<div class="phx-topic abstract-wrapper">South Korea and Yugoslavia have agreed to open trade offices in each other's territory to promote di</div>

South Korea and Yugoslavia have agreed to open trade offices in each other's territory to promote di

<div>South Korea and Yugoslavia have agreed to open trade offices in each other's territory to promote direct trade, government officials said Wednesday.Yugoslavia will become the second East European nation to open direct trade links with South Korea, which has no diplomatic relations with any communist nations. Hungary also has such trade links with South Korea.Under the agreement, the state-run Korea Trade Promotion Corp. will set up a trade office in Ljubljana, capital of Yugoslavia's Slovenija state, in June, the officials said.The Yugoslav state also will open its trade office in Seoul in June, they said.In addition to promoting direct trade,...

South Korea and Yugoslavia have agreed to open trade offices in each other's territory to promote direct trade, government officials said Wednesday. Yugoslavia will become the second East European nation to open direct trade links with South Korea, which has no diplomatic relations with any communist nations. Hungary also has such trade links with South Korea.Under the agreement, the state-run Korea Trade Promotion Corp. will set up a trade office in Ljubljana, capital of Yugoslavia's Slovenija state, in June, the officials said. The Yugoslav state also will open its trade office in Seoul in June, they said. In addition to promoting direct trade, the offices are to exchange trade missions and information and help private companies take part in trade exhibitions in their countries.

YUGOSLAVIA, S. KOREA PUSH TRADE

<div class="phx-topic abstract-wrapper">The ex-US Treasury Secretary said consumers could pull back on spending should crude oil and gasoline prices remain aloft due to the latest attacks on Iran by the US and Israel. </div>

The ex-US Treasury Secretary said consumers could pull back on spending should crude oil and gasoline prices remain aloft due to the latest attacks on Iran by the US and Israel.

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<div class="phx-topic">Long Beach, Calif. — The duration of US and Israeli attacks on Iran and the effect on oil prices threaten to push inflation higher and jeopardize the modest growth expected in global container shipping demand for 2026, former US Treasury Secretary Janet Yellen said Monday. Front-month crude oil futures jumped to their highest level in more than a year Monday due to the weekend attacks on Iran. Yellen, speaking during her keynote address at the start of the Journal of Commerce’s TPM26 conference, said the 14 million barrels of crude that flow through the Strait of Hormuz daily has been cut to a trickle, a development that bears watching. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6177002_0.1.jpg"></img></div>“The risk to the global economy will depend on how long energy flows through the Strait of Hormuz are disrupted,” Yellen, also former chairperson of the US Federal Reserve, said. “If oil prices do remain higher, then we will really need to worry about the impact on inflation over the next year and it's likely to have negative consequences for growth.” Container shipping demand is expected to increase 1.7% globally this year, according to a forecast from S&amp;P Global Maritime, Trade and Supply Chain, a sister company of the Journal of Commerce. Most of that growth will occur outside of the US, which is likely to see flat results compared to 2025. The US economy is demonstrating some strength, Yellen said, with a low 4.3% unemployment rate, a tapering inflation rate of 3%, and gross domestic product (GDP) expected to grow at a similar rate in the first quarter. However, underneath those figures, Yellen said there are signs of fragility that could upend that growth. The monthly creation of 15,000 jobs in the US in 2025 remains well below trend. She added that consumer spending growth rests largely on high earners, with the top 10% of US household incomes now accounting for half of retail spending. ”We have a K-shaped economy and an expansion (in which) upper income households are doing well,” Yellen said. “They’re in good financial shape and driving consumer spending.” <h3>Fed could be cautious about new rate cuts </h3>The Supreme Court’s recent decision to strike down the Trump administration’s emergency tariff powers could cut the inflation rate modestly in 2026. But with oil prices having the opposite effect, the Federal Reserve may become more cautious about further interest rate cuts, Yellen said. The Fed’s key overnight lending rate, which currently sits between 3.5% and 3.75%, is a driver of mortgage rates and interest on other types of consumer loans. Trump has been browbeating the Fed to bring its key rates below 2% in a bid to stimulate the US economy. “The Fed is terribly worried that it's not yet gotten inflation back to its target of 2%,” Yellen told TPM26. “It's not realistic that we're going to go back to 2% right now. I think the recent Iran situation puts the Fed even more on hold, more reluctant to cut rates.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Long Beach, Calif. — The duration of US and Israeli attacks on Iran and the effect on oil prices threaten to push inflation higher and jeopardize the modest growth expected in global container shipping demand for 2026, former US Treasury Secretary Janet Yellen said Monday. Front-month crude oil futures jumped to their highest level in more than a year Monday due to the weekend attacks on Iran. Yellen, speaking during her keynote address at the start of the Journal of Commerce’s TPM26 conference, said the 14 million barrels of crude that flow through the Strait of Hormuz daily has been cut to a trickle, a development that bears watching. “The risk to the global economy will depend on how long energy flows through the Strait of Hormuz are disrupted,” Yellen, also former chairperson of the US Federal Reserve, said. “If oil prices do remain higher, then we will really need to worry about the impact on inflation over the next year and it's likely to have negative consequences for growth.” Container shipping demand is expected to increase 1.7% globally this year, according to a forecast from S&P Global Maritime, Trade and Supply Chain, a sister company of the Journal of Commerce. Most of that growth will occur outside of the US, which is likely to see flat results compared to 2025. The US economy is demonstrating some strength, Yellen said, with a low 4.3% unemployment rate, a tapering inflation rate of 3%, and gross domestic product (GDP) expected to grow at a similar rate in the first quarter. However, underneath those figures, Yellen said there are signs of fragility that could upend that growth. The monthly creation of 15,000 jobs in the US in 2025 remains well below trend. She added that consumer spending growth rests largely on high earners, with the top 10% of US household incomes now accounting for half of retail spending. ”We have a K-shaped economy and an expansion (in which) upper income households are doing well,” Yellen said. “They’re in good financial shape and driving consumer spending.” Fed could be cautious about new rate cuts The Supreme Court’s recent decision to strike down the Trump administration’s emergency tariff powers could cut the inflation rate modestly in 2026. But with oil prices having the opposite effect, the Federal Reserve may become more cautious about further interest rate cuts, Yellen said. The Fed’s key overnight lending rate, which currently sits between 3.5% and 3.75%, is a driver of mortgage rates and interest on other types of consumer loans. Trump has been browbeating the Fed to bring its key rates below 2% in a bid to stimulate the US economy. “The Fed is terribly worried that it's not yet gotten inflation back to its target of 2%,” Yellen told TPM26. “It's not realistic that we're going to go back to 2% right now. I think the recent Iran situation puts the Fed even more on hold, more reluctant to cut rates.” Contact Michael Angell at michael.angell@spglobal.com .

