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<div class="phx-topic abstract-wrapper">The stage is set for a long-term recovery in the tanker market, according to a shipping industry ana</div>

The stage is set for a long-term recovery in the tanker market, according to a shipping industry ana

<div>The stage is set for a long-term recovery in the tanker market, according to a shipping industry analyst with the brokerage firm Alex. Brown &amp; Sons Inc.Sally Smith of Alex. Brown says some long-term optimism is in order for several reason including: a drop in worldwide tanker capacity of 29 percent since 1978, the old age of the world's tanker fleet (56 percent of the world's tankers are more than a decade old), high scrap prices, the abundance of secondhand ships for anyone who wants to get into the tanker business and the scarcity of financing for new ship construction.She...

The stage is set for a long-term recovery in the tanker market, according to a shipping industry analyst with the brokerage firm Alex. Brown & Sons Inc. Sally Smith of Alex. Brown says some long-term optimism is in order for several reason including: a drop in worldwide tanker capacity of 29 percent since 1978, the old age of the world's tanker fleet (56 percent of the world's tankers are more than a decade old), high scrap prices, the abundance of secondhand ships for anyone who wants to get into the tanker business and the scarcity of financing for new ship construction.She estimates tanker oversupply is 10 percent, a level that could be absorbed in one or two years. But she adds that her calculations don't include the impact of slow steaming. If ships were to travel at their maximum speed, it would greatly increase the amount of cargo tankers could carry. Production from the Organization of Petroleum Exporting Countries and demand for oil will be the key to a recovery in tanker rates, she says. Unless oil prices climb to $25 or more a barrel, it is likely that production of oil will decline in non-OPEC countries, she says. Demand could be enhanced by worldwide economic growth and the increased competitiveness of oil with other fuels. Alex. Brown says it expects OPEC's share of the world's oil market to grow in 1987 and beyond, and the Mideast oil producers are further from the consumers of oil than many non-OPEC producers, requiring more tankers to get oil to market. In 1986, the supply of tankers fell 4 percent and demand rose 24 percent. As a result, tanker rates rose sharply last year for a while, though recently they have fallen below 1986 levels. In 1987, Ms. Smith sees another 10 million to 11 million deadweight tons of tankers being scrapped and 5 million to 6 million dwt. being delivered - a net shrinkage of 2 percent.

ANALYST OPTIMISTIC ON TANKER MARKET

<div class="phx-topic abstract-wrapper">Marine terminal operators may be forced to resell or even abandon cranes if the tariffs take effect, which would further erode US port productivity.</div>

Marine terminal operators may be forced to resell or even abandon cranes if the tariffs take effect, which would further erode US port productivity.

