<div class="phx-topic abstract-wrapper">Apr. 25, 1995 Baltic International Freight Futures MarketPrev.Close High Low </div>

Apr. 25, 1995 Baltic International Freight Futures MarketPrev.Close High Low

<div>Apr. 25, 1995Baltic International Freight Futures MarketPrev.Close High Low Vol. CloseApr. 2315 2325 2325 5 2325May 2300 2340 2300 151 2332June 2185 2240 2220 33 2230July 2002 2040 2015 17 2036Oct. 1970 1995 1965 12 1995Total sales, 218 contracts.</div>...

Apr. 25, 1995 Baltic International Freight Futures MarketPrev. Close High Low Vol. Close Apr. 2315 2325 2325 5 2325 May 2300 2340 2300 151 2332 June 2185 2240 2220 33 2230 July 2002 2040 2015 17 2036 Oct. 1970 1995 1965 12 1995 Total sales, 218 contracts.

Maritime

FREIGHT RATE FUTURES

<div class="phx-topic abstract-wrapper">Ocean carriers may soon finalize a series of large ship orders as the newbuilding spree that took the order book to a record 8.3 million TEUs by the end of 2024 is set to continue.</div>

Ocean carriers may soon finalize a series of large ship orders as the newbuilding spree that took the order book to a record 8.3 million TEUs by the end of 2024 is set to continue.

Feature image

<div class="phx-topic">The transition to new fuels and an aging fleet continue to drive container ship orders, with no sign of a newbuilding slowdown despite full yards, an uncertain demand outlook and a lack of clarity over green fuel availability. By the end of 2024, record capacity of 8.3 million TEUs filled the global vessel order book — some 27.7% of the in-service fleet — with a potential series of large new orders waiting for the green light, according to Jan Tiedeman, senior analyst at Alphaliner. “Currently, there is little sign of an order slowdown, despite sky-high newbuilding prices,” he told the Journal of Commerce Wednesday. “One of the reasons for this is quite simple: The carriers are sitting on piles of cash, which they ‘have to’ spend.” Tiedeman outlined a series of orders that may be finalized soon, including a 12-ship order of 24,000-TEU vessels by Evergreen; 10 or 12 ships of 18,000 TEUs by CMA CGM that could be followed by another order for 10 vessels of the same size; and an order for 10 ships of 11,500 TEUs by Greek shipowner George Economou. Yang Ming was also mulling over a fleet renewal plan and Mediterranean Shipping Co. could also drop a big order at any time, he said. In a shipbuilding report released Wednesday, global bank HSBC said ocean carriers were heading into a period of fleet renewal and a transition to more energy-efficient vessels. And while new orders would decline over the next four years compared with 2024 levels, they would remain 40% above the annual average during 2016 to 2020, the bank said. “We believe a long-term newbuild cycle is underway, with tailwinds from the renewal of an aging fleet and over 60,000 fossil-fueled cargo ships to be replaced over the next two decades,” the report noted. In 2024, 69% of all container ship orders were for ships capable of being powered by alternative fuels, driven by cargo owners responding to consumer demands for more sustainable practices and ocean carriers preparing to replace older tonnage, according to a report by classification society DNV. Last year, 515 vessels were added to the order book, up 38% year over year, DNV data showed. Of that total, 264 vessels powered by liquefied natural gas (LNG) were ordered, up 103% from 2023, with 166 orders for methanol-capable vessels, up 4%. <h3>Record ship deliveries </h3>Niels Rasmussen, chief shipping analyst at BIMCO, said even with the record size of the order book at the end of 2024 — and record deliveries during the year of 2.9 million TEUs — orders have continued. Although five ships have already been contracted for delivery in 2030, 99% of the order book will be delivered during 2025–29, he noted. According to the current delivery schedule, Rasmussen said 700,000 TEUs of capacity will be delivered in 2029 while an average of 1.9 million TEUs will be delivered every year from 2025 to 2028, peaking at 2.2 million TEUs in 2027. There has been virtually no scrapping over the past few years that has seen the average age of the container shipping fleet increase by 1.4 years since the beginning of 2020 to about 14 years on a per-ship basis, according to BIMCO. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="ebf7a345-5b3c-47d3-8195-72b417c920b6"></dynamic-object></div>The number of ships now 20 years old or older comprises 3.4 million TEUs, equal to 11% of the fleet, BIMCO data shows. Rasmussen said if all ships 20 years old or older were recycled during the next five years, the fleet will grow to 35.8 million TEUs by end-2029, assuming no more ships are contracted for delivery before 2030. That is equal to 16% growth, or average annual growth of 3%. “It would require 680,000 TEUs per year to recycle all ships 20 years old or older during the next five years — the current annual record is 657,000 TEUs — but actual recycling is likely to end lower,” Rasmussen said. “As long as ships cannot fully return to the Red Sea, recycling will likely continue to be low and at the same time the smaller ship segments tend to be recycled later than average,” he added. “Therefore, average annual fleet growth during the next five years could end higher than 3%.” The scale of new capacity required to renew the global fleet was explained by Tiedeman. “Assuming 25 years as the normal asset life of a ship, you would need 4% of fleet capacity every year just as a 1:1 replacement,” he said. "That means in the long run, we would need to see 1.25 million TEUs ordered and delivered year-in year-out just to replace the current fleet on a revolving basis. Add to that a modest 2% year-over-year growth and extra fleet demand from further slow steaming and congestion etc...” Contact Greg Knowler at <a href="mailto:greg.knowler@ihsmarkit.com">greg.knowler@spglobal.com</a>.</div>

