<div class="phx-topic abstract-wrapper">After spiking in March owing to increased demand for essential goods amid the COVID-19 pandemic, truck detention has receded but remains a disruptive factor for truckers that can backfire on shippers when capacity is needed.</div>

After spiking in March owing to increased demand for essential goods amid the COVID-19 pandemic, truck detention has receded but remains a disruptive factor for truckers that can backfire on shippers when capacity is needed.

3635851_FI.jpg

<div>Truck driver detention times that soared in March may have dropped as demand for essential goods eased in April and May, but truck drivers, carriers, and shippers have not stopped searching for solutions to a problem that cuts into available capacity and frustrates truck drivers.Those solutions will inevitably involve technology that better tracks the movement of trucks and the time they spend at shipping and receiving facilities, helping carriers, brokers, and shippers more precisely identify when and where excessive driver detention is taking place.In some states where volumes have increased since the beginning of May, truck dwell time at pickup...

Truck driver detention times that soared in March may have dropped as demand for essential goods eased in April and May, but truck drivers, carriers, and shippers have not stopped searching for solutions to a problem that cuts into available capacity and frustrates truck drivers. Those solutions will inevitably involve technology that better tracks the movement of trucks and the time they spend at shipping and receiving facilities, helping carriers, brokers, and shippers more precisely identify when and where excessive driver detention is taking place. In some states where volumes have increased since the beginning of May, truck dwell time at pickup and delivery sites has dropped 10 to 20 percent, according to FourKites. That is highly unusual, and probably related to the pandemic, the supply chain visibility provider said. When demand for essential goods soared in March, “we heard of wait times as long as 24 hours” to load or unload a truck, which is also highly unusual during “normal” times, said Glenn Koepke, vice president of network enablement at FourKites. “It was just, ‘Get the truck to our facility and we’ll unload it when we get to it.’” As panic buying subsided in April and May, “businesses have been able to correct course”, he said. “Companies have had about six weeks to get their workforce in better alignment [with volumes], they’ve improved their driver check-in processes, and they’ve been able to minimize dwell.” But much depends on what a truck is hauling and where it is coming from or headed. A review of FourKites dwell time data available online shows businesses in some states and communities are doing better than others when it comes to reducing driver dwell time. As of Thursday, outbound truck movements from California were up 1.38 percent compared with the two-week rolling average, but dwell time statewide was down 6.49 percent within the same comparison, according to the FourKites data, representing tens of thousands of trucks. Digging deeper into the data, truck activity was up 20.5 percent in Stockton, California, but dwell time dropped 15 percent. In San Bernardino, where truck activity was up 27.9 percent, dwell times rose 9.1 percent. Ontario saw activity drop 9.7 percent and dwell time fall 17.2 percent. Data on inbound shipments can show a different picture. Inbound truck movements in Stockton were up 24.7 percent and dwell time down 59.4 percent compared with the two-week average. In San Bernardino and Ontario, inbound dwell time was down 35.8 and 18.5 percent, respectively. The data also shows that the decline in dwell time has diminished over time. In California, statewide average dwell times dropped significantly through May 9, when they were 21.4 percent below the two-week rolling average. Dwell time has been climbing since. The trendline is similar in neighboring states such as Nevada and Arizona, where trucking activity is increasing, and in Oregon, Washington, and Idaho, where truck movements are lagging. In Idaho, dwell time is up 8 percent above the FourKites two-week average. In Minnesota, where stay-at-home orders and restrictions on businesses began to be lifted May 18, trucking activity has been declining throughout the month, and as of Thursday was down 17.4 percent, according to FourKites. But truck dwell times were up 15.9 percent. In some recently “reopened” states, increases in detention time may be owing to difficulties manufacturers or retailers of non-essential goods have staffing docks and receiving orders. Those companies may just now be implementing procedures firms moving essential items did in March. Looking for longer-term solutions Any improvements in dwell time or detention — i.e., when dwell time exceeds contractual limits — are coming on the back of the extreme spike in detention times early in the COVID-19 pandemic, as mentioned by Koepke. The underlying problem remains. “It has become progressively worse since 2018,” said Collins White, president of logistics for Alabama Motor Express. “We’ve bought software that automatically tracks when the truck goes over the allotted two hours [of dwell time] and automatically bills the customer.” The truckload carrier is not trying to “nickel and dime” shippers, White said. “But if a driver sits at a shipper for even 30 minutes extra, it can really ruin the flow of their week. If you miss an appointment because you’ve been detained, it may take you hours to reschedule.” One solution is to move to a drop-trailer business model, he said. “We’ve got a 3-1 trailer-to-truck ratio company now because we’ve tried to help the customers out because they’re low on [dock] labor,” said White. “We drop a lot of trailers at facilities and that helps, but it still prolongs the problem.” “At some point, you can’t just keep asking for more trailers,” he said. “You’ve got to solve the labor problem.” And not by taking more time away from the truck driver, which just shifts the shipper’s internal costs onto the driver and carrier, often without compensation, White added. Better tracking of detention Technology is likely to be part of the solution, whether it is software that helps shippers allocate labor and other resources more efficiently or a database that helps trucking firms better identify problematic pickup and delivery sites and calculate just how much time is being lost there. That is the goal of Kevin Nadeau, founder and CEO of True Load Time, a Greenville, South Carolina-based software firm that is building a database of arrival and departure information from shipping and receiving locations that can be mined by trucking companies. “Truckload detention was always a thorn in my side at most of my operations,” over a 24-year career in shipping and trucking, Nadeau told JOC.com. “You build a route plan based on a two-hour window, and then that goes out the window when that wait turns into six hours.” True Load Time, now in its beta phase of development, is an aggregated, anonymized database with information on more than 5,000 facilities and docks, mostly in the Southeast, Nadeau said. He plans to expand nationwide by partnering with carriers and other technology providers. “We’re neither a carrier nor broker, we're a content holder,” he said. “We want people to be able to bring this detention data into their systems and use it when they’re building lanes and routes, when they’re responding to their next RFP [request for proposal] from a customer.” For motor carriers, the ability to use such data “is going to be a great driver retention tool”, Nadeau said. “And it will help hold some of these locations accountable.” Contact William B. Cassidy at bill.cassidy@ihsmarkit.com and follow him on Twitter: @willbcassidy .

