<div class="phx-topic abstract-wrapper">As most lawmakers headed out of town two weeks ago, leaders of President Clinton's economic team con</div>

As most lawmakers headed out of town two weeks ago, leaders of President Clinton's economic team con

<div>As most lawmakers headed out of town two weeks ago, leaders of President Clinton's economic team convened two unusual meetings with Senate and House leaders.The message to both groups was the same: The president is committed to implementing a new world trade pact this year, and he is not considering a suspension of budget rules to pay for it, according to administration officials and congressional aides.Among those cited at the meeting as opposed to a budget waiver was Federal Reserve Chairman Alan Greenspan.The Clinton appointees - Treasury Secretary Lloyd Bentsen, Office of Management and Budget Director Leon Panetta, and U.S....

As most lawmakers headed out of town two weeks ago, leaders of President Clinton's economic team convened two unusual meetings with Senate and House leaders. The message to both groups was the same: The president is committed to implementing a new world trade pact this year, and he is not considering a suspension of budget rules to pay for it, according to administration officials and congressional aides.Among those cited at the meeting as opposed to a budget waiver was Federal Reserve Chairman Alan Greenspan. The Clinton appointees - Treasury Secretary Lloyd Bentsen, Office of Management and Budget Director Leon Panetta, and U.S. Trade Representative Mickey Kantor - presented a new list of tax increases and spending cuts to offset the estimated $13.9 billion in tariff revenue that will be lost to the trade-liberalizing agreement over the next five years. Among other items was a proposal to collect $3 billion to $5 billion in royalties from companies that are granted new transmission frequencies to exploit the next generation of broadcast communication technology. The meetings were called to end the uncertainty that has emerged about implementing the trade agreement since it was completed in December by the more than 100 nations of the General Agreement on Tariffs and Trade. President Clinton has told foreign leaders privately that he would not let the congressional vote slip into next year, but has avoided making a public declaration. His advisers, however, are said to have agreed to a new deadline of Jan. 1 for implementing the agreement - moved up from July 1995 - as described in the final version of the trade pact to be signed in Morocco April 15. Funding the GATT agreement remains the toughest part of passing it this year, as Republicans and Democrats engage in the election-year ritual of accusing each other of fiscal mismanagement and partisan obstructionism. Some Clinton aides had hoped to waive strict "pay-as-you-go" budget rules for the trade pact, since the tariffs lost under it are expected to be overwhelmed by increased tax revenue from greater exports. Republicans have jumped on this suggestion as a foot in the door to waivers for health care and other expensive Clinton proposals. Around a table with House Majority Leader Richard Gephardt, D-Mo., House Ways and Means Committee Chairman Dan Rostenkowski, D-Ill., and Republican leaders, Mr. Panetta confessed that he had received a chastening warning about a budget waiver from an unlikely source - Mr. Greenspan. In a phone conversation, the Fed director warned that waiving the budget - even for the unique case of a trade-promoting agreement - could further unsettle financial markets wracked by fears of inflation since January, the sources said. The waiver could be perceived as opening the door to other waivers and unraveling the fiscal discipline that Mr. Clinton imposed in his landmark deficit reduction plan last year, the Fed chairman said, according to the sources. With that disclosure, Mr. Panetta may have unwittingly boxed in the administration on its budget-making for years to come. Republicans in that meeting could raise Mr. Greenspan's warning any time the administration seeks a budget waiver, even for measures that will generate more revenue than they cost. Waiving those rules was always unlikely in an election year, but the Greenspan call could be remain a potent weapon for Republicans after November. At both meetings two weeks ago, Republicans responded to the Clinton list of GATT funding options by ruling out tax increases to pay for it. Mr. Kantor and his Cabinet colleagues asked for the Republican list of funding options, but were rebuffed. "There's still a game of chicken going on," said one congressional aide. Most of the proposed spending cuts would be to agricultural programs such as the Export Enhancement Program, a subsidy used to maintain sales of U.S. grain in other countries and prop up prices in the United States. Clinton administration officials have bragged to farm state lawmakers that the new trade pact will allow them to subsidize 7.5 million tons more of grain a year, but it is not clear how that prospect would be affected by the GATT funding proposal. The Clinton list of funding options includes a number of changes to accounting rules that would not cost taxpayers money in the long run. Tax collection procedures would also be speeded up, reducing the interest that businesses typically earn on withholding taxes. The single new idea in the plan, the frequency royalty proposal, is sure to attract howls of protest from the industries seeking to cash in on the expected proliferation of television and sound broadcasting in the next decade. An earlier plan simply to auction off rights to the airwaves failed in Congress. Calls to Mr. Greenspan's press office were not returned Tuesday afternoon. Mr. Panetta's spokesman was checking on the reported meetings at press time but said that his agency normally does not comment on the details of such meetings. Spokesmen for other participants declined to confirm that the meetings took place.

