<div class="phx-topic abstract-wrapper">For the majority of importers, Jan. 26 will pass as any other Tuesday this year.</div>

For the majority of importers, Jan. 26 will pass as any other Tuesday this year.

<div>For the majority of importers, Jan. 26 will pass as any other Tuesday this year. But those who have ignored or missed the flood of preparatory information about Customs’ enforcement of the Importer Security Filing rule are in for a shock.Starting Jan. 26, those opting to take that route will pay a price for noncompliance, not enough to put them out of business, but still enough to hurt.“I think there are a lot of companies out there that are not filing because they elected not to do so, or more likely, they’re simply unaware of the requirement,” said Bruce Leeds,...

For the majority of importers, Jan. 26 will pass as any other Tuesday this year. But those who have ignored or missed the flood of preparatory information about Customs’ enforcement of the Importer Security Filing rule are in for a shock. Starting Jan. 26, those opting to take that route will pay a price for noncompliance, not enough to put them out of business, but still enough to hurt. “I think there are a lot of companies out there that are not filing because they elected not to do so, or more likely, they’re simply unaware of the requirement,” said Bruce Leeds, a Los Angeles trade attorney. Customs and Border Protection “has done a great job of outreach, but it’s hard to reach all those people.” Mike Laden, principal at supply chain security and customs compliance consultant TradeInnovations, said there are two types of companies that find themselves in a precarious position: “the procrastinators and those who wrongly believed that this was going to go away. You have these companies that pinned their hopes on trade associations getting this thing derailed. They’ve been sitting on their hands.” The ISF violator may be a small importer who only makes one or two entries a year, but size doesn’t really matter. “Two weeks ago, we were on the phone with one fairly large importer — several thousand entries per year — and they’re just beginning to design and implement ISF,” Laden said. “That’s cutting it very close — too close for my comfort.” [Editorial note: image removed/no longer available] The rule, commonly known as 10+2, obligates importers and ocean carriers to report 12 data elements that don’t appear on the ship’s manifest and file the information 24 hours before the ship sails from a foreign port for the United States. Customs said it needs the details to better identify high-risk cargo that warrants closer scrutiny. It’s a key to the agency’s supply chain security strategy. “We’ve been getting a lot more questions from folks, and it’s fairly evident that they weren’t prepared. But that’s not the vast majority of what we’ve seen,” said Richard DiNucci, director of Customs’ Secure Freight Initiative. When enforcement starts, “We’re ready if issues turn up, but by and large, we’re pretty optimistic that we’re in good shape.” Leeds said Customs would “go easy on companies that have made a diligent attempt to get their ISF filings in order. If the importer is trying to get it right, I think Customs is going easy on those folks. Rich (DiNucci) has said several times, ‘We don’t want the money; we want the data.’ Money is a tool to get the data.” In the first few weeks or months of enforcement, Customs’ hammer will fall on importers who have not made ISF filings, Leeds said. Even then the response is likely to be relatively benign. “Customs will hold up the release of the cargo until the importer files the ISF and gets a bond,” he said. The worst penalty is an order to the carrier not to load an importer’s boxes if it doesn’t have an ISF bond. “If everything is being done timely, getting that bond is not going to be a problem,” said Matthew Zehner, vice president of Roanoke Trade Services, a Schaumburg, Ill.-based insurance broker and sureties firm. “When it’s known there’s a violation — it’s late, you missed the deadline — it gets dicier.” Because late filing by definition is a violation, Zehner said a surety knows Customs will make a claim against the bond. To get a bond, the importer will pay a premium — maybe $5,000 extra in cash — that the surety will keep until Customs’ claim is settled. An importer’s money could be tied up for years. “We’re not going to just hand them the bond, and we’re not going to wait six months for Customs to issue penalties,” Zehner said. “We want to take our security in advance.” When Customs announced the 24-hour rule in 2002, it sent a chill through the supply chain. With ISF, the trade generally commends Customs for its education efforts. “The shipping community knows that Customs has done a great job in telling the world about this new requirement,” Laden said. “I think this one has the ability to disrupt or cause more pain and frustration for importers who didn’t get the message, because it touches everyone in the supply chain,” he said. “Remember, the 24-hour rule only affected the carriers . . . This change is unprecedented. It impacts the entire supply chain.” Contact R.G. Edmonson at bedmonson@joc.com .

Transport, Trade and Regulation News

For Procrastinators, 10+2 Equals Pain

<div class="phx-topic abstract-wrapper">From tariffs to weather to labor shortages, the breakbulk industry has been forced to navigate a series of hurdles of late.</div>

From tariffs to weather to labor shortages, the breakbulk industry has been forced to navigate a series of hurdles of late.

