<div class="phx-topic abstract-wrapper">The two nominees, Laura DiBella and Robert Harvey, would replace former commission members Louis Sola and Carl Bentzel.</div>

The two nominees, Laura DiBella and Robert Harvey, would replace former commission members Louis Sola and Carl Bentzel.

Feature image

<div class="phx-topic">President Donald Trump has nominated two long-time Florida political operators to be the newest members of the Federal Maritime Commission (FMC). The White House on Wednesday sent the nominations of Laura DiBella and Robert Harvey to the Senate. DiBella, whose term would expire in 2028, would replace Louis Sola, <a href="https://www.joc.com/article/fmcs-sola-to-leave-agency-months-after-being-elevated-to-chairmans-slot-6031245">who left the agency in June</a> after serving as a commissioner since 2018 and chairman for <a href="https://www.joc.com/article/trump-appoints-louis-sola-to-chairmans-slot-at-fmc-5926442">about five months after being nominated by Trump</a>. Harvey, whose term would expire in 2029, would replace Carl Bentzel, another Trump appointee to the FMC from 2019 who <a href="https://www.joc.com/article/bentzel-leaving-fmc-for-executive-role-with-maritime-trade-groups-5792476">left the agency last year</a>. FMC commissioners have five-year terms but can serve for longer periods until the president makes new nominations.DiBella is a government affairs advisor for Florida-based law firm Adams and Reese. Prior to that, she was president of business development for the state’s Department of Commerce and led other economic development programs. Her maritime experience includes nearly three years as executive director of the Florida Harbor Pilots Association and the director of the Port of Fernandina. She is also a licensed realtor. Harvey has led the Florida Opportunity Fund, a state-sponsored investment fund, for the last two years. It is not known who will serve as the next chairman of the FMC.Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

President Donald Trump has nominated two long-time Florida political operators to be the newest members of the Federal Maritime Commission (FMC). The White House on Wednesday sent the nominations of Laura DiBella and Robert Harvey to the Senate. DiBella, whose term would expire in 2028, would replace Louis Sola, who left the agency in June after serving as a commissioner since 2018 and chairman for about five months after being nominated by Trump . Harvey, whose term would expire in 2029, would replace Carl Bentzel, another Trump appointee to the FMC from 2019 who left the agency last year . FMC commissioners have five-year terms but can serve for longer periods until the president makes new nominations. DiBella is a government affairs advisor for Florida-based law firm Adams and Reese. Prior to that, she was president of business development for the state’s Department of Commerce and led other economic development programs. Her maritime experience includes nearly three years as executive director of the Florida Harbor Pilots Association and the director of the Port of Fernandina. She is also a licensed realtor. Harvey has led the Florida Opportunity Fund, a state-sponsored investment fund, for the last two years. It is not known who will serve as the next chairman of the FMC. Contact Michael Angell at michael.angell@spglobal.com .

Container Shipping News

Transport, Trade and Regulation News

Trump taps two Floridians to serve on the FMC

<div class="phx-topic abstract-wrapper">Excess capacity is keeping spot and contract truckload pricing in check, although imports into the West Coast generated demand in that region last month. </div>

Excess capacity is keeping spot and contract truckload pricing in check, although imports into the West Coast generated demand in that region last month.

<div class="phx-topic">The US truckload market is stuck in a three-year rut, with no sign of a catalyst that will substantially increase demand, according to interviews with industry sources and data analyzed by the Journal of Commerce. Throughout the third quarter of each year, short-term events such as produce season, the Fourth of July holiday and a nationwide brake inspection week in late August temporarily tightened truck capacity and pushed up spot rates. But the market snapped back to its baseline each time. “There was no momentum beyond those short periods,” said Corey Klujsza, vice president of pricing and procurement strategy at logistics provider RXO, which produces the quarterly RXO Curve report on truckload market pricing. There was more rate volatility within those “short periods” this year than in 2024 or 2023, which could indicate excess truckload capacity is diminishing, Klujsza said. “We saw rates [this year] outperform seasonality compared to the last two years,” he said. But short-lived gains did not break the spot rate ceiling set by the three-year freight downturn. The Journal of Commerce average US shipper-paid truckload spot rate in August was flat with July, at $2.23 per mile, according to data released this week. That all-inclusive rate, based on data from more than 4,000 lanes longer than 250 miles, was up 3 cents per mile from a year ago but down 3 cents from August 2023. The West Coast last month provided an exception to the spot market malaise. Spot rates out of California rose 12 cents per mile month over month in August, to an average of $2.65 per mile, as cargo landing in West Coast ports in July worked its way into domestic networks, according to the Journal of Commerce analysis. The average outbound truckload spot rate from Ontario, California, rose 12.5% from April through August, hitting $2.71 per mile last month. ”Import activity has been a positive overall, but intermodal has been the winner,” Klujsza told the Journal of Commerce. “Intermodal is showing sequential and year-over-year growth. [Freight] isn’t falling into the truckload market.” Railroads kept ocean containers <a href="https://www.joc.com/article/bnsf-up-kept-rail-terminals-fluid-in-august-amid-ipi-surge-6075488">flowing smoothly in August</a> as July’s import surge moved inland, according to data and market participants. Data from the Journal of Commerce and other sources was supported by shippers who noted tighter trucking capacity in Southern California and the Pacific Northwest but abundant truck capacity nationwide. <h3>Narrow pricing band </h3>The Journal of Commerce pricing data aligns with data from other sources, including the US long-distance truckload producer price index (PPI). That PPI, an all-inclusive measure of prices, was 172.7 in July, up from 170.8 in June but down from 175.8 a year ago. The PPI, which represents contract and spot rates, has moved in a narrow band between 170 and 180 since May 2023 and is now at the lower end of that band. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="75c6a726-cc97-4bf7-90a3-a352fd2ace2d"></dynamic-object></div>“It feels like the market is stuck,” said Dean Croke, principal analyst at load board operator DAT Freight &amp; Analytics. “I don’t see anything that would say the market has turned.” DAT’s dry van linehaul rates rose 2 cents per mile week over week, to an average of $1.67 per mile, excluding fuel surcharges, in the week ended Aug. 28. That is 4 cents higher than a year ago and 7 cents above the average rate for the same week in 2023. “We’ve had three years of this tough freight environment,” said Croke. The truckload market has not been able to find a new balance, he said, because “demand keeps moving. It’s still a guessing game.” Although spot rates are slowly rising, new replacement contract rates in routing guides are flat, Croke said. “We’re still seeing shippers having pricing power, which tells us there’s plenty of truck capacity,” he said. Contact William B. Cassidy at <a href="mailto://bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.</div>

The US truckload market is stuck in a three-year rut, with no sign of a catalyst that will substantially increase demand, according to interviews with industry sources and data analyzed by the Journal of Commerce. Throughout the third quarter of each year, short-term events such as produce season, the Fourth of July holiday and a nationwide brake inspection week in late August temporarily tightened truck capacity and pushed up spot rates. But the market snapped back to its baseline each time. “There was no momentum beyond those short periods,” said Corey Klujsza, vice president of pricing and procurement strategy at logistics provider RXO, which produces the quarterly RXO Curve report on truckload market pricing. There was more rate volatility within those “short periods” this year than in 2024 or 2023, which could indicate excess truckload capacity is diminishing, Klujsza said. “We saw rates [this year] outperform seasonality compared to the last two years,” he said. But short-lived gains did not break the spot rate ceiling set by the three-year freight downturn. The Journal of Commerce average US shipper-paid truckload spot rate in August was flat with July, at $2.23 per mile, according to data released this week. That all-inclusive rate, based on data from more than 4,000 lanes longer than 250 miles, was up 3 cents per mile from a year ago but down 3 cents from August 2023. The West Coast last month provided an exception to the spot market malaise. Spot rates out of California rose 12 cents per mile month over month in August, to an average of $2.65 per mile, as cargo landing in West Coast ports in July worked its way into domestic networks, according to the Journal of Commerce analysis. The average outbound truckload spot rate from Ontario, California, rose 12.5% from April through August, hitting $2.71 per mile last month. ”Import activity has been a positive overall, but intermodal has been the winner,” Klujsza told the Journal of Commerce. “Intermodal is showing sequential and year-over-year growth. [Freight] isn’t falling into the truckload market.” Railroads kept ocean containers flowing smoothly in August as July’s import surge moved inland, according to data and market participants. Data from the Journal of Commerce and other sources was supported by shippers who noted tighter trucking capacity in Southern California and the Pacific Northwest but abundant truck capacity nationwide. Narrow pricing band The Journal of Commerce pricing data aligns with data from other sources, including the US long-distance truckload producer price index (PPI). That PPI, an all-inclusive measure of prices, was 172.7 in July, up from 170.8 in June but down from 175.8 a year ago. The PPI, which represents contract and spot rates, has moved in a narrow band between 170 and 180 since May 2023 and is now at the lower end of that band. “It feels like the market is stuck,” said Dean Croke, principal analyst at load board operator DAT Freight & Analytics. “I don’t see anything that would say the market has turned.” DAT’s dry van linehaul rates rose 2 cents per mile week over week, to an average of $1.67 per mile, excluding fuel surcharges, in the week ended Aug. 28. That is 4 cents higher than a year ago and 7 cents above the average rate for the same week in 2023. “We’ve had three years of this tough freight environment,” said Croke. The truckload market has not been able to find a new balance, he said, because “demand keeps moving. It’s still a guessing game.” Although spot rates are slowly rising, new replacement contract rates in routing guides are flat, Croke said. “We’re still seeing shippers having pricing power, which tells us there’s plenty of truck capacity,” he said. Contact William B. Cassidy at bill.cassidy@spglobal.com .

Trucking News

Truckload

Surface

US truckload market mired in malaise as import surge wanes

<div class="phx-topic abstract-wrapper">A proposed amendment that could be included in the 2026 defense spending bill would allow terminal operators to receive the same tax breaks now available to the US shipbuilding industry. </div>

A proposed amendment that could be included in the 2026 defense spending bill would allow terminal operators to receive the same tax breaks now available to the US shipbuilding industry.

<div class="phx-topic">US ports, looking to leverage national security concerns over Chinese-made cargo handling equipment, want tax breaks for purchasing domestic ship-to-shore cranes to be included in Congress’s next defense spending bill.With the 2026 defense authorization bill introduced this week, the National Association of Waterfront Employers (NAWE) asked Congress on Wednesday to include an amendment that would expand a tax-deferral program for purchasing US-built ships to include US-built cargo handling equipment. The amendment, originally introduced in June by Rep. Mike Ezell (R-Miss.), would include cargo handling equipment as part of the Capital Construction Fund (CCF), which is overseen by the US Maritime Administration (MARAD). The program allows ocean carriers and vessel operators to defer taxes on any funds set aside for buying or building a US-built ship. Similarly, Ezell’s amendment would allow marine terminal operators to defer taxes on any funds set aside for US-built cargo handling equipment. NAWE, whose members operate at 16 US ports deemed critical for US defense, said in a statement the amendment would “allow the industry to safely and securely transition away from cargo handling equipment produced in China ... (and) ... sustain US military operations abroad.”“Expanding the CCF will ensure that private marine terminal operators can reinvest in safer, cleaner and more efficient equipment — strengthening America’s ports, boosting domestic manufacturing and enhancing national security,” NAWE President Carl Bentzel said.As part of the Defense Department’s broader goal of incentivizing US shipbuilding, the CCF was expanded in the 2023 defense spending authorization to cover a broader array of vessels. MARAD said the fund held $2.6 billion from 136 US vessel operators as of 2023. Ezell’s amendment comes as <a href="https://www.joc.com/article/ports-look-to-delay-proposed-us-tariffs-on-chinese-made-cranes-6007628">marine terminal operators face tariffs of up to 100%</a> on Chinese-made ship-to-shore cranes beginning Oct. 14. He is also backing a bill introduced over the summer that would provide <a href="https://www.joc.com/article/congress-eyes-a-tax-credit-for-reshoring-port-crane-manufacturing-6053124">tax credits to domestic manufacturers</a> of ship-to-shore cranes. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

US ports, looking to leverage national security concerns over Chinese-made cargo handling equipment, want tax breaks for purchasing domestic ship-to-shore cranes to be included in Congress’s next defense spending bill. With the 2026 defense authorization bill introduced this week, the National Association of Waterfront Employers (NAWE) asked Congress on Wednesday to include an amendment that would expand a tax-deferral program for purchasing US-built ships to include US-built cargo handling equipment. The amendment, originally introduced in June by Rep. Mike Ezell (R-Miss.), would include cargo handling equipment as part of the Capital Construction Fund (CCF), which is overseen by the US Maritime Administration (MARAD). The program allows ocean carriers and vessel operators to defer taxes on any funds set aside for buying or building a US-built ship. Similarly, Ezell’s amendment would allow marine terminal operators to defer taxes on any funds set aside for US-built cargo handling equipment. NAWE, whose members operate at 16 US ports deemed critical for US defense, said in a statement the amendment would “allow the industry to safely and securely transition away from cargo handling equipment produced in China ... (and) ... sustain US military operations abroad.” “Expanding the CCF will ensure that private marine terminal operators can reinvest in safer, cleaner and more efficient equipment — strengthening America’s ports, boosting domestic manufacturing and enhancing national security,” NAWE President Carl Bentzel said. As part of the Defense Department’s broader goal of incentivizing US shipbuilding, the CCF was expanded in the 2023 defense spending authorization to cover a broader array of vessels. MARAD said the fund held $2.6 billion from 136 US vessel operators as of 2023. Ezell’s amendment comes as marine terminal operators face tariffs of up to 100% on Chinese-made ship-to-shore cranes beginning Oct. 14. He is also backing a bill introduced over the summer that would provide tax credits to domestic manufacturers of ship-to-shore cranes. Contact Michael Angell at michael.angell@spglobal.com .