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<div class="phx-topic">US ports and terminal operators <a href="https://www.joc.com/article/ports-look-to-delay-proposed-us-tariffs-on-chinese-made-cranes-6007628">facing up to 270% tariffs on ship-to-shore cranes</a> they’ll receive from China in the coming months are considering reselling the units or laying them up in bond if they don’t receive exemptions from the Trump administration. The tariffs taking effect Oct. 14, absent relief of some kind, will make the total cost unfeasible for port and terminals, tripling the price tag in some cases. While the industry lobbies the White House for an exemption, marine terminal operators may be forced to resell or even abandon cranes if the tariffs take effect, said Carl Bentzel, president of the National Association of Waterfront Employers (NAWE). <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6055442_0.1.jpg"></img></div>Such moves would interrupt normal US replenishment demand of 20 to 25 cranes per year on an installed base of an estimated 450 ship-to-shore (STS) cranes deployed at ports in the US and US territories. “Without relief or accommodation, these tariffs pose a serious risk of rendering critical investments economically unfeasible and will ultimately undermine the very policy objectives they are intended to advance,” Ports America CEO Matthew Leech told the Journal of Commerce. Port Houston is proposing grandfathering China-built ship-to-shore cranes that were under contract and in fabrication before Dec. 31, 2024. “This proposal would solve the Port Houston issue, along with similar issues Port Freeport, Port of Virginia and Ports America have with their STS cranes currently completing fabrication,” <a href="https://comments.ustr.gov/s/commentdetails?rid=HTCTBWHHBW">according to Port Houston Executive Director Charlie Jenkins</a>. But with that solution not guaranteed, alternative options being considered by ports and terminals include not putting the cranes to use. “If they must pay these tariffs, they will have three options,” Cary Davis, president of the American Association of Port Authorities, wrote in a May letter to US Trade Representative Jamison Greer. “First, they can let the cranes collect dust while they are held in bonded warehouses at an additional cost. Second, they can attempt to slash budgets elsewhere to pay the tariff costs. Or third, ports planning future procurement can purchase used cranes instead, which are not as structurally or operationally sound.” <h3>Port productivity at risk </h3>The result of not upgrading or expanding ship-to-shore crane capacity would have several negative consequences, including lower port productivity driven by longer wait times for ships, delayed cargo availability and the inability to handle larger ships. That would further erode the competitiveness of US ports, which rank low in global port productivity rankings and are among the most expensive in the world on a per-container lifted basis. The main benefit of larger cranes is greater height, meaning US ports would face greater operational challenges handing larger ships without the upgrades. The Port of Virginia <a href="https://comments.ustr.gov/s/commentdetails?rid=73RDQKH6G2">told the USTR</a> it expects to be handling vessels in the 18,000 to 20,000-TEU range in the coming years, but that "without continued investment in greater port capacity, these larger ships are hampered from consistently calling the East Coast because the existing infrastructure, specifically ship-to-shore cranes, cannot support them.” Houston is a case in point in terms of the immediate challenges US ports are facing from the potential tariffs. The port is under contract with the dominant Chinese crane manufacturer, ZPMC, for eight cranes at $14 million each scheduled for delivery in the spring of 2026. If it is forced to pay the full tariffs, it will owe $302.4 million in total, which would equate to more than half of the port’s annual container operating revenues and greater than a full year of operating cash flow, Jenkins wrote. The tax figure includes a proposed additional 100% tariff on China-made ship-to-shore cranes on top of 25% tariffs imposed in 2024 and the 145% in tariffs that still could be applied to all Chinese goods absent a broader settlement. For Ports America, the price tag for a single STS crane scheduled to arrive at Gulfport in early September is $16 million. “However, any scenario in which the total landed cost — including applicable penalties, tariffs and related charges — exceeds $22 million would render the equipment economically unviable for deployment,” Leech said. “In such a case, the only practical options would be to resell and re-export the crane or to store it in a bonded facility without commissioning it or paying duties” <h3>Reshoring push from White House </h3>New legislation just introduced in the House of Representatives seeks to encourage the domestic <a href="https://www.joc.com/article/congress-eyes-a-tax-credit-for-reshoring-port-crane-manufacturing-6053124">building of cranes to lessen the dependence on China-built equipment</a>, which makes up 80% of cranes at US ports and has raised security concerns. Although no solid plan to support US manufacturing or assembly of cranes has materialized as yet, affected ports appear to universally support the idea. The Canadian infrastructure investor Brookfield is discussing such an initiative in collaboration with Matsui-Paceco, Paceco being the builder of the original container cranes for Sea-Land Service Inc. in the 1960s. A White House meeting in April attended by several US port leaders included participation by Peter Stone, a leader of Brookfield’s US port business. At that meeting, according to one participant, the message White House officials was: “We don’t understand why US industry is buying Chinese equipment and we don’t want you to. We want you to get on board with a program that creates availability of US-assembled cranes.” “There was no objection to this from the assembled ports assuming a transition agreement covering price, timing and specs,” the meeting participant told the Journal of Commerce. “Currently, there is ongoing engagement on developing a framework to nearshore and onshore STS crane manufacturing between the Trump administration, Congress and industry stakeholders. However, no agreement has been proposed as of yet.” If the threatened tariffs are implemented and remain in place, a prospect ports are taking seriously, it would stunt the planned expansion of US port capacity. According to an AAPA survey conducted with the US Maritime Administration, 165 cranes are either on order or will be ordered for delivery from China over the next 10 years, potentially being subjected to a prohibitive $6.7 billion in tariffs and penalties. Contact Peter Tirschwell at <a href="mailto:peter.tirschwell@spglobal.com">peter.tirschwell@spglobal.com.</a></div>

