spring sale pop up.png

Subscription Sale Pop Up - Anonymous

Events

Gateway

Maritime

Surface

Air Cargo

Magazine

Newsletters

Multimedia

White Papers

Supply chain

Resources

Breakbulk News

Container Shipping News

Port News

Trucking News

Rail News

Air Cargo Forwarder News

Air Cargo Carriers News

Transport, Trade and Regulation News

Logistics Technology News

Cool Cargo News

Special Reports

Press Releases

Marine terminals

International ports

Longshore labor

International rail

Last Mile News

Industrial Real Estate News

Media Kit

Other

Breakbulk carriers

Ro/ro cargo

Energy projects

Heavy-haul transport

Project cargo

Container lines

Trans-Atlantic

Forwarding

Asia-Europe

Trans-Pacific

Drayage

Port infrastructure

Breakbulk ports

North American ports

Truckload

Truck brokers

Flatbed

Trucking labor

North-American rail

Intermodal providers

Commentary

Podcasts

Webcasts

Videos

Annual Review and Outlook

Top Rankings

Quarterly Intelligence Report

Intermodal Savings Index

Domestic Intermodal Service Scorecard

Breakbulk Quarterly Intelligence

Platts Containers Update

Top 100 US Exporters

Top 100 US Importers

Top 25 LTL Trucking Companies

Top 25 North American Ports

Top 25 Truckload Companies

Top 40 Container Carriers

Top 50 3PLs

Top 50 Global Container Ports

Top 50 Global Transportation Providers

Top 50 Trucking Companies

Editorial Calendar

Rail Directories

Custom Content

<div class="phx-topic abstract-wrapper">P&amp;LE Acquisition Corp. hasn't closed on its proposed purchase of Pittsburgh &amp; Lake Erie Railroad Co.</div>

P&LE Acquisition Corp. hasn't closed on its proposed purchase of Pittsburgh & Lake Erie Railroad Co.

<div>P&amp;LE Acquisition Corp. hasn't closed on its proposed purchase of Pittsburgh &amp; Lake Erie Railroad Co. The text and headline of a June 25 Traffic Brief, on Page 2B of The Journal of Commerce, devoted primarily to describing P&amp;LE Acquisition Corp.'s opposition to a trackage rights proposal, misstated current ownership of the railroad.</div>...

P&LE Acquisition Corp. hasn't closed on its proposed purchase of Pittsburgh & Lake Erie Railroad Co. The text and headline of a June 25 Traffic Brief, on Page 2B of The Journal of Commerce, devoted primarily to describing P&LE Acquisition Corp.'s opposition to a trackage rights proposal, misstated current ownership of the railroad.

CORRECTION

<div class="phx-topic abstract-wrapper">Gateway Terminals named Bryan Blalock as its next president after Georgia Ports hired the stevedore’s current leader to be its next CEO. </div>

Gateway Terminals named Bryan Blalock as its next president after Georgia Ports hired the stevedore’s current leader to be its next CEO.

Feature image

<div class="phx-topic">The Port of Savannah’s container stevedore has picked a new president as its current leader transitions to running the port. The Georgia Ports Authority (GPA) said in a statement Thursday that Bryan Blalock will become the next president of Gateway Terminals as of April 13. Gateway Terminals is a joint venture of Ports America and SSA Marine. Blalock will succeed Kevin Price, <a href="https://www.joc.com/article/gpa-names-next-ceo-as-savannah-readies-for-new-growth-phase-6167449">the GPA’s pick for its next chief executive starting in mid-2027</a>. Price, who will first take a role as GPA president in July, said in the statement that Blalock “has worked in all facets of our industry, brings excellent working relationships in our region and will be immediately effective in his new role, allowing a seamless management transition.” Blalock joins Gateway Terminals from Charleston-based CMC, the diversified provider of repair and maintenance services to the container industry, where he was chief operating officer responsible for 1,900 employees across more than 60 operations. Blalock has worked in the ports industry for over 35 years, the GPA said, including, according to his LinkedIn profile, 16 years with APM Terminals. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Port of Savannah’s container stevedore has picked a new president as its current leader transitions to running the port. The Georgia Ports Authority (GPA) said in a statement Thursday that Bryan Blalock will become the next president of Gateway Terminals as of April 13. Gateway Terminals is a joint venture of Ports America and SSA Marine. Blalock will succeed Kevin Price, the GPA’s pick for its next chief executive starting in mid-2027 . Price, who will first take a role as GPA president in July, said in the statement that Blalock “has worked in all facets of our industry, brings excellent working relationships in our region and will be immediately effective in his new role, allowing a seamless management transition.” Blalock joins Gateway Terminals from Charleston-based CMC, the diversified provider of repair and maintenance services to the container industry, where he was chief operating officer responsible for 1,900 employees across more than 60 operations. Blalock has worked in the ports industry for over 35 years, the GPA said, including, according to his LinkedIn profile, 16 years with APM Terminals. Contact Michael Angell at michael.angell@spglobal.com .