Marine terminals

Port infrastructure

North American ports

US ports look to Congress for tax breaks on replacing Chinese cranes

<div class="phx-topic abstract-wrapper">The smooth flow of containers is an improvement from the near gridlock of four years ago during the COVID-linked volume surge and the elevated dwell times during last year’s peak season, progress trucking companies say they have noticed.</div>

The smooth flow of containers is an improvement from the near gridlock of four years ago during the COVID-linked volume surge and the elevated dwell times during last year’s peak season, progress trucking companies say they have noticed.

<div class="phx-topic">Western US railroads BNSF and Union Pacific (UP) largely kept ocean containers flowing smoothly in August through the key hubs of Chicago, Dallas, Kansas City and Memphis as Southern California’s July import surge moved inland, according to data and market participants. That’s an improvement from the near gridlock of four years ago during the COVID-linked volume surge and the elevated dwell times during last year’s peak season, progress trucking companies say they have noticed. Chassis were easy to find in inland cities and overall turn times for drivers were manageable, truckers say. “Surprisingly, everything's been relatively smooth,” Paul Brashier, vice president of global logistics for ITS Logistics, told the Journal of Commerce. “The ports were busy in July. Then the cargo moved inland in August, and for the most part, the ecosystem handled it fine. The freight is flowing relatively well.” Some truck drivers have faced longer waits at UP’s Global IV terminal in Joliet, Ill., and at Norfolk Southern’s Landers terminal in Chicago, but those delays have been sporadic and predated the recent uptick in international intermodal traffic. BNSF’s <a href="https://www.joc.com/article/bad-weather-early-peak-demand-slowed-bnsf-trains-last-month-6074860">train speeds slowed</a> in August, but the railroad attributed that to flash flooding near Amarillo, Texas, and extreme heat in California’s Mojave Desert. While the bad weather extended transit times, it did not create congestion inside terminals. The Pacific Merchant Shipping Association (PMSA) reported that the average rail container dwell in Los Angeles and Long Beach in July was 5.18 days, down from 5.66 days a year earlier. August figures are expected in the coming weeks. Last year, rail dwells jumped to 8.2 days in August, 9.25 days in September and 9.86 days in October. Mike Jacob, president of the PMSA, doesn’t expect that to happen this year. "We really don't see a lot out there that's going to be super-challenging," Jacob told the Journal of Commerce. “[Railroads are] as good as or even better than last year. … The railroads were making sure they weren't leaving anything on the docks. The total structural performance versus the pandemic is like night and day.” Marine terminal executives in Los Angeles and Long Beach offered a similar view, saying railcar supply and service have been solid since early August. At Yusen Terminals, where dwell times swelled to more than 10 days last August and September, conditions appear unlikely to repeat, according to Yusen President Alan McCorkle. <h3>Rails cite investment </h3>UP’s service metrics have held up better during this peak season so far than in the last two. In the final week of August, its average intermodal train speeds ranked in the 96th percentile of all weeks since 2017, according to a Journal of Commerce analysis of US Surface Transportation Board data. The number of intermodal trains held in route was likewise lower than in 96% of weeks over that span, even as the number of loaded railcars idling for more than 48 hours was the highest for the month of August in three years. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="cffd049d-9f51-41dc-be55-f79bcf5d15a5"></dynamic-object></div>Nevertheless, UP’s Intermodal Service Z-Score, a Journal of Commerce metric focused on how a railroad performs against its own historical norms, has stayed positive during this peak season thus far, a contrast to 2023 and 2024 when the score flipped negative during the peak months. “Union Pacific has invested $1.4 billion in our intermodal terminals since 2020, opening four new terminals,” said Robynn Tysver, a spokesperson for UP. “Investment in technology has been a game changer at intermodal terminals, notably the new gate technology that gives drivers a seamless, efficient experience in-gating and out-gating, helping us to deliver a strong and reliable service to the market.” BNSF has zeroed in on Memphis this summer, where drivers have lodged more complaints than at its hubs in Chicago, Kansas City and Fort Worth. In response, the railroad deployed a resource team to Memphis to monitor wait times in real time and coordinate with drivers and crane operators to move boxes faster. Jon Gabriel, BNSF’s group vice president of consumer products, said the effort has already paid off. “Our driver average turn time has come down about 30% since this summer,” Gabriel said. “This dedicated resource (in Memphis), strictly focused on driver throughput and the driver experience, has made a big difference. It was a pilot program, but it’s been very successful. If need be, we’ll certainly look to scale it elsewhere in our network.” Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a> and Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>. </div>

Western US railroads BNSF and Union Pacific (UP) largely kept ocean containers flowing smoothly in August through the key hubs of Chicago, Dallas, Kansas City and Memphis as Southern California’s July import surge moved inland, according to data and market participants. That’s an improvement from the near gridlock of four years ago during the COVID-linked volume surge and the elevated dwell times during last year’s peak season, progress trucking companies say they have noticed. Chassis were easy to find in inland cities and overall turn times for drivers were manageable, truckers say. “Surprisingly, everything's been relatively smooth,” Paul Brashier, vice president of global logistics for ITS Logistics, told the Journal of Commerce. “The ports were busy in July. Then the cargo moved inland in August, and for the most part, the ecosystem handled it fine. The freight is flowing relatively well.” Some truck drivers have faced longer waits at UP’s Global IV terminal in Joliet, Ill., and at Norfolk Southern’s Landers terminal in Chicago, but those delays have been sporadic and predated the recent uptick in international intermodal traffic. BNSF’s train speeds slowed in August, but the railroad attributed that to flash flooding near Amarillo, Texas, and extreme heat in California’s Mojave Desert. While the bad weather extended transit times, it did not create congestion inside terminals. The Pacific Merchant Shipping Association (PMSA) reported that the average rail container dwell in Los Angeles and Long Beach in July was 5.18 days, down from 5.66 days a year earlier. August figures are expected in the coming weeks. Last year, rail dwells jumped to 8.2 days in August, 9.25 days in September and 9.86 days in October. Mike Jacob, president of the PMSA, doesn’t expect that to happen this year. "We really don't see a lot out there that's going to be super-challenging," Jacob told the Journal of Commerce. “[Railroads are] as good as or even better than last year. … The railroads were making sure they weren't leaving anything on the docks. The total structural performance versus the pandemic is like night and day.” Marine terminal executives in Los Angeles and Long Beach offered a similar view, saying railcar supply and service have been solid since early August. At Yusen Terminals, where dwell times swelled to more than 10 days last August and September, conditions appear unlikely to repeat, according to Yusen President Alan McCorkle. Rails cite investment UP’s service metrics have held up better during this peak season so far than in the last two. In the final week of August, its average intermodal train speeds ranked in the 96th percentile of all weeks since 2017, according to a Journal of Commerce analysis of US Surface Transportation Board data. The number of intermodal trains held in route was likewise lower than in 96% of weeks over that span, even as the number of loaded railcars idling for more than 48 hours was the highest for the month of August in three years. Nevertheless, UP’s Intermodal Service Z-Score, a Journal of Commerce metric focused on how a railroad performs against its own historical norms, has stayed positive during this peak season thus far, a contrast to 2023 and 2024 when the score flipped negative during the peak months. “Union Pacific has invested $1.4 billion in our intermodal terminals since 2020, opening four new terminals,” said Robynn Tysver, a spokesperson for UP. “Investment in technology has been a game changer at intermodal terminals, notably the new gate technology that gives drivers a seamless, efficient experience in-gating and out-gating, helping us to deliver a strong and reliable service to the market.” BNSF has zeroed in on Memphis this summer, where drivers have lodged more complaints than at its hubs in Chicago, Kansas City and Fort Worth. In response, the railroad deployed a resource team to Memphis to monitor wait times in real time and coordinate with drivers and crane operators to move boxes faster. Jon Gabriel, BNSF’s group vice president of consumer products, said the effort has already paid off. “Our driver average turn time has come down about 30% since this summer,” Gabriel said. “This dedicated resource (in Memphis), strictly focused on driver throughput and the driver experience, has made a big difference. It was a pilot program, but it’s been very successful. If need be, we’ll certainly look to scale it elsewhere in our network.” Contact Ari Ashe at ari.ashe@spglobal.com and Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Rail News

BNSF, UP kept rail terminals fluid in August amid IPI surge

<div class="phx-topic abstract-wrapper">Weather-related slowdowns were compounded by track work that typically wraps up in August but overlapped this year with an earlier-than-usual surge in international and domestic intermodal demand.</div>

Weather-related slowdowns were compounded by track work that typically wraps up in August but overlapped this year with an earlier-than-usual surge in international and domestic intermodal demand.

<div class="phx-topic">BNSF Railway’s intermodal train speeds in August were its slowest of 2025 and among its lowest in more than eight years, with the railroad blaming the slowdown on an early peak season that clashed with construction projects, flash flooding in parts of its network and extreme heat in the California desert. The disruptions didn’t impact BNSF’s terminal operations — the loading and unloading of trains and cargo handoffs to trucks — but rather trains in transit. Weather-related slowdowns were compounded by track work that typically wraps up in August but overlapped this year with an earlier-than-usual surge in international and domestic intermodal demand, the railroad said. “[August is] the time of year that we typically have our highest capital gain maintenance activity [repairing our] infrastructure needs ahead of domestic intermodal peak season and parcel holiday shipments,” Jon Gabriel, BNSF’s group vice president of consumer products, told the Journal of Commerce. “But with the pull forward, we saw more demand than we would typically see in July and August. The capital projects have been wrapped up.” BNSF expects weather to be less of a factor this fall, particularly between Amarillo, Texas, and Emporia, Kansas, where flash flooding was a problem in July and August. In Amarillo, there was flash flooding on July 24–25, Aug. 12, and Aug. 29–30. BNSF’s southern transcontinental network crosses New Mexico and then loops northeast through Amarillo and Emporia en route to Kansas City. “With flash flooding, we bring our trains down to 20 miles per hour or less,” Gabriel said. “Train crews need to visually look out for any water over the top of rail. You think about our [southern US network] at any given day, we may have 250 to 300 trains operating on it, and especially in the middle of the night, we had traffic slowed down.” <h3>‘Z Score’ flips to negative </h3>Heat, meanwhile, was a disruption in the California desert, with tracks requiring close inspection to monitor for any deformities in the steel that could cause a derailment. Two major heat waves hit the Mojave Desert in California, sending temperatures above 110 degrees on several days last month. The earlier demand and weather-related factors caused BNSF’s intermodal train speeds for all four weeks of August to be slower than 95% of all weeks dating back to 2017, according to a Journal of Commerce analysis of data from the US Surface Transportation Board (STB). <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ef92b52a-168e-4e14-88eb-3b647a1dd66e"></dynamic-object></div>As train speeds fell, the number of loaded BNSF railcars idling excessively jumped. In the last week of August, an average of nearly 279 loaded railcars each day were classified as idling excessively on the BNSF network, meaning not moving for more than 48 hours. The figure was higher than 72% of all weeks dating back to 2017, according to the STB data. BNSF’s Intermodal Service Z-Score, a Journal of Commerce metric focused on how a railroad performs against its own historical norms, flipped from positive to negative last month. Positive scores indicate outperformance versus norms; negative scores indicate underperformance. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

BNSF Railway’s intermodal train speeds in August were its slowest of 2025 and among its lowest in more than eight years, with the railroad blaming the slowdown on an early peak season that clashed with construction projects, flash flooding in parts of its network and extreme heat in the California desert. The disruptions didn’t impact BNSF’s terminal operations — the loading and unloading of trains and cargo handoffs to trucks — but rather trains in transit. Weather-related slowdowns were compounded by track work that typically wraps up in August but overlapped this year with an earlier-than-usual surge in international and domestic intermodal demand, the railroad said. “[August is] the time of year that we typically have our highest capital gain maintenance activity [repairing our] infrastructure needs ahead of domestic intermodal peak season and parcel holiday shipments,” Jon Gabriel, BNSF’s group vice president of consumer products, told the Journal of Commerce. “But with the pull forward, we saw more demand than we would typically see in July and August. The capital projects have been wrapped up.” BNSF expects weather to be less of a factor this fall, particularly between Amarillo, Texas, and Emporia, Kansas, where flash flooding was a problem in July and August. In Amarillo, there was flash flooding on July 24–25, Aug. 12, and Aug. 29–30. BNSF’s southern transcontinental network crosses New Mexico and then loops northeast through Amarillo and Emporia en route to Kansas City. “With flash flooding, we bring our trains down to 20 miles per hour or less,” Gabriel said. “Train crews need to visually look out for any water over the top of rail. You think about our [southern US network] at any given day, we may have 250 to 300 trains operating on it, and especially in the middle of the night, we had traffic slowed down.” ‘Z Score’ flips to negative Heat, meanwhile, was a disruption in the California desert, with tracks requiring close inspection to monitor for any deformities in the steel that could cause a derailment. Two major heat waves hit the Mojave Desert in California, sending temperatures above 110 degrees on several days last month. The earlier demand and weather-related factors caused BNSF’s intermodal train speeds for all four weeks of August to be slower than 95% of all weeks dating back to 2017, according to a Journal of Commerce analysis of data from the US Surface Transportation Board (STB). As train speeds fell, the number of loaded BNSF railcars idling excessively jumped. In the last week of August, an average of nearly 279 loaded railcars each day were classified as idling excessively on the BNSF network, meaning not moving for more than 48 hours. The figure was higher than 72% of all weeks dating back to 2017, according to the STB data. BNSF’s Intermodal Service Z-Score, a Journal of Commerce metric focused on how a railroad performs against its own historical norms, flipped from positive to negative last month. Positive scores indicate outperformance versus norms; negative scores indicate underperformance. Contact Ari Ashe at ari.ashe@spglobal.com .