US ports and terminal operators facing up to 270% tariffs on ship-to-shore cranes they’ll receive from China in the coming months are considering reselling the units or laying them up in bond if they don’t receive exemptions from the Trump administration. The tariffs taking effect Oct. 14, absent relief of some kind, will make the total cost unfeasible for port and terminals, tripling the price tag in some cases. While the industry lobbies the White House for an exemption, marine terminal operators may be forced to resell or even abandon cranes if the tariffs take effect, said Carl Bentzel, president of the National Association of Waterfront Employers (NAWE). Such moves would interrupt normal US replenishment demand of 20 to 25 cranes per year on an installed base of an estimated 450 ship-to-shore (STS) cranes deployed at ports in the US and US territories. “Without relief or accommodation, these tariffs pose a serious risk of rendering critical investments economically unfeasible and will ultimately undermine the very policy objectives they are intended to advance,” Ports America CEO Matthew Leech told the Journal of Commerce. Port Houston is proposing grandfathering China-built ship-to-shore cranes that were under contract and in fabrication before Dec. 31, 2024. “This proposal would solve the Port Houston issue, along with similar issues Port Freeport, Port of Virginia and Ports America have with their STS cranes currently completing fabrication,” according to Port Houston Executive Director Charlie Jenkins . But with that solution not guaranteed, alternative options being considered by ports and terminals include not putting the cranes to use. “If they must pay these tariffs, they will have three options,” Cary Davis, president of the American Association of Port Authorities, wrote in a May letter to US Trade Representative Jamison Greer. “First, they can let the cranes collect dust while they are held in bonded warehouses at an additional cost. Second, they can attempt to slash budgets elsewhere to pay the tariff costs. Or third, ports planning future procurement can purchase used cranes instead, which are not as structurally or operationally sound.” Port productivity at risk The result of not upgrading or expanding ship-to-shore crane capacity would have several negative consequences, including lower port productivity driven by longer wait times for ships, delayed cargo availability and the inability to handle larger ships. That would further erode the competitiveness of US ports, which rank low in global port productivity rankings and are among the most expensive in the world on a per-container lifted basis. The main benefit of larger cranes is greater height, meaning US ports would face greater operational challenges handing larger ships without the upgrades. The Port of Virginia told the USTR it expects to be handling vessels in the 18,000 to 20,000-TEU range in the coming years, but that "without continued investment in greater port capacity, these larger ships are hampered from consistently calling the East Coast because the existing infrastructure, specifically ship-to-shore cranes, cannot support them.” Houston is a case in point in terms of the immediate challenges US ports are facing from the potential tariffs. The port is under contract with the dominant Chinese crane manufacturer, ZPMC, for eight cranes at $14 million each scheduled for delivery in the spring of 2026. If it is forced to pay the full tariffs, it will owe $302.4 million in total, which would equate to more than half of the port’s annual container operating revenues and greater than a full year of operating cash flow, Jenkins wrote. The tax figure includes a proposed additional 100% tariff on China-made ship-to-shore cranes on top of 25% tariffs imposed in 2024 and the 145% in tariffs that still could be applied to all Chinese goods absent a broader settlement. For Ports America, the price tag for a single STS crane scheduled to arrive at Gulfport in early September is $16 million. “However, any scenario in which the total landed cost — including applicable penalties, tariffs and related charges — exceeds $22 million would render the equipment economically unviable for deployment,” Leech said. “In such a case, the only practical options would be to resell and re-export the crane or to store it in a bonded facility without commissioning it or paying duties” Reshoring push from White House New legislation just introduced in the House of Representatives seeks to encourage the domestic building of cranes to lessen the dependence on China-built equipment , which makes up 80% of cranes at US ports and has raised security concerns. Although no solid plan to support US manufacturing or assembly of cranes has materialized as yet, affected ports appear to universally support the idea. The Canadian infrastructure investor Brookfield is discussing such an initiative in collaboration with Matsui-Paceco, Paceco being the builder of the original container cranes for Sea-Land Service Inc. in the 1960s. A White House meeting in April attended by several US port leaders included participation by Peter Stone, a leader of Brookfield’s US port business. At that meeting, according to one participant, the message White House officials was: “We don’t understand why US industry is buying Chinese equipment and we don’t want you to. We want you to get on board with a program that creates availability of US-assembled cranes.” “There was no objection to this from the assembled ports assuming a transition agreement covering price, timing and specs,” the meeting participant told the Journal of Commerce. “Currently, there is ongoing engagement on developing a framework to nearshore and onshore STS crane manufacturing between the Trump administration, Congress and industry stakeholders. However, no agreement has been proposed as of yet.” If the threatened tariffs are implemented and remain in place, a prospect ports are taking seriously, it would stunt the planned expansion of US port capacity. According to an AAPA survey conducted with the US Maritime Administration, 165 cranes are either on order or will be ordered for delivery from China over the next 10 years, potentially being subjected to a prohibitive $6.7 billion in tariffs and penalties. Contact Peter Tirschwell at peter.tirschwell@spglobal.com.

Looming US tariffs put economic viability of STS cranes in doubt

<div class="phx-topic abstract-wrapper">Trade uncertainties are limiting visibility for the latter half of the carrier’s fiscal year, prompting it to significantly reduce its profit expectations.</div>

Trade uncertainties are limiting visibility for the latter half of the carrier’s fiscal year, prompting it to significantly reduce its profit expectations.

