<div class="phx-topic abstract-wrapper">Large truckload carriers are adding capacity, whether by purchasing trucks or acquiring trucking companies, and that's pushing the JOC Truckload Capacity Index to its highest level ever.</div>

Large truckload carriers are adding capacity, whether by purchasing trucks or acquiring trucking companies, and that's pushing the JOC Truckload Capacity Index to its highest level ever.

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<div>Available capacity rebounded at large US truckload carriers in the second quarter as more of the trucks ordered in 2021 were finally delivered, pushing the JOC Truckload Capacity Index to its highest reading ever. The index rose 2.1 percentage points from the first quarter to a reading of 93.2.That was an 11 percent increase year over year as truck counts at the large, publicly owned truckload carriers tracked in the index by JOC.com kept climbing.<div><img><a>Click to enlarge</a>.</div>The index, based on carrier capacity levels in the fourth quarter of 2006, provides further evidence of the strength of trucking demand and, potentially,...

Available capacity rebounded at large US truckload carriers in the second quarter as more of the trucks ordered in 2021 were finally delivered, pushing the JOC Truckload Capacity Index to its highest reading ever. The index rose 2.1 percentage points from the first quarter to a reading of 93.2. That was an 11 percent increase year over year as truck counts at the large, publicly owned truckload carriers tracked in the index by JOC.com kept climbing. Click to enlarge . The index, based on carrier capacity levels in the fourth quarter of 2006, provides further evidence of the strength of trucking demand and, potentially, a shift of capacity toward large truckload carriers as the truckload spot market price correction drove transactional rates down 15 to 30 percent. It also confirmed what top executives at publicly owned trucking companies said in second-quarter earnings calls: They’re adding trucks. “We've added nearly 2,200 trucks to our business in the last 12 months, which continues to stand out versus the competition,” Nick Hobbs, chief operating officer and president of contract services at J.B. Hunt Transport Services, said during a mid-July earnings call. And those trucks were all in J.B. Hunt’s dedicated and final-mile divisions. Its truckload division added 1,462 trucks in the same period. OEM deliveries Werner Enterprises also added trucks on a sequential quarterly and annualized basis, with its total truck count rising 9.9 percent from the 2021 second quarter, according to data shared by the company in its Q2 earnings report. But most of those trucks were added by the acquisition of regional truckload carrier ECM last July, rather than purchased from original equipment manufacturers (OEMs). “It remains difficult to receive the new trucks and trailers that we want to be able to refresh our fleet,” John Steele, treasurer and CFO at Werner, said in an Aug. 7 earnings call. “We have frequent discussions with the OEMs to coordinate our new truck deliveries based on the very difficult challenges they are dealing with for semiconductor chips, component parts, labor, and other issues.” Nevertheless, OEMs are making progress. Paccar, the maker of Kenworth and Peterbilt trucks, increased deliveries of new trucks in the US and Canada 8 percent year over year in the second quarter to 24,400. In the first half of the year, new truck deliveries were down by 500 units from the same period in 2021. Taken together, that indicates deliveries picked up in the second quarter as supply chain performance improved. From the first quarter to the second quarter, Werner added 175 trucks. Most of that equipment went to Werner’s dedicated division, which now has about 63 percent of Werner’s fleet of 8,400 trucks. That’s a sign of the growing importance of higher-priced, more consistent, and profitable dedicated trucking to larger truckload providers, and the waning of their one-way over-the-road truckload business. Both J.B. Hunt and Werner are in the carrier group tracked by the JOC Truckload Capacity Index. Sources of capacity The JOC Truckload Capacity Index supports claims that capacity is entering the market from more than one direction. In addition to the purchase or acquisition of new equipment by large carriers, a significant shift of business from the spot market to contract carriers in early 2022 also in effect created capacity, as those carriers began regularly picking up tendered freight that went to the spot market in 2021. Shippers also have become more efficient as transportation and fuel costs rose, consolidating truckloads to lower costs and, indirectly, create capacity by freeing up trailers. Through June, the number of new carriers applying for US government authority to operate as motor carriers was higher than those asking US authorities to revoke their licenses. With new trucks and carriers entering the truckload market and the US economy slowing, capacity should be loosening substantially — but freight demand in many sectors remains high, even higher than in 2021, according to Jason Miller, associate professor of logistics at Michigan State University. His research shows for-hire trucking ton-miles, a measure of demand, is still higher than a year ago. “Demand right now is a few percentage points higher than where it was back during the prior peak period of 2018 as well as where we were at times last year,” Miller said during a JOC webcast last week. “We’re just not seeing signs of a steep drop [in demand] occurring right now.” Demand, more than new trucks, trailers, or drivers, will determine whether capacity loosens, tightens, or reaches a rough equilibrium in the second half of 2022. Contact William B. Cassidy at bill.cassidy@spglobal.com and follow him on Twitter: @willbcassidy .