Transport, Trade and Regulation News

Container Shipping News

Maritime

 TPM26: Iran conflict puts new risk on US economic growth: Yellen 

<div class="phx-topic abstract-wrapper">The move comes as transshipment cargo handling declines are expected at Indian ports following a recent government decision to revoke the cabotage waiver that foreign-flag carriers have enjoyed since 2018.</div>

The move comes as transshipment cargo handling declines are expected at Indian ports following a recent government decision to revoke the cabotage waiver that foreign-flag carriers have enjoyed since 2018.

<div class="phx-topic">Mediterranean Shipping Co. is set to implement significant capacity cuts on trades from India to North Europe and the Mediterranean as incremental regional volumes tighten, multiple industry sources told the Journal of Commerce. The Geneva-based liner serves those trades via its Himalaya Express (HEX) and IPAK services, with the latter operated in a consortium arrangement with the Shipping Corporation of India (SCI). Sources have confirmed that the average capacity of vessels deployed on the HEX will be slashed from 14,000 TEUs to about 9,000 TEUs, while on the IPAK, the average MSC tonnage size will decrease from 9,000 TEUs to 8,000 TEUs. The capacity rejigging is expected to kick in through March. Indian allocations will be proportionately adjusted downward to right-size vessel operations, sources said. A minor rotation reshuffle is also in the cards for the network, with the HEX replacing the Valencia stop in Spain with a call to Sines in Portugal, they added. Efforts to seek comment from MSC were unsuccessful. The HEX has been an industry-leading, high-capacity network on the trade lane, using ultra-large vessels that have included calls in the range of 16,000 TEUs to 20,000 TEUs. <h3>Cabotage policy reset expected to take place next month </h3>The network reconfigurations come in the wake of anticipated transshipment cargo handling declines at Indian ports following a recent government decision <a href="https://www.joc.com/article/india-advances-launch-of-state-container-line-after-cabotage-rule-rewind-6164914">to revoke the cabotage waiver</a> that foreign-flag carriers have enjoyed since 2018. The policy reset, due to take effect next month, is arguably intended to encourage Indian vessel fleet development. MSC has had high stakes in regional container relays through several Indian gateways, particularly out of Mundra and Vizhinjam, riding on its strategic partnerships with local terminal partner Adani Ports. Ironically, MSC last year reorganized the HEX berthing window in India’s Nhava Port by shifting calls from the DP World terminal to PSA International’s capacity-rich facility for greater operational flexibility in tandem with growing vessel sizes; a call there from the 24,346-TEU MSC Micol in December was one notable example. Meanwhile, the reversal of cabotage relaxations for foreign tonnage has stoked an old industry debate centering on trade protectionism, with representatives of the Container Shipping Lines’ Association (India) warning that the policy U-turn could undermine the hub progress Indian ports have made in recent years by refueling a shift of transshipment volumes to regional competitors, especially Colombo Port in Sri Lanka. “In the absence of this waiver, the proposed expansion plans in some of the ports like Mundra and Vizhinjam might not be implemented, thereby further constraining vessel calls and transshipment,” the liner group said. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com.</a></div>