<div class="phx-topic">Ocean Network Express (ONE) slashed its fiscal year 2025 profitability forecast by more than 36% Friday on expectations that the bearish fundamentals of falling demand and declining rates on the major trades out of Asia will be amplified by new vessel deliveries on the way. The Singapore-based carrier now expects its full fiscal year 2025 net profit to be $700 million compared to the $1.1 billion forecast made earlier this year, it said in an earnings statement. ONE’s 2025 fiscal year began April 1 and ends March 31, 2026. “Recent trade uncertainties complicate visibility for the latter half of the fiscal year...the current global environment remains highly uncertain,” the carrier said, adding that security risks in the Red Sea would keep pressure on the global supply chain. In its first quarter ended June 30, ONE reported revenue of $4 billion, down 4% year over year. Earnings before interest, taxes, amortization and depreciation (EBITDA) fell 49% to $616 million, EBIT dropped 94% to $38 million and net profit of $86 million was almost 90% lower compared to the same quarter last year. ONE reported flat volume on Asia-North America eastbound routes of 672,000 TEUs, with vessel utilization dropping from 100% to 94%. Asia-Europe volume was up 5% year over year at 456,000 TEUs, though utilization fell from 100% to 90%. While all the earnings metrics were down year over year, comparisons with the fourth quarter of ONE’s 2024 fiscal year (January-March) show the impact of tariff uncertainty on the trans-Pacific. ONE reported volume slowing in April following the initial implementation of US tariffs, then surging in May after a 90-day pause on the levies was announced. Container handling on the Asia-North America eastbound trade in the fiscal first quarter increased 6% compared to the January-March period, ONE said in the statement. “This was due to a combination of several factors including fluctuating demand amid tariff uncertainties and an increase in capacity on the Asia-North America trade to cater to the strong demand from a 90-day tariff pause,” the carrier noted. Asia-Europe westbound volume increased 5% compared to the first three months of the year when demand was impacted by Chinese New Year. <h3>Capacity to outstrip demand </h3>ONE has 54 ships on order, contributing to the global container shipping orderbook that at 9.1 million TEUs is around 28% of the total in-service fleet, most of which will be delivered in the next two years, according to Sea-web, a sister company of the Journal of Commerce. Just 9,000 TEUs in capacity will be scrapped this year. The growing supply-demand imbalance is being felt in the spot market. Rates on the Asia-US West Coast trade as of July 31 were at $1,713 per FEU, down 73% year over year; Asia-US East Coast rates were down 71% at $2,800/FEU, according to Platts, also part of S&amp;P Global. “The US is striking multiple trade deals, but this is unlikely to spark a cargo rush in the remainder of 2025 and prevent further softening of rates,” Emily Stausbøll, senior shipping analyst at rate benchmarking platform Xeneta, said in a market update Thursday. “Carriers are trying to manage capacity, but they may be fighting a losing battle and have no choice but to accept lower freight rates,” she added. With trans-Pacific demand slowing, ocean carriers <a href="https://www.joc.com/article/looming-august-tariff-deadline-prompts-carriers-to-pull-trans-pacific-capacity-6045526">plan to deploy less tonnage from Asia to the US</a> in August than in July, according to ocean visibility provider eeSea. And ocean carriers are planning to blank less capacity this month than in July, although carriers warn that may change as container spot rates keep falling. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="5a0d1715-465b-4c14-aac5-b50642195578"></dynamic-object></div>China-North Europe rates on July 31 were down 60% year over year at $3,326/FEU, converging on China-Mediterranean rates that were down 55% to $3,293/FEU, according to Xeneta. As capacity outstrips demand, HSBC is expecting <a href="https://www.joc.com/article/ocean-carriers-face-three-year-decline-in-profitability-hsbc-6032235">a 45% year-over-year decline in profits</a> for the container shipping industry this year, raising the potential for a price war between carriers that the bank forecasts will lead to a 61% decline in profits in 2026 and a further 10% slide in 2027. Transportation analysts at HSBC indicated in a recent report that although carriers will remain profitable through the period, it will be nowhere near the three record years of 2021, 2022 and 2024. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Ocean Network Express (ONE) slashed its fiscal year 2025 profitability forecast by more than 36% Friday on expectations that the bearish fundamentals of falling demand and declining rates on the major trades out of Asia will be amplified by new vessel deliveries on the way. The Singapore-based carrier now expects its full fiscal year 2025 net profit to be $700 million compared to the $1.1 billion forecast made earlier this year, it said in an earnings statement. ONE’s 2025 fiscal year began April 1 and ends March 31, 2026. “Recent trade uncertainties complicate visibility for the latter half of the fiscal year...the current global environment remains highly uncertain,” the carrier said, adding that security risks in the Red Sea would keep pressure on the global supply chain. In its first quarter ended June 30, ONE reported revenue of $4 billion, down 4% year over year. Earnings before interest, taxes, amortization and depreciation (EBITDA) fell 49% to $616 million, EBIT dropped 94% to $38 million and net profit of $86 million was almost 90% lower compared to the same quarter last year. ONE reported flat volume on Asia-North America eastbound routes of 672,000 TEUs, with vessel utilization dropping from 100% to 94%. Asia-Europe volume was up 5% year over year at 456,000 TEUs, though utilization fell from 100% to 90%. While all the earnings metrics were down year over year, comparisons with the fourth quarter of ONE’s 2024 fiscal year (January-March) show the impact of tariff uncertainty on the trans-Pacific. ONE reported volume slowing in April following the initial implementation of US tariffs, then surging in May after a 90-day pause on the levies was announced. Container handling on the Asia-North America eastbound trade in the fiscal first quarter increased 6% compared to the January-March period, ONE said in the statement. “This was due to a combination of several factors including fluctuating demand amid tariff uncertainties and an increase in capacity on the Asia-North America trade to cater to the strong demand from a 90-day tariff pause,” the carrier noted. Asia-Europe westbound volume increased 5% compared to the first three months of the year when demand was impacted by Chinese New Year. Capacity to outstrip demand ONE has 54 ships on order, contributing to the global container shipping orderbook that at 9.1 million TEUs is around 28% of the total in-service fleet, most of which will be delivered in the next two years, according to Sea-web, a sister company of the Journal of Commerce. Just 9,000 TEUs in capacity will be scrapped this year. The growing supply-demand imbalance is being felt in the spot market. Rates on the Asia-US West Coast trade as of July 31 were at $1,713 per FEU, down 73% year over year; Asia-US East Coast rates were down 71% at $2,800/FEU, according to Platts, also part of S&P Global. “The US is striking multiple trade deals, but this is unlikely to spark a cargo rush in the remainder of 2025 and prevent further softening of rates,” Emily Stausbøll, senior shipping analyst at rate benchmarking platform Xeneta, said in a market update Thursday. “Carriers are trying to manage capacity, but they may be fighting a losing battle and have no choice but to accept lower freight rates,” she added. With trans-Pacific demand slowing, ocean carriers plan to deploy less tonnage from Asia to the US in August than in July, according to ocean visibility provider eeSea. And ocean carriers are planning to blank less capacity this month than in July, although carriers warn that may change as container spot rates keep falling. China-North Europe rates on July 31 were down 60% year over year at $3,326/FEU, converging on China-Mediterranean rates that were down 55% to $3,293/FEU, according to Xeneta. As capacity outstrips demand, HSBC is expecting a 45% year-over-year decline in profits for the container shipping industry this year, raising the potential for a price war between carriers that the bank forecasts will lead to a 61% decline in profits in 2026 and a further 10% slide in 2027. Transportation analysts at HSBC indicated in a recent report that although carriers will remain profitable through the period, it will be nowhere near the three record years of 2021, 2022 and 2024. Contact Greg Knowler at greg.knowler@spglobal.com .