The transition to new fuels and an aging fleet continue to drive container ship orders, with no sign of a newbuilding slowdown despite full yards, an uncertain demand outlook and a lack of clarity over green fuel availability. By the end of 2024, record capacity of 8.3 million TEUs filled the global vessel order book — some 27.7% of the in-service fleet — with a potential series of large new orders waiting for the green light, according to Jan Tiedeman, senior analyst at Alphaliner. “Currently, there is little sign of an order slowdown, despite sky-high newbuilding prices,” he told the Journal of Commerce Wednesday. “One of the reasons for this is quite simple: The carriers are sitting on piles of cash, which they ‘have to’ spend.” Tiedeman outlined a series of orders that may be finalized soon, including a 12-ship order of 24,000-TEU vessels by Evergreen; 10 or 12 ships of 18,000 TEUs by CMA CGM that could be followed by another order for 10 vessels of the same size; and an order for 10 ships of 11,500 TEUs by Greek shipowner George Economou. Yang Ming was also mulling over a fleet renewal plan and Mediterranean Shipping Co. could also drop a big order at any time, he said. In a shipbuilding report released Wednesday, global bank HSBC said ocean carriers were heading into a period of fleet renewal and a transition to more energy-efficient vessels. And while new orders would decline over the next four years compared with 2024 levels, they would remain 40% above the annual average during 2016 to 2020, the bank said. “We believe a long-term newbuild cycle is underway, with tailwinds from the renewal of an aging fleet and over 60,000 fossil-fueled cargo ships to be replaced over the next two decades,” the report noted. In 2024, 69% of all container ship orders were for ships capable of being powered by alternative fuels, driven by cargo owners responding to consumer demands for more sustainable practices and ocean carriers preparing to replace older tonnage, according to a report by classification society DNV. Last year, 515 vessels were added to the order book, up 38% year over year, DNV data showed. Of that total, 264 vessels powered by liquefied natural gas (LNG) were ordered, up 103% from 2023, with 166 orders for methanol-capable vessels, up 4%. Record ship deliveries Niels Rasmussen, chief shipping analyst at BIMCO, said even with the record size of the order book at the end of 2024 — and record deliveries during the year of 2.9 million TEUs — orders have continued. Although five ships have already been contracted for delivery in 2030, 99% of the order book will be delivered during 2025–29, he noted. According to the current delivery schedule, Rasmussen said 700,000 TEUs of capacity will be delivered in 2029 while an average of 1.9 million TEUs will be delivered every year from 2025 to 2028, peaking at 2.2 million TEUs in 2027. There has been virtually no scrapping over the past few years that has seen the average age of the container shipping fleet increase by 1.4 years since the beginning of 2020 to about 14 years on a per-ship basis, according to BIMCO. The number of ships now 20 years old or older comprises 3.4 million TEUs, equal to 11% of the fleet, BIMCO data shows. Rasmussen said if all ships 20 years old or older were recycled during the next five years, the fleet will grow to 35.8 million TEUs by end-2029, assuming no more ships are contracted for delivery before 2030. That is equal to 16% growth, or average annual growth of 3%. “It would require 680,000 TEUs per year to recycle all ships 20 years old or older during the next five years — the current annual record is 657,000 TEUs — but actual recycling is likely to end lower,” Rasmussen said. “As long as ships cannot fully return to the Red Sea, recycling will likely continue to be low and at the same time the smaller ship segments tend to be recycled later than average,” he added. “Therefore, average annual fleet growth during the next five years could end higher than 3%.” The scale of new capacity required to renew the global fleet was explained by Tiedeman. “Assuming 25 years as the normal asset life of a ship, you would need 4% of fleet capacity every year just as a 1:1 replacement,” he said. "That means in the long run, we would need to see 1.25 million TEUs ordered and delivered year-in year-out just to replace the current fleet on a revolving basis. Add to that a modest 2% year-over-year growth and extra fleet demand from further slow steaming and congestion etc...” Contact Greg Knowler at greg.knowler@spglobal.com .

