<div class="phx-topic abstract-wrapper">Truckload carrier Alabama Motor Express sees opportunities to grow by purchasing smaller carriers hit by rising truck insurance premiums.
 
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Truckload carrier Alabama Motor Express sees opportunities to grow by purchasing smaller carriers hit by rising truck insurance premiums.

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<div>The trucking market may be soft, but there are still opportunities for growth, especially for mid-sized carriers such as Alabama Motor Express (AMX). The Ashford, Alabama-based truckload carrier recently acquired Powell Transport Solutions, a smaller trucking company that specializes in refrigerated (reefer) cargo, and is looking for additional acquisition opportunities.“We’re searching very hard to diversify, it’s something we need to do in a softer market,” said Taylor White, vice president at AMX. “Regionally, we feel there’s a lot of opportunity for reefer business that we’ve been missing. We want to grow it, and instead of just starting out organically, we’d...

The trucking market may be soft, but there are still opportunities for growth, especially for mid-sized carriers such as Alabama Motor Express (AMX). The Ashford, Alabama-based truckload carrier recently acquired Powell Transport Solutions, a smaller trucking company that specializes in refrigerated (reefer) cargo, and is looking for additional acquisition opportunities. “We’re searching very hard to diversify, it’s something we need to do in a softer market,” said Taylor White, vice president at AMX. “Regionally, we feel there’s a lot of opportunity for reefer business that we’ve been missing. We want to grow it, and instead of just starting out organically, we’d rather acquire somebody who’s good at it,” and that’s Powell, he said. In trucking today, one company’s difficulty may be another’s opportunity, and the biggest difficulty White sees confronting trucking companies isn’t a driver shortage or low rates, but rising insurance costs. “We’re in the toughest insurance market I’ve ever seen,” he said. “While that presents challenges for us and everybody else, it also presents opportunities.” Trucking insurance costs per mile rose approximately 42 percent from 2010 through 2018, and 12 percent from 2017 to 2018, according to the American Transportation Research Institute (ATRI). “Insurance costs are soaring,” Avery Vise, vice president of trucking research at FTR Transportation Intelligence, said at the SMC3 Jump Start 2020 conference last month. “If you look at it by fleet size, there’s been a dramatic increase,” Vise said at the event . “We’re seeing big increases for fleets with up to 25 trucks. Many large carriers are self-insured, but small carriers don’t have that flexibility. They need to take what’s given to them.” And what they’re getting are double-digit increases in insurance premiums, Vise and other sources say. “For these smaller carriers, it’s incredibly tough for them to absorb a 30 percent to 50 percent increase on their insurance premiums,” White said. “That gives us the opportunity to acquire new companies that operate well but have been priced out of the market” by rising insurance rates. Insurance premiums may be the leading factor eliminating excess truck capacity. “Anecdotally, we’re hearing it hasn’t let up,” Vise said in January of rising insurance costs. With rates holding flat year over year, the increase in insurance premiums “is taking its toll” on carriers, Vise said. “Trucking failures are indeed above trend,” he said. “For the past five quarters we’ve been above trend in carriers losing authority, starting in the fourth quarter of 2018.” Some of those carriers are being acquired by larger competitors that need truck drivers and freight in order to expand. AMX has been in acquisition mode “for a year or two,” White said. “We’ll probably make more acquisitions in the coming months,” he added. “We want to get good people in to run different divisions of our company” as AMX diversifies beyond dry-van freight. Diversifying to increase profits AMX, founded with one truck in 1988 by CEO Scott White, now operates about 230 trucks nationwide, Taylor White said. Powell will add another 35 trucks. Before the 2008-09 recession, AMX was a bigger company, with nearly 500 trucks. Today, “We don’t want to be at 500,” White said. “We’re not growing just to grow. We want to be as profitable and diversified as possible.” The company had more than $80 million in revenue in 2019 and expects that to rise above $100 million in 2020. “It’s a very attainable goal,” White said, especially if the company completes additional acquisitions. Powell Transport, based in Midland City, Alabama, will become the refrigerated services division of AMX, led by president Paul Powell. “We want to get into other markets that are a little more stable than the dry-van market,” White said. “The dry-van market is so overrun that it is very volatile.” Other markets in which AMX is involved include drayage and tank trucking, he said. “Getting into reefer and other specialized businesses gives us the ability to pay truck drivers more, making them more successful.” AMX also has a brokerage business, AMX Logistics, and has recently opened offices in Savannah, Georgia, and Atlanta, bringing it closer to Georgia’s port and inland distribution hub. “We focus a lot of effort on growing the brokerage,” White said. “A lot of times we are able to sell more capacity than our 230-power-unit fleet. The two operations complement each other well.” White also sees mid-sized carriers such as AMX playing an important role in the market. “Somebody our size, we’re not going to be the cheapest rate,” he said. “It’s tough for us to compete with the 2,000-truck carriers on price. But when things really need to get done, we can usually get in there. That’s where our size carrier can really pull its weight.” Contact William B. Cassidy at bill.cassidy@ihsmarkit.com and follow him on Twitter: @willbcassidy .