ONE cuts profit forecast as falling rates, excess capacity weigh on carriers

<div class="phx-topic abstract-wrapper">Company executives pointed to the rollout of the Trump administration’s tariff policy in April as driving disruption throughout the second quarter. </div>

Company executives pointed to the rollout of the Trump administration’s tariff policy in April as driving disruption throughout the second quarter.

<div class="phx-topic">Ocean and air volumes in CH Robinson’s forwarding business fell in the second quarter amid market volatility caused by US tariff policy. The third-party logistics provider also warned of a slower second half of 2025 as much of the seasonal cargo has already landed in the US and shippers remain cautious in refilling inventories. CH Robinson said late Wednesday that gross profit in its ocean freight business fell 7.5% in the second quarter to $107.9 million, with volumes dropping 4% from a year earlier. Other segments of CH Robinson’s forwarding business grew during the quarter despite tepid volumes. The airfreight business grew 11.5% to $34 million on better pricing, even though volumes fell 12.5%. Gross profit in its customs business grew 31.7% to $26.7 million amid higher profit for each transaction. CH Robinson executives pointed to the rollout of the Trump administration’s tariff policy in April as driving volatility throughout the second quarter. CFO Damon Lee said during the company’s second-quarter conference call that April was the bottom in terms of volume “due to the tariff wars and the level of tariffs in the quarter that we started out with.” While May and June saw a rebound in volumes, “it wasn’t a significant rebound, certainly not enough to offset the pressure that we saw in April,” Lee said. <h3>Frontloading to mute Q3 volumes </h3>Chief Executive David Bozeman said on the call that while some shippers only moved what they needed for back-to-school and other seasonal goods, others decided to frontload as much as they could during the various tariff reprieves. As a result, the traditional third-quarter peak season will likely be muted, Bozeman added. “Although we’re approaching the traditional retail peak season for ocean, the industry may not see traditional peak volumes as some retail customers are working through inventories and being highly selective and strategic about bringing in only the essential products they must import,” he said. CH Robinson said volumes in its surface transportation business rose 1% thanks to growth in its less-than-truckload segment; gross profit for each truck shipment increased 2.5%. While the freight recession for the trucking market is ongoing, Michael Castagnetto, CH Robinson’s president of surface transportation, said load-to-truck ratios are higher, “reflecting an exit of capacity that has brought us closer to better balance in the market.” Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Ocean and air volumes in CH Robinson’s forwarding business fell in the second quarter amid market volatility caused by US tariff policy. The third-party logistics provider also warned of a slower second half of 2025 as much of the seasonal cargo has already landed in the US and shippers remain cautious in refilling inventories. CH Robinson said late Wednesday that gross profit in its ocean freight business fell 7.5% in the second quarter to $107.9 million, with volumes dropping 4% from a year earlier. Other segments of CH Robinson’s forwarding business grew during the quarter despite tepid volumes. The airfreight business grew 11.5% to $34 million on better pricing, even though volumes fell 12.5%. Gross profit in its customs business grew 31.7% to $26.7 million amid higher profit for each transaction. CH Robinson executives pointed to the rollout of the Trump administration’s tariff policy in April as driving volatility throughout the second quarter. CFO Damon Lee said during the company’s second-quarter conference call that April was the bottom in terms of volume “due to the tariff wars and the level of tariffs in the quarter that we started out with.” While May and June saw a rebound in volumes, “it wasn’t a significant rebound, certainly not enough to offset the pressure that we saw in April,” Lee said. Frontloading to mute Q3 volumes Chief Executive David Bozeman said on the call that while some shippers only moved what they needed for back-to-school and other seasonal goods, others decided to frontload as much as they could during the various tariff reprieves. As a result, the traditional third-quarter peak season will likely be muted, Bozeman added. “Although we’re approaching the traditional retail peak season for ocean, the industry may not see traditional peak volumes as some retail customers are working through inventories and being highly selective and strategic about bringing in only the essential products they must import,” he said. CH Robinson said volumes in its surface transportation business rose 1% thanks to growth in its less-than-truckload segment; gross profit for each truck shipment increased 2.5%. While the freight recession for the trucking market is ongoing, Michael Castagnetto, CH Robinson’s president of surface transportation, said load-to-truck ratios are higher, “reflecting an exit of capacity that has brought us closer to better balance in the market.” Contact Michael Angell at michael.angell@spglobal.com .