Mediterranean Shipping Co. is set to implement significant capacity cuts on trades from India to North Europe and the Mediterranean as incremental regional volumes tighten, multiple industry sources told the Journal of Commerce. The Geneva-based liner serves those trades via its Himalaya Express (HEX) and IPAK services, with the latter operated in a consortium arrangement with the Shipping Corporation of India (SCI). Sources have confirmed that the average capacity of vessels deployed on the HEX will be slashed from 14,000 TEUs to about 9,000 TEUs, while on the IPAK, the average MSC tonnage size will decrease from 9,000 TEUs to 8,000 TEUs. The capacity rejigging is expected to kick in through March. Indian allocations will be proportionately adjusted downward to right-size vessel operations, sources said. A minor rotation reshuffle is also in the cards for the network, with the HEX replacing the Valencia stop in Spain with a call to Sines in Portugal, they added. Efforts to seek comment from MSC were unsuccessful. The HEX has been an industry-leading, high-capacity network on the trade lane, using ultra-large vessels that have included calls in the range of 16,000 TEUs to 20,000 TEUs. Cabotage policy reset expected to take place next month The network reconfigurations come in the wake of anticipated transshipment cargo handling declines at Indian ports following a recent government decision to revoke the cabotage waiver that foreign-flag carriers have enjoyed since 2018. The policy reset, due to take effect next month, is arguably intended to encourage Indian vessel fleet development. MSC has had high stakes in regional container relays through several Indian gateways, particularly out of Mundra and Vizhinjam, riding on its strategic partnerships with local terminal partner Adani Ports. Ironically, MSC last year reorganized the HEX berthing window in India’s Nhava Port by shifting calls from the DP World terminal to PSA International’s capacity-rich facility for greater operational flexibility in tandem with growing vessel sizes; a call there from the 24,346-TEU MSC Micol in December was one notable example. Meanwhile, the reversal of cabotage relaxations for foreign tonnage has stoked an old industry debate centering on trade protectionism, with representatives of the Container Shipping Lines’ Association (India) warning that the policy U-turn could undermine the hub progress Indian ports have made in recent years by refueling a shift of transshipment volumes to regional competitors, especially Colombo Port in Sri Lanka. “In the absence of this waiver, the proposed expansion plans in some of the ports like Mundra and Vizhinjam might not be implemented, thereby further constraining vessel calls and transshipment,” the liner group said. Contact Bency Mathew at bencyvmathew@gmail.com.

Port News

Container lines

International ports

MSC downgrades India-Europe/Med network amid transshipment cargo lift woes

<div class="phx-topic abstract-wrapper">Cuts to traditional one-way service have been balanced by additional capacity in dedicated, specialized fleets.</div>

Cuts to traditional one-way service have been balanced by additional capacity in dedicated, specialized fleets.

