<div>Several days of delays and disruption caused by glitches in the launch of a new computerized operating system frayed nerves and caused expensive dislocations for truckers and ship lines at the Port of New York and New Jersey’s largest container terminal, but Gary Cross, CEO of Maher Terminals, expects long-term gain to outweigh short-term pain.Despite the startup problems, the new Navis N4 terminal operating system is a needed upgrade for an in-house system the terminal had used for years, he said. “It puts us in position to handle the larger vessels that will be coming our way with the raising...

Several days of delays and disruption caused by glitches in the launch of a new computerized operating system frayed nerves and caused expensive dislocations for truckers and ship lines at the Port of New York and New Jersey’s largest container terminal, but Gary Cross, CEO of Maher Terminals, expects long-term gain to outweigh short-term pain. Despite the startup problems, the new Navis N4 terminal operating system is a needed upgrade for an in-house system the terminal had used for years, he said. “It puts us in position to handle the larger vessels that will be coming our way with the raising of the Bayonne Bridge and the widening of the Panama Canal,” Cross said. For most of the last two weeks, truckers and ocean carriers have been unable to look beyond the here and now. Several days of monumental truck lines forced Maher to subcontract several ship calls to other port terminals. At least seven ships booked for Maher were worked by APM Terminals and New York Container Terminal. Drayage companies are tallying their losses for chassis rentals, per diem charges on equipment and loss of productivity when drivers stuck in line at Maher were unable to pick up or deliver containers at other terminals. “It was a nightmare,” said Jeff Bader, president of Golden Carriers and the Association of Bi-State Motor Carriers. Maher agreed to add up to two hours to detention payments for truckers’ waiting time outside terminal gates last week. The terminal also waived free time and demurrage for the two weeks ending June 21. Gate hours were extended last week from the normal 4 p.m. closing until 7 p.m. Cross said the Navis N4 system performed without a hitch during the first three phases of a four-phase introduction at Maher. The system has been installed at numerous other terminals around the world. The phase-in began more than two months ago at Maher’s off-dock depots for empty containers and chassis. The system later was introduced at the company’s main terminal, where it was used for Bermuda Container Line’s small operation, and at Maher’s rail terminal. Maher closed its gates on June 7 to inventory the terminal’s containers and prepare for the full cutover to the new system. During the following weekend, the new system was used for limited vessel operations and additional work. When the system began full operation on June 10, unexpected problems emerged. Delivery of export loads had to be halted, and truckers faced intermittent closings of terminal gates because of heavy backups that clogged roadways leading to the port. Cross said the bottlenecks resulted when the system failed to recognize all of the slots that were available for trucks to use at the point where boxes are interchanged with straddle carriers. Many trucks also were shunted to the terminal services building, known by drivers as the “trouble window.” A cell phone photo making the rounds last week showed several dozen drivers out of their cabs and waiting in line there. Productivity also was affected at ships, although Cross said this was mainly due to a break-in period while workers grew familiar with the new operating system. Subcontracting of vessel calls to APM Terminals and NYCT provided Maher with breathing room that allowed the backlog to be cleared. “We appreciate the cooperation the other terminals have provided,” Cross said. Although the switching of ship calls eased the strain on Maher’s system, it created difficulties for truckers who had to scramble to find chassis, and make additional trips to pick up and deliver chassis. TRAC Intermodal, which operates the Metro chassis pool at the port, has been shifting chassis between terminals and depots in an effort to keep pace with demand. By the middle of the new system’s second week, things were starting to get back on track. Gate activity had returned to normal, and Cross said Maher handled nearly 4,000 truck gate moves Tuesday. That was below the approximately 5,000 he said the terminal normally handles, but significantly higher than the daily volume of 1,100 to 1,200 when the new system debuted the previous week. Contact Joseph Bonney at jbonney@joc.com and follow him at twitter.com/JosephBonney .

Marine terminals

Maher Terminals Hits a Rough Patch at NY-NJ

<div class="phx-topic abstract-wrapper">As volumes of new energy generation and storage technologies grow, shippers expect more documentation, transparency and greater control over risk, according to project forwarders and carriers.</div>

As volumes of new energy generation and storage technologies grow, shippers expect more documentation, transparency and greater control over risk, according to project forwarders and carriers.