Logistics Technology News

Truckload

US truck dwell times declining, but detention still a problem

<div class="phx-topic abstract-wrapper">The move comes amid softer volumes this year at the gateway, but NSWA’s chief operating officer says now is not the time to “pull back” on service levels. </div>

The move comes amid softer volumes this year at the gateway, but NSWA’s chief operating officer says now is not the time to “pull back” on service levels.

Feature image

<div class="phx-topic">Officials at the Northwest Seaport Alliance (NWSA) of Seattle and Tacoma are criticizing a move by SSA Terminals to implement once-a-week gate closures at each of its two marine terminals in Seattle following the recent cancellation of a trans-Pacific service, saying it “enters friction” into the port’s operations. SSA is closing gate and yard operations at Terminal 5 on Mondays and Terminal 18 on Fridays in April, although maintaining seven-day vessel operations. The decision, it said, came amid softer volumes at the port; in March, the Sun Chief Express Service from Southeast Asia, which called at T-18, was terminated with the exit of Emirates Shipping Line from the trans-Pacific trade. SSA has not said whether the gate closures will extend into May. While the advisory it sent out about the April closures went to the port’s trucking community, it was not sent to the NWSA. Jeff Bellerud, chief operating officer of the NWSA, said SSA’s decision to close gates at its two Seattle terminals works counter to the port authority’s efforts to improve service for truckers and shippers. “We want to offer the highest quality service along the West Coast, and as gates are reduced it enters friction into the system at a time when we need to do just the opposite,” Bellerud told the Journal of Commerce Monday. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ac60de38-7aa7-459a-8baa-a45ae18e2f38"></dynamic-object></div>Volumes into NWSA were down sharply at the beginning of the year, with imports from Asia of 160,144 TEUs for January and February combined down almost 23% from the same period in 2025, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. For all of the West Coast, imports from Asia of 931,450 TEUs in January were down 14.4% year over year, while imports of 886,280 for February were up 1.3% from a year earlier, according to PIERS. According to NWSA data, total imports and exports year to date through February at the gateway were down 16.6%. SSA, in a statement to the Journal of Commerce, said cargo volumes have been low “at every port in the United States since the start of 2026.” “Despite these conditions, SSA Terminals Seattle has maintained its operational processes and continues daily vessel operations, seven days a week, at Terminal 5 and Terminal 18 whenever there is demand,” it said. “SSA Terminals Seattle also remains committed to efficiently managing cargo volume changes and minimizing disruptions for our customers and the regional trucking community,” SSA added. “To ensure continued service, gate and yard operations continue at a minimum of one terminal, Monday through Friday.” <h3>Can’t ‘pull back’ on service </h3>There is likely a cost-savings component to SSA’s decision to cut back on some gate shifts. While the cost to the terminal operator of running a full gate shift varies based on the volume of containers lifted on and off a vessel and the number of longshore work gangs that must be employed, about $40,000 “is a good marker for a full-service day shift,” at NWSA, according to Bellerud. But if the NWSA is going to maintain its customer service standards in the highly competitive West Coast port environment, it is essential that all of NWSA’s terminals offer full daytime shifts Monday through Friday, he said. “It is in these soft markets when we need to lean into service, not pull back, if we are going to grow future volumes,” Bellerud said. He’s hopeful that volumes at NWSA will begin to pick up as spring and summer merchandise imports begin to arrive. “What we’re seeing now is vessels and volumes should start to pick up in that mid-May time frame, and thereafter,” Bellerud said. “We’re cautiously bullish on the second half of the year.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

