $2 million to customers for the overcharges. While the administrative law judge ruled MSC’s tariff violated shipping law for not outlining late fees on NORs, the actual billing was a “mistake” and not a “practice” that would indicate a knowing violation of the law. The judge cited that only 23% of the NOR invoices in 2021 had the overcharges and did not assess a penalty for the overcharges. However, the commissioners sided with the agency’s enforcement arm that the prevalence of overcharges, which occurred 2,629 times, did constitute a practice, even if they weren’t a willful violation of shipping law. The FMC’s decision said the overcharges occurred 10 times per day for more than eight months. “Even if mainly an unintentional result of a billing system error, the thousands of overcharges were too numerous and frequent to be considered anything but a practice,” the FMC said. “They were unreasonable charges for NORs, which do not require the enhanced care operating reefers do.” MSC was not immediately available for comment. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>.</div>

The Federal Maritime Commission (FMC) has increased the total civil penalty Mediterranean Shipping Co. will have to pay for overcharging late fees on non-operating reefer containers from $16 million to over $22 million. In changing the penalty, the FMC determined that the overcharges were too frequent and persistent to be considered a billing mistake. In an order issued this week, the FMC’s three sitting commissioners reversed part of an administrative law judge’s February 2025 decision stemming from an agency investigation into MSC’s detention and demurrage charges for non-operating reefers (NORs). The investigation found that during 2021, MSC sometimes charged shippers late fees on NORs at the higher rate of an operating reefer container. MSC’s tariff did not outline the late fees for NORs. But it had an unofficial policy of billing customers the same late fees as a standard dry container as NORs served the same purpose. MSC said the overcharges were the result of problems with its billing software, which didn’t distinguish between operating and non-operating reefers. MSC refunded $2 million to customers for the overcharges. While the administrative law judge ruled MSC’s tariff violated shipping law for not outlining late fees on NORs, the actual billing was a “mistake” and not a “practice” that would indicate a knowing violation of the law. The judge cited that only 23% of the NOR invoices in 2021 had the overcharges and did not assess a penalty for the overcharges. However, the commissioners sided with the agency’s enforcement arm that the prevalence of overcharges, which occurred 2,629 times, did constitute a practice, even if they weren’t a willful violation of shipping law. The FMC’s decision said the overcharges occurred 10 times per day for more than eight months. “Even if mainly an unintentional result of a billing system error, the thousands of overcharges were too numerous and frequent to be considered anything but a practice,” the FMC said. “They were unreasonable charges for NORs, which do not require the enhanced care operating reefers do.” MSC was not immediately available for comment. Contact Michael Angell at michael.angell@spglobal.com .

Transport, Trade and Regulation News

Container Shipping News

Maritime

FMC raises fine on MSC in case over non-operating reefers

<div class="phx-topic abstract-wrapper">The materialization of any seasonal import rush and how carriers respond with capacity will give the container shipping market a better sense of first-half demand.</div>

The materialization of any seasonal import rush and how carriers respond with capacity will give the container shipping market a better sense of first-half demand.