North-American rail

Bad weather, early peak demand slowed BNSF trains last month

<div class="phx-topic abstract-wrapper">The dismal outlook for the second half of the year is prompting Wall Street analysts to rein in earnings expectations as many carriers also report steep declines in their profit margins amid a mix of overcapacity and “tariff-driven cost escalation.”</div>

The dismal outlook for the second half of the year is prompting Wall Street analysts to rein in earnings expectations as many carriers also report steep declines in their profit margins amid a mix of overcapacity and “tariff-driven cost escalation.”

<div class="phx-topic">Ocean carrier earnings this year are expected to fall by more than half compared with last year, as profit margins slip to 2023 levels. And with vessel capacity outstripping demand for the foreseeable future, liner operators face the prospect of a loss-making 2026.Full-year 2025 earnings for eight publicly-traded ocean carriers are expected to fall by an average of 61% compared with 2024, according to Capital IQ Estimates, a sister company of the Journal of Commerce within S&amp;P Global. The consensus analyst estimates as of September mark a further ratcheting down from the 53% drop in 2025 earnings expected as of March 31. The downward revision comes after carriers reported second-quarter results and offered up dismal forecasts for the remainder of 2025. Out of all the carriers, only Maersk saw its earnings estimates revised upward after Chief Executive Vincent Clerc said <a href="https://www.joc.com/article/maersk-ceo-vows-to-reach-logistics-profit-margin-target-by-year-end-6059993">its non-ocean logistics business would hit its 2025 profit margin targets</a>.Investment bank HSBC said in a report on Tuesday that import frontloading during the second quarter will dampen demand throughout the rest of 2025. The investment bank added that as retail goods that came in ahead of tariffs get replaced with goods subject to tariffs, consumers could rein in spending, thus hurting further inventory replenishment.“We think tariff-driven cost escalation would suppress consumer demand while frontloadings from Q2 to early Q3 could retard retailer restocking cycles in H2,” HSBC said. “In this context, we argue that carriers would face margin compression as they balance capacity cuts against softening demand in the rest of the year.”<h3>Big decline in operating margins</h3>Alphaliner noted the margin compression in its weekly report Tuesday. Since hitting their most recent peak of 38.4% in the third quarter of 2024, operating profit margins for ocean carriers have since fallen to 9.9% as of the second quarter of 2025, the lowest level since the fourth quarter of 2023, according to Alphaliner. It said the rerouting of ships away from the Suez Canal was the big factor in 2024 margin strength.“This time round, margins are falling while the Red Sea crisis continues,” Alphaliner said, adding that a weaker earnings outlook and margin compression were seen in carriers reporting the steepest declines in their freight rates. South Korea’s HMM reported a 22% year-over-year decline in revenue per TEU for the second quarter, Alphaliner said. The carrier’s operating margins fell from 30% last year to 9% for the second quarter of 2025, according to Capital IQ, while earnings for 2025 are now expected to fall 50% compared with a consensus estimate of a 28% decline back in March. Zim reported an 11% year-over-year decline in freight rates during the second quarter, Alphaliner said. While the carrier reported a 29% operating margin in 2024, its most recent operating margin was 9%, according to Capital IQ. Analysts’ consensus estimates now show Zim’s profits falling 82% this year. Alphaliner noted that Wan Hai Lines, Evergreen Marine and Cosco Shipping reported second-quarter operating margins well above the industry average, attributing their margin strength to exposure to trades outside of the US that have proved more resilient. As for 2026, the outlook is not much better. A <a href="https://www.joc.com/article/rocky-stretch-ahead-for-shippers-carriers-in-2026-and-beyond-6069904">J.P. Morgan report last week</a> said shipping rates globally could slip below $1,000 per TEU due to tepid demand and an oversupply of vessels. With <a href="https://www.joc.com/article/ocean-carriers-intensify-cost-cutting-efforts-as-rates-slide-on-major-trades-6069811">operating costs increasing</a> and the potential return of Suez Canal transits exacerbating oversupply, “we expect material EBIT losses” in 2026 for the liner operators under its analyst coverage, the bank said. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com ">michael.angell@spglobal.com</a>.</div>

Ocean carrier earnings this year are expected to fall by more than half compared with last year, as profit margins slip to 2023 levels. And with vessel capacity outstripping demand for the foreseeable future, liner operators face the prospect of a loss-making 2026. Full-year 2025 earnings for eight publicly-traded ocean carriers are expected to fall by an average of 61% compared with 2024, according to Capital IQ Estimates, a sister company of the Journal of Commerce within S&P Global. The consensus analyst estimates as of September mark a further ratcheting down from the 53% drop in 2025 earnings expected as of March 31. The downward revision comes after carriers reported second-quarter results and offered up dismal forecasts for the remainder of 2025. Out of all the carriers, only Maersk saw its earnings estimates revised upward after Chief Executive Vincent Clerc said its non-ocean logistics business would hit its 2025 profit margin targets . Investment bank HSBC said in a report on Tuesday that import frontloading during the second quarter will dampen demand throughout the rest of 2025. The investment bank added that as retail goods that came in ahead of tariffs get replaced with goods subject to tariffs, consumers could rein in spending, thus hurting further inventory replenishment. “We think tariff-driven cost escalation would suppress consumer demand while frontloadings from Q2 to early Q3 could retard retailer restocking cycles in H2,” HSBC said. “In this context, we argue that carriers would face margin compression as they balance capacity cuts against softening demand in the rest of the year.” Big decline in operating margins Alphaliner noted the margin compression in its weekly report Tuesday. Since hitting their most recent peak of 38.4% in the third quarter of 2024, operating profit margins for ocean carriers have since fallen to 9.9% as of the second quarter of 2025, the lowest level since the fourth quarter of 2023, according to Alphaliner. It said the rerouting of ships away from the Suez Canal was the big factor in 2024 margin strength. “This time round, margins are falling while the Red Sea crisis continues,” Alphaliner said, adding that a weaker earnings outlook and margin compression were seen in carriers reporting the steepest declines in their freight rates. South Korea’s HMM reported a 22% year-over-year decline in revenue per TEU for the second quarter, Alphaliner said. The carrier’s operating margins fell from 30% last year to 9% for the second quarter of 2025, according to Capital IQ, while earnings for 2025 are now expected to fall 50% compared with a consensus estimate of a 28% decline back in March. Zim reported an 11% year-over-year decline in freight rates during the second quarter, Alphaliner said. While the carrier reported a 29% operating margin in 2024, its most recent operating margin was 9%, according to Capital IQ. Analysts’ consensus estimates now show Zim’s profits falling 82% this year. Alphaliner noted that Wan Hai Lines, Evergreen Marine and Cosco Shipping reported second-quarter operating margins well above the industry average, attributing their margin strength to exposure to trades outside of the US that have proved more resilient. As for 2026, the outlook is not much better. A J.P. Morgan report last week said shipping rates globally could slip below $1,000 per TEU due to tepid demand and an oversupply of vessels. With operating costs increasing and the potential return of Suez Canal transits exacerbating oversupply, “we expect material EBIT losses” in 2026 for the liner operators under its analyst coverage, the bank said. Contact Michael Angell at michael.angell@spglobal.com .

Trans-Atlantic

Asia-Europe

Trans-Pacific

Container lines

Ocean carrier profit margins, earnings outlook for 2025 trimmed further

<div class="phx-topic abstract-wrapper">There are measures carriers can take around the edges, but if they really want to take control of supply — and thus price — collectively sidelining some high-caliber tonnage is the standout solution, writes Jeremy Masters. </div>

There are measures carriers can take around the edges, but if they really want to take control of supply — and thus price — collectively sidelining some high-caliber tonnage is the standout solution, writes Jeremy Masters.

<div class="phx-topic">The laws of supply and demand dictate that prices will move in accordance with the relativity of the two. Container carriers can marginally move the dial between what is containerized and what is bulk or breakbulk by offering very attractive (low contribution) rates. An innovative product — for example, Gemini Cooperation’s high reliability network or an express service — might lure some air freight to sea freight. For the most part, however, carriers have very little control over demand. The key price lever that carriers have is slot supply, and current fundamentals point to heavy surplus, even as diversions around southern Africa continue. Are the carriers, then, sprinting to the edge of the cliff with newbuild deliveries, fresh orders, second-hand buying and chartering of what little spare capacity is left, followed by a freefall? Or do they at least have a parachute to slow down their momentum? There are some things they can do to help themselves in trades with overcapacity. <h3>Pushing pause </h3>The most obvious and dramatic way would be to park ships. To be impactful, that would mean collectively taking out multiple strings rather than tinkering with single strings or blank sailings. Understandably, there is a mental block in the big east-west trades when it comes to parking high-capacity, high-value, newer ships. But if the carriers get supply even minimally below demand, the economics are massively in their favor. Let's assume that, in the Asia-to-Europe trade, each consortium (for these purposes, Mediterranean Shipping Co. would be considered a consortium) ties up one string of ultra-large container vessels (ULCVs) that was forecasted to make a minimal contribution to fixed cost because of declining rates. If, because of removing these strings, freight rates were a very conservative $500 per TEU higher on average on the headhaul than they would have been, based on 20,000 TEU per week and 50 weeks, all consortiums would accumulate an additional $500,000 million per annum on all remaining loops. There would be, of course, some incremental lay-up costs, but other costs would remain similar. Parking some $3 billion worth of assets per consortium is easier in theory than in practice, especially for those carriers who need to justify some heavy investments to their boards. If the carriers accept that drastic action is required, however, and there is enough collective action — not orchestrated action, of course, in contravention of competition rules — then the results will be dramatically better, and the ships will be readily available for an upturn. <h3>Beyond parking </h3>Are there less capacity-eating measures that carriers could undertake? The catalyst for a major dive in multi-trade rates would be a return to the Red Sea and Suez Canal for Asia-to-Europe strings, but it's unlikely that we will go overnight from high-risk Red Sea transits to totally safe ones. Given the disruption and risk — for carriers and their clients — of moving all strings back to the Red Sea only to find that further issues arise, it would be entirely justifiable to keep some strings moving around the Cape of Good Hope. Big beneficial cargo owners (BCOs) and forwarders/non-vessel operating common carriers (NVOCCs) have — forcefully — adjusted to the Cape routing. And while there is higher on-the-water inventory cost, the weekly pipeline of arrivals are established. They would naturally lean towards the faster Red Sea routing, but at the same time, would want to strenuously avoid a situation where production lines are stopped or shelves empty because they have put all their eggs in the Red Sea basket that has turned bad again. This may be counterintuitive, given more expensive ship systems around the Cape, but carriers could also implement two-tier pricing to re-enforce this prudence — essentially, a premium for Red Sea risk or a deficit for longer transits, whichever you prefer. Slow-steaming is another area of capacity control where a systematic approach could eat up more capacity. This means not just applying it in over-tonnaged trades, but in all trades. Tonnage can then be moved from trades where there is oversupply to those that are short because of slow-steaming. Finally, there is the scrapping of older vessels. If we look at carriers' desire to hold onto bigger, newer assets and their purchase of relatively old smaller tonnage to run regional and feeder networks, this does not look to be a particularly encouraging area for capacity shedding. There are measures the carriers can take around the edges, but if they really want to take control of supply – and thus price – collectively sidelining some high-caliber tonnage is the standout solution. Contact Jeremy Masters at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