Feature image

<div class="phx-topic">New Orleans — With breakbulk demands and trade lanes shifting rapidly amid geopolitical events and trade volatility, coping with those challenges will call for communication, partnerships and planning among forwarders, carriers, shippers, and ports, attendees were told Wednesday at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026. “The biggest challenge that we’ve had in the last three months is making sure I have enough tonnage to take the volume increases that we are seeing out of Asia coming into the North America market,” said Brian Odell, lead ocean/barge/port mode specialist for power generation technology manufacturer GE Power, referencing cargo volumes shifting as a result of the conflict in the Middle East. Alain Akavi, managing director for COLI Group, said alongside a significant increase in traffic from Southeast Asia to the US and Europe, a lack of cargo in Europe has presented the biggest problem for the German global logistics provider, particularly when scheduling cargoes in advance. “You want to bring the vessel back in good time,” Akavi said. “But in some regions, you have a lack of cargoes, and then you need to parcel. And every time you parcel, you add more ports to the schedule.” Alex Strogen, chief commercial officer for the Port of Vancouver USA in Washington State, said that on a larger scale, US policy changes have resulted in unforeseen new challenges for the port. “We’re seeing our business impacted by policy in ways that I could not have even imagined in the past,” he said. Strogen cited wind energy cargo that previously had been moving through the port and is now routing through Canada instead. “That’s as a result of some of the shifting federal policies as it relates to wind energy here in the United States,” he said. Strogen also pointed to the effects of tariffs on aluminum imports the port traditionally handled. “Most of our aluminum came from the UAE. That’s a problem,” he said. As a result, Vancouver has focused on diversification as a long-range strategy, moving cargo in more lines of business than competing ports. “When you’ve got a broad base of different products and commodities that you’re handling, we have the luxury to try and shift and pivot,” Strogen said. <h3>‘Big influence’ from weather </h3>More so than geopolitical circumstances, weather is posing a growing challenge for moving cargo and is making it more difficult to ensure fixed-date shipping schedules, said Pieter Flohil, director with Dutch multipurpose/heavy-lift operator Spliethoff. “We’ve had an extreme number of delays this year,” he said. “Even if some people would like to deny it, weather is having a big influence on what we do.” Flohil also cited the industry’s labor shortages as a significant challenge, with fewer young professionals willing to learn the skills and work the hours necessary for a career in the trade. “That’s where we try to work closely with our partners in the port to ensure that they have invested in labor,” he said. “That’s vital for our existence in the future.” A willingness by carriers to listen to and communicate with logistics providers when there are challenges and delays goes a long way to making cargo transport easier, Akavi said. “When we have issues, it’s not on purpose. It happens,” he said. “And understanding is the easiest part.” Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

New Orleans — With breakbulk demands and trade lanes shifting rapidly amid geopolitical events and trade volatility, coping with those challenges will call for communication, partnerships and planning among forwarders, carriers, shippers, and ports, attendees were told Wednesday at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026. “The biggest challenge that we’ve had in the last three months is making sure I have enough tonnage to take the volume increases that we are seeing out of Asia coming into the North America market,” said Brian Odell, lead ocean/barge/port mode specialist for power generation technology manufacturer GE Power, referencing cargo volumes shifting as a result of the conflict in the Middle East. Alain Akavi, managing director for COLI Group, said alongside a significant increase in traffic from Southeast Asia to the US and Europe, a lack of cargo in Europe has presented the biggest problem for the German global logistics provider, particularly when scheduling cargoes in advance. “You want to bring the vessel back in good time,” Akavi said. “But in some regions, you have a lack of cargoes, and then you need to parcel. And every time you parcel, you add more ports to the schedule.” Alex Strogen, chief commercial officer for the Port of Vancouver USA in Washington State, said that on a larger scale, US policy changes have resulted in unforeseen new challenges for the port. “We’re seeing our business impacted by policy in ways that I could not have even imagined in the past,” he said. Strogen cited wind energy cargo that previously had been moving through the port and is now routing through Canada instead. “That’s as a result of some of the shifting federal policies as it relates to wind energy here in the United States,” he said. Strogen also pointed to the effects of tariffs on aluminum imports the port traditionally handled. “Most of our aluminum came from the UAE. That’s a problem,” he said. As a result, Vancouver has focused on diversification as a long-range strategy, moving cargo in more lines of business than competing ports. “When you’ve got a broad base of different products and commodities that you’re handling, we have the luxury to try and shift and pivot,” Strogen said. ‘Big influence’ from weather More so than geopolitical circumstances, weather is posing a growing challenge for moving cargo and is making it more difficult to ensure fixed-date shipping schedules, said Pieter Flohil, director with Dutch multipurpose/heavy-lift operator Spliethoff. “We’ve had an extreme number of delays this year,” he said. “Even if some people would like to deny it, weather is having a big influence on what we do.” Flohil also cited the industry’s labor shortages as a significant challenge, with fewer young professionals willing to learn the skills and work the hours necessary for a career in the trade. “That’s where we try to work closely with our partners in the port to ensure that they have invested in labor,” he said. “That’s vital for our existence in the future.” A willingness by carriers to listen to and communicate with logistics providers when there are challenges and delays goes a long way to making cargo transport easier, Akavi said. “When we have issues, it’s not on purpose. It happens,” he said. “And understanding is the easiest part.” Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Port News

Breakbulk carriers

Breakbulk ports

Breakbulk News

Maritime

Breakbulk26: Trade lane shifts, policy changes among evolving challenges for breakbulk cargo

<div class="phx-topic abstract-wrapper">A prolonged war would ultimately result in a shift from supply constraint to demand destruction for oil and natural gas coming from the Middle East, according to S&amp;P Global Energy expert Amy Groeschel.</div>

A prolonged war would ultimately result in a shift from supply constraint to demand destruction for oil and natural gas coming from the Middle East, according to S&P Global Energy expert Amy Groeschel.