Feature image

<div class="phx-topic">A nascent boom in the transport of new power-related technologies such as large scale battery energy storage system (BESS) units is placing a higher compliance burden on project logistics professionals, from dangerous goods regulations and port processes to biosecurity and onsite safety requirements. Regulators and government authorities are restricting approval pathways, and shippers expect more documentation, more transparency, and greater control over risk, Colin Charnock, group CEO of forwarder Trans Global Projects (TGP), told the Journal of Commerce. “The power sector’s longstanding high expectations are not only continuing but intensifying,” Charnock said. “Logistics providers must operate with deeper technical expertise, stronger quality governance and more structured execution models. “Capacity planning, specialized equipment availability and cross-border regulatory alignment will all become more challenging as demand increases, particularly for remote-area deliveries, renewable energy projects and next-generation storage systems,” he added. And although it may be supercharged, <a href="https://www.joc.com/article/lumpy-project-cargo-demand-to-lead-to-two-tier-mpv-market-6164866">the power drive isn’t likely to be steady or uniform</a>, according to a spokesperson for Chipolbrok who did not want to be identified. The multipurpose and heavy-lift vessel (MPV) operator has seen a “remarkable decline” in oil and gas development <a href="https://www.joc.com/article/reversal-in-us-clean-energy-investment-signals-shift-in-project-cargo-momentum-6169519">outside the US</a>, with traditional power plant equipment volumes now “significantly exceeded” by demand from renewable energy and infrastructure projects, the spokesperson said. Earlier this year, Chipolbrok announced an order for up to 10 60,800-deadweight-ton MPVs that will increase its fleet to more than 40 vessels. The ships, the first of which is scheduled for delivery in November 2027, will be capable of carrying containerized energy storage systems, battery packs and electrical charging equipment, as well as other power-related project cargoes such as wind farm components. Demand is also uneven among geographical regions, the spokesperson said, adding that Chipolbrok is “focusing heavily on developments in the Arab world and the Indian subcontinent.” The situation in Central Europe, however, remains “somewhat unclear,” he said, as infrastructure projects have been overshadowed by military buildup and the war in Ukraine, even though there is a significant need for development there. Investors, developers and logistics providers must also deal with sudden policy upheavals, such as the Trump administration’s decision to cancel five major US offshore wind projects in late 2025. A January court ruling allowed construction to resume on all five sites — Coastal Virginia Offshore Wind-Commercial, Empire Wind 1, Revolution Wind, Sunrise Wind, and Vineyard Wind 1 — but the administration plans to appeal that decision, US Secretary of the Interior Doug Burgum said <a href="https://www.youtube.com/watch?v=JHSzhcphfkc">in an interview with Bloomberg Television.</a><h3>An ‘evolving’ environment </h3>Charnock said the global transition toward lower- and zero-carbon energy sources has further accelerated freight demand from the power generation and storage sector, but noted that TGP’s current cargo pipeline “spans every major segment of the sector: hydrogen, wind, nuclear, traditional generation and emerging technologies.” Although the logistics provider’s approach to transporting renewable power project cargoes does not differ fundamentally from moving conventional energy freight, the variety of equipment is increasing and each technology brings its own regulatory and operational challenges, he said. “Many of the core components, such as transformers, cables and control systems, are identical across both conventional and renewable applications,” Charnock said. “What differs is the regulatory framework around each technology, the sequencing of deliveries and in some cases the level of scrutiny from authorities and investors.” Charnock cited a recent delivery of 48 lithium BESS units from China to a remote site in Western Australia, the region’s first approved lithium battery import, as an example of the more stringent safety, compliance and risk management environment around new power technologies. Operationally, the move involved breakbulk ocean transport, specialized handling equipment and a challenging 90-km final leg across a dirt road. It also required “extensive compliance work,” he said, including a two year consultation process to secure port approval under new International Maritime Organization regulations, strict dangerous goods procedures, high pressure cleaning, and detailed biosecurity and customs controls. <h3>’Elevated safety protocol’ </h3>Jack Zhou, general manager at MPV operator AAL Shipping, said transporting IMO-classified cargo such as BESS units “requires elevated security documentation and safety protocol.” For starters, all AAL vessels hold a Document of Compliance for the Carriage of Dangerous Goods, which includes tailored onboard contingency plans covering spillage, fire and other emergency scenarios involving BESS units. “To further enhance the safety of the vessel and monitor the internal temperature of the BESS units, AAL has invested in flammable-gas detectors, temperature and humidity monitoring systems, portable thermal cameras and high-capacity submersible pumps,” Zhou told the Journal of Commerce. “Crews undergo specific drills prior to each shipment and vessels are equipped with toxic-gas protective gear.” Strict loading controls overseen by the vessel’s Officer of the Watch ensure all dangerous goods signals are displayed and that no “hot work,” such as welding the D-rings used for lashing, is carried out after BESS units are loaded on board. Weather routing experts help the in-house performance optimization team plan voyage routes to minimize vessel motion. During transit, the crew performs regular inspections and activate immediate countermeasures if any irregularities are found. “As BESS technology scales and unit sizes grow, AAL expects regulations to further evolve,” Zhou added. Contact Felicity Landon on <a href="mailto:felicity@felicitylandon.com">felicity@felicitylandon.com.</a></div>