Container Shipping News

Container lines

Murky outlook for container shipping is no barrier to ship ordering bonanza

<div class="phx-topic abstract-wrapper">President Donald Trump injecting himself into longshore labor talks and his recent threat to take over the Panama Canal are a precursor to the unpredictability container shipping will face over the next four years, writes Journal of Commerce Executive Editor Mark Szakonyi.</div>

President Donald Trump injecting himself into longshore labor talks and his recent threat to take over the Panama Canal are a precursor to the unpredictability container shipping will face over the next four years, writes Journal of Commerce Executive Editor Mark Szakonyi.

<div class="phx-topic"><div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5927220_0.1.jpg"></img></div>Even before starting his second term, Donald Trump gave the shipping industry a taste of the unpredictability he will inject over the next four years, first by upending longshore labor contract negotiations and then threatening to take over the Panama Canal. Upon taking office Jan. 20, Trump surprised again by holding back on his widely anticipated threat to slap higher tariffs on Chinese goods on his first day back in the White House. Still, he pledged tariffs were on the way during his inauguration speech and has threatened to put them at 100% if a deal over Chinese-owned TikTok isn’t reached. Trump also said that a 25% tariff on goods coming from Canada and Mexico could come as soon as Feb. 1.The tariffs Trump implemented against China during his first four years in office brought some unpredictability to the shipping industry. Section 301 tariffs hit US importers, who frontloaded cargo as they could beat deadlines for the tariffs and ultimately shifted even more manufacturing out of China. Broader escalatory tensions with China, coupled with an emboldened Trump administration, promise an even more volatile second term. Closer to home, Trump injected himself into negotiations between the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) when he publicly backed the union’s opposition to automation. With that reality hanging over the contract talks, the major carriers and terminal operators that comprise the USMX knew they would only risk the new president’s ire if they dug in on the automation question and a second longshore strike occurred as a result. Trump’s support of prohibitions on automation at marine terminals surprised the shipping industry, as it defied the conventions of traditional Republican support for corporations over unions, Peter Friedmann, executive director of the Agriculture Transportation Coalition, said at a shipping conference in December. “It is simply unprecedented, at least for the last 200 years, for a president so obviously making the policy objectives and decisions on his own, seemingly without input by staff and the federal bureaucracy, and certainly without deference to them,” said Friedmann, who added that the Trump administration was rushing into policy changes rather than coasting the first three months similar to other new administrations. Trump wasted little time in elevating Louis Sola from commissioner to chairman of the Federal Maritime Commission (FMC) just hours after taking the oath of office on Monday. Joe Biden only tapped Daniel Maffei for the chairman role after three months in office. <h3>A bid to limit Chinese influence </h3>Trump’s threat to take back the Panama Canal over “ridiculous, highly unfair” fees may not ultimately result in US troops swooping in as occurred during the 1989 US invasion to depose Panamanian military leader Manuel Noriega. But it does speak to the president wanting to expand regional control, whether it’s in Greenland — or even more improbably, Canada — to limit Chinese and Russian influence in the Western Hemisphere. In November 2024, China-based Cosco Shipping opened a $1.3 billion mega-terminal in Peru. Cosco created the terminal — a major gateway for the Pacific Coast of South America — in a joint venture with Peruvian miner Volcan, which is owned by Argentina-based Integra Capital. Hutchinson Port Holdings, also China-based, operates a port on each side of the Panama Canal. On the day of Trump’s inauguration, during which he accused China of “operating the critical waterway,” the Panamanian government <a href="https://x.com/ContraloriaPma/status/1881395041413046517">posted a video on X</a> showing inspectors heading to begin an audit at Hutchinson’s local offices, seemingly a move to placate Trump. The Panama Canal Authority, a government agency, has operated and managed the canal since the United States returned full oversight to the country in 1999. The container shipping industry is second only to the semiconductor industry in the economic and military struggle between China and the United States, said Carl Bentzel, a former FMC commissioner and now president of the National Association of Waterfront Employers. That fuels bipartisan support for shoring up US maritime capacities — ranging from ambitious legislation <a href="https://www.joc.com/article/legislation-aims-to-mandate-rising-share-of-china-imports-on-expanded-us-flag-fleet-5909698">to expand the US-flag commercial fleet</a> to the <a href="https://www.joc.com/article/white-house-counters-risk-of-chinese-port-cranes-with-20-billion-for-us-sourcing-5200230">Biden administration warning</a> that Chinese-built cranes at US ports pose a cyberthreat, Bentzel told the Journal of Commerce. On Jan. 7, the US Department of Defense published its annual listing of companies that it determines are tied to the Chinese military, revealing the addition of Cosco Shipping. While the designation prevents the US government from contracting with the ocean carrier, it has no impact on Cosco’s ability to serve the US commercial market. On the heels of that designation, the Biden administration announced on Jan. 15 that China was manipulating market policies and practices to <a href="https://www.joc.com/article/chinas-predatory-maritime-policies-threaten-global-trade-white-house-5923952">support its shipbuilding</a> and <a href="https://www.joc.com/article/chinas-chassis-container-role-entrenched-by-government-fmcs-bentzel-5228464">shipping equipment production</a>. While an FMC commissioner, Bentzel highlighted China’s dominance in the manufacturing of chassis and containers in a 2022 report. “This is the first time I have seen such an alignment against China’s maritime dominance,” Bentzel, a Hill veteran who was senior counsel to the Senate’s transportation and commerce committee, including on maritime policy, said Jan. 15. “I’ve never seen this in my entire career.” Contact Mark Szakonyi at <a href="mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