<div class="phx-topic">New Orleans — How long it takes to resolve the war in the Middle East will ultimately decide how deep the compounding effects of the disruption to oil and natural gas production, refining, and the delivery of refined products will cut into global economies, Amy Groeschel, head of energy spending at S&amp;P Global Energy, said Wednesday. Groeschel was speaking at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026. A prolonged conflict would ultimately result in a switch from supply constraint to demand destruction for oil and natural gas coming from the Middle East, she said. “The longer the fields are not flowing, the longer and more expensive it will be to restart production,” Groeschel said, noting, too, the capital costs of repairing refining infrastructure at facilities damaged in the war. “The longer the conflict goes, and the more that affects access to fuel transiting [the Strait of Hormuz], the more it likely incentivizes oil and gas exploration elsewhere and incentivizes shifts toward other energy sources,” she added. Groeschel, a specialist in upstream energy analysis, described a “widespread destruction of refining in the Middle East” that would likely benefit engineering, procurement and construction (EPC) companies as well as the logistics providers that serve them when it comes time for costly repairs. But she said the scale of the outages and what OPEC countries produce, with some 16 million barrels of crude and refined products trapped inside the Strait of Hormuz each day, is “not replaceable in a short amount of time.” <h3>Venezuela not an option to replace Gulf oil supplies </h3>Groeschel noted that upstream spending on renewable energy was already on pace to outstrip oil and gas spending before the Middle East conflict broke out, with S&amp;P Global Energy forecasting peak demand for oil and gas by 2032. That trend might accelerate in the wake of the supply constraint, with countries and energy producers now looking at alternatives earlier than they might have. “It was an eventuality that clean tech spending was going to overtake oil and gas,” she said. “The infrastructure needed to build offshore wind would be larger. But the fastest growing sector is more modular solar, much of that coming from China.” Asked whether Venezuela could offset the oil supplies constrained by the Middle East conflict, Groeschel downplayed those expectations. “Venezuela produces heavy crude that has to be upgraded to even be transported by ship,” she said. “Rebuilding of those [upgrade] facilities will take time and massive investment, and a real commitment of government to produce stable conditions that let producers invest.” She added that even in the most optimistic forecast, Venezuela would be able to produce 3 million barrels of crude per day by 2030. Other potential oil-producing locations that could contribute to offset the lost supply from the Persian Gulf include Western Canada, the US, Argentina and Africa. S&amp;P Global is the parent company of the Journal of Commerce. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

New Orleans — How long it takes to resolve the war in the Middle East will ultimately decide how deep the compounding effects of the disruption to oil and natural gas production, refining, and the delivery of refined products will cut into global economies, Amy Groeschel, head of energy spending at S&P Global Energy, said Wednesday. Groeschel was speaking at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026. A prolonged conflict would ultimately result in a switch from supply constraint to demand destruction for oil and natural gas coming from the Middle East, she said. “The longer the fields are not flowing, the longer and more expensive it will be to restart production,” Groeschel said, noting, too, the capital costs of repairing refining infrastructure at facilities damaged in the war. “The longer the conflict goes, and the more that affects access to fuel transiting [the Strait of Hormuz], the more it likely incentivizes oil and gas exploration elsewhere and incentivizes shifts toward other energy sources,” she added. Groeschel, a specialist in upstream energy analysis, described a “widespread destruction of refining in the Middle East” that would likely benefit engineering, procurement and construction (EPC) companies as well as the logistics providers that serve them when it comes time for costly repairs. But she said the scale of the outages and what OPEC countries produce, with some 16 million barrels of crude and refined products trapped inside the Strait of Hormuz each day, is “not replaceable in a short amount of time.” Venezuela not an option to replace Gulf oil supplies Groeschel noted that upstream spending on renewable energy was already on pace to outstrip oil and gas spending before the Middle East conflict broke out, with S&P Global Energy forecasting peak demand for oil and gas by 2032. That trend might accelerate in the wake of the supply constraint, with countries and energy producers now looking at alternatives earlier than they might have. “It was an eventuality that clean tech spending was going to overtake oil and gas,” she said. “The infrastructure needed to build offshore wind would be larger. But the fastest growing sector is more modular solar, much of that coming from China.” Asked whether Venezuela could offset the oil supplies constrained by the Middle East conflict, Groeschel downplayed those expectations. “Venezuela produces heavy crude that has to be upgraded to even be transported by ship,” she said. “Rebuilding of those [upgrade] facilities will take time and massive investment, and a real commitment of government to produce stable conditions that let producers invest.” She added that even in the most optimistic forecast, Venezuela would be able to produce 3 million barrels of crude per day by 2030. Other potential oil-producing locations that could contribute to offset the lost supply from the Persian Gulf include Western Canada, the US, Argentina and Africa. S&P Global is the parent company of the Journal of Commerce. Contact Eric Johnson at eric.johnson@spglobal.com .