A nascent boom in the transport of new power-related technologies such as large scale battery energy storage system (BESS) units is placing a higher compliance burden on project logistics professionals, from dangerous goods regulations and port processes to biosecurity and onsite safety requirements. Regulators and government authorities are restricting approval pathways, and shippers expect more documentation, more transparency, and greater control over risk, Colin Charnock, group CEO of forwarder Trans Global Projects (TGP), told the Journal of Commerce. “The power sector’s longstanding high expectations are not only continuing but intensifying,” Charnock said. “Logistics providers must operate with deeper technical expertise, stronger quality governance and more structured execution models. “Capacity planning, specialized equipment availability and cross-border regulatory alignment will all become more challenging as demand increases, particularly for remote-area deliveries, renewable energy projects and next-generation storage systems,” he added. And although it may be supercharged, the power drive isn’t likely to be steady or uniform , according to a spokesperson for Chipolbrok who did not want to be identified. The multipurpose and heavy-lift vessel (MPV) operator has seen a “remarkable decline” in oil and gas development outside the US , with traditional power plant equipment volumes now “significantly exceeded” by demand from renewable energy and infrastructure projects, the spokesperson said. Earlier this year, Chipolbrok announced an order for up to 10 60,800-deadweight-ton MPVs that will increase its fleet to more than 40 vessels. The ships, the first of which is scheduled for delivery in November 2027, will be capable of carrying containerized energy storage systems, battery packs and electrical charging equipment, as well as other power-related project cargoes such as wind farm components. Demand is also uneven among geographical regions, the spokesperson said, adding that Chipolbrok is “focusing heavily on developments in the Arab world and the Indian subcontinent.” The situation in Central Europe, however, remains “somewhat unclear,” he said, as infrastructure projects have been overshadowed by military buildup and the war in Ukraine, even though there is a significant need for development there. Investors, developers and logistics providers must also deal with sudden policy upheavals, such as the Trump administration’s decision to cancel five major US offshore wind projects in late 2025. A January court ruling allowed construction to resume on all five sites — Coastal Virginia Offshore Wind-Commercial, Empire Wind 1, Revolution Wind, Sunrise Wind, and Vineyard Wind 1 — but the administration plans to appeal that decision, US Secretary of the Interior Doug Burgum said in an interview with Bloomberg Television. An ‘evolving’ environment Charnock said the global transition toward lower- and zero-carbon energy sources has further accelerated freight demand from the power generation and storage sector, but noted that TGP’s current cargo pipeline “spans every major segment of the sector: hydrogen, wind, nuclear, traditional generation and emerging technologies.” Although the logistics provider’s approach to transporting renewable power project cargoes does not differ fundamentally from moving conventional energy freight, the variety of equipment is increasing and each technology brings its own regulatory and operational challenges, he said. “Many of the core components, such as transformers, cables and control systems, are identical across both conventional and renewable applications,” Charnock said. “What differs is the regulatory framework around each technology, the sequencing of deliveries and in some cases the level of scrutiny from authorities and investors.” Charnock cited a recent delivery of 48 lithium BESS units from China to a remote site in Western Australia, the region’s first approved lithium battery import, as an example of the more stringent safety, compliance and risk management environment around new power technologies. Operationally, the move involved breakbulk ocean transport, specialized handling equipment and a challenging 90-km final leg across a dirt road. It also required “extensive compliance work,” he said, including a two year consultation process to secure port approval under new International Maritime Organization regulations, strict dangerous goods procedures, high pressure cleaning, and detailed biosecurity and customs controls. ’Elevated safety protocol’ Jack Zhou, general manager at MPV operator AAL Shipping, said transporting IMO-classified cargo such as BESS units “requires elevated security documentation and safety protocol.” For starters, all AAL vessels hold a Document of Compliance for the Carriage of Dangerous Goods, which includes tailored onboard contingency plans covering spillage, fire and other emergency scenarios involving BESS units. “To further enhance the safety of the vessel and monitor the internal temperature of the BESS units, AAL has invested in flammable-gas detectors, temperature and humidity monitoring systems, portable thermal cameras and high-capacity submersible pumps,” Zhou told the Journal of Commerce. “Crews undergo specific drills prior to each shipment and vessels are equipped with toxic-gas protective gear.” Strict loading controls overseen by the vessel’s Officer of the Watch ensure all dangerous goods signals are displayed and that no “hot work,” such as welding the D-rings used for lashing, is carried out after BESS units are loaded on board. Weather routing experts help the in-house performance optimization team plan voyage routes to minimize vessel motion. During transit, the crew performs regular inspections and activate immediate countermeasures if any irregularities are found. “As BESS technology scales and unit sizes grow, AAL expects regulations to further evolve,” Zhou added. Contact Felicity Landon on felicity@felicitylandon.com.

Breakbulk carriers

Energy projects

Heavy-haul transport

Project cargo

Breakbulk News

Maritime

Surging energy cargo demand brings higher compliance burden

<div class="phx-topic abstract-wrapper">China export forecasts could top 8 million vehicles this year, providing a steady flow of cargo for the expected 8% increase in the global ro/ro fleet.</div>

China export forecasts could top 8 million vehicles this year, providing a steady flow of cargo for the expected 8% increase in the global ro/ro fleet.