<div class="phx-topic">The seasonal rush of US imports before Chinese factories idle in mid-February for Lunar New Year will be the trans-Pacific trade’s first major test of 2026, with forwarders and carriers divided on the strength of demand in a largely depressed market.  The materialization of any seasonal rush and how carriers respond with capacity will give the industry a better sense of first-half demand, reflecting restocking for post-holiday sales and demand for spring wares. The surge in shipping before Chinese production significantly slows ahead of the Lunar New Year has historically pushed up spot rates, giving carriers better standing in trans-Pacific service contracts. The National Retail Federation (NRF), in its monthly Global Port Tracker released on Friday, forecast the first month-over-month gain in import volumes (January from December) in six months, but noted that year-over-year import volumes would remain negative compared with quite strong import volumes early in 2025 as retailers frontloaded merchandise due to the expectation of higher tariffs. “There should be a brief bump in imports this month ahead of Lunar New Year factory shutdowns in Asia, but we’re otherwise headed into the post-holiday shopping lull that comes each year,” Jonathan Gold, NRF’s vice president for supply chain and customs policy, said in a statement accompanying the group’s import forecast. Monthly imports are down by double digits year overyear, but, encouragingly, bookings for Asia exports to North America have held up in the last two months, according to data from maritime visibility provider Vizion and data and analytics company Dun &amp; Bradstreet. Weekly Asia export bookings to the West Coast of North America began rising in December from November, averaging more than 150,000 TEUs a week on a four-week average compared with 77,000-80,000 TEUs per week in the prior month, according to the data. According to the ports of Los Angeles and Long Beach, which forecast the vessel arrivals and TEUs they will handle several weeks in advance, import volumes are peaking at the port complex at about 220,000 TEUs during the week of Jan. 4 and about 210,000 TEUs for the week of Jan. 11. Imports of 200,000 TEUs-plus represent a solid week in the largest US gateway. Imports are forecast to drop over the subsequent three weeks to about 175,000 TEUs, which is considered a normal seasonal lull, before returning to higher levels beginning in mid-February as freight that was loaded just prior to Lunar New Year lands. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="7f641553-97ec-4014-8e54-fef6408538d9"></dynamic-object></div>The timing of the pre-Lunar New Year cargo surge is affected this year by the later-than-usual holiday in Asia, which falls on Feb. 17. As a result, imports will likely increase in February and continue through the end of the month. The only question is the magnitude of the cargo spike. Even though many forwarders do not see a “surge” this year similar to the trans-Pacific surge experienced in January–February 2025, they say a modest increase in import volumes compared with last month is likely leading up to the factory closures in Asia. “There is no catalyst [for a surge],” one forwarder told the Journal of Commerce. “Importers are filling current orders, but they’re not pulling forward inventory.” According to the December Logistics Managers’ Report, the index reading was 54.2, down from November’s 55.7. “This is the lowest rate of expansion since April of 2024,” the report said. “I don’t see much inventory-building since the beginning of the year,” said Serkan Kavas, executive vice president for imports at the forwarder MTS Logistics. Ken O’Brien, president and CEO of Gemini Shippers Group, said the members of the group saw single-digit year-over-year declines in volumes in the fourth quarter due to the comparatively strong import volumes in 2024, although Gemini forecasts a 2% to 5% increase in trade growth in 2026. Industry adviser David Bennett said he is upbeat about the trans-Pacific market in the new year because he believes the largest US trade lane is normalizing back to the seasonal peaks and valleys the trade was accustomed to before the pandemic five years ago. “We have forgotten what that is like,” he said. “I see a nice pickup in volumes developing.” <h3>Spot rates higher </h3>Despite the year-over-year decline in imports this fall, trans-Pacific carriers were nevertheless successful in implementing a series of bi-monthly general rate increases (GRIs). Industry analysts and forwarders say carriers over the last several months have been able to keep a floor under spot rates through a combination of blank sailings and discipline because they agree a rate war would help neither carriers nor their customers. Resisting the urge to slash freight-all-kinds rates while consistently pepping up general rates increases has allowed carriers to push up spot rates and then watch them glide down. In the last four weeks, carriers’ strategy has produced a double-digit surge on a scale not seen since last summer’s rush. Platts, a sister company of the Journal of Commerce within S&amp;P Global, pegged North Asia-US West Coast spot rates at $2,175 per FEU as of Thursday, up almost 42% from $1,270 per FEU on Dec. 12. The East Coast rate of $3,175 per FEU is up 33% over the past four weeks. The World Container Index as assessed by Drewry pegged Shanghai-to-Los Angeles rates at $3,132 per FEU as of Thursday, up from $2,103 on Dec. 11. However, a proposed Jan. 1 GRI is not holding, a carrier executive told the Journal of Commerce this week. “Bookings are not really strong. There is no space shortage,” the carrier executive said. Nevertheless, spot rates are considered by carriers and their customers to be at levels that should not push down pricing in the 2026–27 service contract negotiations that will ramp up in intensity this month and next. That’s because spot rates are well above the current 2025–26 contract rates that were negotiated by midsize shippers last spring. Those contracts were priced about $1,700 to $1,850 per FEU to the West Coast and about $1,000 per FEU higher to the East Coast. Still, given the muted demand compared with last year in the trans-Pacific, the environment appears to favor the customers. “Aggregate supply is up. Supply is going up more than demand,” O’Brien said. “That is the reality.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.Contact Mark Szakonyi at <a href="https://www.joc.com/article/mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>.</div>