Port of Savannah’s container stevedore picks new president

<div class="phx-topic abstract-wrapper">Rolf Habben Jansen told reporters that most of the new costs were coming from rising bunker fuel prices, with other areas such as insurance, container storage and inland transportation adding millions of dollars to weekly expenses. </div>

Rolf Habben Jansen told reporters that most of the new costs were coming from rising bunker fuel prices, with other areas such as insurance, container storage and inland transportation adding millions of dollars to weekly expenses.

<div class="phx-topic">The war in the Middle East has raised Hapag-Lloyd’s operating costs by $40 million to $50 million per week, a reality that “is not something that you can sustain for very long,” the carrier’s CEO said Thursday. Rolf Habben Jansen told reporters during a briefing that most of the new costs were coming from rising bunker fuel prices, with other areas such as insurance, container storage and inland transportation adding millions of dollars to weekly expenses. “To counterbalance that, we have introduced a number of contingency and emergency fuel surcharges,” he said. “This is not to collect more than the extra costs, but an extra cost of $40 million or $50 million per week is not something that you can sustain for very long.” While the disruption caused by the war has spilled over to ports outside the Persian Gulf, unlike the COVID-19 pandemic, the conflict is affecting only 3% of global container traffic, according to Hapag-Lloyd. But from a cost perspective, the impact is immense and growing. Emergency fuel surcharges <a href="https://www.joc.com/article/war-reignites-tussle-between-ocean-carriers-cargo-owners-over-fuel-surcharges-6188632">have been rolled out by several carriers</a> on top of quarterly bunker adjustment factors that were no match for fuel prices that have doubled since the conflict started on Feb. 28. Still, the practice drew swift condemnation from Global Shippers’ Council director James Hookham. “Sure, shipping lines need to watch their costs just like the rest of us but it’s not as if they don’t have working capital reserves of their own,” he told the Journal of Commerce. “The speed with which these charges are being imposed makes it nigh impossible for shippers to recover them from their own customers or suppliers.” On Monday, the US Federal Maritime Commission <a href="https://www.joc.com/article/fmc-rejects-requests-by-carriers-to-waive-waiting-period-for-middle-east-surcharges-6191881">unanimously rejected separate requests from four ocean carriers</a> to waive a 30-day notice period to implement surcharges tied to the war in the Middle East, forcing the four to wait until early April to charge their shipper customers. <h3>Ships trapped in the Gulf </h3>Hapag-Lloyd, meanwhile, has six fully crewed vessels that remain trapped in the Persian Gulf that the carrier is urgently trying to move out of harm’s way. There are unconfirmed reports that Iran is asking carriers to pay a “toll fee” of $1 million or $2 million per ship to guarantee safe passage through the Strait of Hormuz; Habben Jansen was asked whether Hapag-Lloyd would pay Tehran to secure its six ships. “We are pursuing every avenue that we can to try to get the ships and the crews safely out, and I would not rule out anything at this point,” he said. Habben Jansen declined to speculate on what a worst-case scenario around bunker fuel shortages would look like should Hormuz remain effectively closed, but he acknowledged that the longer the conflict continued, the greater the impact on the industry. “What we see is a lot of extra costs that we have to absorb for now, and in the short term that has a negative impact,” he said. “Longer term, it’s still difficult to judge, but we assume that we will be able to recover that extra cost and that’s why we are sticking with our annual forecast.” Hapag-Lloyd has left its 2026 profitability forecast unchanged, but left a wide gap between the high and low ends of the financial guidance. It expects group earnings before interest, taxes, depreciation and amortization to be between $1.1 billion and $3.1 billion, and earnings before interest and taxes to be between a $1.5 billion loss and a $500 million profit. The carrier has forecast that global volumes in 2026 will grow 3% year over year against market capacity growth of 4%. Hapag-Lloyd is trying to ringfence the Middle East conflict from an operational perspective