<div class="phx-topic">Surging vehicle exports from China to developing markets will offset looming fears of overcapacity in the vehicle carrier market, the head of one of the roll-on/roll-off sector’s biggest operators said. Lasse Kristoffersen, president and CEO of Wallenius Wilhelmsen, predicted the growth in vehicle exports, especially from China, will match the influx of new vehicle carrier capacity this year based on manufacturers’ sales forecasts. He said China’s top seven manufacturers, including BYD, Geely, Chery and Nio, planned to ship an extra 2.3 million vehicles to overseas markets this year on top of official total vehicle exports of 5.9 million units. That followed a 24% rise in China’s vehicle exports to 6.9 million last year, up from 5 million in the year prior, Kristoffersen said during a results briefing last week. Kristoffersen noted the peak in pure car and truck carrier (PCTC) deliveries last year with 75 ships totaling 600,000 car equivalent units (CEU) joining the global fleet. A further 67 vessels are set for delivery this year, adding to the current fleet of 899 ships, according to figures from maritime consultant AXS Marine and British shipbroking house Clarksons.   This year’s new vessel deliveries equate to an 8% rise in total fleet capacity to 5.3 million CEUs this year, adding to the 13% increase last year. “This extra export volume more or less matches the extra capacity coming out of shipyards,” Kristoffersen said during the briefing. “That’s why we believe China will surprise on the upside.” Both Mitsui OSK Lines and “K” Line, in earnings statements last week, said they expected “solid demand” for vehicle exports to continue this year. <h3>Focus on emerging markets </h3>Kristoffersen said China’s vehicle export boom is being driven by a surge in exports to emerging markets including Latin America, where volumes are expected to grow 40% this year, and the Middle East, where 14% growth is expected. These developing markets call for longer two-month voyages, which reduces the impact of the influx of new shipping capacity, he said. Kristoffersen was commenting after several analysts, including Clarksons and AXS Marine, recently warned that the vehicle carrier market faces overcapacity, falling freight rates and lackluster demand growth on the back of limited scrapping. “While Chinese car and vehicle exports continue to record strong [volumes], the expansion of the PCTC fleet has become increasingly disproportionate to underlying market fundamentals, “ASX RoRo said in its February market report. “While Chinese vehicle exports continue to expand and are unlikely to slow materially, this growth largely reflects a shift in production and export patterns rather than a meaningful increase in global vehicle demand,” the report added. China’s vehicle exports continue to outpace Japan, which it overtook as the world’s biggest vehicle exporter in 2023. Japan and South Korea have both seen vehicle exports fall by almost 2% over the last two years, while Western manufacturers saw a steeper decline of between 4% and 10% in exports to Asia last year. “Unless demolition activity picks up more decisively, utilization and earnings are likely to come under pressure,” the AXS RoRo report said. Clarksons was slightly more upbeat, saying while one-year vessel charter rates had fallen 63% at the end of last year from “exceptional highs” in 2024, carriers generally continue to report “healthy earnings as cargo continues to be moved under contracts renegotiated at higher levels.” Highlighting the potential for vessel scrapping, Mitsui OSK Lines said in an earnings report this month that 29%, or 239 vehicle carriers, of the existing fleet of 819 ships is over 20 years old, while 18% is more than 26 years old. Kristoffersen said the decline in rates, from $115,000 per day for a 6,500-CEU ship in the first half of 2024 to almost $45,000 per day last month, has also opened opportunities to charter ships at more realistic levels for ad hoc spot vehicle and high-and-heavy cargoes. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Surging vehicle exports from China to developing markets will offset looming fears of overcapacity in the vehicle carrier market, the head of one of the roll-on/roll-off sector’s biggest operators said. Lasse Kristoffersen, president and CEO of Wallenius Wilhelmsen, predicted the growth in vehicle exports, especially from China, will match the influx of new vehicle carrier capacity this year based on manufacturers’ sales forecasts. He said China’s top seven manufacturers, including BYD, Geely, Chery and Nio, planned to ship an extra 2.3 million vehicles to overseas markets this year on top of official total vehicle exports of 5.9 million units. That followed a 24% rise in China’s vehicle exports to 6.9 million last year, up from 5 million in the year prior, Kristoffersen said during a results briefing last week. Kristoffersen noted the peak in pure car and truck carrier (PCTC) deliveries last year with 75 ships totaling 600,000 car equivalent units (CEU) joining the global fleet. A further 67 vessels are set for delivery this year, adding to the current fleet of 899 ships, according to figures from maritime consultant AXS Marine and British shipbroking house Clarksons.   This year’s new vessel deliveries equate to an 8% rise in total fleet capacity to 5.3 million CEUs this year, adding to the 13% increase last year. “This extra export volume more or less matches the extra capacity coming out of shipyards,” Kristoffersen said during the briefing. “That’s why we believe China will surprise on the upside.” Both Mitsui OSK Lines and “K” Line, in earnings statements last week, said they expected “solid demand” for vehicle exports to continue this year. Focus on emerging markets Kristoffersen said China’s vehicle export boom is being driven by a surge in exports to emerging markets including Latin America, where volumes are expected to grow 40% this year, and the Middle East, where 14% growth is expected. These developing markets call for longer two-month voyages, which reduces the impact of the influx of new shipping capacity, he said. Kristoffersen was commenting after several analysts, including Clarksons and AXS Marine, recently warned that the vehicle carrier market faces overcapacity, falling freight rates and lackluster demand growth on the back of limited scrapping. “While Chinese car and vehicle exports continue to record strong [volumes], the expansion of the PCTC fleet has become increasingly disproportionate to underlying market fundamentals, “ASX RoRo said in its February market report. “While Chinese vehicle exports continue to expand and are unlikely to slow materially, this growth largely reflects a shift in production and export patterns rather than a meaningful increase in global vehicle demand,” the report added. China’s vehicle exports continue to outpace Japan, which it overtook as the world’s biggest vehicle exporter in 2023. Japan and South Korea have both seen vehicle exports fall by almost 2% over the last two years, while Western manufacturers saw a steeper decline of between 4% and 10% in exports to Asia last year. “Unless demolition activity picks up more decisively, utilization and earnings are likely to come under pressure,” the AXS RoRo report said. Clarksons was slightly more upbeat, saying while one-year vessel charter rates had fallen 63% at the end of last year from “exceptional highs” in 2024, carriers generally continue to report “healthy earnings as cargo continues to be moved under contracts renegotiated at higher levels.” Highlighting the potential for vessel scrapping, Mitsui OSK Lines said in an earnings report this month that 29%, or 239 vehicle carriers, of the existing fleet of 819 ships is over 20 years old, while 18% is more than 26 years old. Kristoffersen said the decline in rates, from $115,000 per day for a 6,500-CEU ship in the first half of 2024 to almost $45,000 per day last month, has also opened opportunities to charter ships at more realistic levels for ad hoc spot vehicle and high-and-heavy cargoes. Contact Keith Wallis at keithwallis@hotmail.com .

Ro/ro cargo

Surging China auto exports to counter carrier overcapacity fears: Wilhelmsen CEO

<div class="phx-topic abstract-wrapper">The increase in volume that would result across the trans-Atlantic and trans-Pacific corridors was particularly welcome, according to Hapag-Lloyd’s CEO.</div>

The increase in volume that would result across the trans-Atlantic and trans-Pacific corridors was particularly welcome, according to Hapag-Lloyd’s CEO.