The seasonal rush of US imports before Chinese factories idle in mid-February for Lunar New Year will be the trans-Pacific trade’s first major test of 2026, with forwarders and carriers divided on the strength of demand in a largely depressed market.  The materialization of any seasonal rush and how carriers respond with capacity will give the industry a better sense of first-half demand, reflecting restocking for post-holiday sales and demand for spring wares. The surge in shipping before Chinese production significantly slows ahead of the Lunar New Year has historically pushed up spot rates, giving carriers better standing in trans-Pacific service contracts. The National Retail Federation (NRF), in its monthly Global Port Tracker released on Friday, forecast the first month-over-month gain in import volumes (January from December) in six months, but noted that year-over-year import volumes would remain negative compared with quite strong import volumes early in 2025 as retailers frontloaded merchandise due to the expectation of higher tariffs. “There should be a brief bump in imports this month ahead of Lunar New Year factory shutdowns in Asia, but we’re otherwise headed into the post-holiday shopping lull that comes each year,” Jonathan Gold, NRF’s vice president for supply chain and customs policy, said in a statement accompanying the group’s import forecast. Monthly imports are down by double digits year overyear, but, encouragingly, bookings for Asia exports to North America have held up in the last two months, according to data from maritime visibility provider Vizion and data and analytics company Dun & Bradstreet. Weekly Asia export bookings to the West Coast of North America began rising in December from November, averaging more than 150,000 TEUs a week on a four-week average compared with 77,000-80,000 TEUs per week in the prior month, according to the data. According to the ports of Los Angeles and Long Beach, which forecast the vessel arrivals and TEUs they will handle several weeks in advance, import volumes are peaking at the port complex at about 220,000 TEUs during the week of Jan. 4 and about 210,000 TEUs for the week of Jan. 11. Imports of 200,000 TEUs-plus represent a solid week in the largest US gateway. Imports are forecast to drop over the subsequent three weeks to about 175,000 TEUs, which is considered a normal seasonal lull, before returning to higher levels beginning in mid-February as freight that was loaded just prior to Lunar New Year lands. The timing of the pre-Lunar New Year cargo surge is affected this year by the later-than-usual holiday in Asia, which falls on Feb. 17. As a result, imports will likely increase in February and continue through the end of the month. The only question is the magnitude of the cargo spike. Even though many forwarders do not see a “surge” this year similar to the trans-Pacific surge experienced in January–February 2025, they say a modest increase in import volumes compared with last month is likely leading up to the factory closures in Asia. “There is no catalyst [for a surge],” one forwarder told the Journal of Commerce. “Importers are filling current orders, but they’re not pulling forward inventory.” According to the December Logistics Managers’ Report, the index reading was 54.2, down from November’s 55.7. “This is the lowest rate of expansion since April of 2024,” the report said. “I don’t see much inventory-building since the beginning of the year,” said Serkan Kavas, executive vice president for imports at the forwarder MTS Logistics. Ken O’Brien, president and CEO of Gemini Shippers Group, said the members of the group saw single-digit year-over-year declines in volumes in the fourth quarter due to the comparatively strong import volumes in 2024, although Gemini forecasts a 2% to 5% increase in trade growth in 2026. Industry adviser David Bennett said he is upbeat about the trans-Pacific market in the new year because he believes the largest US trade lane is normalizing back to the seasonal peaks and valleys the trade was accustomed to before the pandemic five years ago. “We have forgotten what that is like,” he said. “I see a nice pickup in volumes developing.” Spot rates higher Despite the year-over-year decline in imports this fall, trans-Pacific carriers were nevertheless successful in implementing a series of bi-monthly general rate increases (GRIs). Industry analysts and forwarders say carriers over the last several months have been able to keep a floor under spot rates through a combination of blank sailings and discipline because they agree a rate war would help neither carriers nor their customers. Resisting the urge to slash freight-all-kinds rates while consistently pepping up general rates increases has allowed carriers to push up spot rates and then watch them glide down. In the last four weeks, carriers’ strategy has produced a double-digit surge on a scale not seen since last summer’s rush. Platts, a sister company of the Journal of Commerce within S&P Global, pegged North Asia-US West Coast spot rates at $2,175 per FEU as of Thursday, up almost 42% from $1,270 per FEU on Dec. 12. The East Coast rate of $3,175 per FEU is up 33% over the past four weeks. The World Container Index as assessed by Drewry pegged Shanghai-to-Los Angeles rates at $3,132 per FEU as of Thursday, up from $2,103 on Dec. 11. However, a proposed Jan. 1 GRI is not holding, a carrier executive told the Journal of Commerce this week. “Bookings are not really strong. There is no space shortage,” the carrier executive said. Nevertheless, spot rates are considered by carriers and their customers to be at levels that should not push down pricing in the 2026–27 service contract negotiations that will ramp up in intensity this month and next. That’s because spot rates are well above the current 2025–26 contract rates that were negotiated by midsize shippers last spring. Those contracts were priced about $1,700 to $1,850 per FEU to the West Coast and about $1,000 per FEU higher to the East Coast. Still, given the muted demand compared with last year in the trans-Pacific, the environment appears to favor the customers. “Aggregate supply is up. Supply is going up more than demand,” O’Brien said. “That is the reality.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .Contact Mark Szakonyi at  mark.szakonyi@spglobal.com .