to allow the rest of its network to run as normal, but it is being done in an environment of significant uncertainty, Habben Jansen acknowledged. “There are many things that could happen as a consequence of this conflict and it depends on how long it takes, because it could also have a negative effect on global demand or it could have a positive effect if it ends soon,” he said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The war in the Middle East has raised Hapag-Lloyd’s operating costs by $40 million to $50 million per week, a reality that “is not something that you can sustain for very long,” the carrier’s CEO said Thursday. Rolf Habben Jansen told reporters during a briefing that most of the new costs were coming from rising bunker fuel prices, with other areas such as insurance, container storage and inland transportation adding millions of dollars to weekly expenses. “To counterbalance that, we have introduced a number of contingency and emergency fuel surcharges,” he said. “This is not to collect more than the extra costs, but an extra cost of $40 million or $50 million per week is not something that you can sustain for very long.” While the disruption caused by the war has spilled over to ports outside the Persian Gulf, unlike the COVID-19 pandemic, the conflict is affecting only 3% of global container traffic, according to Hapag-Lloyd. But from a cost perspective, the impact is immense and growing. Emergency fuel surcharges have been rolled out by several carriers on top of quarterly bunker adjustment factors that were no match for fuel prices that have doubled since the conflict started on Feb. 28. Still, the practice drew swift condemnation from Global Shippers’ Council director James Hookham. “Sure, shipping lines need to watch their costs just like the rest of us but it’s not as if they don’t have working capital reserves of their own,” he told the Journal of Commerce. “The speed with which these charges are being imposed makes it nigh impossible for shippers to recover them from their own customers or suppliers.” On Monday, the US Federal Maritime Commission unanimously rejected separate requests from four ocean carriers to waive a 30-day notice period to implement surcharges tied to the war in the Middle East, forcing the four to wait until early April to charge their shipper customers. Ships trapped in the Gulf Hapag-Lloyd, meanwhile, has six fully crewed vessels that remain trapped in the Persian Gulf that the carrier is urgently trying to move out of harm’s way. There are unconfirmed reports that Iran is asking carriers to pay a “toll fee” of $1 million or $2 million per ship to guarantee safe passage through the Strait of Hormuz; Habben Jansen was asked whether Hapag-Lloyd would pay Tehran to secure its six ships. “We are pursuing every avenue that we can to try to get the ships and the crews safely out, and I would not rule out anything at this point,” he said. Habben Jansen declined to speculate on what a worst-case scenario around bunker fuel shortages would look like should Hormuz remain effectively closed, but he acknowledged that the longer the conflict continued, the greater the impact on the industry. “What we see is a lot of extra costs that we have to absorb for now, and in the short term that has a negative impact,” he said. “Longer term, it’s still difficult to judge, but we assume that we will be able to recover that extra cost and that’s why we are sticking with our annual forecast.” Hapag-Lloyd has left its 2026 profitability forecast unchanged, but left a wide gap between the high and low ends of the financial guidance. It expects group earnings before interest, taxes, depreciation and amortization to be between $1.1 billion and $3.1 billion, and earnings before interest and taxes to be between a $1.5 billion loss and a $500 million profit. The carrier has forecast that global volumes in 2026 will grow 3% year over year against market capacity growth of 4%. Hapag-Lloyd is trying to ringfence the Middle East conflict from an operational perspective to allow the rest of its network to run as normal, but it is being done in an environment of significant uncertainty, Habben Jansen acknowledged. “There are many things that could happen as a consequence of this conflict and it depends on how long it takes, because it could also have a negative effect on global demand or it could have a positive effect if it ends soon,” he said. Contact Greg Knowler at greg.knowler@spglobal.com .