Officials at the Northwest Seaport Alliance (NWSA) of Seattle and Tacoma are criticizing a move by SSA Terminals to implement once-a-week gate closures at each of its two marine terminals in Seattle following the recent cancellation of a trans-Pacific service, saying it “enters friction” into the port’s operations. SSA is closing gate and yard operations at Terminal 5 on Mondays and Terminal 18 on Fridays in April, although maintaining seven-day vessel operations. The decision, it said, came amid softer volumes at the port; in March, the Sun Chief Express Service from Southeast Asia, which called at T-18, was terminated with the exit of Emirates Shipping Line from the trans-Pacific trade. SSA has not said whether the gate closures will extend into May. While the advisory it sent out about the April closures went to the port’s trucking community, it was not sent to the NWSA. Jeff Bellerud, chief operating officer of the NWSA, said SSA’s decision to close gates at its two Seattle terminals works counter to the port authority’s efforts to improve service for truckers and shippers. “We want to offer the highest quality service along the West Coast, and as gates are reduced it enters friction into the system at a time when we need to do just the opposite,” Bellerud told the Journal of Commerce Monday. Volumes into NWSA were down sharply at the beginning of the year, with imports from Asia of 160,144 TEUs for January and February combined down almost 23% from the same period in 2025, according to PIERS, a sister product of the Journal of Commerce within S&P Global. For all of the West Coast, imports from Asia of 931,450 TEUs in January were down 14.4% year over year, while imports of 886,280 for February were up 1.3% from a year earlier, according to PIERS. According to NWSA data, total imports and exports year to date through February at the gateway were down 16.6%. SSA, in a statement to the Journal of Commerce, said cargo volumes have been low “at every port in the United States since the start of 2026.” “Despite these conditions, SSA Terminals Seattle has maintained its operational processes and continues daily vessel operations, seven days a week, at Terminal 5 and Terminal 18 whenever there is demand,” it said. “SSA Terminals Seattle also remains committed to efficiently managing cargo volume changes and minimizing disruptions for our customers and the regional trucking community,” SSA added. “To ensure continued service, gate and yard operations continue at a minimum of one terminal, Monday through Friday.” Can’t ‘pull back’ on service There is likely a cost-savings component to SSA’s decision to cut back on some gate shifts. While the cost to the terminal operator of running a full gate shift varies based on the volume of containers lifted on and off a vessel and the number of longshore work gangs that must be employed, about $40,000 “is a good marker for a full-service day shift,” at NWSA, according to Bellerud. But if the NWSA is going to maintain its customer service standards in the highly competitive West Coast port environment, it is essential that all of NWSA’s terminals offer full daytime shifts Monday through Friday, he said. “It is in these soft markets when we need to lean into service, not pull back, if we are going to grow future volumes,” Bellerud said. He’s hopeful that volumes at NWSA will begin to pick up as spring and summer merchandise imports begin to arrive. “What we’re seeing now is vessels and volumes should start to pick up in that mid-May time frame, and thereafter,” Bellerud said. “We’re cautiously bullish on the second half of the year.” Contact Bill Mongelluzzo at  bill.mongelluzzo@spglobal.com .