Even before starting his second term, Donald Trump gave the shipping industry a taste of the unpredictability he will inject over the next four years, first by upending longshore labor contract negotiations and then threatening to take over the Panama Canal. Upon taking office Jan. 20, Trump surprised again by holding back on his widely anticipated threat to slap higher tariffs on Chinese goods on his first day back in the White House. Still, he pledged tariffs were on the way during his inauguration speech and has threatened to put them at 100% if a deal over Chinese-owned TikTok isn’t reached. Trump also said that a 25% tariff on goods coming from Canada and Mexico could come as soon as Feb. 1. The tariffs Trump implemented against China during his first four years in office brought some unpredictability to the shipping industry. Section 301 tariffs hit US importers, who frontloaded cargo as they could beat deadlines for the tariffs and ultimately shifted even more manufacturing out of China. Broader escalatory tensions with China, coupled with an emboldened Trump administration, promise an even more volatile second term. Closer to home, Trump injected himself into negotiations between the International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) when he publicly backed the union’s opposition to automation. With that reality hanging over the contract talks, the major carriers and terminal operators that comprise the USMX knew they would only risk the new president’s ire if they dug in on the automation question and a second longshore strike occurred as a result. Trump’s support of prohibitions on automation at marine terminals surprised the shipping industry, as it defied the conventions of traditional Republican support for corporations over unions, Peter Friedmann, executive director of the Agriculture Transportation Coalition, said at a shipping conference in December. “It is simply unprecedented, at least for the last 200 years, for a president so obviously making the policy objectives and decisions on his own, seemingly without input by staff and the federal bureaucracy, and certainly without deference to them,” said Friedmann, who added that the Trump administration was rushing into policy changes rather than coasting the first three months similar to other new administrations. Trump wasted little time in elevating Louis Sola from commissioner to chairman of the Federal Maritime Commission (FMC) just hours after taking the oath of office on Monday. Joe Biden only tapped Daniel Maffei for the chairman role after three months in office. A bid to limit Chinese influence Trump’s threat to take back the Panama Canal over “ridiculous, highly unfair” fees may not ultimately result in US troops swooping in as occurred during the 1989 US invasion to depose Panamanian military leader Manuel Noriega. But it does speak to the president wanting to expand regional control, whether it’s in Greenland — or even more improbably, Canada — to limit Chinese and Russian influence in the Western Hemisphere. In November 2024, China-based Cosco Shipping opened a $1.3 billion mega-terminal in Peru. Cosco created the terminal — a major gateway for the Pacific Coast of South America — in a joint venture with Peruvian miner Volcan, which is owned by Argentina-based Integra Capital. Hutchinson Port Holdings, also China-based, operates a port on each side of the Panama Canal. On the day of Trump’s inauguration, during which he accused China of “operating the critical waterway,” the Panamanian government posted a video on X showing inspectors heading to begin an audit at Hutchinson’s local offices, seemingly a move to placate Trump. The Panama Canal Authority, a government agency, has operated and managed the canal since the United States returned full oversight to the country in 1999. The container shipping industry is second only to the semiconductor industry in the economic and military struggle between China and the United States, said Carl Bentzel, a former FMC commissioner and now president of the National Association of Waterfront Employers. That fuels bipartisan support for shoring up US maritime capacities — ranging from ambitious legislation to expand the US-flag commercial fleet to the Biden administration warning that Chinese-built cranes at US ports pose a cyberthreat, Bentzel told the Journal of Commerce. On Jan. 7, the US Department of Defense published its annual listing of companies that it determines are tied to the Chinese military, revealing the addition of Cosco Shipping. While the designation prevents the US government from contracting with the ocean carrier, it has no impact on Cosco’s ability to serve the US commercial market. On the heels of that designation, the Biden administration announced on Jan. 15 that China was manipulating market policies and practices to support its shipbuilding and shipping equipment production . While an FMC commissioner, Bentzel highlighted China’s dominance in the manufacturing of chassis and containers in a 2022 report. “This is the first time I have seen such an alignment against China’s maritime dominance,” Bentzel, a Hill veteran who was senior counsel to the Senate’s transportation and commerce committee, including on maritime policy, said Jan. 15. “I’ve never seen this in my entire career.” Contact Mark Szakonyi at mark.szakonyi@spglobal.com .