CLINTON TEAM SPELLS OUT PLAN TO FUND GATT PACT UNUSUAL MEETINGS HELD WITH LEADERS OF HOUSE, SENATE

<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.

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<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 .

Container Shipping News

Container lines

Trans-Pacific

Maritime

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

<div class="phx-topic abstract-wrapper">The four-year pacts with Hutchison Ports Australia and Victoria International Container Terminal were confirmed by the Maritime Union of Australia on Thursday.</div>

The four-year pacts with Hutchison Ports Australia and Victoria International Container Terminal were confirmed by the Maritime Union of Australia on Thursday.

<div class="phx-topic">Shipper groups in Australia are welcoming separate deals inked between two terminal operators and dockworkers, saying the agreements will bring a sustained period of industrial peace on the country’s waterfront after years of disruption. The four-year pacts with Hutchison Ports Australia and Victoria International Container Terminal were confirmed by the Maritime Union of Australia (MUA) on Thursday. Along with significant pay increases for workers, the agreements curtail the implementation of new technology systems. That includes a ban on automated equipment at Hutchison’s Sydney and Brisbane terminals and limits on the implementation and use of AI and other technologies at VICT in Melbourne without the agreement of the workforce. The MUA said the curbs on automation mean “no remote cranes, no driverless trucks, no job-destroying machines.” Tom Jensen, general manager for freight policy and operations at the Freight &amp; Trade Alliance (FTA), a shipper group, said the latest labor agreements and those reached earlier with other operators including DP World, should prevent any labor action at major terminals for the next four years. FTA members include Alibaba (Australia,) Caterpillar, Kmart and Target. “The industry is set for a rare period of stability across all container terminals through to 2028–29 — delivering much-needed certainty for importers, exporters, freight forwarders, customs brokers and logistics providers in a period of heightened geopolitical tensions and ongoing volatility in global shipping,” Jensen told the Journal of Commerce. Jensen, who also represents the Australian Peak Shippers Association (APSA), welcomed the settlements because they were achieved without protracted disputes and industrial action that characterized negotiations with other operators. DP World faced four months of strikes and limited working by stevedores at its terminals in Sydney, Melbourne, Brisbane and Fremantle before agreeing to a new labor pact in February 2024. Jensen said Hutchison wanted “a quick negotiation to avoid any disruption to the supply chain.” “Terminal operators appear to have taken a more proactive approach in recent negotiations, entering talks earlier than usual,” he said. <h3>Pay hikes, new jobs</h3>The MUA said the Hutchison deal includes a pay increase of 18.25% over four years for the 350 dockworkers employed at its terminals in Sydney and Brisbane. The agreement with VICT, owned by Philippines-headquartered International Container Terminal Services Inc (ICTSI), creates at least 46 new permanent jobs and includes a 46% pay increase for casual workers and cuts in average weekly hours, the MUA said. A Hutchison source said its agreement provides increased flexibility with labor resources and the availability to better match vessel arrivals at Sydney’s Port Botany and Brisbane while offering improved service to landside railroad and truck operators. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>.</div>