Truckload

Rising insurance costs spur US trucking acquisitions

<div class="phx-topic abstract-wrapper">Unless shipowners significantly postpone or cancel orders, the wallops of new tonnage added in 2027 and 2028 will dwarf the deliveries made last year and next.</div>

Unless shipowners significantly postpone or cancel orders, the wallops of new tonnage added in 2027 and 2028 will dwarf the deliveries made last year and next.

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<div class="phx-topic">There’s less new container tonnage scheduled to be delivered in 2026 than 2025, but the impact to the market will be larger, both in terms of putting downward pressure on pricing and inching toward what some carrier executives say is inevitable: a significant idling of tonnage. Signs that the absorption of the 1.8 million in TEUs of tonnage received this year from shipyards is reaching saturation are emerging as container demand slows. And unless shipowners significantly postpone or cancel orders, the wallops of new tonnage added in 2027 and 2028 will dwarf the deliveries made last year and next, according to Sea-web, a sister product of the Journal of Commerce within S&amp;P Global. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6135193_0.1.jpg"></img></div>Some 1.48 million TEUs of tonnage are set to be delivered to shipowners in 2026, a 17.7% decrease from what was received this year. But another 2.3 million TEUs of tonnage is due in 2027, with 3.4 million TEUs slated for delivery in 2028, which is roughly equal to all the tonnage received in 2022 and 2023. Demand growth is going in the other direction. Global container volumes in 2026 will grow in the range of 2.5% to 3.5%, according to shipowner association Bimco. Comparably, container volume grew 4.5% to 5.5% in 2025 versus 2024. Container lines and shipowners this year received roughly 155,000 TEUs of capacity from ultra-large container ships, which can handle more than 20,000 TEUs, and deployed them on the Asia-North Europe trade, according to Sea-web. Global container volume growth in October fell to its slowest pace since February, expanding 2.1% year over year, according to the most recent data from Container Trade Statistics. On a 20-month rolling average, global demand growth in October hit the lowest level in 202 months, according to Simon Heaney, senior manager of container research at Drewry. <h3>Capacity absorbers </h3>Port congestion in Europe and sporadically in Asia mitigated some of the overcapacity this year, and, to a lesser degree, China’s widening import-export ratio is whittling some functional capacity. This year began with congestion tying up at least 30% of the global fleet, according to Clarkson’s Port Congestion index, with the persistent and sporadic congestion in Europe and Asia, respectively, continuing through the year. That absorption of functional capacity pales in comparison to the proverbial finger in the dike: Suez Canal routing diversions. If other carriers follow CMA CGM in regularly sailing through the Red Sea amid a shaky Gaza truce that is keeping Houthi rebels at bay, the industry can expect months of congestion, carriers and forwarders warn. That would only delay the return of functional capacity released by shorter sailings through the canal. Slow steaming vessels could help absorb capacity on the margins, with each type of engine and vessel facing limits on how slow they can operate before becoming energy inefficient. Container ships sailing from Asia to North Europe on average were 21.7% faster in the first three quarters of this year compared to the same period in 2018, according to an analysis of S&amp;P’s Maritime Emissions Registry. But, ultimately, only idling and scrapping of aging vessels will blunt the rising global overcapacity, barring nearly miraculous demand growth. As of mid-November, only 0.8% of the global fleet, equating to about 273,000 TEUs, was idled, according to analyst Alphaliner. Just a dozen ships, totaling 10,200 TEUs, were scrapped in 2025, according to an early December analysis of Sea-web data. Shipowners and carriers scrapped 19 times more TEU tonnage in 2019 and 2020, before the pandemic-driven US import surge showed how quickly overcapacity becomes emergency capacity. But the cost analysis of keeping spare capacity is changing as carriers’ operating costs rise, rates soften and the benefits of extending the life of aging vessels to keep up with global energy and design regulations weaken. Strong idling and then ramped-up scrapping seem inevitable unless carriers have forgotten the recent benefits of pulling capacity fast, like in the spring 2020 when US import demand plunged at the outset of the pandemic before rocketing. Contact Mark Szakonyi at <a href="https://www.joc.com/article/mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com.</a></div>