Energy projects

Breakbulk26: Loss of Persian Gulf oil supplies difficult to replace quickly

<div class="phx-topic abstract-wrapper">Tariff refunds might be available for many breakbulk companies, but they still need to prepare for the possibility of new levies, conference attendees were told.</div>

Tariff refunds might be available for many breakbulk companies, but they still need to prepare for the possibility of new levies, conference attendees were told.

<div class="phx-topic">New Orleans — Project cargo and breakbulk shippers need to shift their thinking on tariffs and trade compliance from “strategic weapons” to “strategic and tactical” tools, according to sector specialists speaking at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026. Mance Adams, logistics manager and duty drawback project manager at oilfield services company SLB, said many companies treat tariffs and trade compliance as a secondary consideration. “I’ve talked to supply chain procurement, and they’ve come to me a year after a contract is negotiated, saying, ‘can you help me calculate the tariff on this?’ So, they had never calculated a true landed cost or total cost of ownership,” Adams said Tuesday. “When I told them that they have been paying 28%, they almost laughed me out of the office,” he added. Instead, Adams urged companies in the sector to consider trade compliance and the handling of tariffs and other import and export costs as something strategic and tactical. Elizabeth Lowe, Venable LLP partner and co-chair of the International Trade and Logistics Group, warned that companies should be “bracing” for further US tariffs this year. “We don’t really know what exactly it’s going to look like when it comes out, but I do think folks should be bracing for there being pretty broad tariffs that go back into effect in July,” she said. Lowe said that those tariffs will likely be challenged because of a rushed process, but stakeholders should start looking at mitigation options now. “It will be pushed through. Whether it is done correctly or not is another question,” she said. After tariffs implemented by the Trump administration under the International Emergency Economic Powers Act (IEEPA) were <a href="https://www.joc.com/article/us-supreme-court-rules-against-trump-in-critical-ieepa-tariff-case-6173568">ruled illegal by the US Supreme Court in February</a>, shippers are now bracing for so-called Section 122 tariffs of 10% through July and the possibility of new tariffs resulting from ongoing Section 301 investigations. <h3>Tariff refund window now open </h3>The US Customs and Border Protection (CBP) has launched Phase 1of the IEEPA refund process, allowing importers of record and licensed customs brokers to file for refunds of tariffs paid between April 2025 and the Supreme Court ruling. These include so-called “reciprocal” tariffs ranging from 10% to 41% on most goods from nearly all US trading partners, a 40% additional duty on most imports from Brazil, and secondary tariff orders designed to penalize countries trading with nations such as Russia, Iran or Venezuela. “It covers a lot,” said Lowe. “Make sure you are getting it all. Don’t limit your refund just to the reciprocal tariffs.” She also advised that if project cargo and breakbulk companies are successful in their refund claim, they might find customers knocking on their door for their slice of the refund. “Figuring out how to deal with that,” is something that logistics specialists in the sector need to keep in mind and be aware of, Lowe said. “Customs is not going to come and tell you you’ve got to reimburse your customer,” she said. “Ultimately, that’s a commercial discussion.” Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

New Orleans — Project cargo and breakbulk shippers need to shift their thinking on tariffs and trade compliance from “strategic weapons” to “strategic and tactical” tools, according to sector specialists speaking at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026. Mance Adams, logistics manager and duty drawback project manager at oilfield services company SLB, said many companies treat tariffs and trade compliance as a secondary consideration. “I’ve talked to supply chain procurement, and they’ve come to me a year after a contract is negotiated, saying, ‘can you help me calculate the tariff on this?’ So, they had never calculated a true landed cost or total cost of ownership,” Adams said Tuesday. “When I told them that they have been paying 28%, they almost laughed me out of the office,” he added. Instead, Adams urged companies in the sector to consider trade compliance and the handling of tariffs and other import and export costs as something strategic and tactical. Elizabeth Lowe, Venable LLP partner and co-chair of the International Trade and Logistics Group, warned that companies should be “bracing” for further US tariffs this year. “We don’t really know what exactly it’s going to look like when it comes out, but I do think folks should be bracing for there being pretty broad tariffs that go back into effect in July,” she said. Lowe said that those tariffs will likely be challenged because of a rushed process, but stakeholders should start looking at mitigation options now. “It will be pushed through. Whether it is done correctly or not is another question,” she said. After tariffs implemented by the Trump administration under the International Emergency Economic Powers Act (IEEPA) were ruled illegal by the US Supreme Court in February , shippers are now bracing for so-called Section 122 tariffs of 10% through July and the possibility of new tariffs resulting from ongoing Section 301 investigations. Tariff refund window now open The US Customs and Border Protection (CBP) has launched Phase 1of the IEEPA refund process, allowing importers of record and licensed customs brokers to file for refunds of tariffs paid between April 2025 and the Supreme Court ruling. These include so-called “reciprocal” tariffs ranging from 10% to 41% on most goods from nearly all US trading partners, a 40% additional duty on most imports from Brazil, and secondary tariff orders designed to penalize countries trading with nations such as Russia, Iran or Venezuela. “It covers a lot,” said Lowe. “Make sure you are getting it all. Don’t limit your refund just to the reciprocal tariffs.” She also advised that if project cargo and breakbulk companies are successful in their refund claim, they might find customers knocking on their door for their slice of the refund. “Figuring out how to deal with that,” is something that logistics specialists in the sector need to keep in mind and be aware of, Lowe said. “Customs is not going to come and tell you you’ve got to reimburse your customer,” she said. “Ultimately, that’s a commercial discussion.” Contact Carly Fields at carly.fields@spglobal.com .