Shipper groups in Australia are welcoming separate deals inked between two terminal operators and dockworkers, saying the agreements will bring a sustained period of industrial peace on the country’s waterfront after years of disruption. The four-year pacts with Hutchison Ports Australia and Victoria International Container Terminal were confirmed by the Maritime Union of Australia (MUA) on Thursday. Along with significant pay increases for workers, the agreements curtail the implementation of new technology systems. That includes a ban on automated equipment at Hutchison’s Sydney and Brisbane terminals and limits on the implementation and use of AI and other technologies at VICT in Melbourne without the agreement of the workforce. The MUA said the curbs on automation mean “no remote cranes, no driverless trucks, no job-destroying machines.” Tom Jensen, general manager for freight policy and operations at the Freight & Trade Alliance (FTA), a shipper group, said the latest labor agreements and those reached earlier with other operators including DP World, should prevent any labor action at major terminals for the next four years. FTA members include Alibaba (Australia,) Caterpillar, Kmart and Target. “The industry is set for a rare period of stability across all container terminals through to 2028–29 — delivering much-needed certainty for importers, exporters, freight forwarders, customs brokers and logistics providers in a period of heightened geopolitical tensions and ongoing volatility in global shipping,” Jensen told the Journal of Commerce. Jensen, who also represents the Australian Peak Shippers Association (APSA), welcomed the settlements because they were achieved without protracted disputes and industrial action that characterized negotiations with other operators. DP World faced four months of strikes and limited working by stevedores at its terminals in Sydney, Melbourne, Brisbane and Fremantle before agreeing to a new labor pact in February 2024. Jensen said Hutchison wanted “a quick negotiation to avoid any disruption to the supply chain.” “Terminal operators appear to have taken a more proactive approach in recent negotiations, entering talks earlier than usual,” he said. Pay hikes, new jobs The MUA said the Hutchison deal includes a pay increase of 18.25% over four years for the 350 dockworkers employed at its terminals in Sydney and Brisbane. The agreement with VICT, owned by Philippines-headquartered International Container Terminal Services Inc (ICTSI), creates at least 46 new permanent jobs and includes a 46% pay increase for casual workers and cuts in average weekly hours, the MUA said. A Hutchison source said its agreement provides increased flexibility with labor resources and the availability to better match vessel arrivals at Sydney’s Port Botany and Brisbane while offering improved service to landside railroad and truck operators. Contact Keith Wallis at keithwallis@hotmail.com .

Port News

Marine terminals

International ports

Longshore labor

Shipper groups say terminal deals will bring labor peace to Australia’s wharves

<div class="phx-topic abstract-wrapper">Revamped energy priorities in the US and data-related industrial projects are driving out-of-gauge cargo demand.</div>

Revamped energy priorities in the US and data-related industrial projects are driving out-of-gauge cargo demand.