Truckload

Demand drives JOC Truckload Capacity Index to record high

<div class="phx-topic abstract-wrapper">This year’s positive MPV forecast is bolstered by a high level of forward bookings and the prospect of postponed projects coming onstream. </div>

This year’s positive MPV forecast is bolstered by a high level of forward bookings and the prospect of postponed projects coming onstream.

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<div class="phx-topic">An optimistic outlook for the multipurpose sector in 2026 is underpinned by a well-utilized fleet, revivals of postponed high-capacity projects, and a reportedly healthy level of forward bookings. Yorck Niclas Prehm, head of research at specialist shipbroker Toepfer Transport, said multipurpose vessel (MPV) operators with highly specialized vessels can look forward to an “even more comfortable” 2026. With super-heavy-lift vessels and vessels with offshore installation capabilities almost fully booked for 2026, operators are now focused on bookings for 2027 and 2028. In comments for the Journal of Commerce’s 2026 Annual Review and Outlook, Prehm said the multipurpose and breakbulk shipping market in 2025 was “characterized by minimal volatility and a stable and steady behavior of freight and charter rates.” Prehm added that while this could be viewed as “a rather boring development,” considering the economic and geopolitical challenges the shipping industry and global supply chains faced in 2025, the stability underscores how “extraordinarily strong and resilient this niche market is.” The foundation for this stability was the constraint on ordering exercised by owners and operators in the sector last year, Prehm said. In its end-of-year quarterly report, Toepfer Transport noted the order book for MPVs is “relatively moderate,” with total fleet growth in 2025 of 2.4% by deadweight tons, or 19 ships net. For freight rate assessments, the Toepfer Multipurpose Index for January, published Thursday, is $12,648 per day, down from $12,818 in December. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="eb684173-3331-459c-8c00-85ae47522402"></dynamic-object></div><h3>Positive outlook for year ahead </h3>Toepfer’s upbeat assessment for 2026 was echoed by Ulrich Ulrichs, CEO of MPV operator BBC Chartering. In comments for the Journal of Commerce’s Annual Review and Outlook, Ulrichs described his outlook for the breakbulk and project cargo sector in 2026 as positive. “Supply and demand in our sector appear to be reasonably balanced, and the number of newbuildings for the multipurpose vessel sector remains sparse,” Ulrichs said. New orders are for more efficient tonnage, phasing out older tonnage with no overcapacity being generated. In terms of cargo demand, Ulrichs said BBC is focused on the “dominant drivers” of energy-related cargoes from both the wind turbine sector and the oil and gas and mining sectors. However, he raised concerns about the offshore wind sector, “the success — or otherwise — of which is entirely due to political decision-making.” Regulations and geopolitics will continue to buffet the MPV sector in 2026, characterized by an “increasingly unpredictable” US market and “complex and region-specific regulations,” including the European Union Emissions Trading System and FuelEU Maritime, Ulrichs said. “While these initiatives aim to reduce environmental impact, their implementation has introduced significant operational and financial challenges — especially for carriers operating across multiple jurisdictions,” he said. Ulrichs called for a single, global, and transparent set of rules to reduce administrative overhead for MPV operations, level the playing field, and encourage broader compliance. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com</a>. </div>

An optimistic outlook for the multipurpose sector in 2026 is underpinned by a well-utilized fleet, revivals of postponed high-capacity projects, and a reportedly healthy level of forward bookings. Yorck Niclas Prehm, head of research at specialist shipbroker Toepfer Transport, said multipurpose vessel (MPV) operators with highly specialized vessels can look forward to an “even more comfortable” 2026. With super-heavy-lift vessels and vessels with offshore installation capabilities almost fully booked for 2026, operators are now focused on bookings for 2027 and 2028. In comments for the Journal of Commerce’s 2026 Annual Review and Outlook, Prehm said the multipurpose and breakbulk shipping market in 2025 was “characterized by minimal volatility and a stable and steady behavior of freight and charter rates.” Prehm added that while this could be viewed as “a rather boring development,” considering the economic and geopolitical challenges the shipping industry and global supply chains faced in 2025, the stability underscores how “extraordinarily strong and resilient this niche market is.” The foundation for this stability was the constraint on ordering exercised by owners and operators in the sector last year, Prehm said. In its end-of-year quarterly report, Toepfer Transport noted the order book for MPVs is “relatively moderate,” with total fleet growth in 2025 of 2.4% by deadweight tons, or 19 ships net. For freight rate assessments, the Toepfer Multipurpose Index for January, published Thursday, is $12,648 per day, down from $12,818 in December. Positive outlook for year ahead Toepfer’s upbeat assessment for 2026 was echoed by Ulrich Ulrichs, CEO of MPV operator BBC Chartering. In comments for the Journal of Commerce’s Annual Review and Outlook, Ulrichs described his outlook for the breakbulk and project cargo sector in 2026 as positive. “Supply and demand in our sector appear to be reasonably balanced, and the number of newbuildings for the multipurpose vessel sector remains sparse,” Ulrichs said. New orders are for more efficient tonnage, phasing out older tonnage with no overcapacity being generated. In terms of cargo demand, Ulrichs said BBC is focused on the “dominant drivers” of energy-related cargoes from both the wind turbine sector and the oil and gas and mining sectors. However, he raised concerns about the offshore wind sector, “the success — or otherwise — of which is entirely due to political decision-making.” Regulations and geopolitics will continue to buffet the MPV sector in 2026, characterized by an “increasingly unpredictable” US market and “complex and region-specific regulations,” including the European Union Emissions Trading System and FuelEU Maritime, Ulrichs said. “While these initiatives aim to reduce environmental impact, their implementation has introduced significant operational and financial challenges — especially for carriers operating across multiple jurisdictions,” he said. Ulrichs called for a single, global, and transparent set of rules to reduce administrative overhead for MPV operations, level the playing field, and encourage broader compliance. Contact Carly Fields at carly.fields@spglobal.com .