Port News

Forwarding

Trans-Pacific

Pre-Lunar New Year demand to give trans-Pac market first test of 2026

<div class="phx-topic abstract-wrapper">The declines from the country’s top three carriers are in line with what other carriers have reported thus far in an unsettled container shipping market.</div>

The declines from the country’s top three carriers are in line with what other carriers have reported thus far in an unsettled container shipping market.

<div class="phx-topic">Taiwan’s big three carriers saw revenue slide last year as weaker freight rates and cargo volumes took their toll on operating revenues. Evergreen Marine, the largest of the three, saw 2025 revenue fall 18% to $12 billion from almost $15 billion in 2024, it said in a stock exchange filing Thursday. Yang Ming, Taiwan’s second-largest carrier, reported the biggest drop, saying Friday that 2025 revenue fell 27% to $5.3 billion against $7 billion in the year prior. Intra-Asia focused Wan Hai Lines posted a 13% decline in 2025 revenue to $4.5 billion, it said in a filing Friday. The carriers gave no further details, as profit figures will be released as part of their formal annual results announcements in the next few months. But the revenue declines are thus far in line with the 2025 results of other carriers, <a href="https://www.joc.com/article/fourth-quarter-downturn-weighs-on-oocls-full-year-operating-result-6149730">with OOCL saying Friday</a> its revenue of $8.7 billion last year was down 10.6%. Trans-Pacific services were the biggest revenue generators for all three Taiwanese carriers last year. But indicative of the rate declines that hit their revenues, Shanghai Shipping Exchange data carried on the Journal of Commerce’s Gateway platform shows spot rates from Shanghai to the US West Coast tumbled 56% over the course of the year to end at $2,188 per FEU as of Jan. 2. Yang Ming in its filing indicated a pre-Lunar New Year cargo rush was driving volumes higher and supporting a rebound in revenues as 2026 began, momentum it expects to continue ahead of the holiday in mid-February. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Taiwan’s big three carriers saw revenue slide last year as weaker freight rates and cargo volumes took their toll on operating revenues. Evergreen Marine, the largest of the three, saw 2025 revenue fall 18% to $12 billion from almost $15 billion in 2024, it said in a stock exchange filing Thursday. Yang Ming, Taiwan’s second-largest carrier, reported the biggest drop, saying Friday that 2025 revenue fell 27% to $5.3 billion against $7 billion in the year prior. Intra-Asia focused Wan Hai Lines posted a 13% decline in 2025 revenue to $4.5 billion, it said in a filing Friday. The carriers gave no further details, as profit figures will be released as part of their formal annual results announcements in the next few months. But the revenue declines are thus far in line with the 2025 results of other carriers, with OOCL saying Friday its revenue of $8.7 billion last year was down 10.6%. Trans-Pacific services were the biggest revenue generators for all three Taiwanese carriers last year. But indicative of the rate declines that hit their revenues, Shanghai Shipping Exchange data carried on the Journal of Commerce’s Gateway platform shows spot rates from Shanghai to the US West Coast tumbled 56% over the course of the year to end at $2,188 per FEU as of Jan. 2. Yang Ming in its filing indicated a pre-Lunar New Year cargo rush was driving volumes higher and supporting a rebound in revenues as 2026 began, momentum it expects to continue ahead of the holiday in mid-February. Contact Keith Wallis at keithwallis@hotmail.com .

Taiwan’s major ocean carriers say weaker rates dragged down 2025 revenues

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