There’s less new container tonnage scheduled to be delivered in 2026 than 2025, but the impact to the market will be larger, both in terms of putting downward pressure on pricing and inching toward what some carrier executives say is inevitable: a significant idling of tonnage. Signs that the absorption of the 1.8 million in TEUs of tonnage received this year from shipyards is reaching saturation are emerging as container demand slows. And unless shipowners significantly postpone or cancel orders, the wallops of new tonnage added in 2027 and 2028 will dwarf the deliveries made last year and next, according to Sea-web, a sister product of the Journal of Commerce within S&P Global. Some 1.48 million TEUs of tonnage are set to be delivered to shipowners in 2026, a 17.7% decrease from what was received this year. But another 2.3 million TEUs of tonnage is due in 2027, with 3.4 million TEUs slated for delivery in 2028, which is roughly equal to all the tonnage received in 2022 and 2023. Demand growth is going in the other direction. Global container volumes in 2026 will grow in the range of 2.5% to 3.5%, according to shipowner association Bimco. Comparably, container volume grew 4.5% to 5.5% in 2025 versus 2024. Container lines and shipowners this year received roughly 155,000 TEUs of capacity from ultra-large container ships, which can handle more than 20,000 TEUs, and deployed them on the Asia-North Europe trade, according to Sea-web. Global container volume growth in October fell to its slowest pace since February, expanding 2.1% year over year, according to the most recent data from Container Trade Statistics. On a 20-month rolling average, global demand growth in October hit the lowest level in 202 months, according to Simon Heaney, senior manager of container research at Drewry. Capacity absorbers Port congestion in Europe and sporadically in Asia mitigated some of the overcapacity this year, and, to a lesser degree, China’s widening import-export ratio is whittling some functional capacity. This year began with congestion tying up at least 30% of the global fleet, according to Clarkson’s Port Congestion index, with the persistent and sporadic congestion in Europe and Asia, respectively, continuing through the year. That absorption of functional capacity pales in comparison to the proverbial finger in the dike: Suez Canal routing diversions. If other carriers follow CMA CGM in regularly sailing through the Red Sea amid a shaky Gaza truce that is keeping Houthi rebels at bay, the industry can expect months of congestion, carriers and forwarders warn. That would only delay the return of functional capacity released by shorter sailings through the canal. Slow steaming vessels could help absorb capacity on the margins, with each type of engine and vessel facing limits on how slow they can operate before becoming energy inefficient. Container ships sailing from Asia to North Europe on average were 21.7% faster in the first three quarters of this year compared to the same period in 2018, according to an analysis of S&P’s Maritime Emissions Registry. But, ultimately, only idling and scrapping of aging vessels will blunt the rising global overcapacity, barring nearly miraculous demand growth. As of mid-November, only 0.8% of the global fleet, equating to about 273,000 TEUs, was idled, according to analyst Alphaliner. Just a dozen ships, totaling 10,200 TEUs, were scrapped in 2025, according to an early December analysis of Sea-web data. Shipowners and carriers scrapped 19 times more TEU tonnage in 2019 and 2020, before the pandemic-driven US import surge showed how quickly overcapacity becomes emergency capacity. But the cost analysis of keeping spare capacity is changing as carriers’ operating costs rise, rates soften and the benefits of extending the life of aging vessels to keep up with global energy and design regulations weaken. Strong idling and then ramped-up scrapping seem inevitable unless carriers have forgotten the recent benefits of pulling capacity fast, like in the spring 2020 when US import demand plunged at the outset of the pandemic before rocketing. Contact Mark Szakonyi at  mark.szakonyi@spglobal.com.

Container lines

Asia-Europe

Trans-Pacific

Maritime

Easing container tonnage delivery in 2026 belies signs of saturation

<div class="phx-topic abstract-wrapper">Along with funding through 2029, the reauthorization codified new responsibilities for the agency under OSRA-22.</div>

Along with funding through 2029, the reauthorization codified new responsibilities for the agency under OSRA-22.