Breakbulk News

Maritime

Optimistic outlook sets multipurpose sector on firm footing for 2026

<div class="phx-topic abstract-wrapper">The merger will see Fatton &amp; Lyseo use Ovrsea’s proprietary operating software across its air and sea customers in Asia, Africa and North America. </div>

The merger will see Fatton & Lyseo use Ovrsea’s proprietary operating software across its air and sea customers in Asia, Africa and North America.

<div class="phx-topic">French forwarding group Fatton &amp; Lyseo on Thursday said it has merged operations with Ovrsea, a digital forwarder owned by the Bolloré Group. The merger will see Fatton &amp; Lyseo, itself the combination of a 2024 merger between two French forwarders, use Ovrsea’s proprietary operating software across its air and sea customers in Asia, Africa and North America. Financial terms of the deal were not disclosed. Ovrsea CEO Arthur Barillas de Thé will become CEO of the joint company, with Fatton &amp; Lyseo CEO Sylvain Fatton moving into a chairman role. The combined company brings 350 million euros of revenue across 60 offices in 14 countries, with 1,000 employees. “By combining over a century of operational excellence with pioneering digital technology and talent, we are creating a unique offering and position ourselves for strong organic and external growth in the future,” Barillas de Thé said in a LinkedIn post announcing the merger. Ovrsea was founded in 2017 as part of a cohort of so-called digital forwarders such as Flexport, Forto, iContainers, Nowports, and ExFreight as a technology-focused alternative to established global third-party logistics providers (3PLs) and non-vessel-operating common carriers. Unlike most of its cohorts, Paris-based Ovrsea eschewed major investment from venture capital or private equity firms, instead selling a majority stake in 2021 to the Bolloré Group, where it served as the 3PL’s digital customer channel and operated independently. <a href="https://www.joc.com/article/bollor-backed-startup-ovrsea-expands-digital-forwarding-options-to-us-5222142">Ovrsea entered the US market</a> a year later on the basis of the relationship with Bolloré. Its customers generally move in the range of 200 to 1,000 TEUs annually. Fatton &amp; Lyseo provides ocean, air, warehousing and customs services. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

French forwarding group Fatton & Lyseo on Thursday said it has merged operations with Ovrsea, a digital forwarder owned by the Bolloré Group. The merger will see Fatton & Lyseo, itself the combination of a 2024 merger between two French forwarders, use Ovrsea’s proprietary operating software across its air and sea customers in Asia, Africa and North America. Financial terms of the deal were not disclosed. Ovrsea CEO Arthur Barillas de Thé will become CEO of the joint company, with Fatton & Lyseo CEO Sylvain Fatton moving into a chairman role. The combined company brings 350 million euros of revenue across 60 offices in 14 countries, with 1,000 employees. “By combining over a century of operational excellence with pioneering digital technology and talent, we are creating a unique offering and position ourselves for strong organic and external growth in the future,” Barillas de Thé said in a LinkedIn post announcing the merger. Ovrsea was founded in 2017 as part of a cohort of so-called digital forwarders such as Flexport, Forto, iContainers, Nowports, and ExFreight as a technology-focused alternative to established global third-party logistics providers (3PLs) and non-vessel-operating common carriers. Unlike most of its cohorts, Paris-based Ovrsea eschewed major investment from venture capital or private equity firms, instead selling a majority stake in 2021 to the Bolloré Group, where it served as the 3PL’s digital customer channel and operated independently. Ovrsea entered the US market a year later on the basis of the relationship with Bolloré. Its customers generally move in the range of 200 to 1,000 TEUs annually. Fatton & Lyseo provides ocean, air, warehousing and customs services. Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

Digital forwarder owned by Bolloré merges with French forwarding group

<div class="phx-topic abstract-wrapper">The growth in traffic on intra-Asian routes is a result of ongoing US demand for cloud infrastructure logistics related to the rapid development of AI technology.</div>

The growth in traffic on intra-Asian routes is a result of ongoing US demand for cloud infrastructure logistics related to the rapid development of AI technology.