<div class="phx-topic">Large US truckload carriers put enough additional trucks on the road late last year to boost the Journal of Commerce Truckload Capacity Index (TCI) slightly, despite ongoing cuts in capacity at many companies amid rising spot rates and volatile demand. Those trucks, however, were mostly destined for higher-paying dedicated and specialized services, not one-way truckload service. The quarterly TCI rose sequentially from 72.4% in the third quarter to 73.5% in the fourth quarter, as the collective capacity fielded by the large carriers in the index increased 1.5%. But carriers weren't rushing to throw additional trucks at <a href="https://www.joc.com/article/us-truckload-pricing-remains-unsettled-despite-red-hot-december-6148317">higher spot market rates</a>. The fourth quarter reading is still the second-lowest for the index since the fourth quarter of 2013, when the TCI dropped to 73.8% – the index’s 19-year floor until last year. The index, which is based on average truck counts in the 2006 fourth quarter, climbed to a peak of 93.2% in the 2022 second quarter before plunging over the next three years. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="1c27408c-a4a7-4bbf-84f5-4fe3e53846e0"></dynamic-object></div>The latest index shows large carriers keeping a tight grip on their available capacity amid volatile supply and demand. Some truckload companies in the index group continued to shrink their fleets, while others saw chances to pursue more specialized freight. ”We made a decision to strategically restructure our one-way trucking business to be even more targeted towards specialized expedited, cross-border Mexico and engineered business,” Derek Leathers, chairman and CEO of Werner Enterprises, said Feb. 5. <h3>Dedicated acquisition </h3>Werner is moving deeper into dedicated trucking by acquiring FirstFleet, a 2,400-tractor dedicated fleet provider with $615 million in annual revenue. The deal, announced Jan. 28, will increase Werner’s dedicated trucking revenue by 50%, the company said. ”We’re not abandoning one-way, but we are a leaner, more agile version of ourselves,” Leathers told Wall Street analysts in an earning conference call. Werner reduced its number of trucks in one-way service 13.8% year over year in the fourth quarter. The company -- which is part of the Journal of Commerce index group – increased its dedicated truck count by less than 1% year over year in the fourth quarter, according to its earnings report. With FirstFleet, that dedicated truck count will rise 50% past 7,000. Another TCI group carrier, Covenant Logistics, increased its fleet count slightly in the fourth quarter on a year-over-year basis, according to its earnings report. In early 2026, the company is experiencing what it called a sharp increase in shipper bid activity. Even so, Covenant plans to sell and not replace a number of trucks. “We expect a modestly smaller fleet at the end of 2026 and only $40 million to $50 million of net capex for the year,” CFO James S. Grant said during a Jan. 30 earnings conference call. Like larger competitor Werner, Covenant is acquiring business. In the fourth quarter, the company purchased a small truckload brokerage with two niche customer bases: state and federal disaster relief and high-service consumer packaged goods. Truck fleet cuts and additions are occurring as executives at large truckload carriers expect tightening capacity to <a href="https://www.joc.com/article/trucking-executives-buoyed-by-market-signals-as-winter-exit-nears-6172398">flip the truck market</a> in their favor after a three-year freight downturn. Publicly owned carriers are beginning to report low single-digit contract rate increases. An ongoing government crackdown on truck driver English language proficiency, <a href="https://www.joc.com/article/usdot-releases-interim-final-rule-on-non-domiciled-cdl-holders-6169023">non-domiciled commercial driver’s licenses (CDLs)</a>, substandard CDL schools and electronic logging devices is expected to drive more small carriers out of the market. Shippers are increasingly concerned about capacity and cargo security, Covenant executives said. ”What I’m seeing people say, especially, (is) I need a high-value program, I need assets,” President M. Paul Bunn said during the earnings call. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com.</a></div>