<div class="phx-topic">Congress has reauthorized the Federal Maritime Commission (FMC) for another four years while adding new powers to the agency for monitoring shipping exchanges and non-US ocean carriers. The House of Representatives voted Monday to fund the FMC through 2029, with the agency’s annual budget set to rise from $49.2 million currently to $57 million over the next four years. Along with the funding, the reauthorization codified new responsibilities for the FMC under the Ocean Shipping Reform Act of 2022 (OSRA-22). The bill now goes to the Senate, but there is no timeline for when it will vote. Among the changes in the reauthorization is a broader definition of a “controlled carrier,” which is subject to more oversight by the FMC. Along with a foreign government having a direct stake or oversight, a controlled carrier can now also be one that is domiciled in a foreign country subject to monitoring by the Department of Commerce or the US Trade Representative. Also part of the FMC’s reauthorization is a requirement that the agency’s annual report to Congress include an “analysis of any trade imbalance” that is the result of ocean carrier business practices. The FMC will also be empowered to investigate complaints against shipping exchanges. In a statement about the agency’s reauthorization, Rep. John Garamendi, one of the bill’s co-sponsors, singled out the Shanghai Shipping Exchange for the FMC’s new purview. By 2027, the FMC will also have to set out rules for registering and regulating shipping exchanges in the US. The agency will also be given one year for proposed rulemaking on how to develop containerized freight indexes for shippers. The agency will continue to receive outside help in monitoring the industry. Along with reauthorizing the National Shipper Advisory Committee, Congress also authorized the FMC to establish a port advisory committee and an ocean carrier advisory committee. “This legislation builds on my Ocean Shipping Reform Act to deliver critical investments through 2027, strengthen the Commission’s independence, and ensure US businesses will compete on a fair and level playing field,” Garamendi said in the statement. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Congress has reauthorized the Federal Maritime Commission (FMC) for another four years while adding new powers to the agency for monitoring shipping exchanges and non-US ocean carriers. The House of Representatives voted Monday to fund the FMC through 2029, with the agency’s annual budget set to rise from $49.2 million currently to $57 million over the next four years. Along with the funding, the reauthorization codified new responsibilities for the FMC under the Ocean Shipping Reform Act of 2022 (OSRA-22). The bill now goes to the Senate, but there is no timeline for when it will vote. Among the changes in the reauthorization is a broader definition of a “controlled carrier,” which is subject to more oversight by the FMC. Along with a foreign government having a direct stake or oversight, a controlled carrier can now also be one that is domiciled in a foreign country subject to monitoring by the Department of Commerce or the US Trade Representative. Also part of the FMC’s reauthorization is a requirement that the agency’s annual report to Congress include an “analysis of any trade imbalance” that is the result of ocean carrier business practices. The FMC will also be empowered to investigate complaints against shipping exchanges. In a statement about the agency’s reauthorization, Rep. John Garamendi, one of the bill’s co-sponsors, singled out the Shanghai Shipping Exchange for the FMC’s new purview. By 2027, the FMC will also have to set out rules for registering and regulating shipping exchanges in the US. The agency will also be given one year for proposed rulemaking on how to develop containerized freight indexes for shippers. The agency will continue to receive outside help in monitoring the industry. Along with reauthorizing the National Shipper Advisory Committee, Congress also authorized the FMC to establish a port advisory committee and an ocean carrier advisory committee. “This legislation builds on my Ocean Shipping Reform Act to deliver critical investments through 2027, strengthen the Commission’s independence, and ensure US businesses will compete on a fair and level playing field,” Garamendi said in the statement. Contact Michael Angell at michael.angell@spglobal.com .

North American ports

Transport, Trade and Regulation News

House reauthorizes FMC and adds to its oversight powers

<div class="phx-topic abstract-wrapper">The handling and transportation of space components is opening up new opportunities for project cargo forwarders. </div>

The handling and transportation of space components is opening up new opportunities for project cargo forwarders.