War adding $40-$50 million per week to Hapag-Lloyd's costs: CEO

<div class="phx-topic abstract-wrapper">The announced cuts come one month after WiseTech Global said it would be laying off 30% of its workforce over the next two years, also in an AI-related move. </div>

The announced cuts come one month after WiseTech Global said it would be laying off 30% of its workforce over the next two years, also in an AI-related move.

<div class="phx-topic">Freightos on Thursday announced it is reducing its workforce by up to 15% in the near future as part of an effort to adapt to the fast-moving impact artificial intelligence is having on software development. The company, which provides global freight pricing, booking and procurement products to forwarders and shippers, said the cuts will affect about 55 positions in a mix of layoffs and cancellation of planned backfills. “With what’s happening with software and data in the industry around AI, we felt we needed to be set up for scalability long-term,” Freightos Chief Strategy Officer Ian Arroyo told the Journal of Commerce. “And to make sure our teams are structured in a more efficient and effective way going forward.” The announced cuts come one month after WiseTech Global, the largest provider of software to global logistics providers, <a href="https://www.joc.com/article/wisetech-says-to-cut-nearly-30-of-workforce-as-it-preps-for-ai-era-6175881">said it would be laying off 30% of its workforce</a> over the next two years, also in an AI-related move. Arroyo said publicly-traded Freightos had signaled in its fourth-quarter 2025 earnings call in February, its first since founder Zvi Schreiber stepped down as CEO Jan. 31, that the company was shifting from a transactions-focused approach to a solutions-focused approach. Freightos, founded in 2012, had built its presence in ocean freight through a transactions-oriented marketplace before acquiring WebCargo, a pricing solutions provider in the air freight industry, in 2016. “The strategy going forward is we’re going to be solutions focused first, with transactions to come later as a result of that,” Arroyo said. “Our commitment is to be ready for profitability [by the end of 2026]. We’re supporting thousands of forwarders, including all of the top 20, and we needed to make some changes to the organization.” More broadly, a number of technology companies, from Oracle to Amazon to fintech solutions provider Block, have announced layoffs in light of the oncoming march of AI. In particular, the companies have cited AI agents as being able to replace roles in programming, product development and customer service. Traditionally, layoffs at publicly traded companies have been seen as a negative, but more recently, markets have viewed such actions positively, as a sign of companies adapting to the realities of accommodating more digital workers. Arroyo agreed that was a factor in Freightos’ decision-making. “100 percent,” he said. “This is about rightsizing teams in light of the AI revolution. How we support and build and go to market, all of that has to adjust.” <h3>‘Difficult but ... necessary’ decision </h3>Arroyo said that while it might be prudent for software users to be conservative about investment in AI given how fast the environment is moving, software vendors don’t have that luxury. “Maybe the head of global logistics can sit on the sidelines and wait right now,” he said. “But those of us actually building the software, we better be in a position that we can enable the shifts [customers] need or want to make, while ensuring the continuity of the backbones of what they run their businesses on.” Newly appointed Freightos CEO Pablo Pinillos emphasized that the layoffs will help the company reach its goal of being profitable by the end of the year. “These types of decisions are very difficult, but this is a necessary step to ensure Freightos is positioned for long-term, sustainable growth in a dynamic market,” Pinillos said in a statement Thursday. Freightos estimates it will incur approximately $1.3 million in one-time restructuring charges, primarily related to severance and employee benefits, over the first nine months of 2026. But it expects the restructuring to generate annualized cost savings of approximately $4.5 million starting in the fourth quarter of this year. The company had revenue of $29.5 million in 2025, a 24% increase year over year, while it posted an earnings before interest, taxes, depreciation and amortization loss of $11.2 million, compared with a $12.6 million loss in 2024. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

