<div class="phx-topic abstract-wrapper">The pointed sentiments expressed recently by the ILA are a departure from the low-key, business-like approach to prior negotiations along the East and Gulf coasts, and thus unfamiliar to shippers trying to weigh the risks of labor strife, writes Peter Tirschwell.</div>

The pointed sentiments expressed recently by the ILA are a departure from the low-key, business-like approach to prior negotiations along the East and Gulf coasts, and thus unfamiliar to shippers trying to weigh the risks of labor strife, writes Peter Tirschwell.

3688140_FI.jpg

<div>Nearly a half century of labor peace on the US East and Gulf coasts has been thrown into doubt with <a>negotiations canceled on June 10</a> by the International Longshoremen’s Association (ILA) as the clock ticks down to the expiration of the current contract on Sept. 30.<div><img></div>Unlike West Coast dockworkers, who worked for more than a year in 2022 and 2023 without a contract as a new deal was negotiated, <a>the ILA says it will not work if no contract is in place</a>&nbsp;— a possibility some longtime management sources contacted by the Journal of Commerce say they are taking seriously.&nbsp;&nbsp;The union...

Nearly a half century of labor peace on the US East and Gulf coasts has been thrown into doubt with negotiations canceled on June 10 by the International Longshoremen’s Association (ILA) as the clock ticks down to the expiration of the current contract on Sept. 30. Unlike West Coast dockworkers, who worked for more than a year in 2022 and 2023 without a contract as a new deal was negotiated, the ILA says it will not work if no contract is in place  — a possibility some longtime management sources contacted by the Journal of Commerce say they are taking seriously.   The union has thus ratcheted up pressure on the ocean carriers that dominate the United States Maritime Alliance (USMX), the employer group, to agree to robust wage increases the union feels it’s entitled to given the all-time high profits earned by container lines during the pandemic.   Although the ILA’s rationale for calling off future talks was its allegation that APM Terminals in Mobile utilized technology in violation of the current contract, a charge APMT rejected, the fate of the negotiations will hang on wages.   “The union views this current Master Contract negotiations with (USMX) as a pivotal moment for them, knowing that the member companies who employ ILA labor have made massive profits in recent years, while failing to reward the workforce responsible for these gains,” the ILA said in a statement on June 12.  “When negotiations resume, the union expects to demand salaries and other benefits for ILA members that are as lucrative as the profits of USMX member companies,” the union said. “The threat of a coast-wide strike on Oct. 1, 2024, is becoming more likely.”  Such words are a sharp departure from the low-key, business-like approach to prior East and Gulf coast negotiations, and thus unfamiliar to shippers trying to weigh the risks.   Shippers who have come to trust labor to keep the peace at ports such as Houston, Savannah, Virginia and New York-New Jersey, among others, are now forced to consider alternative gateways such as Los Angeles-Long Beach.   But West Coast routing options are limited by the current surge in import volumes combined with inadequate vessel and container equipment capacity, which has led to spot rates in the eastbound trans-Pacific to triple to over $7,000 per 40-foot container since mid-April. Presidential politics in the mix  The paradigm is a new one. As of earlier this year, it was understood that the ILA wage levels would be benchmarked off the increase obtained by the International Longshore and Warehouse Union (ILWU) in its negotiations concluded last year.  But the position of the ILA now is an implicit rejection of that construct; the 32% wage increase obtained by the ILWU was far lower than the doubling of wage levels the union was seeking before it accepted a lower increase after intervention by the Biden administration.  That scenario is unlikely to be repeated on the East and Gulf coasts. It’s an open question whether President Joe Biden will be able to exert the same level of influence on the ILA. For example, as an unabashedly pro-union president — the first president to walk on a picket line — it would be almost inconceivable for him to force the ILA back to work through a Taft-Hartley injunction, which was last used by George W. Bush in 2002.   The ILA endorsed Biden in March of 2020, but has yet to issue an endorsement in the current race, even though it has traditionally backed Democratic candidates. ILA President Harold Daggett met with former president Donald Trump earlier this year.  It’s possible to envision how events could unfold. In the last weeks of the presidential campaign, Biden will not want to see a strike affecting the 43% of US imports that move through East and Gulf coast ports.   Biden’s personal intervention in port congestion issues during the pandemic showed the political liability he faces from clogged up ports and its association in the popular imagination with inflation, one of his chief liabilities.  The ILA would point the finger at the carriers for holding up the negotiations, an argument that Biden would likely be receptive to given that he had no problem blaming carriers for the pandemic disruption (remember “I’d like to pop them”?). Carriers will be hard pressed to respond convincingly given that high rates and profits have reappeared over the past eight weeks .  Moreover, when interacting with US longshore labor, ocean carriers over many years have capitulated to union demands based on a desire to keep cargo, ships and other assets flowing, leading to the six-figure incomes enjoyed by full-time dockworkers.   One thing is clear: The risks associated with East and Gulf ports have gone up exponentially.  Contact Peter Tirschwell at  peter.tirschwell@spglobal.com .       