<div class="phx-topic">Project cargo and breakbulk shipping company/forwarder Compagnie Maritime Nantaise (MN) has drawn up plans for a newbuild vessel designed specifically to meet the needs of the burgeoning space logistics project cargo sector. Part of the Sogestran group, MN’s fleet includes the MN Toucan and MN Colibri, built in 1995 and 2000, respectively, and designed in cooperation with the European Space Agency (ESA) Arianespace program, for which MN managed vessel operations over four decades. Those dedicated vessels for space-related cargoes have carried the Euclid telescope from Savona, Italy, to Port Canaveral; the largest European geostationary satellite from Fos in France to Kourou, French Guiana; and the James Webb telescope from Seal Beach, California, to Kourou. “The MN Toucan and MN Colibri are older vessels but very well maintained,” Mathias Audrain, MN’s commercial and business development manager, told the Journal of Commerce. “However, 2026 will see a new vessel order which will meet full space industry requirements, to carry all kinds of launchers and satellites.” The vessel will be specifically designed for the space industry and could be joined by a second order in 2026. “We must have two vessels because delays are not permitted in this industry,” Audrain said, adding the first vessel could be ready in less than three years. Despite its promised sophistication, the ship will be restricted to a maximum length of 120 meters to access Kourou port in French Guiana and other small ports. “Access to Kourou is tricky, via a narrow river, so we are limited on length,” Audrain said. “The main characteristics will be close to our present vessels, which cross the Atlantic with a five-meter draft but then we are able to de-ballast when we arrive, reducing draft to three meters in order to reach the Kourou pier.” <h3>Dealing with bureaucracy </h3>Modules and components transported for space range from overweight, oversize rocket sections and launchers to tiny, fragile and temperature-sensitive items — and yet geopolitics and bureaucracy, rather than the cargo itself, are said to present some of the toughest and most complex headaches for logistics specialists. Craig Russell, project manager at freight forwarder Pinnacle International Freight in the UK, described handling and shipping as the “relatively easy part.” He said the main challenges are geopolitical. “How do you move technologically sensitive components that could be under export controls, or how do you support cross-border collaborations with customs?” he said. Britain’s exit from the European Union has added to the complexities for shipments between the UK and EU, and the trade and tariff disputes set off by the Trump administration have also had their impact, along with ever-changing sanctions regimes. Pinnacle has an office at Space Park Leicester, a UK hub for space research located within the East Midlands Freeport. Russell believes there are massive opportunities ahead for project cargo logistics as space operations continue to soar. Freeport status could open opportunities for manufacturing, consolidating and assembling satellites and other products for export, but only if managed correctly. “This is a case of the [UK] government going top level down, putting these freeports in but without the practical support of how applying and managing a customs bonded facility works,” Russell said. Conversely, the US used to be relatively easy to navigate for space logistics because many products were duty free and could move in and out freely. Now, duties, temporary import bonds and other procedures make the process more complicated. Plus, geopolitical factors mean that trade partners for products and services change frequently. “In short, it is the procedural and compliance side rather than the practical that is raising the challenges,” Russell said. Security is tight and confidentiality is essential in this sector — and there is no room for error, he added. “Transporting space components is complex and planning can start several months — even years — before just one transport,” MN’s Audrain said. “Everything must go smoothly — it is not during the operation that you should discover any issues. It’s a case of check, check and triple check.” Contact Felicity Landon at <a href="mailto:felicity@felicitylandon.com">felicity@felicitylandon.com</a>.</div>

Project cargo and breakbulk shipping company/forwarder Compagnie Maritime Nantaise (MN) has drawn up plans for a newbuild vessel designed specifically to meet the needs of the burgeoning space logistics project cargo sector. Part of the Sogestran group, MN’s fleet includes the MN Toucan and MN Colibri, built in 1995 and 2000, respectively, and designed in cooperation with the European Space Agency (ESA) Arianespace program, for which MN managed vessel operations over four decades. Those dedicated vessels for space-related cargoes have carried the Euclid telescope from Savona, Italy, to Port Canaveral; the largest European geostationary satellite from Fos in France to Kourou, French Guiana; and the James Webb telescope from Seal Beach, California, to Kourou. “The MN Toucan and MN Colibri are older vessels but very well maintained,” Mathias Audrain, MN’s commercial and business development manager, told the Journal of Commerce. “However, 2026 will see a new vessel order which will meet full space industry requirements, to carry all kinds of launchers and satellites.” The vessel will be specifically designed for the space industry and could be joined by a second order in 2026. “We must have two vessels because delays are not permitted in this industry,” Audrain said, adding the first vessel could be ready in less than three years. Despite its promised sophistication, the ship will be restricted to a maximum length of 120 meters to access Kourou port in French Guiana and other small ports. “Access to Kourou is tricky, via a narrow river, so we are limited on length,” Audrain said. “The main characteristics will be close to our present vessels, which cross the Atlantic with a five-meter draft but then we are able to de-ballast when we arrive, reducing draft to three meters in order to reach the Kourou pier.” Dealing with bureaucracy Modules and components transported for space range from overweight, oversize rocket sections and launchers to tiny, fragile and temperature-sensitive items — and yet geopolitics and bureaucracy, rather than the cargo itself, are said to present some of the toughest and most complex headaches for logistics specialists. Craig Russell, project manager at freight forwarder Pinnacle International Freight in the UK, described handling and shipping as the “relatively easy part.” He said the main challenges are geopolitical. “How do you move technologically sensitive components that could be under export controls, or how do you support cross-border collaborations with customs?” he said. Britain’s exit from the European Union has added to the complexities for shipments between the UK and EU, and the trade and tariff disputes set off by the Trump administration have also had their impact, along with ever-changing sanctions regimes. Pinnacle has an office at Space Park Leicester, a UK hub for space research located within the East Midlands Freeport. Russell believes there are massive opportunities ahead for project cargo logistics as space operations continue to soar. Freeport status could open opportunities for manufacturing, consolidating and assembling satellites and other products for export, but only if managed correctly. “This is a case of the [UK] government going top level down, putting these freeports in but without the practical support of how applying and managing a customs bonded facility works,” Russell said. Conversely, the US used to be relatively easy to navigate for space logistics because many products were duty free and could move in and out freely. Now, duties, temporary import bonds and other procedures make the process more complicated. Plus, geopolitical factors mean that trade partners for products and services change frequently. “In short, it is the procedural and compliance side rather than the practical that is raising the challenges,” Russell said. Security is tight and confidentiality is essential in this sector — and there is no room for error, he added. “Transporting space components is complex and planning can start several months — even years — before just one transport,” MN’s Audrain said. “Everything must go smoothly — it is not during the operation that you should discover any issues. It’s a case of check, check and triple check.” Contact Felicity Landon at felicity@felicitylandon.com .