Project cargo

Breakbulk26: Shippers urged to pivot from typical view of tariffs, trade compliance

<div class="phx-topic abstract-wrapper">An endless string of post-COVID-19 disruptions has caused breakbulk and project cargo carriers to become more agile while breaking down old barriers with shippers.</div>

An endless string of post-COVID-19 disruptions has caused breakbulk and project cargo carriers to become more agile while breaking down old barriers with shippers.

<div class="phx-topic">New Orleans — Early engagement, transparency and open communication between shippers and carriers have become necessities for managing fleets in a global trade environment in which chaos has become a constant, a panel of breakbulk and project cargo carriers told attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026. “We have learned that uncertainty will remain,” said Carsten Wendt, an executive with roll-on/roll-off carrier Wallenius Wilhelmsen Ocean AS. Wendt said Tuesday that before COVID-19, the shipping landscape was somewhat predictable in terms of schedule. “Since COVID, we are facing constant fires everywhere in the world,” he said. “And as soon as you put one little fire out, there’s another one starting somewhere.” Between the pandemic and the ongoing war in the Middle East, Wendt cited a succession of global trade disruptions that have included the obstruction of the Suez Canal by a container ship, and then Houthi militants in Yemen targeting vessels in the Red Sea. The collapse of the Francis Scott Key Bridge in Baltimore and the drought-inflicted low water levels along the Panama Canal added to the post-COVID-19 chaos. “Even if now one crisis [is] over, we have to be prepared that there’s another one around the corner,” Wendt said. <h3>‘Team effort’ with shippers </h3>The disruptions have underlined the importance of “open, frequent communication,” said Ulrich Ulrichs, CEO of German multipurpose vessel/heavy-lift (MPV-HL) operator BBC Chartering. Ulrichs said the industry has become accustomed to expecting the unexpected, and that carriers in particular have learned to react quickly in a crisis, as was the case when the war with Iran began. “I think we were much faster to react to the situation than maybe to other crises,” he said. Anders Hyrup, US vice president of sales and projects for JSI Alliance, which operates super-heavy carriers Jumbo and SAL-Intermarine and is based in Germany, said whereas before COVID there was more of an “us-versus-them” mentality between carriers and shippers, that dividing line has since blurred as carriers have worked to improve relationships with shippers. “It’s more of a team effort, and there’s a common understanding that there are issues for both parties,” he said. “Construction will be delayed, production will be delayed, ships will be delayed, and you need to prepare for that.” With the war in the Middle East upending the fuel supplies MPVs rely on, Michael Mørland, Atlantic region project cargo director for Norwegian MPV operator G2 Ocean, said bunker fuel price fluctuations and availability have necessitated advance planning for voyages and fuel. “We probably carry bigger stocks of bunkers than what we traditionally would, and that allows us [the] agility to go to the areas that are more affordable,” he said. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

New Orleans — Early engagement, transparency and open communication between shippers and carriers have become necessities for managing fleets in a global trade environment in which chaos has become a constant, a panel of breakbulk and project cargo carriers told attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference 2026. “We have learned that uncertainty will remain,” said Carsten Wendt, an executive with roll-on/roll-off carrier Wallenius Wilhelmsen Ocean AS. Wendt said Tuesday that before COVID-19, the shipping landscape was somewhat predictable in terms of schedule. “Since COVID, we are facing constant fires everywhere in the world,” he said. “And as soon as you put one little fire out, there’s another one starting somewhere.” Between the pandemic and the ongoing war in the Middle East, Wendt cited a succession of global trade disruptions that have included the obstruction of the Suez Canal by a container ship, and then Houthi militants in Yemen targeting vessels in the Red Sea. The collapse of the Francis Scott Key Bridge in Baltimore and the drought-inflicted low water levels along the Panama Canal added to the post-COVID-19 chaos. “Even if now one crisis [is] over, we have to be prepared that there’s another one around the corner,” Wendt said. ‘Team effort’ with shippers The disruptions have underlined the importance of “open, frequent communication,” said Ulrich Ulrichs, CEO of German multipurpose vessel/heavy-lift (MPV-HL) operator BBC Chartering. Ulrichs said the industry has become accustomed to expecting the unexpected, and that carriers in particular have learned to react quickly in a crisis, as was the case when the war with Iran began. “I think we were much faster to react to the situation than maybe to other crises,” he said. Anders Hyrup, US vice president of sales and projects for JSI Alliance, which operates super-heavy carriers Jumbo and SAL-Intermarine and is based in Germany, said whereas before COVID there was more of an “us-versus-them” mentality between carriers and shippers, that dividing line has since blurred as carriers have worked to improve relationships with shippers. “It’s more of a team effort, and there’s a common understanding that there are issues for both parties,” he said. “Construction will be delayed, production will be delayed, ships will be delayed, and you need to prepare for that.” With the war in the Middle East upending the fuel supplies MPVs rely on, Michael Mørland, Atlantic region project cargo director for Norwegian MPV operator G2 Ocean, said bunker fuel price fluctuations and availability have necessitated advance planning for voyages and fuel. “We probably carry bigger stocks of bunkers than what we traditionally would, and that allows us [the] agility to go to the areas that are more affordable,” he said. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Breakbulk26: Repeated global crises force carriers to adopt strategies for uncertainty