Container lines

North American ports

Longshore labor

Maritime

ILA contract rhetoric turns up heat as uncomfortable summer begins for shippers

<div class="phx-topic abstract-wrapper">The number of unique services on routes navigating through Houthi-controlled waters has doubled since the third quarter of last year, according to data from eeSea, as carriers who do not call Israel feel growing comfort sailing the Bab-el-Mandeb Strait.</div>

The number of unique services on routes navigating through Houthi-controlled waters has doubled since the third quarter of last year, according to data from eeSea, as carriers who do not call Israel feel growing comfort sailing the Bab-el-Mandeb Strait.

Feature image

<div class="phx-topic">The Red Sea is seeing “a quiet revival” in shipping services as regional carriers steadily add capacity to vessel strings passing through the Houthi-controlled Bab-el-Mandeb Strait, according to ocean visibility provider eeSea. Some are Asia-Europe services passing through the Suez Canal while others are regional services calling at Red Sea ports such as Jeddah, Destine Ozuygur, chief analyst at eeSea, said in a market update. “The number of unique service versions on this trade has doubled since Q3 2024, when there was an average of eight services on any given month,” Ozuygur said. “This gradual comeback now boasts 16 services, and a 54% year-to-date planned capacity increase that is set to peak at 104,000 TEUs of proforma capacity in August.” Many of the services are operated by carriers from China or those based in the Middle East or India that serve the Asia-Middle East trade lane with small- to medium-sized vessels. The Red Sea has effectively been out of bounds since December 2023 when Yemen’s Houthi militants began attacking commercial shipping passing through the narrow Bab-el-Mandeb Strait at the southern entrance to the Red Sea as a show of solidarity for Gaza amid the Israel-Hamas war. Major carriers on the Asia-Europe and Asia-US East Coast trade lanes were then forced to reroute ships around the Cape of Good Hope in southern Africa, which has absorbed an estimated 10% of global capacity and extended transit times by two weeks. Most of the carriers on the Asia-Middle East trade and those passing through the Red Sea en route to Europe do not make calls to Israel on any of their strings, regardless of trade lane, “so that probably lends them confidence” to sail through Houthi-controlled waters, Ozuygur said. After no attacks on shipping were reported since this past December, pressure was beginning to build on the major container shipping companies to return to Red Sea transits. However, in July two bulk carriers were attacked and sunk, killing three crew and leaving 11 missing, effectively <a href="https://www.joc.com/article/new-houthi-attacks-likely-kill-hopes-of-shipping-returning-to-red-sea-this-year-6040923">ending any chance of a Red Sea return this year</a>. CMA CGM has some services operating in the Red Sea, but group CFO Ramon Fernandez told the Journal of Commerce last week that security in the region was strictly monitored. “We have a constant position here, which is that vessels will pass the Bab-al-Mandab Strait when security conditions are met,” he said. “That means security for the crew, security for the vessel and for the cargo. “We have some vessels going through when these conditions are met, and for the rest of the fleet must go around the Cape of Good Hope,” Fernandez added. “This is a constant policy the group has followed since the early days of last year.” <h3>Navigating dangerous waters </h3>Of the Asia-Europe services that continue to operate through the strait and the Suez Canal, 39% call ports outside the East Mediterranean and 33% make direct calls to Russian ports, according to eeSea. “A score of new or improved services announced as recently as Q2 2025 are not restricted to regional carriers alone,” Ozuygur noted. She outlined some of the services that are currently sailing through the Houthi-controlled waterway. A China United Lines extra loader is scheduled to begin operations in the last week of August that will complement the carrier’s Red Sea Service (REX) that began in December 2023. Cosco increased the frequency of the RES2 service operated alongside PIL since March 2024 from a 12-day to a weekly service with the addition of three more sailings at the end of April. Cosco also introduced an additional RES1 service in early May, partnering with OOCL and currently operating with three general cargo vessels. Hong Kong-based Kawa Shipping operates the China-Europe Express (CEX) service between Ningbo and Wilhelmshaven in Germany through the Red Sea that was launched in 2023. In June, its Eastern Mediterranean Express (EMX) service covering the Red Sea, Egypt and Turkey was expanded with the addition of four more vessels. Taiwanese carrier Wan Hai Lines will double the number of vessels on its AR2 service to eight later this month, while increasing the sailing frequency from every 14 days to seven days. India-based Sea Legend Shipping introduced their Asia-Red Sea service in mid-June with three of nine available vessels currently providing voyages. Dubai’s CStar Lines began their China-Red Sea services FRS1, FRS1-X, and FRS2 in May and June, and Singapore headquartered SeaLead Shipping recently reinstated its China-Red Sea (CRS) service, which has not been operational since December 2022. Carriers in the Ocean Alliance — CMA CGM, Cosco, OOCL and Evergreen — operate the MED5 service via the Suez Canal to connect Asia to its Mediterranean network. “While the Asia-Europe trade has largely suffered from longer transit times and increased CO2 emissions tied to military conflict in the zone, the secondary Asia- Middle East trade serving the Red Sea is finally witnessing a quiet revival,” Ozuygur said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The Red Sea is seeing “a quiet revival” in shipping services as regional carriers steadily add capacity to vessel strings passing through the Houthi-controlled Bab-el-Mandeb Strait, according to ocean visibility provider eeSea. Some are Asia-Europe services passing through the Suez Canal while others are regional services calling at Red Sea ports such as Jeddah, Destine Ozuygur, chief analyst at eeSea, said in a market update. “The number of unique service versions on this trade has doubled since Q3 2024, when there was an average of eight services on any given month,” Ozuygur said. “This gradual comeback now boasts 16 services, and a 54% year-to-date planned capacity increase that is set to peak at 104,000 TEUs of proforma capacity in August.” Many of the services are operated by carriers from China or those based in the Middle East or India that serve the Asia-Middle East trade lane with small- to medium-sized vessels. The Red Sea has effectively been out of bounds since December 2023 when Yemen’s Houthi militants began attacking commercial shipping passing through the narrow Bab-el-Mandeb Strait at the southern entrance to the Red Sea as a show of solidarity for Gaza amid the Israel-Hamas war. Major carriers on the Asia-Europe and Asia-US East Coast trade lanes were then forced to reroute ships around the Cape of Good Hope in southern Africa, which has absorbed an estimated 10% of global capacity and extended transit times by two weeks. Most of the carriers on the Asia-Middle East trade and those passing through the Red Sea en route to Europe do not make calls to Israel on any of their strings, regardless of trade lane, “so that probably lends them confidence” to sail through Houthi-controlled waters, Ozuygur said. After no attacks on shipping were reported since this past December, pressure was beginning to build on the major container shipping companies to return to Red Sea transits. However, in July two bulk carriers were attacked and sunk, killing three crew and leaving 11 missing, effectively ending any chance of a Red Sea return this year . CMA CGM has some services operating in the Red Sea, but group CFO Ramon Fernandez told the Journal of Commerce last week that security in the region was strictly monitored. “We have a constant position here, which is that vessels will pass the Bab-al-Mandab Strait when security conditions are met,” he said. “That means security for the crew, security for the vessel and for the cargo. “We have some vessels going through when these conditions are met, and for the rest of the fleet must go around the Cape of Good Hope,” Fernandez added. “This is a constant policy the group has followed since the early days of last year.” Navigating dangerous waters Of the Asia-Europe services that continue to operate through the strait and the Suez Canal, 39% call ports outside the East Mediterranean and 33% make direct calls to Russian ports, according to eeSea. “A score of new or improved services announced as recently as Q2 2025 are not restricted to regional carriers alone,” Ozuygur noted. She outlined some of the services that are currently sailing through the Houthi-controlled waterway. A China United Lines extra loader is scheduled to begin operations in the last week of August that will complement the carrier’s Red Sea Service (REX) that began in December 2023. Cosco increased the frequency of the RES2 service operated alongside PIL since March 2024 from a 12-day to a weekly service with the addition of three more sailings at the end of April. Cosco also introduced an additional RES1 service in early May, partnering with OOCL and currently operating with three general cargo vessels. Hong Kong-based Kawa Shipping operates the China-Europe Express (CEX) service between Ningbo and Wilhelmshaven in Germany through the Red Sea that was launched in 2023. In June, its Eastern Mediterranean Express (EMX) service covering the Red Sea, Egypt and Turkey was expanded with the addition of four more vessels. Taiwanese carrier Wan Hai Lines will double the number of vessels on its AR2 service to eight later this month, while increasing the sailing frequency from every 14 days to seven days. India-based Sea Legend Shipping introduced their Asia-Red Sea service in mid-June with three of nine available vessels currently providing voyages. Dubai’s CStar Lines began their China-Red Sea services FRS1, FRS1-X, and FRS2 in May and June, and Singapore headquartered SeaLead Shipping recently reinstated its China-Red Sea (CRS) service, which has not been operational since December 2022. Carriers in the Ocean Alliance — CMA CGM, Cosco, OOCL and Evergreen — operate the MED5 service via the Suez Canal to connect Asia to its Mediterranean network. “While the Asia-Europe trade has largely suffered from longer transit times and increased CO2 emissions tied to military conflict in the zone, the secondary Asia- Middle East trade serving the Red Sea is finally witnessing a quiet revival,” Ozuygur said. Contact Greg Knowler at greg.knowler@spglobal.com .