Project cargo

Breakbulk News

Space logistics newbuilding to service booming project cargo sector

<div class="phx-topic abstract-wrapper">The vessels take the carrier’s total order book to 36 ships to be delivered between 2026 and 2030, increasing its owned fleet to 150 ships totaling 927,250 TEUs.</div>

The vessels take the carrier’s total order book to 36 ships to be delivered between 2026 and 2030, increasing its owned fleet to 150 ships totaling 927,250 TEUs.

<div class="phx-topic">Taiwan’s Wan Hai Lines will bolster its owned vessel fleet after approving a deal Tuesday worth almost $500 million for six 6,000-TEU dual-fuel LNG-powered container ships. Wan Hai, ranked 11th in the world in terms of capacity by Alphaliner, said the ships will be built by China’s CSSC Huangpu Wenchong Shipbuilding. The vessels are priced between $75.2 million and $82 million each, giving the deal a total value of $451.2 million to $492 million, the carrier said in a Taiwan stock exchange filing. The vessels take Wan Hai’s total order book to 36 ships to be delivered between 2026 and 2030, increasing its owned fleet to 150 ships totaling 927,250 TEUs. Its order book includes 12 16,000-TEU ships that will be the largest in Wan Hai’s fleet when they are delivered in 2027 and 2028. Wan Hai gave no details of where the new 6,000-TEU ships will be deployed, although they could join the carrier’s existing 600-series vessels on services between Asia and the Indian sub-continent. The ships further reinforce LNG as the next generation fuel of choice for ocean carriers, with this latest contract taking the total capacity of LNG-powered vessels on order to almost 4.2 million TEUs. That is double the 2.1 million TEUs of methanol-fueled vessels on order, according to Sea-web, a sister company of the Journal of Commerce within S&amp;P Global. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="b5f12c4e-8754-4025-849c-a8b4e06ae6f9"></dynamic-object></div>The shipbuilding order is part of a move by Wan Hai to expand its service network. In the first of these, the carrier’s directors approved a $96 million deal Tuesday with Yokohama-Kawasaki International Port to lease for 20 years the Honmoku-futo D-4 Container Terminal in Japan’s second-largest container port. Wan Hai will take over the terminal when CMA CGM, the current operator, moves to Honmoku’s D5 terminal by October next year. The D4 facility, with a quay length of 1,312 feet and three ship-to-shore cranes, has an annual handling capacity of 550,000 TEUs and will augment Wan Hai’s Ohi-5 terminal in Tokyo. The carrier also said it will launch a second trans-Pacific service in conjunction with Ocean Network Express in April or May of next year. The Asia-Pacific 2 loop will be an express service linking North and East China and the US West Coast. The full rotation is Qingdao-Ningbo-Los Angeles-Oakland-Qingdao. The AP2 service “will offer customers more comprehensive coverage between Asia and the US West Coast, delivering faster and more reliable transportation solutions to meet customer requirements,” Wan Hai said. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Taiwan’s Wan Hai Lines will bolster its owned vessel fleet after approving a deal Tuesday worth almost $500 million for six 6,000-TEU dual-fuel LNG-powered container ships. Wan Hai, ranked 11th in the world in terms of capacity by Alphaliner, said the ships will be built by China’s CSSC Huangpu Wenchong Shipbuilding. The vessels are priced between $75.2 million and $82 million each, giving the deal a total value of $451.2 million to $492 million, the carrier said in a Taiwan stock exchange filing. The vessels take Wan Hai’s total order book to 36 ships to be delivered between 2026 and 2030, increasing its owned fleet to 150 ships totaling 927,250 TEUs. Its order book includes 12 16,000-TEU ships that will be the largest in Wan Hai’s fleet when they are delivered in 2027 and 2028. Wan Hai gave no details of where the new 6,000-TEU ships will be deployed, although they could join the carrier’s existing 600-series vessels on services between Asia and the Indian sub-continent. The ships further reinforce LNG as the next generation fuel of choice for ocean carriers, with this latest contract taking the total capacity of LNG-powered vessels on order to almost 4.2 million TEUs. That is double the 2.1 million TEUs of methanol-fueled vessels on order, according to Sea-web, a sister company of the Journal of Commerce within S&P Global. The shipbuilding order is part of a move by Wan Hai to expand its service network. In the first of these, the carrier’s directors approved a $96 million deal Tuesday with Yokohama-Kawasaki International Port to lease for 20 years the Honmoku-futo D-4 Container Terminal in Japan’s second-largest container port. Wan Hai will take over the terminal when CMA CGM, the current operator, moves to Honmoku’s D5 terminal by October next year. The D4 facility, with a quay length of 1,312 feet and three ship-to-shore cranes, has an annual handling capacity of 550,000 TEUs and will augment Wan Hai’s Ohi-5 terminal in Tokyo. The carrier also said it will launch a second trans-Pacific service in conjunction with Ocean Network Express in April or May of next year. The Asia-Pacific 2 loop will be an express service linking North and East China and the US West Coast. The full rotation is Qingdao-Ningbo-Los Angeles-Oakland-Qingdao. The AP2 service “will offer customers more comprehensive coverage between Asia and the US West Coast, delivering faster and more reliable transportation solutions to meet customer requirements,” Wan Hai said. Contact Keith Wallis at keithwallis@hotmail.com .