<div class="phx-topic abstract-wrapper">The varied strategies employed by ocean carriers to manage war-driven volatility in bunker fuel prices are delaying the completion of some 2026–27 service contract negotiations as the key May 1 date looms.</div>

The varied strategies employed by ocean carriers to manage war-driven volatility in bunker fuel prices are delaying the completion of some 2026–27 service contract negotiations as the key May 1 date looms.

<div class="phx-topic">Small to midsize customers say ocean carriers’ handling of bunker fuel surcharges is complicating the timely completion of their 2026–27 trans-Pacific service contracts due to difficulty in comparing how the liners approach the surcharges. While most annual service contracts on the eastbound trans-Pacific typically start May 1, the carrier customers say any delay could force them to ship under costlier spot/freight-all-kinds (FAK) rates until the annual service agreements are signed. Customers, both beneficial cargo owners (BCOs) and forwarders, say that some carriers want them to agree to open-ended emergency bunker surcharges with no exit clause stipulating when the surcharges will end. “There is no real indicator as to when this is going to go away and how it is going to go away,” a forwarder who did not want to be identified told the Journal of Commerce. Bunker surcharges have become a hot-button issue since the war in the Middle East sent oil prices soaring in early March. The traditional bunker adjustment factor (BAF) found in most service contracts is being changed by some carriers from a quarterly to a monthly reset. More recently, some carriers are also levying emergency fuel surcharges on top of the BAFs. A carrier executive said that while some customers may feel carriers are attempting to force them to accept emergency surcharges or are unilaterally changing the BAF to a monthly reset, he believes there is a growing willingness by liners and their customers to reach a mutually acceptable remedy. “There is a mounting effort by most parties to meet in the middle on the level of surcharges,” the executive said. <h3>Emergency bunker surcharges could increase </h3>In his April newsletter, Jon Monroe, who serves as an adviser to forwarders, said emergency bunker surcharges (EBS) are likely to remain a key wildcard in the trans-Pac for months to come, and they could add significantly to shippers’ costs. “EBS levels are expected to fluctuate significantly,” Monroe said. “In the near term, the EBS could range from $200 to $600 per FEU, with the potential for spikes beyond that if fuel prices surge further. As a result, total landed freight costs may be far less predictable than the base contract rates suggest.” Bunker fuel prices essentially doubled in key global hubs at the start of the war, and although prices have eased a bit in some locations, they are still well above where they were before the conflict. And with no end in sight to the closure of the Strait of Hormuz that has effectively blocked the daily transit of 20% of the world’s oil supplies, the specter of <a href="https://www.joc.com/article/bunker-fuel-shortages-loom-after-us-counter-blocks-strait-of-hormuz-6204678">bunker fuel shortages loom</a>, something that would add further upward pressure on prices. When bunker fuel prices are stable, the traditional BAF quarterly reset works fine for both carriers and their customers, said Rachel Shames, vice president of pricing and procurement at the forwarder CV International. But with some carriers now adjusting bunker prices monthly while adding seemingly open-ended emergency bunker surcharges to the equation, importers and forwarders are at an obvious disadvantage, Shames said “If the surcharge goes up, it should be able to come down when bunkers come down. It’s gotten very confusing,” she said. The more frequent changes in BAFs and EBSs now make it more difficult for forwarders to price their services to their clients in a timely manner, said Ben Coleman, president of forwarder Teampower Logistics. “You just have to accept that [carriers] will adjust their rates downward if bunker costs come down,” Coleman said. “Our main concern is that we want to remain competitive.” In the past, there was always a way to navigate through surcharges, said John Pace, senior manager for global logistics at Revelyst, an importer of outdoor gear. “You would circumvent those carriers that were penalizing you with higher costs,” Pace said. “But in this particular case, it seems to be widespread among most carriers. There doesn’t seem to be a strategy that allows you to navigate through this.” <h3>Different carriers, different approaches </h3>A trade director at a consumer products company that imports about 6,000 containers per year said his service contract talks are bogged down by the different approaches carriers are taking to surcharges and how they impact base rates. For example, the source said one major carrier is asking for a $300 emergency fuel surcharge on top of the regular BAF that applies on base rates. But the carrier has not made clear under what circumstances it will remove the fuel surcharge or how it was calculated, he said. Meanwhile, a second major liner is passing along fuel expenses on its carrier haulage moves through an “inland fuel surcharge,” the source said. The carrier provides a formula, albeit one he says is complicated, about how it is calculating the new fee. The second carrier is also presenting shippers with a choice on how their BAF will be calculated, either on a trailing three-month or one-month basis. So, shippers themselves can take the bet on whether they want to ride out fuel volatility for a longer period or benefit from a quick dip in oil prices. “It’s gotten really complicated with all these extra fuel costs,” the trade director said. “We were in line to get a good base rate reduction, but now that’s all hidden by the surcharges.” A national importer of home furnishings who is in his third round of service contract negotiations said importers must be diligent and persistent in talks with carriers to protect against unwanted surcharges. “We pushed back on the emergency bunker surcharges, and we did so successfully,” the source said. <h3>Contract extensions possible </h3>With less than two weeks left before most 2025–26 service contracts end and most 2026–27 contracts take effect, some importers are asking carriers to extend their current contracts at least until mid-May while negotiations on new deals continue. But that’s something that must be done on a carrier-by-carrier basis because not all liners are willing to extend the existing contracts, forwarders say. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="56cdc0fc-22a5-4ef9-9e3e-11f96f369c70"></dynamic-object></div>If a carrier refuses to extend the existing contract temporarily, importers will have to pay the current spot rate, which was $2,700 per FEU to the West Coast and $3,700 per FEU as of April 21, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global. Most midsize importers are currently paying in the range of $1,700 to $1,850 to the West Coast per their 2025–26 service contracts. “[Some] carriers are extending [existing contract] rates until mid-May,” Monroe said. An industry consultant who formerly served in logistics roles at big-box retailers said most of the larger retailers have finalized their 2026–27 service contracts or are ready to do so. However, smaller importers say they are meeting resistance from some carriers for escape clauses from emergency fuel surcharges. “The smaller ones, they don’t have any leverage,” the consultant said. “They’re at the mercy of the carriers.” Contact Bill Mongelluzzo at <a href="bill.mongelluzzo@spglobal.com ">bill.mongelluzzo@spglobal.com</a>.  Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Small to midsize customers say ocean carriers’ handling of bunker fuel surcharges is complicating the timely completion of their 2026–27 trans-Pacific service contracts due to difficulty in comparing how the liners approach the surcharges. While most annual service contracts on the eastbound trans-Pacific typically start May 1, the carrier customers say any delay could force them to ship under costlier spot/freight-all-kinds (FAK) rates until the annual service agreements are signed. Customers, both beneficial cargo owners (BCOs) and forwarders, say that some carriers want them to agree to open-ended emergency bunker surcharges with no exit clause stipulating when the surcharges will end. “There is no real indicator as to when this is going to go away and how it is going to go away,” a forwarder who did not want to be identified told the Journal of Commerce. Bunker surcharges have become a hot-button issue since the war in the Middle East sent oil prices soaring in early March. The traditional bunker adjustment factor (BAF) found in most service contracts is being changed by some carriers from a quarterly to a monthly reset. More recently, some carriers are also levying emergency fuel surcharges on top of the BAFs. A carrier executive said that while some customers may feel carriers are attempting to force them to accept emergency surcharges or are unilaterally changing the BAF to a monthly reset, he believes there is a growing willingness by liners and their customers to reach a mutually acceptable remedy. “There is a mounting effort by most parties to meet in the middle on the level of surcharges,” the executive said. Emergency bunker surcharges could increase In his April newsletter, Jon Monroe, who serves as an adviser to forwarders, said emergency bunker surcharges (EBS) are likely to remain a key wildcard in the trans-Pac for months to come, and they could add significantly to shippers’ costs. “EBS levels are expected to fluctuate significantly,” Monroe said. “In the near term, the EBS could range from $200 to $600 per FEU, with the potential for spikes beyond that if fuel prices surge further. As a result, total landed freight costs may be far less predictable than the base contract rates suggest.” Bunker fuel prices essentially doubled in key global hubs at the start of the war, and although prices have eased a bit in some locations, they are still well above where they were before the conflict. And with no end in sight to the closure of the Strait of Hormuz that has effectively blocked the daily transit of 20% of the world’s oil supplies, the specter of bunker fuel shortages loom , something that would add further upward pressure on prices. When bunker fuel prices are stable, the traditional BAF quarterly reset works fine for both carriers and their customers, said Rachel Shames, vice president of pricing and procurement at the forwarder CV International. But with some carriers now adjusting bunker prices monthly while adding seemingly open-ended emergency bunker surcharges to the equation, importers and forwarders are at an obvious disadvantage, Shames said “If the surcharge goes up, it should be able to come down when bunkers come down. It’s gotten very confusing,” she said. The more frequent changes in BAFs and EBSs now make it more difficult for forwarders to price their services to their clients in a timely manner, said Ben Coleman, president of forwarder Teampower Logistics. “You just have to accept that [carriers] will adjust their rates downward if bunker costs come down,” Coleman said. “Our main concern is that we want to remain competitive.” In the past, there was always a way to navigate through surcharges, said John Pace, senior manager for global logistics at Revelyst, an importer of outdoor gear. “You would circumvent those carriers that were penalizing you with higher costs,” Pace said. “But in this particular case, it seems to be widespread among most carriers. There doesn’t seem to be a strategy that allows you to navigate through this.” Different carriers, different approaches A trade director at a consumer products company that imports about 6,000 containers per year said his service contract talks are bogged down by the different approaches carriers are taking to surcharges and how they impact base rates. For example, the source said one major carrier is asking for a $300 emergency fuel surcharge on top of the regular BAF that applies on base rates. But the carrier has not made clear under what circumstances it will remove the fuel surcharge or how it was calculated, he said. Meanwhile, a second major liner is passing along fuel expenses on its carrier haulage moves through an “inland fuel surcharge,” the source said. The carrier provides a formula, albeit one he says is complicated, about how it is calculating the new fee. The second carrier is also presenting shippers with a choice on how their BAF will be calculated, either on a trailing three-month or one-month basis. So, shippers themselves can take the bet on whether they want to ride out fuel volatility for a longer period or benefit from a quick dip in oil prices. “It’s gotten really complicated with all these extra fuel costs,” the trade director said. “We were in line to get a good base rate reduction, but now that’s all hidden by the surcharges.” A national importer of home furnishings who is in his third round of service contract negotiations said importers must be diligent and persistent in talks with carriers to protect against unwanted surcharges. “We pushed back on the emergency bunker surcharges, and we did so successfully,” the source said. Contract extensions possible With less than two weeks left before most 2025–26 service contracts end and most 2026–27 contracts take effect, some importers are asking carriers to extend their current contracts at least until mid-May while negotiations on new deals continue. But that’s something that must be done on a carrier-by-carrier basis because not all liners are willing to extend the existing contracts, forwarders say. If a carrier refuses to extend the existing contract temporarily, importers will have to pay the current spot rate, which was $2,700 per FEU to the West Coast and $3,700 per FEU as of April 21, according to Platts, a sister company of the Journal of Commerce within S&P Global. Most midsize importers are currently paying in the range of $1,700 to $1,850 to the West Coast per their 2025–26 service contracts. “[Some] carriers are extending [existing contract] rates until mid-May,” Monroe said. An industry consultant who formerly served in logistics roles at big-box retailers said most of the larger retailers have finalized their 2026–27 service contracts or are ready to do so. However, smaller importers say they are meeting resistance from some carriers for escape clauses from emergency fuel surcharges. “The smaller ones, they don’t have any leverage,” the consultant said. “They’re at the mercy of the carriers.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .  Contact Michael Angell at michael.angell@spglobal.com .