Container Shipping News

Asia-Europe

Red Sea ‘revival’ taking place as regional carriers lead the way

<div class="phx-topic abstract-wrapper">A resurgence of nuclear projects in the US should provide a steady stream of project cargo work through the end of the decade. </div>

A resurgence of nuclear projects in the US should provide a steady stream of project cargo work through the end of the decade.

<div class="phx-topic">After decades of relatively dormant development, the nuclear industry is in comeback mode, as the US looks to develop large-scale, low-carbon energy sources to feed power-hungry technologies like artificial intelligence (AI) and the energy-intensive production of smartphone microchips. That development could significantly power up breakbulk and project cargo activity over the next decade. To support the varying stages of the nuclear fuel cycle, policy changes and investments are lining up for the US to execute an extensive buildout or new and redeveloped power plants, reactors, mines and enrichment facilities. The second Trump administration has shifted national energy policy to prioritize fossil fuels over renewable energy sources. But that shift has also included a heavy focus on nuclear. After declaring a national energy emergency upon taking office, Trump issued a flurry of executive orders in May targeted at reinvigorating the US nuclear energy industry and its supply chain. The orders called for quadrupling domestic nuclear capacity to 400 gigawatts (GW) by 2050 and having 10 large reactors under construction in the US by 2030. Jack Britt, senior director of fuel and radiation safety at the Nuclear Energy Institute in Washington, D.C., told the Journal of Commerce that the US push to rebuild its nuclear fuel supply chain has renewed investments in domestic uranium production, conversion and enrichment. “These efforts require major infrastructure,” Britt said. He cited active projects, including the restart of Honeywell’s Metropolis Works conversion facility in Illinois and expanded enrichment activity at the American Centrifuge Plant in Ohio, where Centrus Energy has begun producing high-assay, low-enriched uranium (HALEU) for advanced reactors. “That investment is likely to drive increased activity across the supply chain, including manufacturing, shipping and other services that support nuclear development and deployment,” Britt said. Recharging the US nuclear industry has received broad bipartisan support as a means to generate massive amounts of power consistently, and with little to no carbon emissions. Kim Casey, investor relations manager for US uranium provider Energy Fuels, told the Journal of Commerce that those advantages — along with the rapidly growing energy demands of expansive AI data centers and chip-powered modern technologies — are positioning nuclear as an attractive energy option. “There’s some excitement that nuclear energy is going to fill a gap, because everybody wants to use their phones,” she said. “Everybody wants their data, and they want it now.” <h3>Plant potential for project cargo </h3>The US nuclear industry is coming full circle for Edlow International Company, which has provided global nuclear and radioactive transport since 1957. President Jack Edlow told the Journal of Commerce that when he entered the industry over 50 years ago, most of the world’s uranium was produced, enriched and converted into nuclear fuel in the US. “Now, it’s pretty much the opposite,” he said. “This gives us an opportunity to reconstitute our industry and go back into the world market with US uranium conversion, enrichment and reactor designs, and I’m hopeful that’s what’s going to happen over the next five to 10 years.” Edlow said a significant opportunity for breakbulk and project cargo will come from the development of facilities to enrich processed uranium so it can become fuel for power plants. Nearly all of the enriched uranium the US relies on is imported, and Urenco USA’s centrifuge enrichment plant in New Mexico is the only commercially operating enrichment plant in the US. “New enrichment plants will be big for cargo,” Edlow said. “Those are huge components weighing hundreds of tons each that will come in.” A handful of projects are in the works and could cost $5 billion to $8 billion, depending on their size, Edlow said. “They will require a lot of equipment and time to build,” he said. “You’re probably looking at four years or more to get large-scale capacity.” Among those projects, nuclear supplier Orano USA is developing a multibillion-dollar uranium enrichment facility in Tennessee. In May, Urenco began production at the first phase of an expansion that will increase its New Mexico plant’s capacity by 15% by 2027. And in April, BWX Technologies Inc. (BWXT) acquired 97 acres of land to develop a centrifuge manufacturing facility to support uranium enrichment. Another key source of project cargo would be the development of nuclear plants and reactors. According to the World Nuclear Association (WNA), there are 94 operating reactors in the US, but 41 that have been shut down over the years. Although no new reactors are currently under construction in the US, 21 have been proposed, according to the WNA. A potential growth area for project development is advanced small modular reactors, or SMRs. Whereas traditional nuclear reactors can cost billions and take decades to build, SMRs would consist of modular components that can be delivered and assembled onsite. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com</a>. </div>