Container Shipping News

Wan Hai inks approximately $500 million deal for six LNG-powered ships

<div class="phx-topic abstract-wrapper">Data from consultants Trade and Transport Group shows the impact of regulatory changes as de minimis traffic fell significantly while regular air cargo increased.</div>

Data from consultants Trade and Transport Group shows the impact of regulatory changes as de minimis traffic fell significantly while regular air cargo increased.

<div class="phx-topic">A fundamental shift in trans-Pacific air freight trade flows since the US eliminated the de minimis exemption for low-value goods in May is becoming clearer, with a decline in China-US traffic replaced by booming imports from Taiwan and Vietnam. Data from consultants Trade and Transport Group shows the impact of the regulatory changes as de minimis traffic fell significantly while regular air cargo increased. “The decline in China to US traffic has been more than offset, particularly by air freight from Taiwan and Vietnam, and it is mainly linked to computers and parts, as well as industrial equipment,” Frederic Horst, managing director of Trade and Transport Group, told the Journal of Commerce. In the first nine months of the year, US imports of air cargo from China were down 10.1% year over year, Trade and Transport data shows. But imports from Northeast Asia as a whole rose 36.4%, while imports from Southeast Asian origins were up almost 50%.  A deeper dive into the data shows US air cargo imports from Taiwan from January through September jumped almost 91% year over year, imports from Vietnam rose almost 80% and imports from Thailand were up more than 40%. Computers and accessories, industrial equipment and parts; audio, video and optical components; and mobile phones comprised the bulk of the air freight shipments. The trend has also been picked up by Taiwan-based Dimerco Express Group, which has urged shippers to factor the supply chain changes into their 2026 shipment plans. “Following changes to US de minimis rules, some direct China-US e-commerce flows have decreased, but more cargo is now routed via alternative hubs and forward-stocking models, making trade lanes more diversified,” Catherine Chien, chairwoman of Dimerco Express Group, said in a market update.  “Demand for high-tech, AI-related and e-commerce shipments continues to drive growth in air freight from the Asia-Pacific region to North America and Europe,” Chien added. “Shippers that can flex between multiple lanes, multiple modes and multiple origin countries will be better positioned than those relying on a single country or mode.” <h3>US import data distorted by e-commerce </h3>The main driver of inbound air cargo from Asia to the US has been e-commerce, which, over the past few years, has created a growing gap in US air cargo data. But the removal in May of the de minimis exemption for low-value imports from China, followed by the removal of de minimis rules for all US trading partners in August, has led to a fundamental change in the mix of air cargo. “Regular air freight imports — i.e. consignments greater than $2,000 — are up 16.5% for the first nine months, while overall inbound air cargo traffic [to the US] is down 2.5%,” Horst said. Data from air cargo analyst Rotate shows freighter operators have shifted capacity in Asia to follow the moving export trend. Direct air freight capacity offered from Southeast Asia to North America from May 2 — when the de minimis tariff on China imports was eliminated — through November was up 89% at 102,700 metric tons.  <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="8d7ed0b1-01de-471d-b540-bed610465c9a"></dynamic-object></div>However, the analyst pointed out that much of Vietnam’s air freight trade is shipped indirectly through Asian hubs in mainland China, Hong Kong, South Korea and Japan, so the actual volume from Southeast Asia to North America is higher. The Freightos Air Index shows China-US rates at a 2025 high exceeding $8/kg this week, higher than last year’s $7.30/kg peak, according to a market update from Freightos Tuesday.  The International Air Transport Association expects global air volume growth of 3.1% for 2025 and 2.6% for 2026 despite the impact of the US tariffs on volume flows. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