<div class="phx-topic">Hapag-Lloyd’s $4.2 billion acquisition of Zim Integrated Shipping Services that was announced Monday will significantly improve the Hamburg-based carrier’s position on several major trade lanes. While cementing the buyer’s position <a href="https://www.joc.com/article/hapag-lloyds-plan-to-acquire-zim-would-deepen-shipping-oligopoly-6170073">as the world’s fifth-largest container shipping company</a>, the takeover will grow Hapag-Lloyd’s volume share on the trans-Atlantic from 24% to 27%, on the trans-Pacific from 7% to 12%, in Asia from 9% to 11%, on Asia-Latin America from 11% to 14%, and from 2% to 7% on the intra-Europe trade, according to data from Container Trades Statistics (CTS) cited by Hapag-Lloyd. Hapag-Lloyd CEO Rolf Habben Jansen highlighted as particularly welcome the increase in volume that would result across the trans-Atlantic and trans-Pacific corridors. “When we look for a minute at the trade portfolios on the Atlantic and trans-Pacific, if we joined forces we would really get into very strong position,” he told reporters during an online briefing Monday shortly after signing the Zim deal in Tel Aviv. A 27% market share on the trans-Atlantic would put Hapag-Lloyd in second place behind Mediterranean Shipping Co. at 29%, according to the CTS figures cited by Hapag-Lloyd. According to PIERS, a sister company of the Journal of Commerce within S&amp;P Global, Hapag-Lloyd had a market share of 19.6% on the trans-Atlantic in January, behind MSC’s 22.6%. But Hapag-Lloyd held the top position throughout the fourth quarter of 2025 with a share that exceeded 25% in October and December. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ce24ca8a-5149-4e8e-a00a-5743e4d2abba"></dynamic-object></div>On the trans-Pacific, the addition of Zim would put Hapag-Lloyd level with Ocean Network Express in third position behind MSC at 13%, according to CTS. Habben Jansen said the Asia-Latin America trade has long been a corridor he has wanted to expand. In 2023, Hapag-Lloyd strengthened its position with the acquisition of SM SAAM terminal business while growing dedicated service networks on the trade lane. “Zim has done really well on Asia-Latin America in the last couple of years and this would allow us to get closer to the 15%, 16% [volume share] that we’ve always aspired to,” Habben Jansen told reporters. MSC holds the largest market share on the trade at 21%. <h3>Intra-Europe share ‘too small’ </h3>The Zim volume added on the intra-Europe trade would put Hapag-Lloyd level with Cosco Shipping at 7%, although considering it is a home market for the Hamburg-based carrier, Habben Jansen indicated there is still room to grow. “Intra-Europe for Hapag-Lloyd is too small in my view,” he said. “We would like to get to a market share of around 10%, and this would help us make a good step in that direction.” The Zim deal is expected to be completed by the end of the year, subject to approval of the Israeli carrier’s shareholders and regulatory approval in several jurisdictions. The acquisition comes as container shipping moves into a supply-driven downcycle, with the declining market sharply illustrated in Hapag-Lloyd’s preliminary results for 2025 <a href="https://www.joc.com/article/fourth-quarter-rate-slump-drags-down-hapag-lloyds-2025-financials-6166755">that included a steep drop in profitability</a>. Zim’s earnings have yet to be announced. Hapag-Lloyd’s estimated 2025 revenue for the combined entity would be $28 billion, a $1.1 billion drop from 2024. In earnings before interest and taxes, the $5.3 billion reported in 2024 by both carriers is expected to plummet to $2 billion should Zim hit the higher end of its 2025 forecast. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Hapag-Lloyd’s $4.2 billion acquisition of Zim Integrated Shipping Services that was announced Monday will significantly improve the Hamburg-based carrier’s position on several major trade lanes. While cementing the buyer’s position as the world’s fifth-largest container shipping company , the takeover will grow Hapag-Lloyd’s volume share on the trans-Atlantic from 24% to 27%, on the trans-Pacific from 7% to 12%, in Asia from 9% to 11%, on Asia-Latin America from 11% to 14%, and from 2% to 7% on the intra-Europe trade, according to data from Container Trades Statistics (CTS) cited by Hapag-Lloyd. Hapag-Lloyd CEO Rolf Habben Jansen highlighted as particularly welcome the increase in volume that would result across the trans-Atlantic and trans-Pacific corridors. “When we look for a minute at the trade portfolios on the Atlantic and trans-Pacific, if we joined forces we would really get into very strong position,” he told reporters during an online briefing Monday shortly after signing the Zim deal in Tel Aviv. A 27% market share on the trans-Atlantic would put Hapag-Lloyd in second place behind Mediterranean Shipping Co. at 29%, according to the CTS figures cited by Hapag-Lloyd. According to PIERS, a sister company of the Journal of Commerce within S&P Global, Hapag-Lloyd had a market share of 19.6% on the trans-Atlantic in January, behind MSC’s 22.6%. But Hapag-Lloyd held the top position throughout the fourth quarter of 2025 with a share that exceeded 25% in October and December. On the trans-Pacific, the addition of Zim would put Hapag-Lloyd level with Ocean Network Express in third position behind MSC at 13%, according to CTS. Habben Jansen said the Asia-Latin America trade has long been a corridor he has wanted to expand. In 2023, Hapag-Lloyd strengthened its position with the acquisition of SM SAAM terminal business while growing dedicated service networks on the trade lane. “Zim has done really well on Asia-Latin America in the last couple of years and this would allow us to get closer to the 15%, 16% [volume share] that we’ve always aspired to,” Habben Jansen told reporters. MSC holds the largest market share on the trade at 21%. Intra-Europe share ‘too small’ The Zim volume added on the intra-Europe trade would put Hapag-Lloyd level with Cosco Shipping at 7%, although considering it is a home market for the Hamburg-based carrier, Habben Jansen indicated there is still room to grow. “Intra-Europe for Hapag-Lloyd is too small in my view,” he said. “We would like to get to a market share of around 10%, and this would help us make a good step in that direction.” The Zim deal is expected to be completed by the end of the year, subject to approval of the Israeli carrier’s shareholders and regulatory approval in several jurisdictions. The acquisition comes as container shipping moves into a supply-driven downcycle, with the declining market sharply illustrated in Hapag-Lloyd’s preliminary results for 2025 that included a steep drop in profitability . Zim’s earnings have yet to be announced. Hapag-Lloyd’s estimated 2025 revenue for the combined entity would be $28 billion, a $1.1 billion drop from 2024. In earnings before interest and taxes, the $5.3 billion reported in 2024 by both carriers is expected to plummet to $2 billion should Zim hit the higher end of its 2025 forecast. Contact Greg Knowler at greg.knowler@spglobal.com .

Container lines

Container Shipping News

Zim deal to strengthen Hapag-Lloyd’s market share across key trade lanes

<div class="phx-topic abstract-wrapper">Fragmented regional greenhouse gas regulatory frameworks such as the EU ETS have increased the complexity of operating a global network and will be difficult to navigate, observers say.</div>

Fragmented regional greenhouse gas regulatory frameworks such as the EU ETS have increased the complexity of operating a global network and will be difficult to navigate, observers say.