Port News

Transport, Trade and Regulation News

Trans-Pacific

Bolder Trump injects new volatility into container shipping

<div class="phx-topic abstract-wrapper">Officials at Los Angeles and Long Beach say they are prepared to do what is necessary should the new administration target green policies at the ports.</div>

Officials at Los Angeles and Long Beach say they are prepared to do what is necessary should the new administration target green policies at the ports.

<div class="phx-topic">The ports of Los Angeles and Long Beach will continue to implement their green port initiatives — some in place for two decades — should the Trump administration attempt to dilute or eliminate environmental programs at the federal or state levels, officials at both ports say. President Donald Trump wasted no time showing his distaste for green programs, signing an executive order just hours after taking office Monday that begins the process of removing the US from the Paris Agreement. Trump also pulled the US from the climate accord during his first term, a move that was reversed by President Joe Biden. Trump has previously attacked California policies involving emissions reductions from automobiles. The Southern California ports have a similar <a href="https://www.joc.com/article/californias-clean-air-deadlines-unrealistic-without-more-financial-resources-coalition-5215167">Advanced Clean Fleets</a> rule in place for drayage trucks, while they are also working with private sector companies to build a charging network for electric trucks in the harbor district. Officials at Los Angeles and Long Beach say they are prepared to do what is necessary should the new administration target green policies at the ports. “We’ll develop the relationships as necessary among Senate staffers and others in Washington,” Gene Seroka, executive director of the Port of Los Angeles, told the Journal of Commerce Tuesday. Mario Cordero, executive director of the Port of Long Beach, said the port will work with the new administration, agency heads and Congressional representatives to ensure funding and implementation of green initiatives at the Southern California gateway continue unabated. “Obviously we’ll work with the new administration,” Cordero said, adding both ports have worked with Washington since 2005 when the <a href="https://www.joc.com/article/la-lb-clean-air-rules-set-to-become-us-port-industry-norm-5229450">Green Port Initiative</a> was launched at Long Beach and Los Angeles. Federal, state and local grant funding is involved in a number of port-related projects designed to reduce emissions from terminal cargo-handling equipment, drayage trucks and locomotives, and to build the infrastructure needed to support those initiatives. One such project under development is the <a href="https://www.joc.com/article/californias-major-container-ports-get-735-million-in-state-funds-for-upgrades-5245309">Pier B on-dock railyard</a> in Long Beach that will remove hundreds of truck trips each day from local freeways. <h3>Ports point to emissions cuts</h3>The ports this week said they have registered significant reductions in harmful emissions over the past 20 years. Long Beach reported a 92% reduction in diesel particulate matter (DPM), a 71% reduction in nitrogen oxide (NOx), a 98% reduction in sulfur oxide (SOx) and a 17% reduction in greenhouse gas (GHG) emissions from the 2005 baseline year. Los Angeles has registered a 91% reduction in DPM, a 74% reduction in NOx, a 98% reduction in SOx and a 24% reduction in GHG emissions over the same period. Those emissions cuts, meanwhile, come as the ports handled record container volumes in 2024. Long Beach handled 9.6 million laden and empty TEUs, up 20.3% from 2023. Los Angeles says 10.3 million TEUs moved across its docks, up 19.3%. The ports say handling record or near-record container volumes each year while at the same time reducing emissions proves they can grow their cargo base despite implementing environmental policies that some industry players say cap growth. “For those who said a green port wouldn’t be able to compete commercially, the facts show otherwise,” Cordero said. “Let’s have more of both.” Contact Bill Mongelluzzo at <a href="mailto:bill.mongelluzzo@spglobal.com">bill.mongelluzzo@spglobal.com</a>.</div>