<div class="phx-topic">Engineering, procurement and construction (EPC) companies are riding a wave of demand for projects in the nuclear, oil and gas, and semiconductor industries, while also preparing for new work that could become available now that US defense spending is set to cross the trillion-dollar threshold. As large-scale projects materialize, those sectors could become significant drivers of project cargo activity through the end of 2025 and beyond — with US energy priorities shifting to fossil fuels and the rise of artificial intelligence (AI) driving investments in power-hungry datacenters and semiconductor chip factories. Four major EPCs — Fluor, KBR, TechnipFMC and Worley — were bullish in reporting results from their latest earnings period. EPCs are key shippers of project cargo, procuring and transporting materials and equipment related to the construction of industrial, energy and defense projects. For Australian engineering group Worley, some of the company’s most significant contracts have come from liquefied natural gas (LNG) projects, along with other work in the energy, chemicals and resources sectors, according to the company’s 2025 fiscal year report issued Aug. 27. Worley increased its year-over-year annual project bookings by 32% to $11.2 billion; that amount includes the first phase of Venture Global’s CP2 project, a major LNG export facility in Louisiana that was given a notice to proceed in July. All told, Worley is involved in the early phases of about five LNG projects, CEO and managing director Chris Ashton said during the company’s most recent earnings call. “The LNG market presents good opportunities, and we are well-positioned for growth in this area,” Ashton said. Worley is also the EPC for ExxonMobil’s Baytown refinery project in Texas, which was included in Worley’s $11 billion project backlog for the year and contributed to a 22% increase over 2024. <h3>Fluor anticipates turnaround </h3>Texas-based engineering and construction company Fluor is looking to nuclear power, the semiconductor and datacenter markets, and a US mining resurgence for project opportunities after a year-over-year decline in new awards in its most recent quarter. In the company’s second-quarter earnings call, CEO and director James Breur said customers continue to exercise caution because of ongoing trade policy discussions and cost increases. But he expects project investments to accelerate “once the effects of the recently enacted pro-growth policies materialize.” New awards fell 43% to $1.8 billion in the second quarter, with the steepest decline coming from the company’s urban solutions division, which fell 65% to $856 million and includes technology, infrastructure and mining projects. Fluor’s work backlog also fell 13% to $28.2 billion for the quarter. “In semiconductors, our clients’ investment intentions have not yet translated into meaningful new awards,” Breur said of projects to develop microchip facilities. <h3>KBR looks to defense spending boon </h3>Houston-based defense contractor KBR is eyeing project opportunities that could come from the broad spending bill approved by Congress, which became law on July 4 and adds $150 billion in spending to the defense department’s $850 billion baseline budget. “We have line of sight to the first of a $1 trillion defense budget, which is lined up for 2026,” said Stuart Bradie, KBR’s president and CEO. KBR’s year-over-year work backlog grew 5% to $21.6 billion for the second quarter. Major contracts include a $476 million deal to support base operations in Djibouti and a contract extension through 2030 to support the US European Command (EUCOM) and the US Northern Command (NORTHCOM). LNG, ammonia and infrastructure were among other core markets for KBR, with the company in July winning a front-end engineering design (FEED) contract to develop an ammonia and urea production plant in Iraq. Meanwhile, multinational oil and gas services contractor TechnipFMC is on pace to reach its three-year goal of $30 billion in work orders from offshore projects by the end of 2025, according to the company’s latest quarterly earnings report. Among those projects is a five-year contract the company won in July from Vår Energi to provide engineering, procurement, construction and installation services for offshore hydrocarbon developments on the Norwegian continental shelf. “We see strength in offshore continuing, supported by client discussions for projects that are likely to be sanctioned through the end of the decade,” TechnipFMC CEO and chairman Douglas Pferdehirt said during the company’s second-quarter earnings call. TechnipFMC’s year-over-year project backlog for the quarter grew 22% to $15.8 billion in its subsea division, which accounts for over 90% of the company’s business and develops systems for offshore oil and gas projects. Just over half of the subsea backlog comes from projects scheduled for or after 2027. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>.</div>