CH Robinson cautious on second-half outlook amid trade volatility

<div class="phx-topic abstract-wrapper">DSV will start adding the first few country operations of DB Schenker into its network from Aug. 1 in an integration process expected to be completed by 2028.</div>

DSV will start adding the first few country operations of DB Schenker into its network from Aug. 1 in an integration process expected to be completed by 2028.

<div class="phx-topic">DB Schenker made its first appearance on the financial results of DSV since its $16.25 billion acquisition by the Danish forwarder <a href="https://www.joc.com/article/dsv-embarks-on-mammoth-test-as-db-schenker-integration-begins-ceo-5994493">was finalized on May 1</a>, with CEO Jens Lund on Thursday hailing the positive start to the multi-year integration process. DSV will start adding the first few country operations of DB Schenker into its network from Aug. 1 and expects 50% of the integration to be completed by the end of 2026, 75% by the end of 2027 and full integration by 2028, Lund told analysts in a second-quarter earnings call. “I don’t think we could have hoped to be in a better position than where we are,” Lund said. “It means that the real integration in the business kicks off now and we can start to deliver on synergies as well.” The total costs of integrating Schenker will be as high as $1.6 billion by the time the process is completed, with this year’s integration costs expected to reach $380 million. DSV expects total synergies to be near $1.3 billion, with DB Schenker this year generating synergies of $76 million to $92 million. For a second quarter Lund described as both “extraordinary” and “unpredictable,” DSV reported revenue of $9.5 billion, down 1.1% year over year as integration costs and foreign exchange headwinds, mainly in the air and sea division, impacted the top line. Second-quarter gross profit of $2.6 billion was up 2.4%, earnings before interest and taxes (EBIT) fell 4.6% to $722 million and net profit was down 13% at $360 million. Gross profit in the air division was up 8.8% in the second quarter at $656 million, with overall volume up 46% year over year as Schenker contributed 168,000 tons of air freight to DSV’s 341,000 tons. In the sea division, second-quarter gross profit rose 9.5% to $641 million, boosted by Schenker’s contribution of $143 million, while volume improved 43% to 950,000 tons. Schenker business generated 271,000 TEUs in May and June. Road division business was heavily impacted by the weak automotive sector, with revenue of $3.1 billion down 4.1%, gross profit falling 7.5% to $650 million and EBIT plunging 29% to $80 million. While Schenker contributed positively to the division’s earnings, the performance was negatively affected by the overall low activity level and weak market conditions within some markets in Europe and the US. The contract logistics unit had a similarly dismal quarter as the low utilization of capacity and an increasing cost base related to new warehouses dragged down revenue and profit. Revenue was down 15% at $1.5 billion, gross profit fell 3.7% to $707 million and EBIT was down 41.6% at $110 million. DSV’s outlook for the full year remained unchanged, with EBIT forecast to be between $2.9 billion and $3.93 billion. “The current uncertainties related to trade tariffs, the geopolitical landscape, including the Red Sea situation, and macroeconomic factors, which all can impact the global trading environment and activity level, remain uncertain, and unforeseen changes may impact our financial expectations,” DSV said in its earnings statement. <h3>Little business overlap </h3>In an interview with the Journal of Commerce Thursday, DSV CFO Michael Ebbe said as the integration process moved forward, there was surprisingly little business overlap found between the two forwarders. “We had heard there were some customers on both sides but found that it was rather limited compared to what we initially expected,” Ebbe said. “There are only a few customers where there is truly an overlap, and we’ve not yet had any of those saying we have too large a share of wallet,” he added. “So that means that we can mitigate that risk quite easily.” Ebbe said that although there was not a loss of many customers during the acquisition process, there was significant “downtrading” in verticals such as consumer and automotive. “You can argue that we lose volume, but most of that is due to the market and how it has developed,” he said, noting that DB Schenker was far more exposed to the automotive market than DSV. “If we had BMW as a customer, we would not have lost it, but given that they sell fewer cars, they would be downtrading, and that has an impact,” Ebbe said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