<div class="phx-topic">Strong US air cargo demand for high-tech and AI-related exports from Southeast Asia is having the indirect effect of placing intra-Asia capacity under mounting pressure as most flights to North America are routed via regional transit hubs. While the air cargo industry prepares for Asian export volume to rise over the next few weeks in line with seasonal demand ahead of the Lunar New Year that begins on Feb. 17, forwarders are already reporting congestion at some of the region’s key airports. Kathy Liu, vice president of global sales and marketing at Taiwan-based Dimerco Express Group, said the China-plus-one production strategy, accelerated by US tariffs last year, was strengthening intra-Asia demand. “This will further constrain intra-Asia capacity, as transit carriers are prioritizing first-leg capacity for long-haul cargo to maximize revenue,” Liu told the Journal of Commerce Thursday. “As a result, major transit hubs such as Hong Kong, Taipei, Singapore, Incheon and Narita are expected to remain highly congested.” The growth in traffic on intra-Asian routes is being accelerated by US tariffs imposed on Beijing in 2025 that led to a shift in regional trade flows through the second half of the year and drove increasing demand from Southeast Asian origins. Tobias Hofemeier, senior vice president for air logistics in greater China at Kuehne + Nagel, said there was ongoing high demand for cloud infrastructure logistics related to the rapid development of AI technology. He cited data from research and advisory firm Gartner projecting 21.3% year-over-year growth in public cloud services in 2026. “We expect continued growth in Southeast Asian countries like Thailand and Vietnam ... due to strong demand driven primarily by high tech, electronics and semiconductor cargo,” Hofemeier said. Kuehne + Nagel uses available commercial capacity on the trans-Pacific and supplements that with nine Kuehne + Nagel-dedicated flights per week from Vietnam to the US and six flights from Taiwan to the US. <h3>Freighter capacity constraints </h3>Air freight capacity data from analyst Rotate shows high growth in direct flights on the Southeast Asia-North America trade lane in the past week, but much of the cargo on that corridor is shipped indirectly to the US through Asian transit hubs. While demand increases, overall capacity, especially belly capacity on commercial flights, is projected to remain at 2025 levels because of delays in aircraft deliveries. Boeing and Airbus have been facing long delays in producing, certifying and delivering new aircraft, severely constricting the ability of airlines to grow their fleets. Another capacity-limiting factor for the industry is the grounding of all McDonnell Douglas MD-11 freighters and DC-10s following the fatal crash in Louisville, Kentucky, in November. Most of the 70 freighters are operated by FedEx and UPS (52 planes) and will be grounded indefinitely. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="a3f6b9ed-e750-40e5-8b28-b4d1703b5c40"></dynamic-object></div>Sou Ping Chee, regional head of air freight in Asia Pacific for Hellmann Worldwide Logistics, said capacity provided by commercial airlines comprised more than 80% of the global market. ”It will remain tight this year because there’s no significant additional capacity being added with few new freighter aircrafts that will be delivered this year,” he told the Journal of Commerce Thursday. But an unknown factor was how much chartered freighter capacity would return to the market this year and what impact it would have on increasing available space. Chee explained that when the US scrapped the de minimis exemption for low-value Chinese imports in May last year and demand tumbled on the trans-Pacific, many chartered freighters were redeployed to other routes. "Charters are committed for at least for a year and they had to somehow find a way to keep flying and filling their aircraft,” Chee said. “This year onwards, some of the e-commerce charter contracts will be due for renewal, so it will be interesting to see how many are renewed and how much capacity is returned to the market.” <h3>Tailwinds of growth</h3>In his latest monthly market update, Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, said one of the tailwinds of demand growth in 2025 came from investment linked to the development of AI solutions. But he warned that the less buoyant forward-looking signals for Chinese e-commerce exports were worrying. Despite a sharp drop in US business, China’s air freight exports are still dominated by e-commerce that comprises approximately one-third of the country’s total air cargo volume. “China’s cross-border e-commerce volumes were flat in October and November,” van de Wouw said. “If we see a third consecutive month of lower e-commerce growth out of China, that is a big signal, while duties imposed by other countries may present more unwelcome news for the air cargo market going forward.” Chinese customs data shows low-value and e-commerce exports in November rose by just 1% year over year after flatlining in October. Exports to the US represented the majority of the decline, falling 52% year over year in November after a drop of 51% in October. Before the de minimis ban imposed by Washington, China-US e-commerce accounted for approximately 3% of global air cargo volumes. China-European Union e-commerce volume continued to grow, expanding 29% in November following 47% year-over-year growth in October. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Strong US air cargo demand for high-tech and AI-related exports from Southeast Asia is having the indirect effect of placing intra-Asia capacity under mounting pressure as most flights to North America are routed via regional transit hubs. While the air cargo industry prepares for Asian export volume to rise over the next few weeks in line with seasonal demand ahead of the Lunar New Year that begins on Feb. 17, forwarders are already reporting congestion at some of the region’s key airports. Kathy Liu, vice president of global sales and marketing at Taiwan-based Dimerco Express Group, said the China-plus-one production strategy, accelerated by US tariffs last year, was strengthening intra-Asia demand. “This will further constrain intra-Asia capacity, as transit carriers are prioritizing first-leg capacity for long-haul cargo to maximize revenue,” Liu told the Journal of Commerce Thursday. “As a result, major transit hubs such as Hong Kong, Taipei, Singapore, Incheon and Narita are expected to remain highly congested.” The growth in traffic on intra-Asian routes is being accelerated by US tariffs imposed on Beijing in 2025 that led to a shift in regional trade flows through the second half of the year and drove increasing demand from Southeast Asian origins. Tobias Hofemeier, senior vice president for air logistics in greater China at Kuehne + Nagel, said there was ongoing high demand for cloud infrastructure logistics related to the rapid development of AI technology. He cited data from research and advisory firm Gartner projecting 21.3% year-over-year growth in public cloud services in 2026. “We expect continued growth in Southeast Asian countries like Thailand and Vietnam ... due to strong demand driven primarily by high tech, electronics and semiconductor cargo,” Hofemeier said. Kuehne + Nagel uses available commercial capacity on the trans-Pacific and supplements that with nine Kuehne + Nagel-dedicated flights per week from Vietnam to the US and six flights from Taiwan to the US. Freighter capacity constraints Air freight capacity data from analyst Rotate shows high growth in direct flights on the Southeast Asia-North America trade lane in the past week, but much of the cargo on that corridor is shipped indirectly to the US through Asian transit hubs. While demand increases, overall capacity, especially belly capacity on commercial flights, is projected to remain at 2025 levels because of delays in aircraft deliveries. Boeing and Airbus have been facing long delays in producing, certifying and delivering new aircraft, severely constricting the ability of airlines to grow their fleets. Another capacity-limiting factor for the industry is the grounding of all McDonnell Douglas MD-11 freighters and DC-10s following the fatal crash in Louisville, Kentucky, in November. Most of the 70 freighters are operated by FedEx and UPS (52 planes) and will be grounded indefinitely. Sou Ping Chee, regional head of air freight in Asia Pacific for Hellmann Worldwide Logistics, said capacity provided by commercial airlines comprised more than 80% of the global market. ”It will remain tight this year because there’s no significant additional capacity being added with few new freighter aircrafts that will be delivered this year,” he told the Journal of Commerce Thursday. But an unknown factor was how much chartered freighter capacity would return to the market this year and what impact it would have on increasing available space. Chee explained that when the US scrapped the de minimis exemption for low-value Chinese imports in May last year and demand tumbled on the trans-Pacific, many chartered freighters were redeployed to other routes. "Charters are committed for at least for a year and they had to somehow find a way to keep flying and filling their aircraft,” Chee said. “This year onwards, some of the e-commerce charter contracts will be due for renewal, so it will be interesting to see how many are renewed and how much capacity is returned to the market.” Tailwinds of growth In his latest monthly market update, Niall van de Wouw, chief air freight officer at rate benchmarking platform Xeneta, said one of the tailwinds of demand growth in 2025 came from investment linked to the development of AI solutions. But he warned that the less buoyant forward-looking signals for Chinese e-commerce exports were worrying. Despite a sharp drop in US business, China’s air freight exports are still dominated by e-commerce that comprises approximately one-third of the country’s total air cargo volume. “China’s cross-border e-commerce volumes were flat in October and November,” van de Wouw said. “If we see a third consecutive month of lower e-commerce growth out of China, that is a big signal, while duties imposed by other countries may present more unwelcome news for the air cargo market going forward.” Chinese customs data shows low-value and e-commerce exports in November rose by just 1% year over year after flatlining in October. Exports to the US represented the majority of the decline, falling 52% year over year in November after a drop of 51% in October. Before the de minimis ban imposed by Washington, China-US e-commerce accounted for approximately 3% of global air cargo volumes. China-European Union e-commerce volume continued to grow, expanding 29% in November following 47% year-over-year growth in October. Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo

Intra-Asia air freight capacity tightens on US high-tech demand

<div class="phx-topic abstract-wrapper">While second- and third-rung lines can no longer aspire to grow into the big leagues unless they have very deep pockets, there is plenty of scope to avoid being trampled by the behemoths and quietly grow by trading on strengths, writes Jeremy Masters. </div>

While second- and third-rung lines can no longer aspire to grow into the big leagues unless they have very deep pockets, there is plenty of scope to avoid being trampled by the behemoths and quietly grow by trading on strengths, writes Jeremy Masters.

<div class="phx-topic">As Alphaliner recently reported, Mediterranean Shipping Co. has reached the milestone of 7 million TEUs in vessel capacity, and the eight largest carriers — the 1 million-plus-TEU club — now operate upward of 80% of global capacity. The difference in punching power between MSC’s 7 million TEUs at No. 1 and Yang Ming’s 725,000 TEUs at No. 9 is already huge, but by the time we get to KMTC at No. 15, their fleet size is just 160,000 TEUs. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6148856_0.1.jpg"></img></div>Within their ocean capacity expansion, carriers such as MSC and CMA CGM have scooped up a tremendous amount of second-hand tonnage from non-operating carriers in the smaller size ships, with the side effect of creating inelasticity of supply and higher prices in the charter market. MSC subsidiary Terminal Investment Limited (TiL) seeks to become the largest terminal operator globally. Maersk, CMA CGM, Cosco, Hapag-Lloyd, Evergreen and Ocean Network Express (ONE) also have substantial levels of terminal operating capacity directly and through subsidiary companies and want to build further. Expansion into logistics has further widened their capabilities, although in this case the big carriers do not have a commanding position. The fact that an elite set of carriers can now significantly control the global ocean sector, the container handling at many key hubs and, increasingly, the delivery to outports — and selectively to inland points — makes it tough for the rest of the carriers to compete comprehensively. <h3>Where the smaller lines dwell </h3>Midsize and smaller carriers having to find their way in a jungle of voracious predators is nothing new, but the predators are bigger and better equipped than ever before. So how can they prosper? Looking beyond Zim Integrated Shipping Services, Wan Hai Lines and Pacific International Lines (PIL) — numbers 10, 11 and 12, respectively — which are not global operators but still have extensive networks, the rest of the top 30 fall into one or more of the following categories: pure regional carriers focused on one or two key regions, regional carriers focused on one or two key regions but with some deep-sea services that connect to their regional stronghold, or feeder operators that also have selective deep-sea routes. For numbers 13 to 30, operated ship sizes are highly concentrated in the 1,000- to 8,000-TEU range, and the largest subcategories are below 3,000 TEUs. Whereas most of the big carriers have a balanced owned and charter fleet — and thus benefit from some averaging of costs — the midsize carrier fleets can range from almost 100% owned to 100% chartered. These two factors combine to give many of the smaller carriers a sizeable and volatile slot-cost deficiency in the major trades. <h3>Survive and prosper </h3>Midsize carriers with smaller ships can still participate in longer-haul big-ship trades, but they have to be opportunistic, as we have seen with Asia-North America West Coast. When cargo is insufficient and rates are low — as they are right now — there is a high likelihood that they starve, get eaten or both. Otherwise, it’s best they focus on trades predominantly populated by sub-8,000-TEU ships, so that their slot economics are competitive. Some of the more successful midsize carriers in long-haul trades have built out from a regional stronghold providing cargo flows that can be more sticky and less subject to acute rate volatility. If they also operate from regions such as the Mediterranean or Southeast Asia, with significant connecting cargo possibilities, that enhances the pool of cargo and allows for some selectivity. Within any trade there are choices of port call, so it’s good to find some less-populated submarkets. There are six services linking Antwerp with New York, for example, but only one service linking Ringaskiddy, Ireland, with Wilmington, North Carolina. A particularly viable focus for midsize carriers is high-growth regional trades such as intra-Asia, where those that operate with a competitive ship system cost, a lean organization and some niche products can happily survive, especially given that the biggest carriers often focus on the wayport legs in these trades. Whatever the size of the trade, the midsize and smaller carriers are well placed to design key client-focused services that are differentiated from a product or customer-service point of view. It’s no longer a world in which the second- and third-rung lines can aspire to grow into the big leagues, unless they have very deep pockets. There is, however, plenty of scope to avoid being trampled by the behemoths, differentiate and quietly grow by trading on strengths. Being nimble, lean and highly client-focused are key attributes for this segment. Jeremy Masters is managing director of Shipping Masters. Contact him at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