The laws of supply and demand dictate that prices will move in accordance with the relativity of the two. Container carriers can marginally move the dial between what is containerized and what is bulk or breakbulk by offering very attractive (low contribution) rates. An innovative product — for example, Gemini Cooperation’s high reliability network or an express service — might lure some air freight to sea freight. For the most part, however, carriers have very little control over demand. The key price lever that carriers have is slot supply, and current fundamentals point to heavy surplus, even as diversions around southern Africa continue. Are the carriers, then, sprinting to the edge of the cliff with newbuild deliveries, fresh orders, second-hand buying and chartering of what little spare capacity is left, followed by a freefall? Or do they at least have a parachute to slow down their momentum? There are some things they can do to help themselves in trades with overcapacity. Pushing pause The most obvious and dramatic way would be to park ships. To be impactful, that would mean collectively taking out multiple strings rather than tinkering with single strings or blank sailings. Understandably, there is a mental block in the big east-west trades when it comes to parking high-capacity, high-value, newer ships. But if the carriers get supply even minimally below demand, the economics are massively in their favor. Let's assume that, in the Asia-to-Europe trade, each consortium (for these purposes, Mediterranean Shipping Co. would be considered a consortium) ties up one string of ultra-large container vessels (ULCVs) that was forecasted to make a minimal contribution to fixed cost because of declining rates. If, because of removing these strings, freight rates were a very conservative $500 per TEU higher on average on the headhaul than they would have been, based on 20,000 TEU per week and 50 weeks, all consortiums would accumulate an additional $500,000 million per annum on all remaining loops. There would be, of course, some incremental lay-up costs, but other costs would remain similar. Parking some $3 billion worth of assets per consortium is easier in theory than in practice, especially for those carriers who need to justify some heavy investments to their boards. If the carriers accept that drastic action is required, however, and there is enough collective action — not orchestrated action, of course, in contravention of competition rules — then the results will be dramatically better, and the ships will be readily available for an upturn. Beyond parking Are there less capacity-eating measures that carriers could undertake? The catalyst for a major dive in multi-trade rates would be a return to the Red Sea and Suez Canal for Asia-to-Europe strings, but it's unlikely that we will go overnight from high-risk Red Sea transits to totally safe ones. Given the disruption and risk — for carriers and their clients — of moving all strings back to the Red Sea only to find that further issues arise, it would be entirely justifiable to keep some strings moving around the Cape of Good Hope. Big beneficial cargo owners (BCOs) and forwarders/non-vessel operating common carriers (NVOCCs) have — forcefully — adjusted to the Cape routing. And while there is higher on-the-water inventory cost, the weekly pipeline of arrivals are established. They would naturally lean towards the faster Red Sea routing, but at the same time, would want to strenuously avoid a situation where production lines are stopped or shelves empty because they have put all their eggs in the Red Sea basket that has turned bad again. This may be counterintuitive, given more expensive ship systems around the Cape, but carriers could also implement two-tier pricing to re-enforce this prudence — essentially, a premium for Red Sea risk or a deficit for longer transits, whichever you prefer. Slow-steaming is another area of capacity control where a systematic approach could eat up more capacity. This means not just applying it in over-tonnaged trades, but in all trades. Tonnage can then be moved from trades where there is oversupply to those that are short because of slow-steaming. Finally, there is the scrapping of older vessels. If we look at carriers' desire to hold onto bigger, newer assets and their purchase of relatively old smaller tonnage to run regional and feeder networks, this does not look to be a particularly encouraging area for capacity shedding. There are measures the carriers can take around the edges, but if they really want to take control of supply – and thus price – collectively sidelining some high-caliber tonnage is the standout solution. Contact Jeremy Masters at jeremy@shippingmastershk.com .

Maritime

Ocean carriers are not helpless when it comes to managing capacity

<div class="phx-topic abstract-wrapper">The introduction of containerized shipping to Michigan presents an opportunity to reinforce the domestic maritime industrial base.</div>

The introduction of containerized shipping to Michigan presents an opportunity to reinforce the domestic maritime industrial base.

<div class="phx-topic">For decades, international containerized freight from Michigan and the broader Midwest has been routed through distant US coastal gateways such as New York, Norfolk and Savannah, or Canadian ports such as Halifax and Montreal. Export-side users have included automotive original equipment manufacturers (OEMs), steel and chemical producers and agricultural shippers, while imports have consisted of tier 1 suppliers, machinery and equipment distributors and retail or e-commerce consolidators. These routes were not chosen for efficiency or cost. They were imposed by federal restrictions that have for decades prevented containerized freight from entering or exiting the Great Lakes by vessel. US Customs today does not permit such movements through Michigan because no facility in the state meets the required federal standards for security and processing. That is about to change. In 2026, the Port of Monroe will activate the first SAFE Port Act-compliant international container terminal in the Great Lakes, along with a new roll-on/roll-off (ro/ro) platform that complements existing vessel berths, dual Class I rail access and proximity to interstate highways and Midwest manufacturing. Together, these assets position Monroe as a fully integrated inland gateway for containerized trade and high-value industrial logistics. Conservatively, 1 million to 2 million TEUs of oceangoing cargo are generated annually from the Great Lakes’ industrial core, according to port estimates. This includes high-value shipments from sectors such as automotive, machinery, chemicals and electronics. Rather than projecting future throughput volumes, the Port of Monroe is focused on establishing a lawful and functioning corridor, allowing the market to respond. The goal is to restore balance, provide carriers with a practical entry point and give shippers a logistics option that should have existed decades ago. The terminal at Monroe will be available to operators who recognize the value of establishing service in an underserved but strategically positioned market. The automotive industry, in particular, stands to benefit. With production concentrated in the Midwest and export demand on the rise, direct vessel service from Monroe reduces complexity and supports just-in-time inventory models. Monroe offers a new point of connection between Midwest production and global markets, serving as a strategic outlet for general containerized freight and, more uniquely, for the direct shipment of new vehicles via ro/ro or in containers. Resilience has become a defining priority for today’s logistics networks. The March 2024 collapse of the Francis Scott Key Bridge in Baltimore, a critical ro/ro and vehicle export hub, exposed the system’s fragility. Overnight, cargo flows were disrupted, schedules were delayed and shippers were forced to reroute at significant cost. Inland ports such as the Port of Monroe offer a hedge against that kind of single-point failure. <h3>‘Manageable’ constraints </h3>Do the Great Lakes have constraints? Yes, but they are manageable. The annual three-month winter closure of the St. Lawrence Seaway is predictable and published well in advance, allowing cargo owners and carriers to plan accordingly. Intra-lake shipping continues throughout the winter, particularly with ice-class vessels. Recent climate trends indicate shorter freeze periods and milder conditions, which are gradually increasing intralake shipping capacity during the winter months. Other northern regions facing even harsher winter conditions have demonstrated what is possible. The Baltic Sea offers a relevant example. Despite a smaller economic footprint and more severe ice conditions, Baltic ports remain active year-round through the use of ice-capable vessels and integrated multimodal infrastructure. There is no reason the Great Lakes, now that the regulatory path has been cleared, should not do the same and make a comparable contribution to North American trade resilience. Unlike coastal gateways, which face sudden disruptions from hurricanes, labor action and infrastructure failures, the risks on the Great Lakes are stable and foreseeable. That reliability offers a competitive advantage for shippers navigating global volatility. But infrastructure alone is not enough. What is required is a shift in mindset. Federal freight policy must treat the Great Lakes as a fully integrated corridor. Carriers need to revisit assumptions about vessel size and routing patterns. Shippers will now be able to prioritize proximity, reliability and carbon performance rather than adhering to legacy paths shaped by outdated restrictions. The introduction of containerized shipping to Michigan presents an opportunity to reinforce the domestic maritime industrial base. Supporting inland container movement by vessel can drive demand for US-built ships, sustain skilled shipyard jobs, and expand the national maritime workforce. This is not just a logistics upgrade. It is a long-term investment in national capacity, employment, and competitiveness. This is a practical opportunity to enhance the national freight system using inland infrastructure that is efficient, cost-effective and underutilized. Monroe stands ready to serve shippers, carriers and policymakers seeking flexible, durable solutions. The Great Lakes have always had the potential to support containerized trade. Now that the path is open, the Port of Monroe is prepared to deliver. Capt. Paul C. LaMarre III is also director of the Port of Monroe in Michigan. Contact him at <a href="mailto:plamarre@portofmonroe.com">plamarre@portofmonroe.com</a>. </div>

For decades, international containerized freight from Michigan and the broader Midwest has been routed through distant US coastal gateways such as New York, Norfolk and Savannah, or Canadian ports such as Halifax and Montreal. Export-side users have included automotive original equipment manufacturers (OEMs), steel and chemical producers and agricultural shippers, while imports have consisted of tier 1 suppliers, machinery and equipment distributors and retail or e-commerce consolidators. These routes were not chosen for efficiency or cost. They were imposed by federal restrictions that have for decades prevented containerized freight from entering or exiting the Great Lakes by vessel. US Customs today does not permit such movements through Michigan because no facility in the state meets the required federal standards for security and processing. That is about to change. In 2026, the Port of Monroe will activate the first SAFE Port Act-compliant international container terminal in the Great Lakes, along with a new roll-on/roll-off (ro/ro) platform that complements existing vessel berths, dual Class I rail access and proximity to interstate highways and Midwest manufacturing. Together, these assets position Monroe as a fully integrated inland gateway for containerized trade and high-value industrial logistics. Conservatively, 1 million to 2 million TEUs of oceangoing cargo are generated annually from the Great Lakes’ industrial core, according to port estimates. This includes high-value shipments from sectors such as automotive, machinery, chemicals and electronics. Rather than projecting future throughput volumes, the Port of Monroe is focused on establishing a lawful and functioning corridor, allowing the market to respond. The goal is to restore balance, provide carriers with a practical entry point and give shippers a logistics option that should have existed decades ago. The terminal at Monroe will be available to operators who recognize the value of establishing service in an underserved but strategically positioned market. The automotive industry, in particular, stands to benefit. With production concentrated in the Midwest and export demand on the rise, direct vessel service from Monroe reduces complexity and supports just-in-time inventory models. Monroe offers a new point of connection between Midwest production and global markets, serving as a strategic outlet for general containerized freight and, more uniquely, for the direct shipment of new vehicles via ro/ro or in containers. Resilience has become a defining priority for today’s logistics networks. The March 2024 collapse of the Francis Scott Key Bridge in Baltimore, a critical ro/ro and vehicle export hub, exposed the system’s fragility. Overnight, cargo flows were disrupted, schedules were delayed and shippers were forced to reroute at significant cost. Inland ports such as the Port of Monroe offer a hedge against that kind of single-point failure. ‘Manageable’ constraints Do the Great Lakes have constraints? Yes, but they are manageable. The annual three-month winter closure of the St. Lawrence Seaway is predictable and published well in advance, allowing cargo owners and carriers to plan accordingly. Intra-lake shipping continues throughout the winter, particularly with ice-class vessels. Recent climate trends indicate shorter freeze periods and milder conditions, which are gradually increasing intralake shipping capacity during the winter months. Other northern regions facing even harsher winter conditions have demonstrated what is possible. The Baltic Sea offers a relevant example. Despite a smaller economic footprint and more severe ice conditions, Baltic ports remain active year-round through the use of ice-capable vessels and integrated multimodal infrastructure. There is no reason the Great Lakes, now that the regulatory path has been cleared, should not do the same and make a comparable contribution to North American trade resilience. Unlike coastal gateways, which face sudden disruptions from hurricanes, labor action and infrastructure failures, the risks on the Great Lakes are stable and foreseeable. That reliability offers a competitive advantage for shippers navigating global volatility. But infrastructure alone is not enough. What is required is a shift in mindset. Federal freight policy must treat the Great Lakes as a fully integrated corridor. Carriers need to revisit assumptions about vessel size and routing patterns. Shippers will now be able to prioritize proximity, reliability and carbon performance rather than adhering to legacy paths shaped by outdated restrictions. The introduction of containerized shipping to Michigan presents an opportunity to reinforce the domestic maritime industrial base. Supporting inland container movement by vessel can drive demand for US-built ships, sustain skilled shipyard jobs, and expand the national maritime workforce. This is not just a logistics upgrade. It is a long-term investment in national capacity, employment, and competitiveness. This is a practical opportunity to enhance the national freight system using inland infrastructure that is efficient, cost-effective and underutilized. Monroe stands ready to serve shippers, carriers and policymakers seeking flexible, durable solutions. The Great Lakes have always had the potential to support containerized trade. Now that the path is open, the Port of Monroe is prepared to deliver. Capt. Paul C. LaMarre III is also director of the Port of Monroe in Michigan. Contact him at plamarre@portofmonroe.com .