Large US truckload carriers put enough additional trucks on the road late last year to boost the Journal of Commerce Truckload Capacity Index (TCI) slightly, despite ongoing cuts in capacity at many companies amid rising spot rates and volatile demand. Those trucks, however, were mostly destined for higher-paying dedicated and specialized services, not one-way truckload service. The quarterly TCI rose sequentially from 72.4% in the third quarter to 73.5% in the fourth quarter, as the collective capacity fielded by the large carriers in the index increased 1.5%. But carriers weren't rushing to throw additional trucks at higher spot market rates . The fourth quarter reading is still the second-lowest for the index since the fourth quarter of 2013, when the TCI dropped to 73.8% – the index’s 19-year floor until last year. The index, which is based on average truck counts in the 2006 fourth quarter, climbed to a peak of 93.2% in the 2022 second quarter before plunging over the next three years. The latest index shows large carriers keeping a tight grip on their available capacity amid volatile supply and demand. Some truckload companies in the index group continued to shrink their fleets, while others saw chances to pursue more specialized freight. ”We made a decision to strategically restructure our one-way trucking business to be even more targeted towards specialized expedited, cross-border Mexico and engineered business,” Derek Leathers, chairman and CEO of Werner Enterprises, said Feb. 5. Dedicated acquisition Werner is moving deeper into dedicated trucking by acquiring FirstFleet, a 2,400-tractor dedicated fleet provider with $615 million in annual revenue. The deal, announced Jan. 28, will increase Werner’s dedicated trucking revenue by 50%, the company said. ”We’re not abandoning one-way, but we are a leaner, more agile version of ourselves,” Leathers told Wall Street analysts in an earning conference call. Werner reduced its number of trucks in one-way service 13.8% year over year in the fourth quarter. The company -- which is part of the Journal of Commerce index group – increased its dedicated truck count by less than 1% year over year in the fourth quarter, according to its earnings report. With FirstFleet, that dedicated truck count will rise 50% past 7,000. Another TCI group carrier, Covenant Logistics, increased its fleet count slightly in the fourth quarter on a year-over-year basis, according to its earnings report. In early 2026, the company is experiencing what it called a sharp increase in shipper bid activity. Even so, Covenant plans to sell and not replace a number of trucks. “We expect a modestly smaller fleet at the end of 2026 and only $40 million to $50 million of net capex for the year,” CFO James S. Grant said during a Jan. 30 earnings conference call. Like larger competitor Werner, Covenant is acquiring business. In the fourth quarter, the company purchased a small truckload brokerage with two niche customer bases: state and federal disaster relief and high-service consumer packaged goods. Truck fleet cuts and additions are occurring as executives at large truckload carriers expect tightening capacity to flip the truck market in their favor after a three-year freight downturn. Publicly owned carriers are beginning to report low single-digit contract rate increases. An ongoing government crackdown on truck driver English language proficiency, non-domiciled commercial driver’s licenses (CDLs) , substandard CDL schools and electronic logging devices is expected to drive more small carriers out of the market. Shippers are increasingly concerned about capacity and cargo security, Covenant executives said. ”What I’m seeing people say, especially, (is) I need a high-value program, I need assets,” President M. Paul Bunn said during the earnings call. Contact William B. Cassidy at bill.cassidy@spglobal.com.

Trucking News

Truckload

Surface

Truckload capacity index moves up as large US carriers shuffle assets

<div class="phx-topic abstract-wrapper">The US has established a maritime warning zone, effectively placing the region out of bounds to shipping, while airlines have suspended passenger and freighter flights across the Middle East.</div>

The US has established a maritime warning zone, effectively placing the region out of bounds to shipping, while airlines have suspended passenger and freighter flights across the Middle East.