DB Schenker made its first appearance on the financial results of DSV since its $16.25 billion acquisition by the Danish forwarder was finalized on May 1 , with CEO Jens Lund on Thursday hailing the positive start to the multi-year integration process. DSV will start adding the first few country operations of DB Schenker into its network from Aug. 1 and expects 50% of the integration to be completed by the end of 2026, 75% by the end of 2027 and full integration by 2028, Lund told analysts in a second-quarter earnings call. “I don’t think we could have hoped to be in a better position than where we are,” Lund said. “It means that the real integration in the business kicks off now and we can start to deliver on synergies as well.” The total costs of integrating Schenker will be as high as $1.6 billion by the time the process is completed, with this year’s integration costs expected to reach $380 million. DSV expects total synergies to be near $1.3 billion, with DB Schenker this year generating synergies of $76 million to $92 million. For a second quarter Lund described as both “extraordinary” and “unpredictable,” DSV reported revenue of $9.5 billion, down 1.1% year over year as integration costs and foreign exchange headwinds, mainly in the air and sea division, impacted the top line. Second-quarter gross profit of $2.6 billion was up 2.4%, earnings before interest and taxes (EBIT) fell 4.6% to $722 million and net profit was down 13% at $360 million. Gross profit in the air division was up 8.8% in the second quarter at $656 million, with overall volume up 46% year over year as Schenker contributed 168,000 tons of air freight to DSV’s 341,000 tons. In the sea division, second-quarter gross profit rose 9.5% to $641 million, boosted by Schenker’s contribution of $143 million, while volume improved 43% to 950,000 tons. Schenker business generated 271,000 TEUs in May and June. Road division business was heavily impacted by the weak automotive sector, with revenue of $3.1 billion down 4.1%, gross profit falling 7.5% to $650 million and EBIT plunging 29% to $80 million. While Schenker contributed positively to the division’s earnings, the performance was negatively affected by the overall low activity level and weak market conditions within some markets in Europe and the US. The contract logistics unit had a similarly dismal quarter as the low utilization of capacity and an increasing cost base related to new warehouses dragged down revenue and profit. Revenue was down 15% at $1.5 billion, gross profit fell 3.7% to $707 million and EBIT was down 41.6% at $110 million. DSV’s outlook for the full year remained unchanged, with EBIT forecast to be between $2.9 billion and $3.93 billion. “The current uncertainties related to trade tariffs, the geopolitical landscape, including the Red Sea situation, and macroeconomic factors, which all can impact the global trading environment and activity level, remain uncertain, and unforeseen changes may impact our financial expectations,” DSV said in its earnings statement. Little business overlap In an interview with the Journal of Commerce Thursday, DSV CFO Michael Ebbe said as the integration process moved forward, there was surprisingly little business overlap found between the two forwarders. “We had heard there were some customers on both sides but found that it was rather limited compared to what we initially expected,” Ebbe said. “There are only a few customers where there is truly an overlap, and we’ve not yet had any of those saying we have too large a share of wallet,” he added. “So that means that we can mitigate that risk quite easily.” Ebbe said that although there was not a loss of many customers during the acquisition process, there was significant “downtrading” in verticals such as consumer and automotive. “You can argue that we lose volume, but most of that is due to the market and how it has developed,” he said, noting that DB Schenker was far more exposed to the automotive market than DSV. “If we had BMW as a customer, we would not have lost it, but given that they sell fewer cars, they would be downtrading, and that has an impact,” Ebbe said. Contact Greg Knowler at greg.knowler@spglobal.com .