<div class="phx-topic">A series of maritime carbon pricing schemes either in effect or under development in various jurisdictions is reinforcing industry concerns that the absence of global regulation will lead to overlapping measures that undermine shipping’s decarbonization drive. The International Maritime Organization last October was forced to <a href="https://www.joc.com/article/delay-in-imo-decarbonization-plans-robs-green-fuel-investors-of-certainty-6101250">delay adoption of its net-zero framework</a> for a year. At the time, critics warned the delay would lead to a host of local carbon pricing initiatives that would be difficult for carriers to navigate; according to design and engineering consultancy BAR Technologies, momentum is building in that direction. “Carbon compliance is becoming more fragmented by the month,” BAR Technologies CEO John Cooper said in a statement. “Instead of building momentum behind a single global framework, we’re creating a patchwork of schemes with different baselines, rules and cost mechanisms. “That creates confusion, inflates costs, and weakens the industry’s ability to invest in real, scalable solutions,” he added. According to the International Carbon Action Partnership (ICAP), the carbon pricing measures currently in effect are the European Union emissions trading system (EU ETS), the South Korean ETS, the New Zealand ETS, and the China-Shanghai pilot ETS that has been in force since 2013. A Brazilian greenhouse gas (GHG) emissions trading system is under development. Last week, the British House of Commons voted to roll out a UK ETS to the domestic maritime industry from July 1, while it considers expanding that to include international maritime voyages starting or ending in the UK, with a proposed start date of 2028. But the UK Chamber of Shipping warned that the policy risks harming UK competitiveness while increasing costs for island communities and slowing progress toward net-zero. It called for alignment with EU ETS rules to avoid double‑charging and carbon leakage, and for a phased in or “monitor‑only” period until operators and ports have the systems required for compliance. “The sector supports the UK’s climate goals, but cannot deliver meaningful emissions reduction without the necessary fuels, infrastructure and clear guidance in place — and [with] unreasonable timeframes to implement flawed policy,” a spokesperson for the UK chamber said in a statement, noting that premature implementation risks higher costs for freight. Maersk noted in its annual report for 2025 published earlier this month that regional GHG regulatory frameworks such as the EU ETS have increased the complexity of operating a global network. “With each regulation having different standards and criteria, the need for allocation of lower GHG emission fuels to cover the compliance requirements of different regulations and customer demands in the most cost-effective manner, complexity is added,” the carrier said, adding that global regulation was required to curb emissions. The IMO’s net-zero framework was expected to be adopted at a special meeting of its Marine Environment Protection Committee (MEPC) in London in October last year after the measure was approved by a majority of member states the previous April. But the regulation was postponed for one year after it was derailed by US-led opposition during the combative October meeting. <h3>Europe’s ETS now fully phased in </h3>From a container shipping perspective, the EU ETS is by far the most significant carbon pricing mechanism currently in effect. Compliance has been phased in over the past two years, and 100% of reported maritime emissions are now covered in the EU ETS allowances with carriers passing on the costs to their customers. The regulation covers 100% of emissions for voyages between two EU ports and 50% of emissions for voyages starting or ending outside the EU for any ship of over 5,000 gross tons. Vessels are required to buy European Union Allowances (EUAs) to cover the emissions generated by their voyages and surrender the allowances by September of the following year. Failure to comply can lead to a penalty of €100 per ton. Methane and nitrous oxide have been included in the emissions calculations from this year, with the inclusion designed to incentivize a shift toward cleaner fuels, although the infrastructure and cost of those alternatives remain significant barriers. The EUA price is forecast by carbon market specialist Grey Epoch to rise 19% in 2026 to €86 ($101) per metric ton of CO2 equivalent. According to Deutsche Bank, the EU carbon price will range between $70 to $177 in 2026. Visibility provider Searoutes noted in a recent market update that the introduction of the EU ETS in 2024 coincided with Red Sea ship diversions when ETS surcharges added just 1% to shipping costs, a drop in the ocean as rates soared. But in 2026, the market situation has changed. Rates have fallen and EU ETS compliance costs have increased, with carrier surcharges now averaging $168 per FEU from Asia to North Europe, 8% of the current rate on Drewry’s World Container Index. Searoutes warns that surcharges could jump to 12% or more of total costs should a full resumption of Red Sea transits occur this year.Contact Greg Knowler at <a href="">greg.knowler@spglobal.com</a>. </div>