Container lines

Forwarding

Trans-Pacific

Container Shipping News

Carriers’ handling of fuel surcharges agitates small, midsize trans-Pac shippers

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

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

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

Group Subscriptions - Wide Box

Get into a group subscription today

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

Subscribe Now - FT to S/SP - Wide Box

SPRING SALE!

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

Upgrade Subscription - S/SP to Gold - Wide Box

SAVE $900 ON A GOLD SUBSCRIPTION

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

Subscribe Now - Anonymous to S/SP - Wide Box

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

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

Subscribe Now - FT to Gold - Wide Box

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

Subscribe Now - Anonymous to Gold - Wide Box

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


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

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

Group Subscriptions - Offer Box

Group Subscriptions

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

Subscribe Now - Anonymous to S/SP - Offer Box

SUBSCRIBE TODAY

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

Upgrade Subscription

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

Subscribe Now - Anonymous to Gold - Offer Box

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

Upgrade Subscription - S/SP to Gold - Offer Box

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

Subscribe Now - FT to Gold - Offer Box

SUBSCRIBE AND SAVE

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

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

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

ISI Report - Rectangle Box

Intermodal Savings Index

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

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

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

Gateway - Rectangle Box

Gateway

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

Discover the news and analysis of supply chain strategies, sourcing and trends covered by the Journal of Commerce. Comprehensive coverage includes customs, trade news, transport news and the latest information about trade regulations.

Stay informed with the latest regulation news and trade updates. Explore comprehensive transportation news and trade regulations today.

Transport, Trade and Regulation News | Journal of Commerce

The Journal of Commerce’s supply chain news and analysis impacting the management of end-to-end supply chains reports on supply chain strategies, cargo visibility, inventory trends, sourcing, customs certification and contract logistics. Supply chain news coverage also delves into refrigerated shipping advancements and management of inventory status, regulatory updates and government funding projects.

Our logistics technology news include logistics technology startups, solutions, and the impact of technology on logistics and supply chain management.

Logistics Technology News | Journal of Commerce

Logistics Technology News

A thorough cool cargoes news by Journal of Commerce. Learn about the latest trends in refrigerated cargo transportation, weight capacity, technology, and more.

Cool Cargo News | Journal of Commerce

Cool Cargo News

Journal of Commerce keeps you informed on the latest last mile news with comprehensive coverage of carriers, logistics, and last mile transportation solutions.

Last Mile News | Journal of Commerce

Last Mile News

Discover the latest industrial real estate news and trends. Covering projects, real estate supply chain, logistics, pricing, cross dock facilities, and more.

Industrial Real Estate News | Journal of Commerce

Industrial Real Estate News

Stay updated on supply chain strategies, cargo visibility, inventory trends and more with our comprehensive supply chain news and analysis.

Latest News

More News & Analysis

Breakbulk26: Trade lane shifts, policy changes among evolving challenges for breakbulk cargo

Breakbulk26: Loss of Persian Gulf oil supplies difficult to replace quickly

Breakbulk26: Shippers urged to pivot from typical view of tariffs, trade compliance