The ports of Los Angeles and Long Beach will continue to implement their green port initiatives — some in place for two decades — should the Trump administration attempt to dilute or eliminate environmental programs at the federal or state levels, officials at both ports say. President Donald Trump wasted no time showing his distaste for green programs, signing an executive order just hours after taking office Monday that begins the process of removing the US from the Paris Agreement. Trump also pulled the US from the climate accord during his first term, a move that was reversed by President Joe Biden. Trump has previously attacked California policies involving emissions reductions from automobiles. The Southern California ports have a similar Advanced Clean Fleets rule in place for drayage trucks, while they are also working with private sector companies to build a charging network for electric trucks in the harbor district. Officials at Los Angeles and Long Beach say they are prepared to do what is necessary should the new administration target green policies at the ports. “We’ll develop the relationships as necessary among Senate staffers and others in Washington,” Gene Seroka, executive director of the Port of Los Angeles, told the Journal of Commerce Tuesday. Mario Cordero, executive director of the Port of Long Beach, said the port will work with the new administration, agency heads and Congressional representatives to ensure funding and implementation of green initiatives at the Southern California gateway continue unabated. “Obviously we’ll work with the new administration,” Cordero said, adding both ports have worked with Washington since 2005 when the Green Port Initiative was launched at Long Beach and Los Angeles. Federal, state and local grant funding is involved in a number of port-related projects designed to reduce emissions from terminal cargo-handling equipment, drayage trucks and locomotives, and to build the infrastructure needed to support those initiatives. One such project under development is the Pier B on-dock railyard in Long Beach that will remove hundreds of truck trips each day from local freeways. Ports point to emissions cuts The ports this week said they have registered significant reductions in harmful emissions over the past 20 years. Long Beach reported a 92% reduction in diesel particulate matter (DPM), a 71% reduction in nitrogen oxide (NOx), a 98% reduction in sulfur oxide (SOx) and a 17% reduction in greenhouse gas (GHG) emissions from the 2005 baseline year. Los Angeles has registered a 91% reduction in DPM, a 74% reduction in NOx, a 98% reduction in SOx and a 24% reduction in GHG emissions over the same period. Those emissions cuts, meanwhile, come as the ports handled record container volumes in 2024. Long Beach handled 9.6 million laden and empty TEUs, up 20.3% from 2023. Los Angeles says 10.3 million TEUs moved across its docks, up 19.3%. The ports say handling record or near-record container volumes each year while at the same time reducing emissions proves they can grow their cargo base despite implementing environmental policies that some industry players say cap growth. “For those who said a green port wouldn’t be able to compete commercially, the facts show otherwise,” Cordero said. “Let’s have more of both.” Contact Bill Mongelluzzo at bill.mongelluzzo@spglobal.com .

Port infrastructure

North American ports

Southern California ports ready to defend green initiatives from Trump White House

<div class="phx-topic abstract-wrapper">The ocean carrier made the changes ahead of the launch of its partnership with Hapag-Lloyd, referring shippers to the new alliance’s services as an alternative.</div>

The ocean carrier made the changes ahead of the launch of its partnership with Hapag-Lloyd, referring shippers to the new alliance’s services as an alternative.