Maritime

Port News

Trans-Pacific

North American ports

Marine terminals

Container Shipping News

NWSA knocks SSA for gate closures at its Seattle terminals

<div class="phx-topic abstract-wrapper">The deal is the latest in a growing trend by cash-rich carriers to develop terminals, particularly in Asia and especially in Vietnam, as they move to secure access at key regional ports to gain preferential berthing rights and minimize delays. </div>

The deal is the latest in a growing trend by cash-rich carriers to develop terminals, particularly in Asia and especially in Vietnam, as they move to secure access at key regional ports to gain preferential berthing rights and minimize delays.

<div class="phx-topic">Mediterranean Shipping Co.’s Terminal Investment Limited (TiL) will broaden its network in Vietnam after being chosen as the majority shareholder of a consortium developing the $5 billion Can Gio international container port located south of Ho Chi Minh City. The deal is the latest in a growing trend by carriers, supported by recent record profits, to develop terminals, <a href="https://www.joc.com/article/one-adds-to-asian-terminal-holdings-with-laem-chabang-deal-6195250">particularly in Asia and especially in Vietnam</a>, as they move to secure access at key regional ports to gain preferential berthing rights and minimize delays. The consortium was selected by the Ho Chi Minh City people's committee this week for a 50-year concession to build and operate the facility, which will mainly target transshipment cargo. TiL will hold a 49% stake in the venture, while state-controlled Vietnam Maritime Corp. (VIMC) will have a 36% shareholding. Saigon Port JSC Corporation will hold the 15% balance. The complex, covering 1,412 acres, will have the capacity to handle 4.8 million TEUs by 2030 spread across at least four berths capable of handling 20,000-TEU sized container ships. Plans call for the port to grow to 13 berths handling 17 million TEUs by 2047. Total berth length is almost 5 miles. It will be TiL’s second major port project in Vietnam after its Hai Phong Port TiL International Terminal Company inaugurated terminals 3 and 4 at Lach Huyen new port in northern Vietnam a year ago. Under the terms of its concession agreement with the Ho Chi Minh City government, TiL and its partners are prevented from selling the Can Gio terminal complex for 10 years and must complete the entire development within 20 years. City officials hope the Can Gio port will spur the development of the area as an urban logistics and industrial hub in southern Vietnam, potentially competing with the Cai Mep port and industrial region 12 miles to the northeast. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Mediterranean Shipping Co.’s Terminal Investment Limited (TiL) will broaden its network in Vietnam after being chosen as the majority shareholder of a consortium developing the $5 billion Can Gio international container port located south of Ho Chi Minh City. The deal is the latest in a growing trend by carriers, supported by recent record profits, to develop terminals, particularly in Asia and especially in Vietnam , as they move to secure access at key regional ports to gain preferential berthing rights and minimize delays. The consortium was selected by the Ho Chi Minh City people's committee this week for a 50-year concession to build and operate the facility, which will mainly target transshipment cargo. TiL will hold a 49% stake in the venture, while state-controlled Vietnam Maritime Corp. (VIMC) will have a 36% shareholding. Saigon Port JSC Corporation will hold the 15% balance. The complex, covering 1,412 acres, will have the capacity to handle 4.8 million TEUs by 2030 spread across at least four berths capable of handling 20,000-TEU sized container ships. Plans call for the port to grow to 13 berths handling 17 million TEUs by 2047. Total berth length is almost 5 miles. It will be TiL’s second major port project in Vietnam after its Hai Phong Port TiL International Terminal Company inaugurated terminals 3 and 4 at Lach Huyen new port in northern Vietnam a year ago. Under the terms of its concession agreement with the Ho Chi Minh City government, TiL and its partners are prevented from selling the Can Gio terminal complex for 10 years and must complete the entire development within 20 years. City officials hope the Can Gio port will spur the development of the area as an urban logistics and industrial hub in southern Vietnam, potentially competing with the Cai Mep port and industrial region 12 miles to the northeast. Contact Keith Wallis at keithwallis@hotmail.com .