DB Schenker adds to DSV coffers as multi-year integration begins

<div class="phx-topic abstract-wrapper">Development of the new terminal comes as gains in transshipment volumes are outpacing the increase in gateway cargo at Busan, where transshipment business has been bolstered by the launch of the Gemini Cooperation earlier this year. </div>

Development of the new terminal comes as gains in transshipment volumes are outpacing the increase in gateway cargo at Busan, where transshipment business has been bolstered by the launch of the Gemini Cooperation earlier this year.

<div class="phx-topic">The South Korean port of Busan will strengthen its position as North Asia’s transshipment hub with two initiatives involving development of a $573 million feeder terminal and the launch of a real-time, data-sharing portal, maritime officials said. The terminal, which will have annual capacity of about 1.5 million TEUs, will be developed by Busan Newport One-stop Terminal Company after it was chosen by South Korea’s Ministry of Oceans and Fisheries to enter exclusive talks to develop the 4 million-square-foot complex, due to open by 2030. The facility will have two 2,000-TEU feeder berths and a 30,000-deadweight-metric-ton (DWT) breakbulk and general cargo berth that will be built adjacent to Busan New Port South Container Terminal. Kim Seong-beom, deputy minister of Oceans and Fisheries, said the new terminal will “enhance the transshipment competitiveness of Busan.” Lee Eung-hyuk, Busan Port Authority’s (BPA’s) director of international logistics, said the state-owned agency is also developing Port-i, a real-time data-sharing portal to improve the movement and monitoring of transshipment containers for inbound cargo and inter-terminal transfers. Highlighting the potential for Port-i to increase transshipment volumes, Lee pointed out that Mediterranean Shipping Co. handled 4 million TEUs through Busan last year, 80% of which was transshipment with Busan being the last or first port call. “Many other carriers would follow suit if we simplified transshipment monitoring systems,” Lee told the Journal of Commerce. BPA hopes to complete the current trial stage by the end of this year, Lee said, adding BPA will own and manage the port community system to overcome the reluctance of shippers and carriers to file sensitive information with commercial ventures. “Most port community systems fail because many stakeholders like carriers, shippers and terminal operators normally do not want to share information,” he said. Meanwhile, development of the new terminal comes as growth in transshipment volumes is outpacing the increase in gateway cargo at Busan. Lee said transshipment volumes surged 9% last year to 13.5 million TEUs to account for 55% of Busan’s total volumes of 24.4 million TEUs, while gateway volumes rose just 1.5%. Lee pointed out the launch of Gemini Cooperation last February has bolstered Busan’s transshipment growth ambitions by reducing transit times for Asia-Europe cargo for shippers in North Asia. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

The South Korean port of Busan will strengthen its position as North Asia’s transshipment hub with two initiatives involving development of a $573 million feeder terminal and the launch of a real-time, data-sharing portal, maritime officials said. The terminal, which will have annual capacity of about 1.5 million TEUs, will be developed by Busan Newport One-stop Terminal Company after it was chosen by South Korea’s Ministry of Oceans and Fisheries to enter exclusive talks to develop the 4 million-square-foot complex, due to open by 2030. The facility will have two 2,000-TEU feeder berths and a 30,000-deadweight-metric-ton (DWT) breakbulk and general cargo berth that will be built adjacent to Busan New Port South Container Terminal. Kim Seong-beom, deputy minister of Oceans and Fisheries, said the new terminal will “enhance the transshipment competitiveness of Busan.” Lee Eung-hyuk, Busan Port Authority’s (BPA’s) director of international logistics, said the state-owned agency is also developing Port-i, a real-time data-sharing portal to improve the movement and monitoring of transshipment containers for inbound cargo and inter-terminal transfers. Highlighting the potential for Port-i to increase transshipment volumes, Lee pointed out that Mediterranean Shipping Co. handled 4 million TEUs through Busan last year, 80% of which was transshipment with Busan being the last or first port call. “Many other carriers would follow suit if we simplified transshipment monitoring systems,” Lee told the Journal of Commerce. BPA hopes to complete the current trial stage by the end of this year, Lee said, adding BPA will own and manage the port community system to overcome the reluctance of shippers and carriers to file sensitive information with commercial ventures. “Most port community systems fail because many stakeholders like carriers, shippers and terminal operators normally do not want to share information,” he said. Meanwhile, development of the new terminal comes as growth in transshipment volumes is outpacing the increase in gateway cargo at Busan. Lee said transshipment volumes surged 9% last year to 13.5 million TEUs to account for 55% of Busan’s total volumes of 24.4 million TEUs, while gateway volumes rose just 1.5%. Lee pointed out the launch of Gemini Cooperation last February has bolstered Busan’s transshipment growth ambitions by reducing transit times for Asia-Europe cargo for shippers in North Asia. Contact Keith Wallis at keithwallis@hotmail.com .

Busan aims to boost transshipment volumes with new $573 million feeder terminal

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. 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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. 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