After decades of relatively dormant development, the nuclear industry is in comeback mode, as the US looks to develop large-scale, low-carbon energy sources to feed power-hungry technologies like artificial intelligence (AI) and the energy-intensive production of smartphone microchips. That development could significantly power up breakbulk and project cargo activity over the next decade. To support the varying stages of the nuclear fuel cycle, policy changes and investments are lining up for the US to execute an extensive buildout or new and redeveloped power plants, reactors, mines and enrichment facilities. The second Trump administration has shifted national energy policy to prioritize fossil fuels over renewable energy sources. But that shift has also included a heavy focus on nuclear. After declaring a national energy emergency upon taking office, Trump issued a flurry of executive orders in May targeted at reinvigorating the US nuclear energy industry and its supply chain. The orders called for quadrupling domestic nuclear capacity to 400 gigawatts (GW) by 2050 and having 10 large reactors under construction in the US by 2030. Jack Britt, senior director of fuel and radiation safety at the Nuclear Energy Institute in Washington, D.C., told the Journal of Commerce that the US push to rebuild its nuclear fuel supply chain has renewed investments in domestic uranium production, conversion and enrichment. “These efforts require major infrastructure,” Britt said. He cited active projects, including the restart of Honeywell’s Metropolis Works conversion facility in Illinois and expanded enrichment activity at the American Centrifuge Plant in Ohio, where Centrus Energy has begun producing high-assay, low-enriched uranium (HALEU) for advanced reactors. “That investment is likely to drive increased activity across the supply chain, including manufacturing, shipping and other services that support nuclear development and deployment,” Britt said. Recharging the US nuclear industry has received broad bipartisan support as a means to generate massive amounts of power consistently, and with little to no carbon emissions. Kim Casey, investor relations manager for US uranium provider Energy Fuels, told the Journal of Commerce that those advantages — along with the rapidly growing energy demands of expansive AI data centers and chip-powered modern technologies — are positioning nuclear as an attractive energy option. “There’s some excitement that nuclear energy is going to fill a gap, because everybody wants to use their phones,” she said. “Everybody wants their data, and they want it now.” Plant potential for project cargo The US nuclear industry is coming full circle for Edlow International Company, which has provided global nuclear and radioactive transport since 1957. President Jack Edlow told the Journal of Commerce that when he entered the industry over 50 years ago, most of the world’s uranium was produced, enriched and converted into nuclear fuel in the US. “Now, it’s pretty much the opposite,” he said. “This gives us an opportunity to reconstitute our industry and go back into the world market with US uranium conversion, enrichment and reactor designs, and I’m hopeful that’s what’s going to happen over the next five to 10 years.” Edlow said a significant opportunity for breakbulk and project cargo will come from the development of facilities to enrich processed uranium so it can become fuel for power plants. Nearly all of the enriched uranium the US relies on is imported, and Urenco USA’s centrifuge enrichment plant in New Mexico is the only commercially operating enrichment plant in the US. “New enrichment plants will be big for cargo,” Edlow said. “Those are huge components weighing hundreds of tons each that will come in.” A handful of projects are in the works and could cost $5 billion to $8 billion, depending on their size, Edlow said. “They will require a lot of equipment and time to build,” he said. “You’re probably looking at four years or more to get large-scale capacity.” Among those projects, nuclear supplier Orano USA is developing a multibillion-dollar uranium enrichment facility in Tennessee. In May, Urenco began production at the first phase of an expansion that will increase its New Mexico plant’s capacity by 15% by 2027. And in April, BWX Technologies Inc. (BWXT) acquired 97 acres of land to develop a centrifuge manufacturing facility to support uranium enrichment. Another key source of project cargo would be the development of nuclear plants and reactors. According to the World Nuclear Association (WNA), there are 94 operating reactors in the US, but 41 that have been shut down over the years. Although no new reactors are currently under construction in the US, 21 have been proposed, according to the WNA. A potential growth area for project development is advanced small modular reactors, or SMRs. Whereas traditional nuclear reactors can cost billions and take decades to build, SMRs would consist of modular components that can be delivered and assembled onsite. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com .

Energy projects

Project cargo

Breakbulk News

US policy, investments line up for project cargo-dependent nuclear buildout

<div class="phx-topic abstract-wrapper">Ports say they stand to lose about $1 billion in funding for maintenance work because the US Army Corps of Engineers’ budget is not treating so-called donor ports equally. </div>

Ports say they stand to lose about $1 billion in funding for maintenance work because the US Army Corps of Engineers’ budget is not treating so-called donor ports equally.