Container lines

Port infrastructure

International ports

MSC’s terminals arm extends Vietnam portfolio with new container port project

<div class="phx-topic abstract-wrapper">The three liners saw their first-quarter revenues come in between 9% and 21% lower than last year amid sharply softer rates on the key Asia-US and Asia-Europe trades. </div>

The three liners saw their first-quarter revenues come in between 9% and 21% lower than last year amid sharply softer rates on the key Asia-US and Asia-Europe trades.

<div class="phx-topic">Taiwan’s “Big Three” container lines all posted lower operating revenues in the first quarter amid the year-over-year decline in freight rates. Evergreen Marine, the largest of the trio, recorded the steepest decline, with revenues falling 21% to $2.7 billion between January and March compared with $3.5 billion a year earlier, filings to the Taiwan stock exchange showed. The figures reflected the first-quarter 2025 mini-peak in freight rates that was bolstered by strong cargo volumes, something that was absent in this year’s first quarter. Evergreen has not yet disclosed its average rate per TEU or volumes for the first quarter, but rates on Asia-US and Asia-Europe trades, both key markets for the carrier, saw significant double-digit year-over-year declines in January and February. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="a2606c91-b30c-4219-b617-9491b44b6af1"></dynamic-object></div>Rates on Asia-US services were down more than 50% in January and about 25% in February before recovering in March, according to data from the Shanghai Shipping Exchange (SSE) carried on the Journal of Commerce Gateway platform. There was a similar decline on Asia-Europe freight rates in the January–February period before an uptick in March, SSE data shows. Evergreen’s monthly revenue figures remain mixed this year. While revenues were down significantly in March at $872 million compared with $1 billion in January, the year-over-year decline eased over the first quarter, from 25% in January to 18% in March. <h3>Yang Ming Q1 revenue down 15% </h3>Yang Ming Marine Transport, Taiwan’s second-largest carrier, saw similar declines with revenue dropping 15% to $1.2 billion in the first quarter. The pace of decline also eased in the quarter, from a 22% year-over-year drop in January to 6% in March. Highlighting the impact of falling freight rates, Yang Ming said average revenue per TEU fell to about $900 from more than $1,300 in the first quarter last year. Intra-Asia-focused Wan Hai Lines, meanwhile, saw first-quarter revenue slide 9% to $1 billion. The carrier said while intra-Asia freight rates have held steady, averaging about $500 per TEU, rates on its US services showed a significant decline year over year, from about $1,800/TEU in the first quarter last year to approximately $1,200/TEU this year. Rates on its South America services also eased to about $1,000/TEU from about $1,300/TEU. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Taiwan’s “Big Three” container lines all posted lower operating revenues in the first quarter amid the year-over-year decline in freight rates. Evergreen Marine, the largest of the trio, recorded the steepest decline, with revenues falling 21% to $2.7 billion between January and March compared with $3.5 billion a year earlier, filings to the Taiwan stock exchange showed. The figures reflected the first-quarter 2025 mini-peak in freight rates that was bolstered by strong cargo volumes, something that was absent in this year’s first quarter. Evergreen has not yet disclosed its average rate per TEU or volumes for the first quarter, but rates on Asia-US and Asia-Europe trades, both key markets for the carrier, saw significant double-digit year-over-year declines in January and February. Rates on Asia-US services were down more than 50% in January and about 25% in February before recovering in March, according to data from the Shanghai Shipping Exchange (SSE) carried on the Journal of Commerce Gateway platform. There was a similar decline on Asia-Europe freight rates in the January–February period before an uptick in March, SSE data shows. Evergreen’s monthly revenue figures remain mixed this year. While revenues were down significantly in March at $872 million compared with $1 billion in January, the year-over-year decline eased over the first quarter, from 25% in January to 18% in March. Yang Ming Q1 revenue down 15% Yang Ming Marine Transport, Taiwan’s second-largest carrier, saw similar declines with revenue dropping 15% to $1.2 billion in the first quarter. The pace of decline also eased in the quarter, from a 22% year-over-year drop in January to 6% in March. Highlighting the impact of falling freight rates, Yang Ming said average revenue per TEU fell to about $900 from more than $1,300 in the first quarter last year. Intra-Asia-focused Wan Hai Lines, meanwhile, saw first-quarter revenue slide 9% to $1 billion. The carrier said while intra-Asia freight rates have held steady, averaging about $500 per TEU, rates on its US services showed a significant decline year over year, from about $1,800/TEU in the first quarter last year to approximately $1,200/TEU this year. Rates on its South America services also eased to about $1,000/TEU from about $1,300/TEU. Contact Keith Wallis at keithwallis@hotmail.com .