<div class="phx-topic">Maersk has removed its standalone express Pacific Northwest service and added a new North Europe service to the Port of Philadelphia. The ocean carrier made the changes ahead of the launch of its Gemini Cooperation partnership with Hapag-Lloyd, referring shippers to the new alliance’s services as an alternative.Maersk told customers this week the TPX service from northern China, South Korea and Japan to the Port of Tacoma will be suspended as of the last January departure from Shanghai. The 3,500-TEU capacity service is being halted as Maersk is “transitioning into the Gemini Cooperation,” the carrier said in an advisory. Rolled out during <a href="https://www.joc.com/maritime-news/container-lines/overbooked-asia-us-trade-gets-three-new-services_20210630.html">the 2021 pandemic container surge</a>, the TPX first called Los Angeles before <a href="https://www.joc.com/article/ocean-carriers-readying-more-capacity-cuts-for-q4-analysts-5203731">it rerouted to the Pacific Northwest in 2022</a>, calling Tacoma’s Husky Terminal along with Alaska’s Dutch Harbor. The TPX suspension leaves Alaska without a direct ocean service to Asia, with Dutch Harbor an important processing center for the state’s fishing industry. Instead, exporters will have to use a US-flag service to Seattle for transshipment to Asia. “We will wind down the service in the coming weeks and continue to connect the concerned areas [excluding Alaska] within Gemini,” Maersk said. Gemini, <a href="https://www.joc.com/article/tpm24-hapag-lloyd-ceo-understands-skepticism-over-gemini-reliability-vow-5241120">the alliance struck with Hapag-Lloyd last year</a>, debuts its services in February, promising shippers that a <a href="https://www.joc.com/article/gemini-cooperation-on-cusp-of-launching-bold-experiment-in-service-networks-5927215">“hub-and-spoke” network</a> can hit high schedule reliability. Gemini will offer two Asia services into the Pacific Northwest, calling Tacoma and the Canadian ports of Vancouver and Prince Rupert. Separately, Maersk said it will start offering a new standalone express trans-Atlantic service called TA5 that will call London, Hamburg, Rotterdam, Antwerp and Philadelphia. The standalone service starts with the February departure of the 2,555-TEU Puerto Limon Express. The TA5 will replace a Philadelphia call from Gemini’s TA3 service, which will instead have a US East Coast rotation that includes Norfolk, along with Newark, Baltimore and Canada’s St John. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com ">michael.angell@spglobal.com</a>.</div>

Maersk has removed its standalone express Pacific Northwest service and added a new North Europe service to the Port of Philadelphia. The ocean carrier made the changes ahead of the launch of its Gemini Cooperation partnership with Hapag-Lloyd, referring shippers to the new alliance’s services as an alternative. Maersk told customers this week the TPX service from northern China, South Korea and Japan to the Port of Tacoma will be suspended as of the last January departure from Shanghai. The 3,500-TEU capacity service is being halted as Maersk is “transitioning into the Gemini Cooperation,” the carrier said in an advisory. Rolled out during the 2021 pandemic container surge , the TPX first called Los Angeles before it rerouted to the Pacific Northwest in 2022 , calling Tacoma’s Husky Terminal along with Alaska’s Dutch Harbor. The TPX suspension leaves Alaska without a direct ocean service to Asia, with Dutch Harbor an important processing center for the state’s fishing industry. Instead, exporters will have to use a US-flag service to Seattle for transshipment to Asia. “We will wind down the service in the coming weeks and continue to connect the concerned areas [excluding Alaska] within Gemini,” Maersk said. Gemini, the alliance struck with Hapag-Lloyd last year , debuts its services in February, promising shippers that a “hub-and-spoke” network can hit high schedule reliability. Gemini will offer two Asia services into the Pacific Northwest, calling Tacoma and the Canadian ports of Vancouver and Prince Rupert. Separately, Maersk said it will start offering a new standalone express trans-Atlantic service called TA5 that will call London, Hamburg, Rotterdam, Antwerp and Philadelphia. The standalone service starts with the February departure of the 2,555-TEU Puerto Limon Express. The TA5 will replace a Philadelphia call from Gemini’s TA3 service, which will instead have a US East Coast rotation that includes Norfolk, along with Newark, Baltimore and Canada’s St John. Contact Michael Angell at michael.angell@spglobal.com .

Trans-Atlantic

Maersk rejigs standalone services ahead of Gemini Cooperation launch

<div class="phx-topic abstract-wrapper">New services entered the trade last year amid elevated rates and high demand, but a seasonal lull is putting pressure on prices with plentiful space now on the lane.</div>

New services entered the trade last year amid elevated rates and high demand, but a seasonal lull is putting pressure on prices with plentiful space now on the lane.