Engineering, procurement and construction (EPC) companies are riding a wave of demand for projects in the nuclear, oil and gas, and semiconductor industries, while also preparing for new work that could become available now that US defense spending is set to cross the trillion-dollar threshold. As large-scale projects materialize, those sectors could become significant drivers of project cargo activity through the end of 2025 and beyond — with US energy priorities shifting to fossil fuels and the rise of artificial intelligence (AI) driving investments in power-hungry datacenters and semiconductor chip factories. Four major EPCs — Fluor, KBR, TechnipFMC and Worley — were bullish in reporting results from their latest earnings period. EPCs are key shippers of project cargo, procuring and transporting materials and equipment related to the construction of industrial, energy and defense projects. For Australian engineering group Worley, some of the company’s most significant contracts have come from liquefied natural gas (LNG) projects, along with other work in the energy, chemicals and resources sectors, according to the company’s 2025 fiscal year report issued Aug. 27. Worley increased its year-over-year annual project bookings by 32% to $11.2 billion; that amount includes the first phase of Venture Global’s CP2 project, a major LNG export facility in Louisiana that was given a notice to proceed in July. All told, Worley is involved in the early phases of about five LNG projects, CEO and managing director Chris Ashton said during the company’s most recent earnings call. “The LNG market presents good opportunities, and we are well-positioned for growth in this area,” Ashton said. Worley is also the EPC for ExxonMobil’s Baytown refinery project in Texas, which was included in Worley’s $11 billion project backlog for the year and contributed to a 22% increase over 2024. Fluor anticipates turnaround Texas-based engineering and construction company Fluor is looking to nuclear power, the semiconductor and datacenter markets, and a US mining resurgence for project opportunities after a year-over-year decline in new awards in its most recent quarter. In the company’s second-quarter earnings call, CEO and director James Breur said customers continue to exercise caution because of ongoing trade policy discussions and cost increases. But he expects project investments to accelerate “once the effects of the recently enacted pro-growth policies materialize.” New awards fell 43% to $1.8 billion in the second quarter, with the steepest decline coming from the company’s urban solutions division, which fell 65% to $856 million and includes technology, infrastructure and mining projects. Fluor’s work backlog also fell 13% to $28.2 billion for the quarter. “In semiconductors, our clients’ investment intentions have not yet translated into meaningful new awards,” Breur said of projects to develop microchip facilities. KBR looks to defense spending boon Houston-based defense contractor KBR is eyeing project opportunities that could come from the broad spending bill approved by Congress, which became law on July 4 and adds $150 billion in spending to the defense department’s $850 billion baseline budget. “We have line of sight to the first of a $1 trillion defense budget, which is lined up for 2026,” said Stuart Bradie, KBR’s president and CEO. KBR’s year-over-year work backlog grew 5% to $21.6 billion for the second quarter. Major contracts include a $476 million deal to support base operations in Djibouti and a contract extension through 2030 to support the US European Command (EUCOM) and the US Northern Command (NORTHCOM). LNG, ammonia and infrastructure were among other core markets for KBR, with the company in July winning a front-end engineering design (FEED) contract to develop an ammonia and urea production plant in Iraq. Meanwhile, multinational oil and gas services contractor TechnipFMC is on pace to reach its three-year goal of $30 billion in work orders from offshore projects by the end of 2025, according to the company’s latest quarterly earnings report. Among those projects is a five-year contract the company won in July from Vår Energi to provide engineering, procurement, construction and installation services for offshore hydrocarbon developments on the Norwegian continental shelf. “We see strength in offshore continuing, supported by client discussions for projects that are likely to be sanctioned through the end of the decade,” TechnipFMC CEO and chairman Douglas Pferdehirt said during the company’s second-quarter earnings call. TechnipFMC’s year-over-year project backlog for the quarter grew 22% to $15.8 billion in its subsea division, which accounts for over 90% of the company’s business and develops systems for offshore oil and gas projects. Just over half of the subsea backlog comes from projects scheduled for or after 2027. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Breakbulk News

Breakbulk carriers

Energy projects

Heavy-haul transport

Project cargo

Supply chain

EPCs emboldened by investments in energy, tech and defense projects

<div class="phx-topic abstract-wrapper">The days where container ships could be seen as fungible assets used in flexible ways might be coming to an end, leading to inefficiencies — and higher costs — in global liner networks, writes Lars Jensen.</div>

The days where container ships could be seen as fungible assets used in flexible ways might be coming to an end, leading to inefficiencies — and higher costs — in global liner networks, writes Lars Jensen.