Asia-Europe

Lower freight rates hit Q1 revenues for Taiwan’s ‘Big Three’ carriers

<div class="phx-topic abstract-wrapper">Local BCOs are adopting a wait-and-watch strategy until there is greater clarity regarding cargo insurance costs and vessel passage through the Strait of Hormuz before committing to contract deals with carrier partners, sources say. </div>

Local BCOs are adopting a wait-and-watch strategy until there is greater clarity regarding cargo insurance costs and vessel passage through the Strait of Hormuz before committing to contract deals with carrier partners, sources say.

<div class="phx-topic">Annual service contract negotiations on Indian westbound trades to the US for the 2026–27 year have thus far featured an unusually cautious approach by both ocean carriers and beneficial cargo owners (BCOs) amid uncertainty caused by the war in the Middle East, industry sources say. Contracts typically begin May 1 and run through the following April. “The contract season is starting with more flexible structures, shorter validity and increased interest in indexed or hybrid pricing models,” said Ashish Sheth, chairman and managing director of Sarjak Container Lines. “From a market standpoint, this could signal an inflection point where freight derivatives and index-linked contracts gain more traction and traditional annual contracting gives way to dynamic, risk-adjusted pricing strategies.” Amid massive trade volatility, most carriers are limiting new long-term contract deals to global BCOs who have consistently met their minimum quantity commitments (MQCs), according to multiple sources with knowledge of the matter. Local BCOs, meanwhile, are being offered “floating” price contracts in most cases. For India-US East Coast (USEC) shipper clients, floating contract prices are generally lower than the freight-all-kinds (FAK) accounts by between $150 and $300 per FEU, sources said. Theoretically, floating contracts allow carriers to adjust rates over time in line with the market reality. Hapag-Lloyd, Mediterranean Shipping Co. and CMA CGM are among major carriers considering more floating rate contracts in the current distorted market environment, according to multiple sources with knowledge of the matter. Hapag-Lloyd is also said to be downplaying named account contract commitments — where the customers are typically listed — as part of a tweaked strategy, the sources said. The German liner, which recently <a href="https://www.joc.com/article/hapag-lloyd-to-invest-1-billion-across-indian-maritime-verticals-6189463">unveiled a $1 billion investment program for India</a> to cement its footprint in the country, commands the largest market share out of western India (Nhava Sheva/Mundra) for trades into the USEC, which is outside the Gemini Cooperation framework. “Basically, the carriers want to structure a contract that’s then subject to a general rate increase and/or a peak season surcharge, but BCOs are unwilling to go along with such open clauses,” said a forwarder executive who didn’t want to be identified. Sources also said there are indications that Maersk wants to engage in shorter-term, three-month rate contracts with local BCOs instead of annual contracts. Efforts to seek official comment from major carriers, including Maersk and Hapag-Lloyd, were unsuccessful. <h3>BCOs seek clarity </h3>Local BCOs are adopting a wait-and-watch strategy until there is greater clarity regarding cargo insurance costs and vessel passage through the Strait of Hormuz before committing to contract deals with carrier partners. “We have decided to hold off for now [on contract talks],” said a supply chain executive at a Mumbai-based diversified conglomerate who didn’t want to be identified. “We do not want to lock ourselves into rates at the levels being indicated now.” <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="893ffa5c-0a69-45c7-a555-425e44318711"></dynamic-object></div>Meanwhile, with little demand support and more regular weekly sailings, India-USEC carriers have canceled rate hike plans previously scheduled for April, pushing FAK rates on the trade lane down by up to $500 over the past two weeks. FAK rates now stand at between $2,200 and $2,500 per FEU for European liners and about $2,100 for Asian operators, industry data shows. Platts, a sister company of the Journal of Commerce within S&amp;P Global, put India-USEC spot rates at $2,450 per FEU as of April 13, essentially unchanged on the week. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Annual service contract negotiations on Indian westbound trades to the US for the 2026–27 year have thus far featured an unusually cautious approach by both ocean carriers and beneficial cargo owners (BCOs) amid uncertainty caused by the war in the Middle East, industry sources say. Contracts typically begin May 1 and run through the following April. “The contract season is starting with more flexible structures, shorter validity and increased interest in indexed or hybrid pricing models,” said Ashish Sheth, chairman and managing director of Sarjak Container Lines. “From a market standpoint, this could signal an inflection point where freight derivatives and index-linked contracts gain more traction and traditional annual contracting gives way to dynamic, risk-adjusted pricing strategies.” Amid massive trade volatility, most carriers are limiting new long-term contract deals to global BCOs who have consistently met their minimum quantity commitments (MQCs), according to multiple sources with knowledge of the matter. Local BCOs, meanwhile, are being offered “floating” price contracts in most cases. For India-US East Coast (USEC) shipper clients, floating contract prices are generally lower than the freight-all-kinds (FAK) accounts by between $150 and $300 per FEU, sources said. Theoretically, floating contracts allow carriers to adjust rates over time in line with the market reality. Hapag-Lloyd, Mediterranean Shipping Co. and CMA CGM are among major carriers considering more floating rate contracts in the current distorted market environment, according to multiple sources with knowledge of the matter. Hapag-Lloyd is also said to be downplaying named account contract commitments — where the customers are typically listed — as part of a tweaked strategy, the sources said. The German liner, which recently unveiled a $1 billion investment program for India to cement its footprint in the country, commands the largest market share out of western India (Nhava Sheva/Mundra) for trades into the USEC, which is outside the Gemini Cooperation framework. “Basically, the carriers want to structure a contract that’s then subject to a general rate increase and/or a peak season surcharge, but BCOs are unwilling to go along with such open clauses,” said a forwarder executive who didn’t want to be identified. Sources also said there are indications that Maersk wants to engage in shorter-term, three-month rate contracts with local BCOs instead of annual contracts. Efforts to seek official comment from major carriers, including Maersk and Hapag-Lloyd, were unsuccessful. BCOs seek clarity Local BCOs are adopting a wait-and-watch strategy until there is greater clarity regarding cargo insurance costs and vessel passage through the Strait of Hormuz before committing to contract deals with carrier partners. “We have decided to hold off for now [on contract talks],” said a supply chain executive at a Mumbai-based diversified conglomerate who didn’t want to be identified. “We do not want to lock ourselves into rates at the levels being indicated now.” Meanwhile, with little demand support and more regular weekly sailings, India-USEC carriers have canceled rate hike plans previously scheduled for April, pushing FAK rates on the trade lane down by up to $500 over the past two weeks. FAK rates now stand at between $2,200 and $2,500 per FEU for European liners and about $2,100 for Asian operators, industry data shows. Platts, a sister company of the Journal of Commerce within S&P Global, put India-USEC spot rates at $2,450 per FEU as of April 13, essentially unchanged on the week. Contact Bency Mathew at bencyvmathew@gmail.com .