A series of maritime carbon pricing schemes either in effect or under development in various jurisdictions is reinforcing industry concerns that the absence of global regulation will lead to overlapping measures that undermine shipping’s decarbonization drive. The International Maritime Organization last October was forced to delay adoption of its net-zero framework for a year. At the time, critics warned the delay would lead to a host of local carbon pricing initiatives that would be difficult for carriers to navigate; according to design and engineering consultancy BAR Technologies, momentum is building in that direction. “Carbon compliance is becoming more fragmented by the month,” BAR Technologies CEO John Cooper said in a statement. “Instead of building momentum behind a single global framework, we’re creating a patchwork of schemes with different baselines, rules and cost mechanisms. “That creates confusion, inflates costs, and weakens the industry’s ability to invest in real, scalable solutions,” he added. According to the International Carbon Action Partnership (ICAP), the carbon pricing measures currently in effect are the European Union emissions trading system (EU ETS), the South Korean ETS, the New Zealand ETS, and the China-Shanghai pilot ETS that has been in force since 2013. A Brazilian greenhouse gas (GHG) emissions trading system is under development. Last week, the British House of Commons voted to roll out a UK ETS to the domestic maritime industry from July 1, while it considers expanding that to include international maritime voyages starting or ending in the UK, with a proposed start date of 2028. But the UK Chamber of Shipping warned that the policy risks harming UK competitiveness while increasing costs for island communities and slowing progress toward net-zero. It called for alignment with EU ETS rules to avoid double‑charging and carbon leakage, and for a phased in or “monitor‑only” period until operators and ports have the systems required for compliance. “The sector supports the UK’s climate goals, but cannot deliver meaningful emissions reduction without the necessary fuels, infrastructure and clear guidance in place — and [with] unreasonable timeframes to implement flawed policy,” a spokesperson for the UK chamber said in a statement, noting that premature implementation risks higher costs for freight. Maersk noted in its annual report for 2025 published earlier this month that regional GHG regulatory frameworks such as the EU ETS have increased the complexity of operating a global network. “With each regulation having different standards and criteria, the need for allocation of lower GHG emission fuels to cover the compliance requirements of different regulations and customer demands in the most cost-effective manner, complexity is added,” the carrier said, adding that global regulation was required to curb emissions. The IMO’s net-zero framework was expected to be adopted at a special meeting of its Marine Environment Protection Committee (MEPC) in London in October last year after the measure was approved by a majority of member states the previous April. But the regulation was postponed for one year after it was derailed by US-led opposition during the combative October meeting. Europe’s ETS now fully phased in From a container shipping perspective, the EU ETS is by far the most significant carbon pricing mechanism currently in effect. Compliance has been phased in over the past two years, and 100% of reported maritime emissions are now covered in the EU ETS allowances with carriers passing on the costs to their customers. The regulation covers 100% of emissions for voyages between two EU ports and 50% of emissions for voyages starting or ending outside the EU for any ship of over 5,000 gross tons. Vessels are required to buy European Union Allowances (EUAs) to cover the emissions generated by their voyages and surrender the allowances by September of the following year. Failure to comply can lead to a penalty of €100 per ton. Methane and nitrous oxide have been included in the emissions calculations from this year, with the inclusion designed to incentivize a shift toward cleaner fuels, although the infrastructure and cost of those alternatives remain significant barriers. The EUA price is forecast by carbon market specialist Grey Epoch to rise 19% in 2026 to €86 ($101) per metric ton of CO2 equivalent. According to Deutsche Bank, the EU carbon price will range between $70 to $177 in 2026. Visibility provider Searoutes noted in a recent market update that the introduction of the EU ETS in 2024 coincided with Red Sea ship diversions when ETS surcharges added just 1% to shipping costs, a drop in the ocean as rates soared. But in 2026, the market situation has changed. Rates have fallen and EU ETS compliance costs have increased, with carrier surcharges now averaging $168 per FEU from Asia to North Europe, 8% of the current rate on Drewry’s World Container Index. Searoutes warns that surcharges could jump to 12% or more of total costs should a full resumption of Red Sea transits occur this year. Contact Greg Knowler at  greg.knowler@spglobal.com . 

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Shipping decarbonization drive faces patchwork of carbon tax measures

<div class="phx-topic abstract-wrapper">A heavily oversupplied equipment market born out of the pandemic disruption is forcing chassis providers to ensure visibility technology plays a growing role as a differentiator. </div>

A heavily oversupplied equipment market born out of the pandemic disruption is forcing chassis providers to ensure visibility technology plays a growing role as a differentiator.

<div class="phx-topic">Amid a US marine chassis market that is deeply oversupplied in part due to the fluid flow of cargo through ports in 2025, leading chassis lessors are stepping up deployment of location sensors as a competitive tool to create value for beneficial cargo owners (BCOs), forwarders and truckers. The ports of Los Angeles and Long Beach last year handled record loaded import volumes of over 10 million TEUs, according to S&amp;P Global Market Intelligence, with virtually no congestion. That points, among other things, to cargo being quickly unloaded at warehouses and containers and chassis put back into circulation with little or no delay, in contrast to the pandemic cargo rush when equipment was idled for weeks, creating an historic bottleneck. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6170490_0.1.jpg"></img></div>As a result of the COVID-19 experience, thousands of additional marine chassis entered the market during and after the crisis, mirroring heavy investments in trucks, containers and warehouse space. “All of which contributed to the overall US transport and logistics system functioning with little to no friction ... even at import volumes that have been at or above COVID levels for all of 2025,” said Ron Widdows, CEO of chassis provider Flexi-Van Leasing. The glut of chassis equipment is severe — Flexi- Van estimates half of the US fleet of 600,000 marine container chassis are utilized currently, and returns are occurring 20% faster, cutting further into lessors’ revenues. “The latent capacity in the system will be there for some time,” Widdows said. “The asset provider part of the supply chain has done a wonderful job in creating the asset availability ... and now suffers the impact of a very efficient supply chain and the impact on asset utilization.” The chassis leasing space has led to a sharper competitive environment with visibility technology playing a growing role as a differentiator. The offerings fall into the category of in-transit versus milestone visibility, in which chassis units, and by extension the containers and cargo they are carrying, are tracked in real time with various benefits derived from the information. It is not dissimilar to efforts by carriers including Hapag-Lloyd, to connect their full fleet of dry containers, also aiming to improve on milestone visibility derived from readings at junctures such as marine container gates or arrival at an ultimate destination. “The shipping industry has long relied on discrete and often inaccurate event updates that may lag by hours or even days,” WiseTech Global CEO Zubin Appoo <a href="https://www.wisetechglobal.com/news/wisetech-global-and-hapag-lloyd-launch-iot-container-tracking-pilot-to-deliver-next-generation-supply-chain-visibility/">said on Feb. 10 in announcing an agreement</a> with Hapag-Lloyd to make its container location data available to customers. <h3>Competition growing amid new tech solutions </h3>Flexi-Van introduced a technology-based offering from the beginning of its current iteration in 2016 as American Intermodal Management, or AIM. In 2020, AIM acquired Flexi-Van, whose origins go back to the early days of containers in the 1950s, with the idea of extending its tech-based and new equipment offering into the larger footprint of a legacy national intermodal equipment provider (IEP). That was a natural progression for AIM, which emerged out of the stressed 2014–15 period at Los Angeles-Long Beach that was marked by a disruptive longshore labor negotiation and an aging, formerly carrier-owned chassis fleet that was subject to regular roadability delays within the context of the much-debated “pool of pools” system. AIM entered the market as an outsider with a new model, offering new and guaranteed equipment under direct leases and a near-port location using longshore union labor. The GPS devices allowed for visibility and resulted in opportunities for cost savings during the round trip from terminal to warehouse through to return. “Fundamentally from the beginning the idea was to establish relationships directly with BCOs and the motor carriers that support them,” Widdows said, noting the concept of AIM came out of APL where Widdows had previously served as CEO and which had implemented equipment tracking at Pier 300 in Los Angeles beginning in the 1990s. “If you can better manage your flow and impact the efficiency of inland transportation, this has much larger financial implications than the cost of the chassis.” Now competition in the space is growing as other lessors bring tech solutions to BCO-specific offerings. Last year, for example, chassis provider DCLI introduced an offering called Direct Chassis Link Reserve tailored to BCOs, providing marine chassis capacity with newer units (seven years old or less), GPS-enabled visibility, and locations at major ports. Trac Intermodal, the other large IEP in the US, described GPS technology as a “cornerstone” of its offering, saying advanced GPS solutions are offered as an add-on to term leases. Trac says each chassis is equipped with GPS, enabling customers to track location, monitor movement, and optimize utilization. It says that by pairing GPS tracking with geofencing, it ensures billing starts only when a chassis leaves the customer’s facility while giving motor carriers, ocean carriers, BCOs, railroads, and non-vessel operating common carriers visibility into their equipment and helping them identify idle assets and reduce delays. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com</a>.</div>