Supply chain

Ro/ro cargo

Michigan inland port offers new option for Great Lakes containerized freight

 Actual capacity

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Planned capacity

Blanked capacity

eeSea collects and centralizes liner network data from dozens of public sources including carriers’ vessel tracking portals, long-term schedules, customer advisories, port and terminal operator schedules, and pilot schedules. These disparate datasets are continually inspected, cleaned, and carefully structured. eeSea synthesizes this refined public data with AIS positions from a third-party provider and its datasets spanning schedule reliability, transit times, trade capacity evolution, and 60-day vessel forecasts. Capacity is measured based on the last load port in Asia [eeSea](https://www.eesea.com)

Asia to US West Coast container capacity (eeSea)

Asia to US West Coast container capacity(eeSea)

<div class="phx-topic abstract-wrapper">Knight-Swift already partners with both UP and NS, so a combined transcontinental railroad would fit nicely into its existing service for shippers.</div>

Knight-Swift already partners with both UP and NS, so a combined transcontinental railroad would fit nicely into its existing service for shippers.

<div class="phx-topic">Knight-Swift Transportation said Tuesday it believes US regulators should approve Union Pacific Railroad’s (UP’s) acquisition of Norfolk Southern Railway (NS), becoming the fourth major intermodal provider to publicly back the $85 billion deal. Swift Intermodal, Knight-Swift’s intermodal division, already partners with both UP and NS, making the acquisition a natural fit for its existing intermodal network. A combined transcontinental railroad would require little to no adjustment for Swift, and it could reap the rewards of eliminating time-consuming interchanges in cities such as Chicago, Memphis and New Orleans. “By knitting together a coast-to-coast rail network, Union Pacific and Norfolk Southern are creating new efficiencies that will benefit everyone — from logistics providers like us to our customers, to the end-consumers,” Knight-Swift CEO Adam Miller said in a statement. “As a company that operates thousands of trucks and thousands of intermodal containers, we know the power of combining modes. This unified rail system will let us seamlessly integrate our trucking with rail on cross-country shipments like never before.” Knight-Swift’s intermodal division owns about 12,000 containers, hauling nearly 150,000 loads across all North American railroads annually. It is the fifth-largest asset-owning intermodal provider in the US behind J.B. Hunt Transport Services, Hub Group, Schneider National and STG Logistics. Knight-Swift joins <a href="https://www.joc.com/article/up-ns-deal-would-trigger-unnecessary-wave-of-rail-mergers-cpkc-6069870">C.R. England, Hub Group, and Mode Transportation</a> as supporters of the UP-NS deal, which would create the US’ first transcontinental railroad and requires approval from the US Surface Transportation Board (STB), which could come sometime in 2027. <h3>Political football </h3>While UP and NS have until January to file their formal application to the STB, the railroads received a boost last week when the Trump administration moved to <a href="https://www.joc.com/article/trump-move-to-oust-stbs-primus-boosts-likelihood-of-up-ns-approval-6070952">fire board member</a> Robert Primus, who has been vocal in his opposition to consolidation in the rail industry. The Sheet Metal, Air, Rail, Transportation Union and its transportation division (SMART-TD), has come out against the UP-NS transaction and criticized the attempted removal of Primus. The Brotherhood of Locomotive Engineers and Trainmen (BLET), another large rail union, has not taken a position on the proposed acquisition. Canadian Pacific Kansas City (CPKC) opposes the deal and last week ruled out a potential merger with the other eastern US railroad, CSX Transportation. Canadian National Railway has not commented publicly on the UP-NS deal. Schneider National and STG Logistics, two other large asset-based partners of UP, have not taken a position on the proposed acquisition. Both partner with CSX in the eastern US, making a UP-NS transcontinental railroad more complicated for their intermodal networks. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

Knight-Swift Transportation said Tuesday it believes US regulators should approve Union Pacific Railroad’s (UP’s) acquisition of Norfolk Southern Railway (NS), becoming the fourth major intermodal provider to publicly back the $85 billion deal. Swift Intermodal, Knight-Swift’s intermodal division, already partners with both UP and NS, making the acquisition a natural fit for its existing intermodal network. A combined transcontinental railroad would require little to no adjustment for Swift, and it could reap the rewards of eliminating time-consuming interchanges in cities such as Chicago, Memphis and New Orleans. “By knitting together a coast-to-coast rail network, Union Pacific and Norfolk Southern are creating new efficiencies that will benefit everyone — from logistics providers like us to our customers, to the end-consumers,” Knight-Swift CEO Adam Miller said in a statement. “As a company that operates thousands of trucks and thousands of intermodal containers, we know the power of combining modes. This unified rail system will let us seamlessly integrate our trucking with rail on cross-country shipments like never before.” Knight-Swift’s intermodal division owns about 12,000 containers, hauling nearly 150,000 loads across all North American railroads annually. It is the fifth-largest asset-owning intermodal provider in the US behind J.B. Hunt Transport Services, Hub Group, Schneider National and STG Logistics. Knight-Swift joins C.R. England, Hub Group, and Mode Transportation as supporters of the UP-NS deal, which would create the US’ first transcontinental railroad and requires approval from the US Surface Transportation Board (STB), which could come sometime in 2027. Political football While UP and NS have until January to file their formal application to the STB, the railroads received a boost last week when the Trump administration moved to fire board member Robert Primus, who has been vocal in his opposition to consolidation in the rail industry. The Sheet Metal, Air, Rail, Transportation Union and its transportation division (SMART-TD), has come out against the UP-NS transaction and criticized the attempted removal of Primus. The Brotherhood of Locomotive Engineers and Trainmen (BLET), another large rail union, has not taken a position on the proposed acquisition. Canadian Pacific Kansas City (CPKC) opposes the deal and last week ruled out a potential merger with the other eastern US railroad, CSX Transportation. Canadian National Railway has not commented publicly on the UP-NS deal. Schneider National and STG Logistics, two other large asset-based partners of UP, have not taken a position on the proposed acquisition. Both partner with CSX in the eastern US, making a UP-NS transcontinental railroad more complicated for their intermodal networks. Contact Ari Ashe at ari.ashe@spglobal.com .

Intermodal providers

Knight-Swift says it backs Union Pacific-Norfolk Southern deal

<div class="phx-topic abstract-wrapper">Ocean carriers are seeking to curb the sharp decline in spot rates in the run-up to next month’s Golden Week holiday. </div>

Ocean carriers are seeking to curb the sharp decline in spot rates in the run-up to next month’s Golden Week holiday.

<div class="phx-topic">The next few weeks on the trans-Pacific trade will be telling as time is running out for container lines to adjust capacity to falling demand or risk losing contracted cargo to the spot market. A slight bump last week in container spot rates, as measured by the Platts and Shanghai Shipping Exchange indexes, could be a sign of blank sailings ending the sharp dive in rates that began in late May, or merely a blip. The run-up to Golden Week that starts Oct. 1, a period of slowing China production due to the holiday observance, gives carriers the last major window this year to stem the rate bleed or see shippers neglect contracted allocations in favor of cheaper spot rates. Ocean carriers are seeking rate increases of $800 to $900 per FEU, sources say, with one carrier representative noting the efforts are focused on curbing the rate erosion of the last two months. Container spot rates from Asia to the US West Coast are about $2,000 per FEU, according to various indexes, with the Shanghai Shipping Exchange registering a 65% drop since June. Bullet rates quoted for single voyages tend to be $200 to $300 less than index rates, and some forwarder quotes for US West Coast routings have been as low as $1,300-$1,400 per FEU.Container lines thus far have been modest in blanking capacity despite falling rates and <a href="https://www.joc.com/article/us-retailers-project-big-year-over-year-import-declines-to-close-out-2025-6060323">weak forecasts for year-end volumes</a>. But analysts and forwarders warn that a sharp increase in blanks is nearly inevitable. Carriers’ averseness to losing import <a href="https://www.joc.com/article/toll-of-us-tariffs-begins-to-emerge-on-unsettled-trans-pacific-6065761">volumes already weakened by US tariff frontloading</a>, the potential for a late-year surge, and <a href="https://www.joc.com/article/niche-carriers-plan-to-ride-out-declining-spot-rates-on-the-trans-pacific-6071722">niche carriers sticking to the trade</a> have kept blanking levels consistent with past years. <h3>More capacity coming in October </h3>Container lines plan to inject more capacity in October, nonetheless, adding nearly 100,000 TEUs more than what’s deployed in September, according to maritime intelligence provider eeSea. The share of tonnage deployed on Asia to the US West Coast that is made unusable through blank sailings hovered near 8.4% in August, and carriers so far plan to blank a similar proportion of tonnage in September and October, although that can rise as weeks progress. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="d0dc514b-60a6-4b10-862a-081c37b36db2"></dynamic-object></div>If carriers can’t adjust demand to supply, they face the risk of more shippers turning to the spot market rather than fulfilling contracted cargo allocations. Spot rates, as measured by various indexes, are at levels that many small and medium-sized shippers signed contracts at in the spring. Short-term ocean rates, as measured by benchmarking provider Xeneta, began falling in early August below contract rates covering 88 days or more. The short-term cost to ship an FEU from Asia to the US West Coast was $1,319 for the week ending Aug. 28, compared with $1,597 for the long-term rate in the same period. “We've got customers who are eager to save $100 anywhere, and they want a piece of that,” said a forwarder who did not want to be identified. “We are not trying to sell it, but when they ask us, ‘What are your FAK rates?’ We can’t tell them, ‘No, we’re not going to offer you our FAK rates,’ especially if it means we’re going to get some incremental business out of it.”<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="98a0037a-3658-44f2-86a3-be3148b993eb"></dynamic-object></div>Small and medium-sized importers signed service contract rates at a larger-than-usual premium than the largest retailers in mid-April just as the market was showing strength, said another forwarder. The largest big-box retailers signed contracts that generally began May 1 in the range of $1,600 to $1,800 per FEU, while midsize and smaller importers secured contract rates in the range of $2,000 to $2,200 per FEU. The danger importers face chasing cheaper spot rates when the rates are falling is that carriers will be loath to help out cargo owners when the market inevitably tightens — even if it’s short-lived. Container lines are more agile in moving vessels to and from ocean trades by omitting calls to ports or voiding sailings, according to an Aug. 28 notice sent by forwarder American Shipping Co. to its customers that was seen by the Journal of Commerce. While such tools to manage capacity haven’t had much impact in recent months, “if timed right, it can have a direct impact on the freight rates,” the notice read. Most shippers are not concerned about carriers charging them for dead freight if they do not fill the minimum quantity commitments (MQCs) in their contracts because, historically, carriers have never done that. Carriers normally roll over the unused MQCs into the next year’s contracts. So far, the shift from contracted cargo to spot cargo has been minimal, according to forwarders and carriers who spoke with the Journal of Commerce. But the inflection point is getting closer. “It could happen” that more BCOs turn to the spot market if rates reverse course in the coming weeks and begin dropping again toward $1,600 to the West Coast and $2,600 to the East Coast, said Benton Kauffman, head of trans-Pacific air and sea logistics at forwarder DSV Global Logistics. “If the West Coast spot rate sinks to $1,400, some BCOs will seek to reopen their contracts, or they could book more under spot,” Kauffman said. Contact Mark Szakonyi at <a href="mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. Senior Editor Bill Mongelluzzo and Associate Editor Laura Robb contributed to this report. </div>