<div class="phx-topic">Commercial shipping and airlines continued to avoid the Middle East Sunday as the US and Israel launched a second day of massive military strikes on Iran. The bombardment, meanwhile, prompted Tehran-backed Houthi militants in Yemen to threaten retaliation by saying they may resume attacks on commercial shipping in the Red Sea. Airlines have suspended passenger and freighter flights across the Middle East and the US has established a maritime warning zone in the Persian Gulf, Gulf of Oman, North Arabian Sea and the Strait of Hormuz, effectively placing the region out of bounds to shipping. “The establishment of the warning zone is intended to provide notice that dangerous military operations are taking place from within these locations and the US Navy cannot guarantee the safety of neutral or merchant shipping,” Jakob Larsen, chief safety and security officer at BIMCO, said in a statement Saturday. Two Houthi officials speaking on the condition of anonymity on Saturday <a href="https://www.yahoo.com/news/articles/yemens-iranian-backed-houthi-rebels-083643083.html?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&amp;guce_referrer_sig=AQAAAHCSkq524Zuax-7RXYPUHL7WjCXLoDzxDA6oxH9lxQY48Svx1eiq28CB1EPKkJs30ZP9956P-XPnfis5r3FnNU3a4X4GWKphMEAzIxOLvy2kEVrs30VhCmW5QTvk4i_UISC1bNGzJqshxlFkcuwfpiUYmp6_A6xzvpJM1G6XP-8G">told the Associated Press</a> that attacks on commercial shipping in the Bab-el-Madeb Strait could restart as early as “tonight.” Houthi leadership has yet to make an official statement. A fire broke out at the Port of Jebel Ali in Dubai Sunday when debris fell to the ground after a drone launched from Iran was intercepted, according to media reports. No information on damage to the port was immediately available.CMA CGM on Sunday implemented an “emergency conflict surcharge” for the region of $2,000 per TEU, $3,000 per FEU, and $4,000 for refrigerated containers and special equipment. “In continued efforts to ensure the safety of our crew, vessels, and your cargo amid the ongoing developments in Iran and across the Arabian Peninsula, precautionary measures have been taken to safeguard operations in the affected areas,” the carrier said in customer advisory. “We understand these measures may impact your logistics and supply chain operations; however, they are necessary steps that also lead to additional operational costs.” That came a day after CMA CGM ordered 14 vessels inside the Persian Gulf and seven en route to the Gulf to immediately proceed to shelter. The carrier has also suspended all passages through the Red Sea and is rerouting ships around southern Africa. “This decision is dictated by safety considerations and is made in compliance with our Bill of Lading terms and conditions,” CMA CGM said in a statement Saturday. “Customers will be contacted as soon as we have more details of the possible alternative ports where their cargo could be discharged.” Maersk on Sunday said it was rerouting all sailings of its ME11 Middle East-India-Mediterranean service and MECL Middle East-India-US East Coast service back around southern Africa until further notice. That is an escalation <a href="https://www.joc.com/article/maersk-hapag-lloyd-to-reroute-some-march-sailings-away-from-red-seasuez-6177149">from Friday</a>, when the carrier announced select sailings of both services would avoid the Red Sea and Suez through the first half of March. “Once the situation stabilizes and the security situation again permits, we will continue to prioritize the trans-Suez route for ME11 and MECL services as it is the fastest, most sustainable and most efficient way for us to serve our customers,” Maersk said in a statement Sunday. The Houthis have not launched any attacks on shipping since the Gaza ceasefire between Israel and Hamas was announced last October. And while the Houthis’ top leader, Abdul-Malik Badr al-Din al-Houthi, voiced support over the weekend for Iran, he held back on pledging military action, Hisisham al-Omeisy, a geopolitical expert on Yemen, told the Journal of Commerce. Seeing the scale and severity of US and Israel attacks on Iran, the Houthis appear to be calculating their next move, he said. The Houthis understand “going full in at this point will prove to be costly if not suicidal, and may instead resort to measures to save face; the movement has called for public protests in areas under their control in Yemen,” al-Omeisy said. “Nevertheless, Houthis are now under immense pressure to act, and their leadership may still authorize limited strikes on ships or even Tel Aviv." Major container lines have mostly avoided the Red Sea/Suez route since late 2023 when Houthi militants began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing lengthy diversions around southern Africa. Peter Sand, chief analyst for rate benchmarking platform Xeneta, said the military action launched by the US and Israel and Iran’s retaliation will “shatter hopes of a large-scale return of container shipping to the Red Sea” this year. “If Houthi militia resume attacks, as now seems likely, carriers will reverse the decision to return services to the Red Sea and prioritize the safety of crew, ship and cargo,” Sand said in a statement Saturday. “Any plans for a phased return of container shipping to the Red Sea in 2026 will be shelved until the security situation becomes clearer.” The Mediterranean Port of Haifa in Israel was open and operational Monday, according to media reports.<h3>Marine insurance to soar </h3>The escalation of hostilities in the region is expected to push maritime risk insurance through the roof, according to Dylan Mortimer from UK-based insurance risk adviser Marsh. “It is very early to tell at this point, but we would estimate that near-term rate increases for marine hull insurance in the Gulf could range from 25% to 50%, barring any direct attack on merchant shipping, which could have major repercussions across war insurance rates,” Mortimer said in a statement. “The primary risks center on the Persian/Arabian Gulf, particularly the threat of vessel boarding and seizure by Iranian forces and the potential closure of the Strait of Hormuz,” he added. Bimco has also warned that insurance rates are expected to increase “manyfold,” and Larsen said ships with business connections to the US or Israel would likely have their insurance withdrawn. While Iran will be able to disrupt commercial shipping in the Persian Gulf, Larsen did not expect that disruption to be long term. “It is assessed that within a few days US air and naval superiority will eventually establish a level of security which will enable commercial shipping to resume transportation in and out of the Persian Gulf and adjacent waters,” he said. Contact Greg Knowler at <a href="https://www.joc.com/article/rotterdam-congestion-limits-benefit-of-second-half-surge-in-imports-6176418">greg.knowler@spglobal.com</a>.</div>