<div class="phx-topic">Correction: The trade capacity increase was corrected to 381%.Spot rates on the East Coast South America-to-US lane are in fast retreat this month after they hit record highs in the 2024 fourth quarter, driven by heavy volumes that drew fresh capacity to the trade.Rates were at $4,300 per FEU as of Jan. 21, according to Platts, a sister company of the Journal of Commerce within S&amp;P Global, having fallen $1,000 since Jan. 1. That comes after prices were at an all-time high of $5,800 per FEU in November.“The demand has dropped a little, so the vessels are not so full anymore and the rates are dropping,” said Marcelo Machado, a freight forwarder at CSS Logistics in Brazil.The demand decline is in line with traditional market patterns, but the spot rate reductions — which have been unusually fast and dramatic — have set the stage for a potential shift in market dynamics. Prior to this month’s bear market, the ECSA-US trade saw a 381% increase in capacity from carriers in the fourth quarter, according to data prepared for the Journal of Commerce by UK-based transport consultancy MDS Transmodal. That capacity injection materialized through two new North-South services running in the fourth quarter, a significant jump from the solo service on the trade in the fourth quarter of 2023. Vessel sizes have also increased, with the average ship size on the lane 63% larger last quarter than a year ago, according to MDS data. Despite the recent rate decline, trade on the ECSA-US lane appears strong overall. Brazilian exports to the US hit $40.3 billion in 2024, surpassing the $40 billion mark for the first time, according to the January Brazil-US Trade Monitor, a quarterly publication by AMCHAM Brasil, which is the American Chamber of Commerce for Brazil. US imports from Brazil boasted an 11% year-over-year jump in 2024, according to PIERS, a sister company of the Journal of Commerce within S&amp;P Global. That increase is even more impressive considering a 0.8% decrease in Brazil’s total annual exports last year, per AMCHAM figures.According to Abrão Neto, CEO of AMCHAM Brasil, the US is still Brazil’s main destination for exports, with a record $31.6 billion in industrial goods in 2024. Neto, quoted in the AMCHAM publication, said Brazil-US trade flows are expected to “remain robust in 2025, close to the highest levels in [the] recent historical series.“However, it is crucial to monitor the high international uncertainties,” he said.Contact Laura Robb at <a href="mailto:laura.robb@spglobal.com">laura.robb@spglobal.com</a>. </div>

Correction: The trade capacity increase was corrected to 381%. Spot rates on the East Coast South America-to-US lane are in fast retreat this month after they hit record highs in the 2024 fourth quarter, driven by heavy volumes that drew fresh capacity to the trade. Rates were at $4,300 per FEU as of Jan. 21, according to Platts, a sister company of the Journal of Commerce within S&P Global, having fallen $1,000 since Jan. 1. That comes after prices were at an all-time high of $5,800 per FEU in November. “The demand has dropped a little, so the vessels are not so full anymore and the rates are dropping,” said Marcelo Machado, a freight forwarder at CSS Logistics in Brazil. The demand decline is in line with traditional market patterns, but the spot rate reductions — which have been unusually fast and dramatic — have set the stage for a potential shift in market dynamics. Prior to this month’s bear market, the ECSA-US trade saw a 381% increase in capacity from carriers in the fourth quarter, according to data prepared for the Journal of Commerce by UK-based transport consultancy MDS Transmodal. That capacity injection materialized through two new North-South services running in the fourth quarter, a significant jump from the solo service on the trade in the fourth quarter of 2023. Vessel sizes have also increased, with the average ship size on the lane 63% larger last quarter than a year ago, according to MDS data. Despite the recent rate decline, trade on the ECSA-US lane appears strong overall. Brazilian exports to the US hit $40.3 billion in 2024, surpassing the $40 billion mark for the first time, according to the January Brazil-US Trade Monitor, a quarterly publication by AMCHAM Brasil, which is the American Chamber of Commerce for Brazil. US imports from Brazil boasted an 11% year-over-year jump in 2024, according to PIERS, a sister company of the Journal of Commerce within S&P Global. That increase is even more impressive considering a 0.8% decrease in Brazil’s total annual exports last year, per AMCHAM figures. According to Abrão Neto, CEO of AMCHAM Brasil, the US is still Brazil’s main destination for exports, with a record $31.6 billion in industrial goods in 2024. Neto, quoted in the AMCHAM publication, said Brazil-US trade flows are expected to “remain robust in 2025, close to the highest levels in [the] recent historical series. “However, it is crucial to monitor the high international uncertainties,” he said. Contact Laura Robb at laura.robb@spglobal.com .

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ECSA-US spot rates weaken rapidly after hitting record high in Q4

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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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