<div class="phx-topic">US port officials say they could be shortchanged about $1 billion for dredging and maintenance projects because the current budget for the US Army Corps of Engineers does not follow through on a 2020 law aimed at more equal distribution of the fees importers pay for maintaining US harbors.In a letter sent Thursday to a joint Congressional committee on energy and water, the American Association of Port Authorities (AAPA), along with the directors of 22 ports, said the Corps fiscal year 2025 budget allocation for dredging and other maintenance does not adhere to a provision of the Water Resources Development Act of 2020 (WRDA 2020).That provision allocated 10% of the Harbor Maintenance Trust Fund (HMTF) to “donor ports.” Due to their size, donor ports have contributed over 50% of the monies to the HMTF, funded through a 0.125% fee on goods movements, but receive less than 2% of that back for maintenance projects, the AAPA said. “Ports need consistent and predictable funding to plan and execute the billions in additional expanded use projects in their pipelines,” the group said.The AAPA said the specified allocation to donor ports resulted in $332 million of extra funding for dredging and maintenance during fiscal year 2024. Donor ports expected to receive a similar amount in the Army Corps’ fiscal year 2025 work plan, which totals $5.5 billion, but it was not included. The AAPA said that maintenance projects begun in 2024 may stall due to the lack of funding in the 2025 budget. Ports share the cost of dredging and maintenance with the Army Corps, so they will have to make up any difference.With the fiscal year 2026 appropriations for the Army Corps now being drawn up, the concern is that it will also not include the required funding for donor ports. The AAPA said it wants Congress to expressly set aside about $480 million in the next appropriations process for the Army Corps to ensure donor ports get their fair share. How the HMTF us disbursed has been a long-standing issue among donor ports. West Coast ports, which were the first to benefit from containerization, were concerned about East Coast ports receiving an outsize share of the HMTF relative to their size. In 1982, then-American Association of Port Authorities President J. Ron Brinson built an expensive headquarters building in Alexandria, Va., <a href="https://www.joc.com/article/dredging-for-dollars-5232988">in a pre-emptive move to keep the group from being torn apart by the new HMTF</a>. Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

US port officials say they could be shortchanged about $1 billion for dredging and maintenance projects because the current budget for the US Army Corps of Engineers does not follow through on a 2020 law aimed at more equal distribution of the fees importers pay for maintaining US harbors. In a letter sent Thursday to a joint Congressional committee on energy and water, the American Association of Port Authorities (AAPA), along with the directors of 22 ports, said the Corps fiscal year 2025 budget allocation for dredging and other maintenance does not adhere to a provision of the Water Resources Development Act of 2020 (WRDA 2020). That provision allocated 10% of the Harbor Maintenance Trust Fund (HMTF) to “donor ports.” Due to their size, donor ports have contributed over 50% of the monies to the HMTF, funded through a 0.125% fee on goods movements, but receive less than 2% of that back for maintenance projects, the AAPA said. “Ports need consistent and predictable funding to plan and execute the billions in additional expanded use projects in their pipelines,” the group said. The AAPA said the specified allocation to donor ports resulted in $332 million of extra funding for dredging and maintenance during fiscal year 2024. Donor ports expected to receive a similar amount in the Army Corps’ fiscal year 2025 work plan, which totals $5.5 billion, but it was not included. The AAPA said that maintenance projects begun in 2024 may stall due to the lack of funding in the 2025 budget. Ports share the cost of dredging and maintenance with the Army Corps, so they will have to make up any difference. With the fiscal year 2026 appropriations for the Army Corps now being drawn up, the concern is that it will also not include the required funding for donor ports. The AAPA said it wants Congress to expressly set aside about $480 million in the next appropriations process for the Army Corps to ensure donor ports get their fair share. How the HMTF us disbursed has been a long-standing issue among donor ports. West Coast ports, which were the first to benefit from containerization, were concerned about East Coast ports receiving an outsize share of the HMTF relative to their size. In 1982, then-American Association of Port Authorities President J. Ron Brinson built an expensive headquarters building in Alexandria, Va., in a pre-emptive move to keep the group from being torn apart by the new HMTF . Contact Michael Angell at michael.angell@spglobal.com .

Port infrastructure

Transport, Trade and Regulation News

Big US ports ask Congress to follow law for equal funding of dredging work

<div class="phx-topic abstract-wrapper">The sanctions list targets the shipping interests of Mohammad Hossein Shamkhani, son of Ali Shamkhani, a political adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei.</div>

The sanctions list targets the shipping interests of Mohammad Hossein Shamkhani, son of Ali Shamkhani, a political adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei.

<div class="phx-topic">Singapore-based ocean carrier SeaLead is terminating the charters of 16 vessels after the US Department of the Treasury sanctioned the fast-growth container line for links to the Iranian government. A slew of fresh sanctions on 115 Iran-linked individuals and their business interests was unveiled by the Treasury Department’s Office of Foreign Asset Control (OFAC) this week, impacting 22 container ships. Sixteen of those 22 sanctioned vessels were chartered by SeaLead. According to Alphaliner, SeaLead is the 13th-largest liner operator in the world. The charter terminations will effectively reduce the carrier’s fleet by one-third, removing 16 of the liner’s 53 ships. Of those 53 ships, Alphaliner shows SeaLead owns two and charters the remaining 51. “The company maintains full compliance with applicable sanctions laws and regulatory requirements,” SeaLead said in a statement Thursday in which it confirmed the contract termination of the sanctioned vessels. The sanctions list, which OFAC said is its largest Iran-related sanction action since 2018, targets the shipping interests of Mohammad Hossein Shamkhani, son of Ali Shamkhani, a political adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei. “The Shamkhani family’s shipping empire highlights how the Iranian regime elites leverage their positions to accrue massive wealth and fund the regime’s dangerous behavior,” Treasury Secretary Scott Bessent said a statement from OFAC.  The 16 vessels include Ale, Bertie, Bigli, Hakuna Matata, Lidia, Moana, Pinocchio, Pumba, Rantanplan, Simba, Star, Tex, Timon, Yogi, Zagor and Ace, SeaLead told the Journal of Commerce. Contact Laura Robb at <a href="mailto:Laura.Robb@spglobal.com">laura.robb@spglobal.com</a>.  </div>