<div class="phx-topic">For stakeholders in the container shipping supply chain, the past four to five months have been a flurry of rapid changes in relation to US tariff policy. It is easy to be caught up in the turmoil that this has caused, including rapid demand and supply swings as well as likely the sharpest and shortest spike in spot rates ever seen on the trans-Pacific. And it is also clear that this kind of turmoil will continue with the US now focusing on potentially implementing tariffs on furniture, which makes up some 7% of total US imports by container volume. An unresolved tariff situation with China and a significant lack of detail around the trade deals already announced only add to the potential volatility. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6070975_0.1.jpg"></img></div>However, there is a potentially more important change beginning to happen that is more global in nature and goes beyond tariffs, one that, to some degree, will challenge the fundamental workings of how shipping networks are usually operated. For the most part, the vessels themselves are fungible assets. If I have a vessel with a capacity of, say, 5,000 TEUs, I can essentially use this vessel anywhere globally, moving any type of cargo in a container for anyone, as well as changing the flag to almost any nation of my choosing. And if I have no need for the vessel, I can sell or charter it to anyone who, in turn, will have the same high degree of flexibility regarding the usage of the vessel. This makes the fleet of container vessels extremely versatile and allows a highly efficient cascading process whereby, for the most part, vessels are moved to the trades where they are most optimally used. Balancing capacity not only with demand but also the capability of port infrastructure allows for a high degree of asset utilization, and consequently, lower costs for shippers. <h3>Efficiency ‘coming under pressure’ </h3>It is this efficiency that is coming under pressure. Keep in mind that part of the value is the fungibility of the vessels — that they can be used anywhere, by anyone, for anyone. This ensures assets are used where they are most suitable. But consider the developments we have seen here in 2025: The US is placing penalties on vessels built, owned or operated in China. This is already beginning to result in network changes as carriers will either shift some port calls and/or phase in vessels from other trades. This would mean suboptimal usage of vessels and ports in order to reduce this externally imposed cost. India prohibited the call of vessels coming from Pakistan, resulting in a sharp reduction of direct services from Pakistan to the rest of the world. Instead, more feeder services were established — clearly suboptimal vessel usage compared with having large vessels call both nations on major deep-sea services. Turkey is prohibiting Israeli-affiliated vessels from calling Turkish ports and is also prohibiting Turkish-flagged vessels from calling Israel. The conflict between Thailand and Cambodia resulted in the closure of the land border, effectively preventing vessels calling the major port in Laem Chabang from efficiently servicing Cambodian imports and exports. Twenty-five container vessels were placed on the US OFAC sanctions list as they were seen as affiliated with Iranian logistics operations, effectively removing approximately one-third of SeaLead Shipping’s fleet from one day to the next. These are merely a few examples from 2025. We have, of course, seen various restrictions in the past, but the speed and scale with which this is ramping up is new. Later in 2025, we will likely see the results of the US Federal Maritime Commission’s investigation into unfair flag state competition. There are no prizes for guessing that, yes, of course there is a skewed competitive landscape — that is why flags of convenience have been popular for centuries. The only relevant question is which type of additional regulations and restrictions the US will then impose based on nationality. Then comes the debacle concerning the carbon tax on marine fossil fuels, which is likely to be adopted at the October meeting of the International Maritime Organization’s Marine Environment Protection Committee. It is crystal clear that the US will not participate. The open question is how many other countries will side with the US, creating more loopholes based on nationality. All in all, the days where container vessels to a significant degree could be seen as fungible assets might be coming to an end. Not that all flexibility will be lost. However, the flexibility is rapidly being reduced, which leads to inefficiencies in the global container liner networks. And inefficiencies equal costs. Lars Jensen is CEO and partner at Vespucci Maritime. Contact him at <a href="mailto:lars.jensen@vespucci-maritime.com">lars.jensen@vespucci-maritime.com</a>.</div>