The next few weeks on the trans-Pacific trade will be telling as time is running out for container lines to adjust capacity to falling demand or risk losing contracted cargo to the spot market. A slight bump last week in container spot rates, as measured by the Platts and Shanghai Shipping Exchange indexes, could be a sign of blank sailings ending the sharp dive in rates that began in late May, or merely a blip. The run-up to Golden Week that starts Oct. 1, a period of slowing China production due to the holiday observance, gives carriers the last major window this year to stem the rate bleed or see shippers neglect contracted allocations in favor of cheaper spot rates. Ocean carriers are seeking rate increases of $800 to $900 per FEU, sources say, with one carrier representative noting the efforts are focused on curbing the rate erosion of the last two months. Container spot rates from Asia to the US West Coast are about $2,000 per FEU, according to various indexes, with the Shanghai Shipping Exchange registering a 65% drop since June. Bullet rates quoted for single voyages tend to be $200 to $300 less than index rates, and some forwarder quotes for US West Coast routings have been as low as $1,300-$1,400 per FEU. Container lines thus far have been modest in blanking capacity despite falling rates and weak forecasts for year-end volumes . But analysts and forwarders warn that a sharp increase in blanks is nearly inevitable. Carriers’ averseness to losing import volumes already weakened by US tariff frontloading , the potential for a late-year surge, and niche carriers sticking to the trade have kept blanking levels consistent with past years. More capacity coming in October Container lines plan to inject more capacity in October, nonetheless, adding nearly 100,000 TEUs more than what’s deployed in September, according to maritime intelligence provider eeSea. The share of tonnage deployed on Asia to the US West Coast that is made unusable through blank sailings hovered near 8.4% in August, and carriers so far plan to blank a similar proportion of tonnage in September and October, although that can rise as weeks progress. If carriers can’t adjust demand to supply, they face the risk of more shippers turning to the spot market rather than fulfilling contracted cargo allocations. Spot rates, as measured by various indexes, are at levels that many small and medium-sized shippers signed contracts at in the spring. Short-term ocean rates, as measured by benchmarking provider Xeneta, began falling in early August below contract rates covering 88 days or more. The short-term cost to ship an FEU from Asia to the US West Coast was $1,319 for the week ending Aug. 28, compared with $1,597 for the long-term rate in the same period. “We've got customers who are eager to save $100 anywhere, and they want a piece of that,” said a forwarder who did not want to be identified. “We are not trying to sell it, but when they ask us, ‘What are your FAK rates?’ We can’t tell them, ‘No, we’re not going to offer you our FAK rates,’ especially if it means we’re going to get some incremental business out of it.” Small and medium-sized importers signed service contract rates at a larger-than-usual premium than the largest retailers in mid-April just as the market was showing strength, said another forwarder. The largest big-box retailers signed contracts that generally began May 1 in the range of $1,600 to $1,800 per FEU, while midsize and smaller importers secured contract rates in the range of $2,000 to $2,200 per FEU. The danger importers face chasing cheaper spot rates when the rates are falling is that carriers will be loath to help out cargo owners when the market inevitably tightens — even if it’s short-lived. Container lines are more agile in moving vessels to and from ocean trades by omitting calls to ports or voiding sailings, according to an Aug. 28 notice sent by forwarder American Shipping Co. to its customers that was seen by the Journal of Commerce. While such tools to manage capacity haven’t had much impact in recent months, “if timed right, it can have a direct impact on the freight rates,” the notice read. Most shippers are not concerned about carriers charging them for dead freight if they do not fill the minimum quantity commitments (MQCs) in their contracts because, historically, carriers have never done that. Carriers normally roll over the unused MQCs into the next year’s contracts. So far, the shift from contracted cargo to spot cargo has been minimal, according to forwarders and carriers who spoke with the Journal of Commerce. But the inflection point is getting closer. “It could happen” that more BCOs turn to the spot market if rates reverse course in the coming weeks and begin dropping again toward $1,600 to the West Coast and $2,600 to the East Coast, said Benton Kauffman, head of trans-Pacific air and sea logistics at forwarder DSV Global Logistics. “If the West Coast spot rate sinks to $1,400, some BCOs will seek to reopen their contracts, or they could book more under spot,” Kauffman said. Contact Mark Szakonyi at mark.szakonyi@spglobal.com . Senior Editor Bill Mongelluzzo and Associate Editor Laura Robb contributed to this report.

Forwarding

Ocean market in trans-Pacific arrives at spot pricing tipping point

<div class="phx-topic abstract-wrapper">The Montreal Port Authority (MPA) is expected later this fall to announce the winning bid to run the Contrecoeur terminal. </div>

The Montreal Port Authority (MPA) is expected later this fall to announce the winning bid to run the Contrecoeur terminal.

<div class="phx-topic">DP World is seeking to operate a long-planned, nearly C$1.6 billion container terminal in Montreal that the new Canadian government is backing amid its shift away from US trade dependence.The Montreal Port Authority (MPA) is expected later this fall to announce the winning bid to run the Contrecoeur terminal, which, with an annual capacity of 1.15 million TEUs, would increase Canada’s second-largest container port by capacity 150%. DP World, which operates at Vancouver and Prince Rupert the first- and third-largest ports in Canada, respectively, <a href="https://www.bloomberg.com/news/articles/2025-08-29/dp-world-vies-for-deal-to-run-montreal-port-championed-by-carney">confirmed to Bloomberg</a> that it was involved in project negotiations. DP said in a statement it was always exploring ways to expand its network in Canada and increase investment in the country. “While we see strong potential for developing logistics infrastructure in Montreal that drives economic growth and long-term value, we have no announcements to share at this time,” said a DP World spokesperson. Since the port failed to attract a bidder in 2021, the <a href="https://www.joc.com/article/quebec-provides-new-funding-for-proposed-montreal-terminal-citing-us-trade-tensions-5947783">Contrecoeur project has received</a> C$130 million from the Quebec provincial government and C$130 million from Canada’s infrastructure bank for construction. Prime Minister Mark Carney last week said that he was seeking to fast-track the Contrecoeur project and highlighted <a href="https://www.joc.com/article/carney-has-fresh-opportunity-to-galvanize-canadian-shipping-industry-6047928">newly passed legislation streamlining regulatory</a> approval for major infrastructure projects. The C$1.57 billion project, which is located 43 miles downriver from legacy Montreal terminals along the St. Lawrence River, requires extensive dredging and shoring up portions of the waterway. MPA seeks to begin construction as early as October and open the facility in 2029. The authority in 2022 <a href="https://www.joc.com/article/montreal-relaunches-search-process-for-contrecoeur-terminal-operator-5204826">sent bid invitations</a> to Axium Infrastructure Canada and Pomerleau Capital, Ports America Holdings, and Terminal Investment Limited, in which Mediterranean Shipping Co. owns a majority stake. The port originally planned to have the first phase of the project finished by 2024 and had identified three finalist but scrapped plans. DP World operates the Centerm facility in Vancouver and solely operates at Prince Rupert and Port Saint John. Montreal’s four existing container terminals are operated by two companies, Montreal Gateway Terminals Partnership and Termont Montreal.Container volumes through Montreal last year slipped 1%, to approximately 750,500 TEUs compared with 2023, according to MPA. Sporadic labor issues and the Port of New York and New Jersey’s ability to attract more exports from the Midwest have contributed to volume declines in recent years, with traffic down 8.9% in 2024 compared with 2020. Container volume, however, is up nearly 6.5% in the first seven months of this year on a year-over-year basis. While the port began the project in the late 1980s, work has gathered speed in the last decade, Julie Gascon, CEO and president of MPA, said on a Journal of Commerce webinar on May 22. The need to diversify away from US trade due to high tariffs has only added more momentum to the project. “If there is a 6% shift of Canadian exports from us to other international markets, Montreal would get at capacity very, very quickly, so it’s not just a project for the future, it’s a project that is urgent,” Gascon said. Contact Mark Szakonyi at <a href="mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

DP World is seeking to operate a long-planned, nearly C$1.6 billion container terminal in Montreal that the new Canadian government is backing amid its shift away from US trade dependence. The Montreal Port Authority (MPA) is expected later this fall to announce the winning bid to run the Contrecoeur terminal, which, with an annual capacity of 1.15 million TEUs, would increase Canada’s second-largest container port by capacity 150%. DP World, which operates at Vancouver and Prince Rupert the first- and third-largest ports in Canada, respectively, confirmed to Bloomberg that it was involved in project negotiations. DP said in a statement it was always exploring ways to expand its network in Canada and increase investment in the country. “While we see strong potential for developing logistics infrastructure in Montreal that drives economic growth and long-term value, we have no announcements to share at this time,” said a DP World spokesperson. Since the port failed to attract a bidder in 2021, the Contrecoeur project has received C$130 million from the Quebec provincial government and C$130 million from Canada’s infrastructure bank for construction. Prime Minister Mark Carney last week said that he was seeking to fast-track the Contrecoeur project and highlighted newly passed legislation streamlining regulatory approval for major infrastructure projects. The C$1.57 billion project, which is located 43 miles downriver from legacy Montreal terminals along the St. Lawrence River, requires extensive dredging and shoring up portions of the waterway. MPA seeks to begin construction as early as October and open the facility in 2029. The authority in 2022 sent bid invitations to Axium Infrastructure Canada and Pomerleau Capital, Ports America Holdings, and Terminal Investment Limited, in which Mediterranean Shipping Co. owns a majority stake. The port originally planned to have the first phase of the project finished by 2024 and had identified three finalist but scrapped plans. DP World operates the Centerm facility in Vancouver and solely operates at Prince Rupert and Port Saint John. Montreal’s four existing container terminals are operated by two companies, Montreal Gateway Terminals Partnership and Termont Montreal. Container volumes through Montreal last year slipped 1%, to approximately 750,500 TEUs compared with 2023, according to MPA. Sporadic labor issues and the Port of New York and New Jersey’s ability to attract more exports from the Midwest have contributed to volume declines in recent years, with traffic down 8.9% in 2024 compared with 2020. Container volume, however, is up nearly 6.5% in the first seven months of this year on a year-over-year basis. While the port began the project in the late 1980s, work has gathered speed in the last decade, Julie Gascon, CEO and president of MPA, said on a Journal of Commerce webinar on May 22. The need to diversify away from US trade due to high tariffs has only added more momentum to the project. “If there is a 6% shift of Canadian exports from us to other international markets, Montreal would get at capacity very, very quickly, so it’s not just a project for the future, it’s a project that is urgent,” Gascon said. Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Port News

DP World aims to run Carney-backed Montreal terminal

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In today’s competitive logistical landscape, efficiency is an absolute necessity for smooth operations. Yet, in the barge sector, many operators still rely on fragmented systems, delayed updates, and manual tracking methods that slow decision-making and increase operational risk. OpenTug’s new eBook, How Enhanced Visibility Transforms Barge Operations, reveals how unified, real-time data can become your competitive advantage leading to improved voyage management and more actionable insights. Drawing on industry best practices and real-world examples, it explores how operational transparency empowers teams to: ●	Reduce delays with accurate ETAs and proactive scheduling decisions ●	Improve asset utilization by identifying underused equipment and optimizing cargos ●	Strengthen safety and compliance through consistent, accessible documentation and reporting ●	Boost customer satisfaction with transparent status updates and faster response time You’ll learn how visibility can connect every part of your operation into a single, actionable view. The ability to see and act on real-time information transforms the way you plan, execute, and deliver. From managing a small regional fleet to running a large, national operation, this eBook will help you understand the measurable benefits of enhanced visibility and how technology like BargeOS is transforming the way barge logistics is managed. Get your copy today and see how clear insights lead to stronger performance, smarter decisions, and more profitable operations. <a href="https://9315820.fs1.hubspotusercontent-na1.net/hubfs/9315820/eBook/Nav-theFuture-AJW-08.19.25.pdf" rel="noreferrer" class="joc_admin__link">Click here</a><span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-16_9 joc_admin__inline-image-position-left joc_admin__inline-image-size-small" data-figure-size="small" data-figure-position="left" data-figure-aspect-ratio="16:9"><img src="/content-assets/1756152344211_Opentug%20logo.png" alt="" class="joc_admin__inline-image-inherit">

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Transform Barge Operations with Total Visibility

At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: https://www.ssamarine.mx/

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SSA Marine Mexico: True Commitment to Sustainability