As Alphaliner recently reported, Mediterranean Shipping Co. has reached the milestone of 7 million TEUs in vessel capacity, and the eight largest carriers — the 1 million-plus-TEU club — now operate upward of 80% of global capacity. The difference in punching power between MSC’s 7 million TEUs at No. 1 and Yang Ming’s 725,000 TEUs at No. 9 is already huge, but by the time we get to KMTC at No. 15, their fleet size is just 160,000 TEUs. Within their ocean capacity expansion, carriers such as MSC and CMA CGM have scooped up a tremendous amount of second-hand tonnage from non-operating carriers in the smaller size ships, with the side effect of creating inelasticity of supply and higher prices in the charter market. MSC subsidiary Terminal Investment Limited (TiL) seeks to become the largest terminal operator globally. Maersk, CMA CGM, Cosco, Hapag-Lloyd, Evergreen and Ocean Network Express (ONE) also have substantial levels of terminal operating capacity directly and through subsidiary companies and want to build further. Expansion into logistics has further widened their capabilities, although in this case the big carriers do not have a commanding position. The fact that an elite set of carriers can now significantly control the global ocean sector, the container handling at many key hubs and, increasingly, the delivery to outports — and selectively to inland points — makes it tough for the rest of the carriers to compete comprehensively. Where the smaller lines dwell Midsize and smaller carriers having to find their way in a jungle of voracious predators is nothing new, but the predators are bigger and better equipped than ever before. So how can they prosper? Looking beyond Zim Integrated Shipping Services, Wan Hai Lines and Pacific International Lines (PIL) — numbers 10, 11 and 12, respectively — which are not global operators but still have extensive networks, the rest of the top 30 fall into one or more of the following categories: pure regional carriers focused on one or two key regions, regional carriers focused on one or two key regions but with some deep-sea services that connect to their regional stronghold, or feeder operators that also have selective deep-sea routes. For numbers 13 to 30, operated ship sizes are highly concentrated in the 1,000- to 8,000-TEU range, and the largest subcategories are below 3,000 TEUs. Whereas most of the big carriers have a balanced owned and charter fleet — and thus benefit from some averaging of costs — the midsize carrier fleets can range from almost 100% owned to 100% chartered. These two factors combine to give many of the smaller carriers a sizeable and volatile slot-cost deficiency in the major trades. Survive and prosper Midsize carriers with smaller ships can still participate in longer-haul big-ship trades, but they have to be opportunistic, as we have seen with Asia-North America West Coast. When cargo is insufficient and rates are low — as they are right now — there is a high likelihood that they starve, get eaten or both. Otherwise, it’s best they focus on trades predominantly populated by sub-8,000-TEU ships, so that their slot economics are competitive. Some of the more successful midsize carriers in long-haul trades have built out from a regional stronghold providing cargo flows that can be more sticky and less subject to acute rate volatility. If they also operate from regions such as the Mediterranean or Southeast Asia, with significant connecting cargo possibilities, that enhances the pool of cargo and allows for some selectivity. Within any trade there are choices of port call, so it’s good to find some less-populated submarkets. There are six services linking Antwerp with New York, for example, but only one service linking Ringaskiddy, Ireland, with Wilmington, North Carolina. A particularly viable focus for midsize carriers is high-growth regional trades such as intra-Asia, where those that operate with a competitive ship system cost, a lean organization and some niche products can happily survive, especially given that the biggest carriers often focus on the wayport legs in these trades. Whatever the size of the trade, the midsize and smaller carriers are well placed to design key client-focused services that are differentiated from a product or customer-service point of view. It’s no longer a world in which the second- and third-rung lines can aspire to grow into the big leagues, unless they have very deep pockets. There is, however, plenty of scope to avoid being trampled by the behemoths, differentiate and quietly grow by trading on strengths. Being nimble, lean and highly client-focused are key attributes for this segment. Jeremy Masters is managing director of Shipping Masters. Contact him at jeremy@shippingmastershk.com .

Container lines

Smaller ocean carriers can still prosper in a world of hungry ‘predators’

<div class="phx-topic abstract-wrapper">Stakeholders say a contract with Harbor Industrial Services to manage the state’s only box terminal should herald a new era of stability and cargo growth. </div>

Stakeholders say a contract with Harbor Industrial Services to manage the state’s only box terminal should herald a new era of stability and cargo growth.