For stakeholders in the container shipping supply chain, the past four to five months have been a flurry of rapid changes in relation to US tariff policy. It is easy to be caught up in the turmoil that this has caused, including rapid demand and supply swings as well as likely the sharpest and shortest spike in spot rates ever seen on the trans-Pacific. And it is also clear that this kind of turmoil will continue with the US now focusing on potentially implementing tariffs on furniture, which makes up some 7% of total US imports by container volume. An unresolved tariff situation with China and a significant lack of detail around the trade deals already announced only add to the potential volatility. However, there is a potentially more important change beginning to happen that is more global in nature and goes beyond tariffs, one that, to some degree, will challenge the fundamental workings of how shipping networks are usually operated. For the most part, the vessels themselves are fungible assets. If I have a vessel with a capacity of, say, 5,000 TEUs, I can essentially use this vessel anywhere globally, moving any type of cargo in a container for anyone, as well as changing the flag to almost any nation of my choosing. And if I have no need for the vessel, I can sell or charter it to anyone who, in turn, will have the same high degree of flexibility regarding the usage of the vessel. This makes the fleet of container vessels extremely versatile and allows a highly efficient cascading process whereby, for the most part, vessels are moved to the trades where they are most optimally used. Balancing capacity not only with demand but also the capability of port infrastructure allows for a high degree of asset utilization, and consequently, lower costs for shippers. Efficiency ‘coming under pressure’ It is this efficiency that is coming under pressure. Keep in mind that part of the value is the fungibility of the vessels — that they can be used anywhere, by anyone, for anyone. This ensures assets are used where they are most suitable. But consider the developments we have seen here in 2025: The US is placing penalties on vessels built, owned or operated in China. This is already beginning to result in network changes as carriers will either shift some port calls and/or phase in vessels from other trades. This would mean suboptimal usage of vessels and ports in order to reduce this externally imposed cost. India prohibited the call of vessels coming from Pakistan, resulting in a sharp reduction of direct services from Pakistan to the rest of the world. Instead, more feeder services were established — clearly suboptimal vessel usage compared with having large vessels call both nations on major deep-sea services. Turkey is prohibiting Israeli-affiliated vessels from calling Turkish ports and is also prohibiting Turkish-flagged vessels from calling Israel. The conflict between Thailand and Cambodia resulted in the closure of the land border, effectively preventing vessels calling the major port in Laem Chabang from efficiently servicing Cambodian imports and exports. Twenty-five container vessels were placed on the US OFAC sanctions list as they were seen as affiliated with Iranian logistics operations, effectively removing approximately one-third of SeaLead Shipping’s fleet from one day to the next. These are merely a few examples from 2025. We have, of course, seen various restrictions in the past, but the speed and scale with which this is ramping up is new. Later in 2025, we will likely see the results of the US Federal Maritime Commission’s investigation into unfair flag state competition. There are no prizes for guessing that, yes, of course there is a skewed competitive landscape — that is why flags of convenience have been popular for centuries. The only relevant question is which type of additional regulations and restrictions the US will then impose based on nationality. Then comes the debacle concerning the carbon tax on marine fossil fuels, which is likely to be adopted at the October meeting of the International Maritime Organization’s Marine Environment Protection Committee. It is crystal clear that the US will not participate. The open question is how many other countries will side with the US, creating more loopholes based on nationality. All in all, the days where container vessels to a significant degree could be seen as fungible assets might be coming to an end. Not that all flexibility will be lost. However, the flexibility is rapidly being reduced, which leads to inefficiencies in the global container liner networks. And inefficiencies equal costs. Lars Jensen is CEO and partner at Vespucci Maritime. Contact him at lars.jensen@vespucci-maritime.com .

External pressures putting ‘fungibility’ of container shipping at risk: analyst

<div class="phx-topic abstract-wrapper">Robert Primus has been vocal in his opposition to consolidation in the rail industry, voting against the Canadian Pacific-Kansas City Southern merger in 2023 and Canadian National Railway’s acquisition of Iowa Northern Railway earlier this year.</div>

Robert Primus has been vocal in his opposition to consolidation in the rail industry, voting against the Canadian Pacific-Kansas City Southern merger in 2023 and Canadian National Railway’s acquisition of Iowa Northern Railway earlier this year.

<div class="phx-topic">President Donald Trump’s move to oust Robert Primus from the US Surface Transportation Board (STB) would seem to eliminate a key obstacle to securing regulatory approval for Union Pacific Railroad’s $85 billion acquisition of Norfolk Southern Railway (NS). Trump “fired” Primus from the STB on Wednesday, according to <a href="https://www.wsj.com/politics/policy/trump-fires-board-member-of-regulator-weighing-rail-merger-4b108713?mod=Searchresults&amp;pos=1&amp;page=1">The Wall Street Journal</a>. But Primus, who called the move “legally invalid,” said he would continue performing his duties as a member of the board, The Journal reported. His removal, if upheld, comes as the board prepares to evaluate Union Pacific’s proposed acquisition of Norfolk Southern in the coming months, a deal that would create the nation’s first transcontinental freight railroad. It also sets up a potential legal showdown, similar to the one Trump faces in the aftermath of his move earlier this week to fire Lisa Cook from the board of the Federal Reserve. Trump, since his return to office in January, has acted on several occasions to remove members from boards and regulatory agencies and replace them with people seen as loyal to his agenda. Ironically, it was Trump who appointed Primus, a Democrat, to the STB in 2020. His apparent ouster means there are now two Republicans and only one Democrat on the board, which can have up to five members. The International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART), the largest rail labor union, criticized the firing. SMART-TD, the transportation division covering rail engineers, has come out against UP’s acquisition of NS. “This action is unprecedented, unlawful in spirit, and reeks of direct interference from hedge funds and the nation’s largest rail carriers,” the union said in a statement Thursday. “The timing of this move cannot be ignored. Prior to its submission to the board, Mr. Primus has made clear his opposition to the so-called ‘merger’ that would be a corporate takeover combining Union Pacific Railroad and Norfolk Southern Railroad.” <h3>Voted against CP-KCS deal </h3>Primus has been vocal in his opposition to consolidation in the rail industry, voting against the Canadian Pacific-Kansas City Southern merger in 2023 and Canadian National Railway’s acquisition of Iowa Northern Railway earlier this year. Removing him from the STB would seem to give the UP-NS deal a far easier avenue to gain the required approval from federal regulators. “We believe the move comes in an effort to clear the path for the potential transcontinental merger,” Jason Seidl, a transportation analyst with TD Securities, wrote in an investor’s note Thursday. “We believe a Republican appointment could still be forthcoming as channel checks indicated four candidates in contention, potentially leaving the [STB] with a 3-1 Republican majority by the time a decision has to be made.” By law, no single political party can have more than three out of the five available seats on the Surface Transportation Board. Chairman Patrick Fuchs and member Michelle Schultz are Republicans, while member Karen Hedlund is a Democrat. There is already an existing vacancy on the board. UP and NS will file their formal merger application by January, kicking off an STB review that would likely not result in a final vote until the spring of 2027, if not later. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