The world of LTL is slow to embrace change. Business anachronisms permeate current supply chain processes. These vestiges of the way things used to work define the LTL freight transportation procurement process of many modern shippers.David Knuth, logistics specialist at IEWC, a global supplier of cable and wire based in Wisconsin, is happy to have modernized the RFP process, automating the entire LTL bidding procedure with Bid$ense, SMC³’s automated truckload and LTL freight transportation sourcing solution. But when prompted, he can still recall what once was.In his previous job, a large part of his duties were consumed by creating an intermodal bid package for carriers. In a spreadsheet, Knuth detailed the company’s volumes lane by lane, taking care to delete any errant keystrokes or misleading data. He would then email out the information to each carrier, taking time to respond to detailed technical questions about the spreadsheet data. Finally, he had to compile all the results, create an algorithm that would compare the carriers on each lane, and award the business.“It was a huge undertaking. It took about four months to do,” Knuth said of the old process. “It was almost a full-time job for that part of the year, every year.”In his new job at IEWC, he sat down with Bid$ense on day one and was amazed at the capabilities. Knuth had never before used a bid tool. SMC³’s latest versions of Bid$ense automate the process even further, taking truckload and LTL RFPs entirely online. The tool draws on RFP best-practices protocols to streamline the bidding communication process, enabling bidding carriers to respond accurately and promptly to shipper requests. The solution also does all the distribution work automatically, electronically submitting shipper bid data to carriers based on their actual service capabilities and performance records. Carriers are alerted with timely prompts for RFP deliverables, so shippers aren’t waiting by the phone for responses.Another benefit of automating the process is the data-cleansing assistance. When Knuth sent spreadsheets to carriers, data errors might cloud the bidding process; he might have to resend data or simply accept a price that did not truly reflect the costs of doing business. Data cleansing is incredibly beneficial, he said.The spreadsheet technique also made bidding analysis an onerous task. Since Bid$ense automates and streamlines the entire RFP process, intensive examination is now simple. SMC³ knows that each bid has more than one best outcome. With uniform responses from each carrier, shippers can quickly rank results and create an unlimited quantity of what-if scenarios to make the optimal procurement decision.Jesse Burnett of Central Garden &amp; Pet experiences many of the same benefits. Founded in 1980, Central Garden &amp; Pet has spent the last three decades growing from a small garden supply company to a provider of a range of products from dog chews and bird seed to soil supplements and natural insecticides. For much of its life, the company shipped these disparate goods via LTL and truckload carriers to retailers throughout the country, relying on each business unit to negotiate directly with their freight transportation providers. This arrangement worked fairly well for a small company, but as Central Garden &amp; Pet expanded, leadership decided to consolidate decision making.Burnett helped centralize the transportation decision making in 2015 with SMC³’s Bid$ense. Before Bid$ense, every business unit operated independently as far as negotiating with carriers.“There were a lot of different things just floating around,” he said. “We didn’t have master agreements in place; no national pricing at all. The pricing from carriers was just all over the place, depending on where you were.”The transformations he saw with Bid$ense were immediate. Burnett has been using the tool about every other year since its implementation at the company. Central Garden and Pet’s $19.6 million 2019 LTL bid saved the company just more than 9 percent when compared to its historical average. For Burnett, though, bid automation extends far beyond savings.“We knew that we weren’t getting the best pricing offer from our carriers just because nothing was centralized,” he continued. “We knew that if we combined everything from all these business units and paired it with one corporate offering, then it would drive some cost benefit with it.”When the company initially decided to centralize bid procurement, executives researched a number of different methodologies and technologies. In the end, though, Burnett found that Bid$ense was both widespread and well known, and that his carrier partners already knew how to use the application. Burnett also highlighted the data-cleansing process as a major benefit, saying the rigorous process ensures that carriers always return the best price.“It definitely has helped drive savings,” he said. “Any time you go out there and you drive that competitiveness with the carriers and they know they’re in a bid environment, it seems to sharpen their pencils.”Transportation procurement is an integral part of the modern supply chain. With Bid$ense, shippers can develop a strategic implementation plan that saves them time and money, but also helps them create strong relationships with their carrier partners. These carriers appreciate the solution’s data-cleansing process; when carriers receive a complete shipment history and future volume forecast, they don’t have to guess on pricing. Carriers that receive more data from shippers get a complete picture of that shipper’s freight, allowing them to accurately plan instead of simply preparing for the worst-case scenario. Clean data presented through an automated system can lead to both bigger shipment savings and a lasting partnership between carrier and customer.Whether customers are looking to streamline over-the-road transportation bidding by automating the RFP process or create an entirely new, centralized sourcing process, Bid$ense has the analytical horsepower to get the job done.SMC³ 2020 Customer Case Study

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Shippers save money, time with automated transportation bidding tools

If there’s one immutable truth in the world of logistics, it’s this: LTL is an inherently complex form of transportation. Tariffs, rates, DIM weights, transit times — it’s enough to confuse even seasoned logistics professionals. The solution to this knowledge gap has historically been on-the-job training or university supply chain education, but for a variety of reasons there is now a pressing need for third-party, remote LTL training that prepares logistics workers for transportation success. Global Scope Can Overlook Local Intricacies In the past, professionals looking to move into a supply chain career learned about the basics of supply chain from universities. However, many of these college supply chain programs are now global in scope, focusing on worldwide supply chain management instead of the intricacies of specialized domestic transportation. And even these programs, which used to be widespread, are becoming less common. LTL is not an industry of broad-brush strokes; supply chain professionals really need a pointillistic understanding of the logistics of LTL in order to excel in the industry. Accelerating Need for Dedicated LTL Education This lack of specified training put the onus on employers to prepare new hires with the LTL knowledge needed to do their jobs. Dedicated LTL study is a necessity, not a luxury. At the same time, changes in LTL and the broader supply chain world are accelerating. The reliance on e-commerce has ballooned since the start of the pandemic, and last-mile LTL shipments and related e-commerce strains on the supply chain won’t diminish once social distancing abates. That genie isn’t going back into the bottle. So supply chain employers need logistics workers that are fully versed in all aspects of the industry, ready to solve unique shipping and delivery problems based on their extensive supply chain knowledge But why care about LTL? It’s been reported that some shippers in today’s world are no longer concerned with what mode is used to ship their goods. A Multimodal Approach Ensures On-Time Delivery This mode agnosticism means supply chain stakeholders have to be well versed in all modes of transportation. As unforeseen weather events and other disruptions, such as protests, become more common, savvy logistics employees will need to be armed with familiarity of all modes, not just the most popular, to ensure that freight is delivered on time, without damage, and in the most financially expedient way possible. Offerings like SMC³’s LTL online education courses cover a wide range of topics from LTL basics and operations to more advanced concepts like pricing analytics and transportation law. The company also has plans to continually refresh content, adding new expert presenters and taking the feedback of students to make the courses even better as time goes on. Learn more about&nbsp;<a href="https://logisticstrainingcenter.com/smc3-courses/" rel="noreferrer" class="joc_admin__link">SMC³’s LTL Online Education program</a>&nbsp;and view the 2021 hybrid schedule, featuring live industry experts,&nbsp;<a href="https://www.smc3.com/onlinelearning2021/" rel="noreferrer" class="joc_admin__link">here.</a>

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Filling the Supply Chain Education Gap with LTL Education Courses

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<div class="phx-topic abstract-wrapper">Container lines offering regular calls at India’s busiest port have told customers the landside logjam is causing considerable supply chain risks for the trade as train turnarounds remain increasingly chaotic.</div>

Container lines offering regular calls at India’s busiest port have told customers the landside logjam is causing considerable supply chain risks for the trade as train turnarounds remain increasingly chaotic.

<div class="phx-topic">Mundra Port — India’s busiest container handler — is grappling with major harbor congestion that has severely disrupted the flow of cargo to and from northern hinterlands by rail. Rail freight accounts for a significant portion of box volumes handled by Mundra, with northern inland container depots contributing the most. Container lines offering regular calls at Mundra have told customers the landside logjam is causing considerable supply chain risks for the trade as train turnarounds remain increasingly chaotic. “Due to congestion, train movement towards Mundra Port is currently disrupted,” Maersk said in a customer advisory. “This is affecting the timely placement of export trains at the port and, consequently, causing delays in the evacuation of import containers.” The import backlogs have choked rail yards, complicating the typically followed first-in, first-out model of train operations, sources said. Concerns among local supply chain stakeholders are growing, with freight depot service leader Gateway Distriparks (GDL) sending out a trade advisory to customers. “Train movement towards the port [Mundra] is currently sluggish,” GDL noted. “We are in regular touch with Indian Railways to expedite train movement.” Officials at India’s Association of Container Train Operators (ACTO) who spoke with the Journal of Commerce have attributed the rail slowdowns to chronic capacity pressure at Mundra stemming from landside infrastructure gaps amid steady trade growth. “There is a critical need for port rail capacity to increase with more handling lines and evacuation capacity in order to deal with the growing volumes,” said ACTO President Manish Puri. “This is the only long-term solution, otherwise congestion will keep occurring whenever there is even a minor volume peak or other operational hiccup due to external factors.” <h3>Terminals, train operators at odds </h3>As shippers face additional cost implications, a blame game over the cargo buildups appears to be at play between port terminals and container train operators (CTOs), including state-owned giant Container Corporation of India. “We are not denying the increased pressure from import surges, but CTOs stick to their normal business approach on the export leg — wait until trains are completely full to dispatch,” said a port executive who didn’t want to be identified. Sunil Vaswani, executive director of the Container Shipping Lines’ Association (India), said the issue needs fixing between terminals and CTOs, adding that a shortage of truck drivers linked to the festive season and lingering vessel bunching cases have exacerbated the problem. Mundra is equipped to handle up to 30 trains a day, generally railing out between 5,000 TEUs to 6,000 TEUs daily. But the normal inventory of import containers landing into its yards is in the range of 15,000 TEUs, which sources said has peaked at 20,000 TEUs in recent days. Mundra — Adani Ports’ flagship port entity — features five box terminals, which have had 90%-plus utilization of existing capacity levels for some time because of strong cargo growth. But the pace of volumes passing through rival Nhava Sheva Port has ticked noticeably higher over the past few months following the recent launch of Phase II operations by concessionaire PSA International, pushing overall port capacity to about 10 million TEUs. The latest port data reflects that altering regional trend. April–August volumes at Nhava Sheva were up 13% year over year to 3.3 million TEUs, while Mundra remained relatively flat at 3.5 million TEUs. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Mundra Port — India’s busiest container handler — is grappling with major harbor congestion that has severely disrupted the flow of cargo to and from northern hinterlands by rail. Rail freight accounts for a significant portion of box volumes handled by Mundra, with northern inland container depots contributing the most. Container lines offering regular calls at Mundra have told customers the landside logjam is causing considerable supply chain risks for the trade as train turnarounds remain increasingly chaotic. “Due to congestion, train movement towards Mundra Port is currently disrupted,” Maersk said in a customer advisory. “This is affecting the timely placement of export trains at the port and, consequently, causing delays in the evacuation of import containers.” The import backlogs have choked rail yards, complicating the typically followed first-in, first-out model of train operations, sources said. Concerns among local supply chain stakeholders are growing, with freight depot service leader Gateway Distriparks (GDL) sending out a trade advisory to customers. “Train movement towards the port [Mundra] is currently sluggish,” GDL noted. “We are in regular touch with Indian Railways to expedite train movement.” Officials at India’s Association of Container Train Operators (ACTO) who spoke with the Journal of Commerce have attributed the rail slowdowns to chronic capacity pressure at Mundra stemming from landside infrastructure gaps amid steady trade growth. “There is a critical need for port rail capacity to increase with more handling lines and evacuation capacity in order to deal with the growing volumes,” said ACTO President Manish Puri. “This is the only long-term solution, otherwise congestion will keep occurring whenever there is even a minor volume peak or other operational hiccup due to external factors.” Terminals, train operators at odds As shippers face additional cost implications, a blame game over the cargo buildups appears to be at play between port terminals and container train operators (CTOs), including state-owned giant Container Corporation of India. “We are not denying the increased pressure from import surges, but CTOs stick to their normal business approach on the export leg — wait until trains are completely full to dispatch,” said a port executive who didn’t want to be identified. Sunil Vaswani, executive director of the Container Shipping Lines’ Association (India), said the issue needs fixing between terminals and CTOs, adding that a shortage of truck drivers linked to the festive season and lingering vessel bunching cases have exacerbated the problem. Mundra is equipped to handle up to 30 trains a day, generally railing out between 5,000 TEUs to 6,000 TEUs daily. But the normal inventory of import containers landing into its yards is in the range of 15,000 TEUs, which sources said has peaked at 20,000 TEUs in recent days. Mundra — Adani Ports’ flagship port entity — features five box terminals, which have had 90%-plus utilization of existing capacity levels for some time because of strong cargo growth. But the pace of volumes passing through rival Nhava Sheva Port has ticked noticeably higher over the past few months following the recent launch of Phase II operations by concessionaire PSA International, pushing overall port capacity to about 10 million TEUs. The latest port data reflects that altering regional trend. April–August volumes at Nhava Sheva were up 13% year over year to 3.3 million TEUs, while Mundra remained relatively flat at 3.5 million TEUs. Contact Bency Mathew at bencyvmathew@gmail.com .

International ports

Congestion choking Mundra Port threatens North India cargo flow

<div class="phx-topic abstract-wrapper">The carriers, because they offer services tailored to their customers’ needs, say they are “sheltered” somewhat from declining spot rates given they are able to charge a premium for those services.</div>

The carriers, because they offer services tailored to their customers’ needs, say they are “sheltered” somewhat from declining spot rates given they are able to charge a premium for those services.