Middle East-linked market ambiguity clouds India-US service contract plans

<div class="phx-topic abstract-wrapper">The customs agency will prioritize unliquidated entries in the first phase of the refund process that was instigated by the February Supreme Court decision to invalidate tariffs on most US trading partners.</div>

The customs agency will prioritize unliquidated entries in the first phase of the refund process that was instigated by the February Supreme Court decision to invalidate tariffs on most US trading partners.

<div class="phx-topic">Refunds of tariffs paid under the International Emergency Economic Powers Act (IEEPA) will start April 20 under a phased rollout, according to US Customs and Border Protection (CBP). The <a href="https://www.joc.com/article/cbp-lays-out-initial-tariff-refund-plan-that-requires-minimal-work-from-importers-6183418">refund process</a>, which will come as welcome news to importers, is being managed through a new tool, called Consolidated Administration and Processing of Entries (CAPE), that is being built within CBP’s Automated Commercial Environment Secure Data Portal (ACE Portal). The <a href="https://www.joc.com/article/us-supreme-court-rules-against-trump-in-critical-ieepa-tariff-case-6173568">US Supreme Court ruled on Feb. 20</a> that the Trump administration improperly used IEEPA to justify widespread tariffs the US slapped on virtually all of its trading partners beginning in the spring of 2025. That decision shifted details on the refund process to the US Court of International Trade, which instructed CBP to avoid delaying refunds to US importers that had collectively paid more than $150 billion in IEEPA tariffs. The first phase of the refund process prioritizes so-called unliquidated entries and liquidated entries that are fewer than 80 days old. A liquidated entry means CBP has completed the final assessment of duties, taxes and fees, making the entry legal and closed. CBP has said that the refund process will take up to 45 days once a CAPE declaration has been filed, but the agency has issued no formal timeline for when refunds might actually land in the accounts of importers. To apply for IEEPA tariff refunds, importers must either have an ACE portal account or an automated clearing house (ACH) account so they can receive the refunds. Customs experts have advised importers to set up both to avoid delays in the refund process. If a customs broker or other third party is authorized by an importer to act as a notify party on a customs entry, and if the broker is set up to receive refunds electronically, that party can receive refunds via ACH on behalf of an importer. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

Refunds of tariffs paid under the International Emergency Economic Powers Act (IEEPA) will start April 20 under a phased rollout, according to US Customs and Border Protection (CBP). The refund process , which will come as welcome news to importers, is being managed through a new tool, called Consolidated Administration and Processing of Entries (CAPE), that is being built within CBP’s Automated Commercial Environment Secure Data Portal (ACE Portal). The US Supreme Court ruled on Feb. 20 that the Trump administration improperly used IEEPA to justify widespread tariffs the US slapped on virtually all of its trading partners beginning in the spring of 2025. That decision shifted details on the refund process to the US Court of International Trade, which instructed CBP to avoid delaying refunds to US importers that had collectively paid more than $150 billion in IEEPA tariffs. The first phase of the refund process prioritizes so-called unliquidated entries and liquidated entries that are fewer than 80 days old. A liquidated entry means CBP has completed the final assessment of duties, taxes and fees, making the entry legal and closed. CBP has said that the refund process will take up to 45 days once a CAPE declaration has been filed, but the agency has issued no formal timeline for when refunds might actually land in the accounts of importers. To apply for IEEPA tariff refunds, importers must either have an ACE portal account or an automated clearing house (ACH) account so they can receive the refunds. Customs experts have advised importers to set up both to avoid delays in the refund process. If a customs broker or other third party is authorized by an importer to act as a notify party on a customs entry, and if the broker is set up to receive refunds electronically, that party can receive refunds via ACH on behalf of an importer. Contact Eric Johnson at eric.johnson@spglobal.com .

Transport, Trade and Regulation News

Supply chain

First wave of IEEPA refunds to US importers to start April 20: CBP

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

The only editorially independent conference for the breakbulk & project cargo industry

Breakbulk Conference - Rectangle Box

Attend Breakbulk26

The Journal of Commerce’s trucking news and analysis encompasses full truckload, less-than-truckload (LTL), private fleet trucking, refrigerated trucking, regulation, drayage, and transloading. Reporting centers on pricing, volume demand, capacity, labor, regulation, and service levels in US and Canadian trucking networks.

Truck brokers

Flatbed

Trucking labor

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Trucking News | Journal of Commerce

Trucking News

The Journal of Commerce’s surface transport news and analysis focuses on landside transport movement — from railroad news to trucking news — including full load trucking, less-than-truckload (LTL), refrigerated (or reefer) trucking, flatbed and domestic and international intermodal rail, and how it connects with seaports, inland rail hubs, distribution centers and transloading operations. Reporting on the surface transport sector covers the movement of domestic shipments within the United States and international cargoes transported via domestic equipment including trailers and 53-foot containers.

Stay updated with our rail transport news and trends. Journal of Commerce covers intermodal news, and port connectivity news in the container rail transport sector.

Rail News | Journal of Commerce

Rail News

Explore the world of ground transport news - from trucks to railroads, intermodal connections, and port ties. Daily insights on US and global shipments.

Latest News

More News & Analysis

NWSA knocks SSA for gate closures at its Seattle terminals

MSC’s terminals arm extends Vietnam portfolio with new container port project

Lower freight rates hit Q1 revenues for Taiwan’s ‘Big Three’ carriers