Amid a US marine chassis market that is deeply oversupplied in part due to the fluid flow of cargo through ports in 2025, leading chassis lessors are stepping up deployment of location sensors as a competitive tool to create value for beneficial cargo owners (BCOs), forwarders and truckers. The ports of Los Angeles and Long Beach last year handled record loaded import volumes of over 10 million TEUs, according to S&P Global Market Intelligence, with virtually no congestion. That points, among other things, to cargo being quickly unloaded at warehouses and containers and chassis put back into circulation with little or no delay, in contrast to the pandemic cargo rush when equipment was idled for weeks, creating an historic bottleneck. As a result of the COVID-19 experience, thousands of additional marine chassis entered the market during and after the crisis, mirroring heavy investments in trucks, containers and warehouse space. “All of which contributed to the overall US transport and logistics system functioning with little to no friction ... even at import volumes that have been at or above COVID levels for all of 2025,” said Ron Widdows, CEO of chassis provider Flexi-Van Leasing. The glut of chassis equipment is severe — Flexi- Van estimates half of the US fleet of 600,000 marine container chassis are utilized currently, and returns are occurring 20% faster, cutting further into lessors’ revenues. “The latent capacity in the system will be there for some time,” Widdows said. “The asset provider part of the supply chain has done a wonderful job in creating the asset availability ... and now suffers the impact of a very efficient supply chain and the impact on asset utilization.” The chassis leasing space has led to a sharper competitive environment with visibility technology playing a growing role as a differentiator. The offerings fall into the category of in-transit versus milestone visibility, in which chassis units, and by extension the containers and cargo they are carrying, are tracked in real time with various benefits derived from the information. It is not dissimilar to efforts by carriers including Hapag-Lloyd, to connect their full fleet of dry containers, also aiming to improve on milestone visibility derived from readings at junctures such as marine container gates or arrival at an ultimate destination. “The shipping industry has long relied on discrete and often inaccurate event updates that may lag by hours or even days,” WiseTech Global CEO Zubin Appoo said on Feb. 10 in announcing an agreement with Hapag-Lloyd to make its container location data available to customers. Competition growing amid new tech solutions Flexi-Van introduced a technology-based offering from the beginning of its current iteration in 2016 as American Intermodal Management, or AIM. In 2020, AIM acquired Flexi-Van, whose origins go back to the early days of containers in the 1950s, with the idea of extending its tech-based and new equipment offering into the larger footprint of a legacy national intermodal equipment provider (IEP). That was a natural progression for AIM, which emerged out of the stressed 2014–15 period at Los Angeles-Long Beach that was marked by a disruptive longshore labor negotiation and an aging, formerly carrier-owned chassis fleet that was subject to regular roadability delays within the context of the much-debated “pool of pools” system. AIM entered the market as an outsider with a new model, offering new and guaranteed equipment under direct leases and a near-port location using longshore union labor. The GPS devices allowed for visibility and resulted in opportunities for cost savings during the round trip from terminal to warehouse through to return. “Fundamentally from the beginning the idea was to establish relationships directly with BCOs and the motor carriers that support them,” Widdows said, noting the concept of AIM came out of APL where Widdows had previously served as CEO and which had implemented equipment tracking at Pier 300 in Los Angeles beginning in the 1990s. “If you can better manage your flow and impact the efficiency of inland transportation, this has much larger financial implications than the cost of the chassis.” Now competition in the space is growing as other lessors bring tech solutions to BCO-specific offerings. Last year, for example, chassis provider DCLI introduced an offering called Direct Chassis Link Reserve tailored to BCOs, providing marine chassis capacity with newer units (seven years old or less), GPS-enabled visibility, and locations at major ports. Trac Intermodal, the other large IEP in the US, described GPS technology as a “cornerstone” of its offering, saying advanced GPS solutions are offered as an add-on to term leases. Trac says each chassis is equipped with GPS, enabling customers to track location, monitor movement, and optimize utilization. It says that by pairing GPS tracking with geofencing, it ensures billing starts only when a chassis leaves the customer’s facility while giving motor carriers, ocean carriers, BCOs, railroads, and non-vessel operating common carriers visibility into their equipment and helping them identify idle assets and reduce delays. Contact Peter Tirschwell at peter.tirschwell@spglobal.com .

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