Singapore-based ocean carrier SeaLead is terminating the charters of 16 vessels after the US Department of the Treasury sanctioned the fast-growth container line for links to the Iranian government. A slew of fresh sanctions on 115 Iran-linked individuals and their business interests was unveiled by the Treasury Department’s Office of Foreign Asset Control (OFAC) this week, impacting 22 container ships. Sixteen of those 22 sanctioned vessels were chartered by SeaLead. According to Alphaliner, SeaLead is the 13th-largest liner operator in the world. The charter terminations will effectively reduce the carrier’s fleet by one-third, removing 16 of the liner’s 53 ships. Of those 53 ships, Alphaliner shows SeaLead owns two and charters the remaining 51. “The company maintains full compliance with applicable sanctions laws and regulatory requirements,” SeaLead said in a statement Thursday in which it confirmed the contract termination of the sanctioned vessels. The sanctions list, which OFAC said is its largest Iran-related sanction action since 2018, targets the shipping interests of Mohammad Hossein Shamkhani, son of Ali Shamkhani, a political adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei. “The Shamkhani family’s shipping empire highlights how the Iranian regime elites leverage their positions to accrue massive wealth and fund the regime’s dangerous behavior,” Treasury Secretary Scott Bessent said a statement from OFAC.  The 16 vessels include Ale, Bertie, Bigli, Hakuna Matata, Lidia, Moana, Pinocchio, Pumba, Rantanplan, Simba, Star, Tex, Timon, Yogi, Zagor and Ace, SeaLead told the Journal of Commerce. Contact Laura Robb at laura.robb@spglobal.com . 

New US sanctions on Iran cut SeaLead’s vessel fleet by one-third

<div class="phx-topic abstract-wrapper">The trans-Pacific carrier said China volumes were whipsawed by the Trump administration’s trade policy, with shippers likely to slow their ordering during the third quarter.</div>

The trans-Pacific carrier said China volumes were whipsawed by the Trump administration’s trade policy, with shippers likely to slow their ordering during the third quarter.

<div class="phx-topic">US-based ocean carrier Matson saw its trans-Pacific container business drop during the second quarter as volatile US tariff policy prompted customers to pause and then quickly resume shipments. The carrier expects volumes and rates to weaken through the rest of 2025, as shippers have frontloaded much of their seasonal freight. Matson said late Thursday that second-quarter container volumes on its expedited services from China fell 14.6% from a year earlier, with shippers whipsawed by the Trump administration’s implementation of so-called reciprocal tariffs. The Jones Act carrier said its customers negotiated with their Asian suppliers throughout April on an “order-by-order” basis on how to pay for the tariffs. Freight activity quickly resumed in mid-May after the White House issued a temporary reprieve on tariffs, Matson said, adding that higher freight rates for its premium services mitigated some of the effects of the volume decline. Matson’s ocean transportation revenue fell 2.1% during the quarter to $675.6 million, while operating income fell 9.5% year over year to $98.6 million. Matson’s <a href="https://www.joc.com/article/chinese-tariffs-cloud-trans-pacific-outlook-for-2025-matson-5999631">Vietnam services</a> benefited from the tariff volatility. It said container volumes from that country were up year over year as shippers sought to source goods outside of China. Matson has previously said freight from Vietnam makes up about 20% of its trans-Pacific business. Matson’s Jones Act business between US ports saw mixed results in the second quarter. The Hawaii business saw a modest 2.6% volume gain thanks to the state’s relatively stable economy and tourism, while its Alaska business was slightly higher due to ongoing economic growth driven by oil and gas development. But the carrier’s Guam services saw a 2.2% decrease due to more muted economic activity. Matson expects third-quarter volumes and rates will be lower than a year ago as customers decided to move second-half seasonal goods early to avoid further tariff volatility, which will result in a “muted peak season.” As a result, Matson said its third-quarter operating income in ocean transportation will be “meaningfully lower” than the $242.3 million posted a year ago. For the full year, Matson said operating income in ocean transportation will be “moderately lower” than 2024’s $551.3 million. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com ">michael.angell@spglobal.com</a>.</div>