<div class="phx-topic">The formal handover of stevedore management at Portland’s sole container terminal to a third-party operator on Wednesday ensures state agriculture exporters have access to a weekly Asian service after financial challenges threatened the Oregon port. Harbor Industrial Services on Monday took over operation of the port-managed Terminal 6 — now renamed Oregon Container Terminal (OCT) — and will oversee vessel and rail services for importers and exporters in Oregon, southwest Washington State and Idaho. “Securing a long-term operator for container service at Terminal 6 means exporters and importers across the state and region can keep moving their goods efficiently, competitively and closer to home while supporting thousands of family-wage jobs,” Port of Portland Executive Director Curtis Robinhold said during handover ceremonies Wednesday. The port did not provide specifics on the length of the contract with Harbor Industrial Services, only referring to it as a “long-term lease.” SM Line currently serves OCT with a weekly service that brings in imports from Asia such as tires, electronics, furniture and supplies used by businesses in their production processes. The vessels return to Asia with containerized exports such as grain, hay, berries and wood products, according to a statement from the port. Mediterranean Shipping Co. also had a weekly service from Asia to Portland earlier in 2025, but that service was paused due to tariffs and related federal trade policies as the carrier shifted space on the vessels to serve countries where it did not face high fees, the port said. Portland reached a “framework agreement” with Harbor Industrial Services in late 2024 to oversee operation of Terminal 6. The port had registered <a href="https://www.joc.com/article/port-of-portland-strikes-deal-with-stevedore-to-operate-container-terminal-5897345">losses of $26 million from 2023 through 2024.</a><h3>Troublesome venture with first private operator </h3>Portland for more than 30 years was an operating port, but it consistently lost money, and the port signed a lease with Philippine-based ICTSI in 2010 to manage Terminal 6. In a 2015 interview with the Journal of Commerce, Portland Executive Director Bill Wyatt said when the port first went out to bid for a private sector terminal operator, it was <a href="https://www.joc.com/article/outgoing-portland-port-president-predicts-box-service-return-5193131">losing as much as $17 million a year.</a>But the situation did not improve under a private operator. As a <a href="https://www.joc.com/article/ilwu-action-disrupts-work-at-portlands-terminal-6-5232355">result of non-stop labor turmoil</a>, Portland <a href="https://www.joc.com/article/sm-line-returns-container-service-to-portland-in-wake-of-ilwu-ruling-5243887">was without a regular liner service for about three years</a> until 2018. Its three carriers pulled out of the port while labor action continued and litigation between ICTSI and the International Longshore and Warehouse Union (ILWU) dragged on. A costly, decade-long case was settled in February 2024 when the <a href="https://www.joc.com/article/ilwu-ictsi-oregon-end-legal-dispute-bankruptcy-case-with-205-million-settlement-5244722">ILWU agreed to pay ICTSI $20.5 million in damages.</a>Container volumes at Terminal 6 suffered during the tumultuous decade. Portland last year through November handled 60,734 laden TEUs, according to PIERS, a Journal of Commerce sister product within S&amp;P Global. That’s a far cry from 2000 to 2005, <a href="https://www.joc.com/article/labor-peace-drives-portlands-container-recovery-5245968">when the port handled more than 300,000 TEUs annually</a>, according to PIERS data. “OCT is about reliability, growth and partnership,” OCT President Tim McCarthy said at Wednesday’s ceremonies. “This terminal gives shippers from Oregon and inland locations a stable, efficient and competitive gateway, backed by 210 acres of already-developed infrastructure, experienced operators and a skilled workforce with a proven record of productivity.” “This is one of the good outcomes that can be achieved when government, business and labor work together for the benefit of Oregonians,” said Stuart Strader, speaking on behalf of ILWU Local 8. Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

The formal handover of stevedore management at Portland’s sole container terminal to a third-party operator on Wednesday ensures state agriculture exporters have access to a weekly Asian service after financial challenges threatened the Oregon port. Harbor Industrial Services on Monday took over operation of the port-managed Terminal 6 — now renamed Oregon Container Terminal (OCT) — and will oversee vessel and rail services for importers and exporters in Oregon, southwest Washington State and Idaho. “Securing a long-term operator for container service at Terminal 6 means exporters and importers across the state and region can keep moving their goods efficiently, competitively and closer to home while supporting thousands of family-wage jobs,” Port of Portland Executive Director Curtis Robinhold said during handover ceremonies Wednesday. The port did not provide specifics on the length of the contract with Harbor Industrial Services, only referring to it as a “long-term lease.” SM Line currently serves OCT with a weekly service that brings in imports from Asia such as tires, electronics, furniture and supplies used by businesses in their production processes. The vessels return to Asia with containerized exports such as grain, hay, berries and wood products, according to a statement from the port. Mediterranean Shipping Co. also had a weekly service from Asia to Portland earlier in 2025, but that service was paused due to tariffs and related federal trade policies as the carrier shifted space on the vessels to serve countries where it did not face high fees, the port said. Portland reached a “framework agreement” with Harbor Industrial Services in late 2024 to oversee operation of Terminal 6. The port had registered losses of $26 million from 2023 through 2024. Troublesome venture with first private operator Portland for more than 30 years was an operating port, but it consistently lost money, and the port signed a lease with Philippine-based ICTSI in 2010 to manage Terminal 6. In a 2015 interview with the Journal of Commerce, Portland Executive Director Bill Wyatt said when the port first went out to bid for a private sector terminal operator, it was losing as much as $17 million a year. But the situation did not improve under a private operator. As a result of non-stop labor turmoil , Portland was without a regular liner service for about three years until 2018. Its three carriers pulled out of the port while labor action continued and litigation between ICTSI and the International Longshore and Warehouse Union (ILWU) dragged on. A costly, decade-long case was settled in February 2024 when the ILWU agreed to pay ICTSI $20.5 million in damages. Container volumes at Terminal 6 suffered during the tumultuous decade. Portland last year through November handled 60,734 laden TEUs, according to PIERS, a Journal of Commerce sister product within S&P Global. That’s a far cry from 2000 to 2005, when the port handled more than 300,000 TEUs annually , according to PIERS data. “OCT is about reliability, growth and partnership,” OCT President Tim McCarthy said at Wednesday’s ceremonies. “This terminal gives shippers from Oregon and inland locations a stable, efficient and competitive gateway, backed by 210 acres of already-developed infrastructure, experienced operators and a skilled workforce with a proven record of productivity.” “This is one of the good outcomes that can be achieved when government, business and labor work together for the benefit of Oregonians,” said Stuart Strader, speaking on behalf of ILWU Local 8. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

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Operator switch gives renewed hope to Portland’s Terminal 6

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