President Donald Trump’s move to oust Robert Primus from the US Surface Transportation Board (STB) would seem to eliminate a key obstacle to securing regulatory approval for Union Pacific Railroad’s $85 billion acquisition of Norfolk Southern Railway (NS). Trump “fired” Primus from the STB on Wednesday, according to The Wall Street Journal . But Primus, who called the move “legally invalid,” said he would continue performing his duties as a member of the board, The Journal reported. His removal, if upheld, comes as the board prepares to evaluate Union Pacific’s proposed acquisition of Norfolk Southern in the coming months, a deal that would create the nation’s first transcontinental freight railroad. It also sets up a potential legal showdown, similar to the one Trump faces in the aftermath of his move earlier this week to fire Lisa Cook from the board of the Federal Reserve. Trump, since his return to office in January, has acted on several occasions to remove members from boards and regulatory agencies and replace them with people seen as loyal to his agenda. Ironically, it was Trump who appointed Primus, a Democrat, to the STB in 2020. His apparent ouster means there are now two Republicans and only one Democrat on the board, which can have up to five members. The International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART), the largest rail labor union, criticized the firing. SMART-TD, the transportation division covering rail engineers, has come out against UP’s acquisition of NS. “This action is unprecedented, unlawful in spirit, and reeks of direct interference from hedge funds and the nation’s largest rail carriers,” the union said in a statement Thursday. “The timing of this move cannot be ignored. Prior to its submission to the board, Mr. Primus has made clear his opposition to the so-called ‘merger’ that would be a corporate takeover combining Union Pacific Railroad and Norfolk Southern Railroad.” Voted against CP-KCS deal Primus has been vocal in his opposition to consolidation in the rail industry, voting against the Canadian Pacific-Kansas City Southern merger in 2023 and Canadian National Railway’s acquisition of Iowa Northern Railway earlier this year. Removing him from the STB would seem to give the UP-NS deal a far easier avenue to gain the required approval from federal regulators. “We believe the move comes in an effort to clear the path for the potential transcontinental merger,” Jason Seidl, a transportation analyst with TD Securities, wrote in an investor’s note Thursday. “We believe a Republican appointment could still be forthcoming as channel checks indicated four candidates in contention, potentially leaving the [STB] with a 3-1 Republican majority by the time a decision has to be made.” By law, no single political party can have more than three out of the five available seats on the Surface Transportation Board. Chairman Patrick Fuchs and member Michelle Schultz are Republicans, while member Karen Hedlund is a Democrat. There is already an existing vacancy on the board. UP and NS will file their formal merger application by January, kicking off an STB review that would likely not result in a final vote until the spring of 2027, if not later. Contact Ari Ashe at ari.ashe@spglobal.com .

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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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