US-based ocean carrier Matson saw its trans-Pacific container business drop during the second quarter as volatile US tariff policy prompted customers to pause and then quickly resume shipments. The carrier expects volumes and rates to weaken through the rest of 2025, as shippers have frontloaded much of their seasonal freight. Matson said late Thursday that second-quarter container volumes on its expedited services from China fell 14.6% from a year earlier, with shippers whipsawed by the Trump administration’s implementation of so-called reciprocal tariffs. The Jones Act carrier said its customers negotiated with their Asian suppliers throughout April on an “order-by-order” basis on how to pay for the tariffs. Freight activity quickly resumed in mid-May after the White House issued a temporary reprieve on tariffs, Matson said, adding that higher freight rates for its premium services mitigated some of the effects of the volume decline. Matson’s ocean transportation revenue fell 2.1% during the quarter to $675.6 million, while operating income fell 9.5% year over year to $98.6 million. Matson’s Vietnam services benefited from the tariff volatility. It said container volumes from that country were up year over year as shippers sought to source goods outside of China. Matson has previously said freight from Vietnam makes up about 20% of its trans-Pacific business. Matson’s Jones Act business between US ports saw mixed results in the second quarter. The Hawaii business saw a modest 2.6% volume gain thanks to the state’s relatively stable economy and tourism, while its Alaska business was slightly higher due to ongoing economic growth driven by oil and gas development. But the carrier’s Guam services saw a 2.2% decrease due to more muted economic activity. Matson expects third-quarter volumes and rates will be lower than a year ago as customers decided to move second-half seasonal goods early to avoid further tariff volatility, which will result in a “muted peak season.” As a result, Matson said its third-quarter operating income in ocean transportation will be “meaningfully lower” than the $242.3 million posted a year ago. For the full year, Matson said operating income in ocean transportation will be “moderately lower” than 2024’s $551.3 million. Contact Michael Angell at michael.angell@spglobal.com .

Trans-Pacific

Matson expects dampened peak season after tariff-driven rush in Q2

Use code TPM25GW995 at checkout to save $500 on first year of a Gold subscription and 20% on a TPM26 registration!

Subscribe Now - FT/Anonymous to Gold - Wide Box

SAVE ON A GOLD SUBSCRIPTION AND TPM26

Use code GTW695 at checkout and save $800 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Use code TPMGW595 at checkout to save $900 on first year of a Gold subscription and 20% on a TPM26 registration!

Upgrade Subscription - S/SP to Gold - Wide Box

UPGRADE TO GOLD FOR JUST $595

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code STS20 at checkout to save 20% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT/Anonymous to S/SP - Wide Box

SUBSCRIBE AND SAVE

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/<span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-16_9 joc_admin__inline-image-position-left joc_admin__inline-image-size-small" data-figure-size="small" data-figure-position="left" data-figure-aspect-ratio="16:9"><img src="/content-assets/1752585040485_SSA%20Marine%20Mexico%20logo%20150pxW.png" alt="" class="joc_admin__inline-image-inherit">

Photo 2.png

SSA Marine Mexico: True Commitment to Sustainability

SAVE ON A GOLD SUBSCRIPTION: Use code TPM25GW995 to save $500 on an annual Gold subscription and 20% on a TPM26 registration!

Subscribe Now - FT/Anonymous to Gold - Offer Box

UPGRADE TO GOLD AND SAVE: Use code GTW695 at checkout and save $800 on first year of a Gold subscription!

Upgrade Subscription

SUBSCRIBE AND SAVE: Use code STSW20 to save 20% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT/Anonymous to S/SP - Offer Box

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

UPGRADE TO GOLD AND SAVE: Use code TPMGW595 at checkout to save $900 on first year of a Gold subscription and 20% on TPM26! 

Upgrade Subscription - S/SP to Gold - Offer Box

START A FREE TRIAL: Access Journal of Commerce content for 30 days

Free Trial - Offer Box

Free Trial

Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A must-attend conference for shippers & logistics providers moving goods inland

Inland Conference - Rectangle Box

Attend Inland25

A premium access index of savings using domestic intermodal vs. OTR 

ISI Report - Rectangle Box

Intermodal Savings Index

An extensive dashboard of charts organized by trade lane, mode, and topic

Gateway - Rectangle Box

Gateway

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The Journal of Commerce is the industry’s source for maritime news and analysis about ocean container shipping, logistics, supply chains, global shipping ports, shipping technology solutions and end-to-end connectivity. Coverage tracks the movement of containerized cargo — from origin to destination — handled by marine terminals in the US and abroad, depots, container ports, container lines, drayage, consignees and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers, as well as pricing, capacity, volume and reliability on the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South American and intra-Asia trades.

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

Breakbulk News shipping | Journal of Commerce

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

Port News

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

Latest News

More News & Analysis

Red Sea ‘revival’ taking place as regional carriers lead the way

US policy, investments line up for project cargo-dependent nuclear buildout

Big US ports ask Congress to follow law for equal funding of dredging work