Commercial shipping and airlines continued to avoid the Middle East Sunday as the US and Israel launched a second day of massive military strikes on Iran. The bombardment, meanwhile, prompted Tehran-backed Houthi militants in Yemen to threaten retaliation by saying they may resume attacks on commercial shipping in the Red Sea. Airlines have suspended passenger and freighter flights across the Middle East and the US has established a maritime warning zone in the Persian Gulf, Gulf of Oman, North Arabian Sea and the Strait of Hormuz, effectively placing the region out of bounds to shipping. “The establishment of the warning zone is intended to provide notice that dangerous military operations are taking place from within these locations and the US Navy cannot guarantee the safety of neutral or merchant shipping,” Jakob Larsen, chief safety and security officer at BIMCO, said in a statement Saturday. Two Houthi officials speaking on the condition of anonymity on Saturday told the Associated Press that attacks on commercial shipping in the Bab-el-Madeb Strait could restart as early as “tonight.” Houthi leadership has yet to make an official statement. A fire broke out at the Port of Jebel Ali in Dubai Sunday when debris fell to the ground after a drone launched from Iran was intercepted, according to media reports. No information on damage to the port was immediately available. CMA CGM on Sunday implemented an “emergency conflict surcharge” for the region of $2,000 per TEU, $3,000 per FEU, and $4,000 for refrigerated containers and special equipment. “In continued efforts to ensure the safety of our crew, vessels, and your cargo amid the ongoing developments in Iran and across the Arabian Peninsula, precautionary measures have been taken to safeguard operations in the affected areas,” the carrier said in customer advisory. “We understand these measures may impact your logistics and supply chain operations; however, they are necessary steps that also lead to additional operational costs.” That came a day after CMA CGM ordered 14 vessels inside the Persian Gulf and seven en route to the Gulf to immediately proceed to shelter. The carrier has also suspended all passages through the Red Sea and is rerouting ships around southern Africa. “This decision is dictated by safety considerations and is made in compliance with our Bill of Lading terms and conditions,” CMA CGM said in a statement Saturday. “Customers will be contacted as soon as we have more details of the possible alternative ports where their cargo could be discharged.” Maersk on Sunday said it was rerouting all sailings of its ME11 Middle East-India-Mediterranean service and MECL Middle East-India-US East Coast service back around southern Africa until further notice. That is an escalation from Friday , when the carrier announced select sailings of both services would avoid the Red Sea and Suez through the first half of March. “Once the situation stabilizes and the security situation again permits, we will continue to prioritize the trans-Suez route for ME11 and MECL services as it is the fastest, most sustainable and most efficient way for us to serve our customers,” Maersk said in a statement Sunday. The Houthis have not launched any attacks on shipping since the Gaza ceasefire between Israel and Hamas was announced last October. And while the Houthis’ top leader, Abdul-Malik Badr al-Din al-Houthi, voiced support over the weekend for Iran, he held back on pledging military action, Hisisham al-Omeisy, a geopolitical expert on Yemen, told the Journal of Commerce. Seeing the scale and severity of US and Israel attacks on Iran, the Houthis appear to be calculating their next move, he said. The Houthis understand “going full in at this point will prove to be costly if not suicidal, and may instead resort to measures to save face; the movement has called for public protests in areas under their control in Yemen,” al-Omeisy said. “Nevertheless, Houthis are now under immense pressure to act, and their leadership may still authorize limited strikes on ships or even Tel Aviv." Major container lines have mostly avoided the Red Sea/Suez route since late 2023 when Houthi militants began their attacks on commercial shipping to protest Israel’s move into Gaza, forcing lengthy diversions around southern Africa. Peter Sand, chief analyst for rate benchmarking platform Xeneta, said the military action launched by the US and Israel and Iran’s retaliation will “shatter hopes of a large-scale return of container shipping to the Red Sea” this year. “If Houthi militia resume attacks, as now seems likely, carriers will reverse the decision to return services to the Red Sea and prioritize the safety of crew, ship and cargo,” Sand said in a statement Saturday. “Any plans for a phased return of container shipping to the Red Sea in 2026 will be shelved until the security situation becomes clearer.” The Mediterranean Port of Haifa in Israel was open and operational Monday, according to media reports. Marine insurance to soar The escalation of hostilities in the region is expected to push maritime risk insurance through the roof, according to Dylan Mortimer from UK-based insurance risk adviser Marsh. “It is very early to tell at this point, but we would estimate that near-term rate increases for marine hull insurance in the Gulf could range from 25% to 50%, barring any direct attack on merchant shipping, which could have major repercussions across war insurance rates,” Mortimer said in a statement. “The primary risks center on the Persian/Arabian Gulf, particularly the threat of vessel boarding and seizure by Iranian forces and the potential closure of the Strait of Hormuz,” he added. Bimco has also warned that insurance rates are expected to increase “manyfold,” and Larsen said ships with business connections to the US or Israel would likely have their insurance withdrawn. While Iran will be able to disrupt commercial shipping in the Persian Gulf, Larsen did not expect that disruption to be long term. “It is assessed that within a few days US air and naval superiority will eventually establish a level of security which will enable commercial shipping to resume transportation in and out of the Persian Gulf and adjacent waters,” he said. Contact Greg Knowler at greg.knowler@spglobal.com .