<div class="phx-topic">Several niche carriers that added tonnage to the trans-Pacific trade over the past year say they aren’t going anywhere despite retreating spot rates and the downward pressure tariffs are exerting on US imports from Asia. Those carriers, offering services tailored to their customers’ needs, say they are sheltered somewhat from declining spot rates because they charge a premium for their services that provide expedited ocean transport from Asia and Southeast Asia and, oftentimes, next-day container availability for landside pickup. “We’re fairly sheltered from the spot rates because 80% of our cargo is BCO [beneficial cargo owner] contracted cargo,” said Duncan Wright, president of third-party logistics provider UWL, which offers <a href="https://www.joc.com/article/uwl-locks-in-new-vessel-partner-for-trans-pacific-vietnam-service-6032327">the bi-weekly Sun Chief Express service</a> from Vietnam to Seattle. The ocean transit is 19 days from the last port call at Ho Chi Minh City to the Seattle gateway, while most other lines are 20-plus days, Wright told the Journal of Commerce Friday. China-based Hede Shipping in July launched its <a href="https://www.joc.com/article/hede-shipping-to-launch-third-expedited-service-from-china-to-los-angeles-6034891">third expedited service from China to Los Angeles</a>, zeroing in on the e-commerce sector with its expedited transit times and quick delivery of containers upon discharge from vessels. A Hede representative confirmed that newest service is in operation. Premium niche services offered by UWL, Hede and Matson appeal to BCOs with specific requirements based upon their customers’ needs. For example, customers of UWL’s Sun Chief service focus on footwear importers who are based in Southeast Asia and ship through Seattle, which offers direct inland point intermodal (IPI) rail service to markets such as Minneapolis and Chicago, Wright said. <h3>Huge spot rate swings this year </h3>The niche carriers, which also include SeaLead and CU Lines, entered the trans-Pacific trades in 2024 when spot and freight-all-kinds (FAK) rates surged as high as $7,800 per FEU to the US West Coast and $10,000 per FEU to the East Coast, according to PIERS, a Journal of Commerce sister product within S&amp;P Global. Niche carriers account for about 4.5% of total capacity on the trans-Pacific trade to the West Coast, about the same percentage in the post-COVID-19 import surge in 2021–22, Alan Murphy, CEO of Sea-Intelligence Maritime Analysis, said in his Sunday Spotlight newsletter this week. While that market share is not enough to prevent a further slide in spot rates, the continued presence of the niche lines in the trans-Pacific indicates they are not just “opportunistic” carriers that came into the trade when spot rates were high and plan to leave if rates drop too low, he said. “These carriers are seemingly staying on the trade lane ... and it seems as if they are continuing to introduce capacity on the trade lane,” Murphy said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="e9676ea4-c6b9-4589-9a4b-822a9c82e2f8"></dynamic-object></div>Given the volatile nature of the trans-Pacific market so far this year, with major rate spikes in January and June followed by plunging prices in subsequent months, the niche lines apparently have ample cash on hand to weather the current downturn. Spot rates from Asia to the West Coast as of Thursday were $1,500 per FEU, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global; Drewry pegged the market at $2,332 per FEU. “Pulling the plug is a tough decision because the money, when available, was so lucrative there’s the hope such margins will return,” said Stephen Nothdurft, vice president of sales at the forwarder MOL Consolidation Service. “It seems the current operators are taking a hard look at their commitments and calculating a longer-term strategy,” he said. “Maybe the new normal is continued chaos, so the smaller players are staying in place, building a viable clientele, [and] preparing to pounce when another catastrophe hits the liner market,” Nothdurft said. <h3>Premium rates can only do so much </h3>Still, if spot/FAK rates continue to drift below $1,500 to the West Coast, and possibly lower, some niche lines will find it difficult to sustain the losses for very long, an executive at an alliance carrier told the Journal of Commerce. “Even with an upcharge of $500-$600 [per FEU], it’s not going to be enough,” said the executive, who did not want to be identified. “The niche carriers, like all lines, have fixed costs such as bunker fuel, port fees and crew costs.” The source said $2,000 per FEU is the breakeven spot for most carriers’ West Coast business, adding their presence on the eastbound trans-Pacific “can’t last forever.” The challenge these carriers face is that rates are also depressed in the intra-Asia trade, and the small vessels they deploy in the range of 3,000-TEU capacity are not suited for the long-distance Asia-Europe trades, he said. Contact Bill Mongelluzzo at <a href="https://www.joc.com/article/bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.</div>

Several niche carriers that added tonnage to the trans-Pacific trade over the past year say they aren’t going anywhere despite retreating spot rates and the downward pressure tariffs are exerting on US imports from Asia. Those carriers, offering services tailored to their customers’ needs, say they are sheltered somewhat from declining spot rates because they charge a premium for their services that provide expedited ocean transport from Asia and Southeast Asia and, oftentimes, next-day container availability for landside pickup. “We’re fairly sheltered from the spot rates because 80% of our cargo is BCO [beneficial cargo owner] contracted cargo,” said Duncan Wright, president of third-party logistics provider UWL, which offers the bi-weekly Sun Chief Express service from Vietnam to Seattle. The ocean transit is 19 days from the last port call at Ho Chi Minh City to the Seattle gateway, while most other lines are 20-plus days, Wright told the Journal of Commerce Friday. China-based Hede Shipping in July launched its third expedited service from China to Los Angeles , zeroing in on the e-commerce sector with its expedited transit times and quick delivery of containers upon discharge from vessels. A Hede representative confirmed that newest service is in operation. Premium niche services offered by UWL, Hede and Matson appeal to BCOs with specific requirements based upon their customers’ needs. For example, customers of UWL’s Sun Chief service focus on footwear importers who are based in Southeast Asia and ship through Seattle, which offers direct inland point intermodal (IPI) rail service to markets such as Minneapolis and Chicago, Wright said. Huge spot rate swings this year The niche carriers, which also include SeaLead and CU Lines, entered the trans-Pacific trades in 2024 when spot and freight-all-kinds (FAK) rates surged as high as $7,800 per FEU to the US West Coast and $10,000 per FEU to the East Coast, according to PIERS, a Journal of Commerce sister product within S&P Global. Niche carriers account for about 4.5% of total capacity on the trans-Pacific trade to the West Coast, about the same percentage in the post-COVID-19 import surge in 2021–22, Alan Murphy, CEO of Sea-Intelligence Maritime Analysis, said in his Sunday Spotlight newsletter this week. While that market share is not enough to prevent a further slide in spot rates, the continued presence of the niche lines in the trans-Pacific indicates they are not just “opportunistic” carriers that came into the trade when spot rates were high and plan to leave if rates drop too low, he said. “These carriers are seemingly staying on the trade lane ... and it seems as if they are continuing to introduce capacity on the trade lane,” Murphy said. Given the volatile nature of the trans-Pacific market so far this year, with major rate spikes in January and June followed by plunging prices in subsequent months, the niche lines apparently have ample cash on hand to weather the current downturn. Spot rates from Asia to the West Coast as of Thursday were $1,500 per FEU, according to Platts, a sister company of the Journal of Commerce within S&P Global; Drewry pegged the market at $2,332 per FEU. “Pulling the plug is a tough decision because the money, when available, was so lucrative there’s the hope such margins will return,” said Stephen Nothdurft, vice president of sales at the forwarder MOL Consolidation Service. “It seems the current operators are taking a hard look at their commitments and calculating a longer-term strategy,” he said. “Maybe the new normal is continued chaos, so the smaller players are staying in place, building a viable clientele, [and] preparing to pounce when another catastrophe hits the liner market,” Nothdurft said. Premium rates can only do so much Still, if spot/FAK rates continue to drift below $1,500 to the West Coast, and possibly lower, some niche lines will find it difficult to sustain the losses for very long, an executive at an alliance carrier told the Journal of Commerce. “Even with an upcharge of $500-$600 [per FEU], it’s not going to be enough,” said the executive, who did not want to be identified. “The niche carriers, like all lines, have fixed costs such as bunker fuel, port fees and crew costs.” The source said $2,000 per FEU is the breakeven spot for most carriers’ West Coast business, adding their presence on the eastbound trans-Pacific “can’t last forever.” The challenge these carriers face is that rates are also depressed in the intra-Asia trade, and the small vessels they deploy in the range of 3,000-TEU capacity are not suited for the long-distance Asia-Europe trades, he said. Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .Contact Laura Robb at laura.robb@spglobal.com .

Niche carriers plan to ride out declining spot rates on the trans-Pacific

<div class="phx-topic abstract-wrapper">The Premier Alliance is revamping a trans-Pacific service that would otherwise incur hundreds of millions of dollars in US port fees on Chinese-built vessels.</div>

The Premier Alliance is revamping a trans-Pacific service that would otherwise incur hundreds of millions of dollars in US port fees on Chinese-built vessels.

<div class="phx-topic">Container lines are taking preemptive steps to reduce their exposure to hefty tariffs on Chinese-built and -operated vessels calling US ports that take effect in mid-October. The Premier Alliance of Ocean Network Express (ONE), HMM and Yang Ming Marine Transport is revamping a trans-Pacific service to avoid the <a href="https://www.joc.com/article/revised-china-tonnage-tax-less-disruptive-still-costly-6005402">US Trade Representative’s fees</a>, and other major carriers are expected to follow suit. Carriers say the deployment of non-China-built ships won’t be the most efficient for their networks but balk at fees that will initially equate to $1 million per voyage. The savings that come from removing China-built vessels from US services could increase to ultimately more than $500 million per year by April 2028, as the severity of the tariffs ratchets up over the next three years. Ocean Network Express and HMM have confirmed that the Asia-Mediterranean segment of the current Mediterranean Pacific South 2 (MS2) service will operate as a standalone service, renamed Mediterranean 2 (MD2), starting early next month. The trans-Pacific leg of the MS2 will be incorporated into the alliance’s existing Asia Gulf Express 2 service, which will be rebranded as the Gulf Pacific South 2 (GS2) as of next week, limiting the deployment of 10 Chinese-built ONE container ships currently operating the MS2 service to the shortened MD2 route. According to ONE service schedules, these vessels include seven 15,300-TEU ships built by Yangzijiang Shipbuilding Group, China’s largest privately owned shipyard, and three built by state-controlled China State Shipbuilding Corp. Yang Ming Marine Transport has yet to announce the changes, which stand to save ONE an estimated $185 million in tariffs in the first year after the levy is implemented on Oct. 14. Under the USTR fee proposal, ships operated by China-based carriers or built by Chinese shipyards will be subject to fees of $50 per net ton of capacity per voyage calling at US ports in the first year of enforcement, rising to $140 per net ton in April 2028. The fees will be capped at five voyages, and <a href="https://www.joc.com/article/cosco-slams-us-port-fees-as-other-carriers-reckon-with-potential-costs-5989606">China-based carriers, the USTR’s primary target</a>, will face higher levies. With each of the MS2 deployed vessels assessed at about 74,000 net tons, ONE would face a bill of $3.7 million per ship per voyage, maxing out at $18.5 million for each of the 10 ships — a total of $185 million — after five voyages. In announcing the MS2 service adjustment, ONE and HMM said the changes would improve connectivity and transit times to certain markets. HMM said the new Mediterranean Service 2 (MD2) would provide an express service from western Mediterranean to Busan and central China. Similarly, GS2 — which HMM calls the Korea Middle East–Pacific South (KMP) loop — will provide direct services from Dubai to the US West Coast and the US West Coast to Dalian and Xingang, HMM said. Contact Keith Wallis at <a href="keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Container lines are taking preemptive steps to reduce their exposure to hefty tariffs on Chinese-built and -operated vessels calling US ports that take effect in mid-October. The Premier Alliance of Ocean Network Express (ONE), HMM and Yang Ming Marine Transport is revamping a trans-Pacific service to avoid the US Trade Representative’s fees , and other major carriers are expected to follow suit. Carriers say the deployment of non-China-built ships won’t be the most efficient for their networks but balk at fees that will initially equate to $1 million per voyage. The savings that come from removing China-built vessels from US services could increase to ultimately more than $500 million per year by April 2028, as the severity of the tariffs ratchets up over the next three years. Ocean Network Express and HMM have confirmed that the Asia-Mediterranean segment of the current Mediterranean Pacific South 2 (MS2) service will operate as a standalone service, renamed Mediterranean 2 (MD2), starting early next month. The trans-Pacific leg of the MS2 will be incorporated into the alliance’s existing Asia Gulf Express 2 service, which will be rebranded as the Gulf Pacific South 2 (GS2) as of next week, limiting the deployment of 10 Chinese-built ONE container ships currently operating the MS2 service to the shortened MD2 route. According to ONE service schedules, these vessels include seven 15,300-TEU ships built by Yangzijiang Shipbuilding Group, China’s largest privately owned shipyard, and three built by state-controlled China State Shipbuilding Corp. Yang Ming Marine Transport has yet to announce the changes, which stand to save ONE an estimated $185 million in tariffs in the first year after the levy is implemented on Oct. 14. Under the USTR fee proposal, ships operated by China-based carriers or built by Chinese shipyards will be subject to fees of $50 per net ton of capacity per voyage calling at US ports in the first year of enforcement, rising to $140 per net ton in April 2028. The fees will be capped at five voyages, and China-based carriers, the USTR’s primary target , will face higher levies. With each of the MS2 deployed vessels assessed at about 74,000 net tons, ONE would face a bill of $3.7 million per ship per voyage, maxing out at $18.5 million for each of the 10 ships — a total of $185 million — after five voyages. In announcing the MS2 service adjustment, ONE and HMM said the changes would improve connectivity and transit times to certain markets. HMM said the new Mediterranean Service 2 (MD2) would provide an express service from western Mediterranean to Busan and central China. Similarly, GS2 — which HMM calls the Korea Middle East–Pacific South (KMP) loop — will provide direct services from Dubai to the US West Coast and the US West Coast to Dalian and Xingang, HMM said. Contact Keith Wallis at keithwallis@hotmail.com .

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