A fundamental shift in trans-Pacific air freight trade flows since the US eliminated the de minimis exemption for low-value goods in May is becoming clearer, with a decline in China-US traffic replaced by booming imports from Taiwan and Vietnam.  Data from consultants Trade and Transport Group shows the impact of the regulatory changes as de minimis traffic fell significantly while regular air cargo increased.  “The decline in China to US traffic has been more than offset, particularly by air freight from Taiwan and Vietnam, and it is mainly linked to computers and parts, as well as industrial equipment,” Frederic Horst, managing director of Trade and Transport Group, told the Journal of Commerce.  In the first nine months of the year, US imports of air cargo from China were down 10.1% year over year, Trade and Transport data shows. But imports from Northeast Asia as a whole rose 36.4%, while imports from Southeast Asian origins were up almost 50%.   A deeper dive into the data shows US air cargo imports from Taiwan from January through September jumped almost 91% year over year, imports from Vietnam rose almost 80% and imports from Thailand were up more than 40%. Computers and accessories, industrial equipment and parts; audio, video and optical components; and mobile phones comprised the bulk of the air freight shipments.  The trend has also been picked up by Taiwan-based Dimerco Express Group, which has urged shippers to factor the supply chain changes into their 2026 shipment plans.  “Following changes to US de minimis rules, some direct China-US e-commerce flows have decreased, but more cargo is now routed via alternative hubs and forward-stocking models, making trade lanes more diversified,” Catherine Chien, chairwoman of Dimerco Express Group, said in a market update.   “Demand for high-tech, AI-related and e-commerce shipments continues to drive growth in air freight from the Asia-Pacific region to North America and Europe,” Chien added. “Shippers that can flex between multiple lanes, multiple modes and multiple origin countries will be better positioned than those relying on a single country or mode.”  US import data distorted by e-commerce  The main driver of inbound air cargo from Asia to the US has been e-commerce, which, over the past few years, has created a growing gap in US air cargo data. But the removal in May of the de minimis exemption for low-value imports from China, followed by the removal of de minimis rules for all US trading partners in August, has led to a fundamental change in the mix of air cargo.  “Regular air freight imports — i.e. consignments greater than $2,000 — are up 16.5% for the first nine months, while overall inbound air cargo traffic [to the US] is down 2.5%,” Horst said.  Data from air cargo analyst Rotate shows freighter operators have shifted capacity in Asia to follow the moving export trend. Direct air freight capacity offered from Southeast Asia to North America from May 2 — when the de minimis tariff on China imports was eliminated — through November was up 89% at 102,700 metric tons.   However, the analyst pointed out that much of Vietnam’s air freight trade is shipped indirectly through Asian hubs in mainland China, Hong Kong, South Korea and Japan, so the actual volume from Southeast Asia to North America is higher.  The Freightos Air Index shows China-US rates at a 2025 high exceeding $8/kg this week, higher than last year’s $7.30/kg peak, according to a market update from Freightos Tuesday.   The International Air Transport Association expects global air volume growth of 3.1% for 2025 and 2.6% for 2026 despite the impact of the US tariffs on volume flows.  Contact Greg Knowler at  greg.knowler@spglobal.com . 

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