Air Cargo

Shipping avoids Middle East region after US, Israel begin strikes on Iran

<div class="phx-topic abstract-wrapper">Even if the terminal operator arm of the Virginia Port Authority violated the terms of its contract with the International Longshoremen’s Association, the VPA’s influence did not violate national labor law, the court said in its ruling.</div>

Even if the terminal operator arm of the Virginia Port Authority violated the terms of its contract with the International Longshoremen’s Association, the VPA’s influence did not violate national labor law, the court said in its ruling.

<div class="phx-topic">A federal court has dismissed the International Longshoremen’s Association’s (ILA) lawsuit alleging that the Virginia Ports Authority (VPA) and its chief executive violated national labor law by installing automated yard cranes without notifying the union as mandated by its master contract. A spokesperson for the VPA said the authority was “grateful for the court’s careful consideration of the matter,” but had no further comment on the lawsuit. The ILA did not immediately respond to a request for comment. The VPA in October 2025 <a href="https://www.joc.com/article/virginia-port-looks-to-dismiss-ila-lawsuit-on-rail-crane-rollout-6099283">filed a motion to dismiss the ILA complaint</a>, arguing that the union knew about plans to roll out new rail-mounted gantry (RMG) cranes in Norfolk in May 2023, nearly two years prior to their installation. The union’s lawsuit, <a href="https://www.joc.com/article/ila-suing-virginia-port-chief-executive-over-rollout-of-new-rail-cranes-6070318">filed last August</a>, said its members were only made aware of the new cranes as the first batch was installed in April 2025. In its ruling issued Thursday, the US District Court for the Eastern District of Virginia said that although the ILA “appears to have demonstrated” that the purchase of the RMG cranes without prior official notification violated the master contract, the contract is with Virginia International Terminals (VIT), which was not named in the complaint. VIT is a legally separate entity that handles daily operations and directly employs longshore workers. Under the ILA master contract ratified in March 2025, any new technology implemented by ports along the East and Gulf coasts must be vetted by a new technology committee comprised of the union and maritime employers to determine staffing levels for the new equipment, training and pay rates. The local union must also be notified so it can negotiate with employers about the new technology.</div>

A federal court has dismissed the International Longshoremen’s Association’s (ILA) lawsuit alleging that the Virginia Ports Authority (VPA) and its chief executive violated national labor law by installing automated yard cranes without notifying the union as mandated by its master contract. A spokesperson for the VPA said the authority was “grateful for the court’s careful consideration of the matter,” but had no further comment on the lawsuit. The ILA did not immediately respond to a request for comment. The VPA in October 2025 filed a motion to dismiss the ILA complaint , arguing that the union knew about plans to roll out new rail-mounted gantry (RMG) cranes in Norfolk in May 2023, nearly two years prior to their installation. The union’s lawsuit, filed last August , said its members were only made aware of the new cranes as the first batch was installed in April 2025. In its ruling issued Thursday, the US District Court for the Eastern District of Virginia said that although the ILA “appears to have demonstrated” that the purchase of the RMG cranes without prior official notification violated the master contract, the contract is with Virginia International Terminals (VIT), which was not named in the complaint. VIT is a legally separate entity that handles daily operations and directly employs longshore workers. Under the ILA master contract ratified in March 2025, any new technology implemented by ports along the East and Gulf coasts must be vetted by a new technology committee comprised of the union and maritime employers to determine staffing levels for the new equipment, training and pay rates. The local union must also be notified so it can negotiate with employers about the new technology.

North American ports

Marine terminals

Longshore labor

Federal court dismisses ILA complaint over Virginia rail cranes

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