Freightos on Thursday announced it is reducing its workforce by up to 15% in the near future as part of an effort to adapt to the fast-moving impact artificial intelligence is having on software development. The company, which provides global freight pricing, booking and procurement products to forwarders and shippers, said the cuts will affect about 55 positions in a mix of layoffs and cancellation of planned backfills. “With what’s happening with software and data in the industry around AI, we felt we needed to be set up for scalability long-term,” Freightos Chief Strategy Officer Ian Arroyo told the Journal of Commerce. “And to make sure our teams are structured in a more efficient and effective way going forward.” The announced cuts come one month after WiseTech Global, the largest provider of software to global logistics providers, said it would be laying off 30% of its workforce over the next two years, also in an AI-related move. Arroyo said publicly-traded Freightos had signaled in its fourth-quarter 2025 earnings call in February, its first since founder Zvi Schreiber stepped down as CEO Jan. 31, that the company was shifting from a transactions-focused approach to a solutions-focused approach. Freightos, founded in 2012, had built its presence in ocean freight through a transactions-oriented marketplace before acquiring WebCargo, a pricing solutions provider in the air freight industry, in 2016. “The strategy going forward is we’re going to be solutions focused first, with transactions to come later as a result of that,” Arroyo said. “Our commitment is to be ready for profitability [by the end of 2026]. We’re supporting thousands of forwarders, including all of the top 20, and we needed to make some changes to the organization.” More broadly, a number of technology companies, from Oracle to Amazon to fintech solutions provider Block, have announced layoffs in light of the oncoming march of AI. In particular, the companies have cited AI agents as being able to replace roles in programming, product development and customer service. Traditionally, layoffs at publicly traded companies have been seen as a negative, but more recently, markets have viewed such actions positively, as a sign of companies adapting to the realities of accommodating more digital workers. Arroyo agreed that was a factor in Freightos’ decision-making. “100 percent,” he said. “This is about rightsizing teams in light of the AI revolution. How we support and build and go to market, all of that has to adjust.” ‘Difficult but ... necessary’ decision Arroyo said that while it might be prudent for software users to be conservative about investment in AI given how fast the environment is moving, software vendors don’t have that luxury. “Maybe the head of global logistics can sit on the sidelines and wait right now,” he said. “But those of us actually building the software, we better be in a position that we can enable the shifts [customers] need or want to make, while ensuring the continuity of the backbones of what they run their businesses on.” Newly appointed Freightos CEO Pablo Pinillos emphasized that the layoffs will help the company reach its goal of being profitable by the end of the year. “These types of decisions are very difficult, but this is a necessary step to ensure Freightos is positioned for long-term, sustainable growth in a dynamic market,” Pinillos said in a statement Thursday. Freightos estimates it will incur approximately $1.3 million in one-time restructuring charges, primarily related to severance and employee benefits, over the first nine months of 2026. But it expects the restructuring to generate annualized cost savings of approximately $4.5 million starting in the fourth quarter of this year. The company had revenue of $29.5 million in 2025, a 24% increase year over year, while it posted an earnings before interest, taxes, depreciation and amortization loss of $11.2 million, compared with a $12.6 million loss in 2024. Contact Eric Johnson at eric.johnson@spglobal.com .

Freightos to trim up to 15% of headcount amid AI adaptation process

<div class="phx-topic abstract-wrapper">The French liner is implementing changes to its Epic and Medex services due to operational complications caused by the war in the Persian Gulf. </div>

The French liner is implementing changes to its Epic and Medex services due to operational complications caused by the war in the Persian Gulf.

<div class="phx-topic">CMA CGM will add a new call at Colombo Port in Sri Lanka to its India-North Europe “Epic” loop and revamp its “Medex” India-Mediterranean route amid operational pressures due to the war in the Middle East. Both moves are effective from early April. The call at Colombo will enable CMA CGM to handle Pakistan shipments that it was previously transshipping via the Persian Gulf. The new Epic rotation will start with the CMA CGM Gemini’s arrival in Mundra, slated for April 3. The new rotation for Epic will call Mundra, Nhava Sheva, Colombo, Tangier Med, Southampton, Rotterdam, Hamburg, Antwerp, Le Havre, Algeciras and Nhava Sheva. Cosco Shipping is a vessel-sharing partner on the Epic, contributing three ships out of 10 vessels currently deployed on the rotation. The new Colombo call on the Epic loop will also allow CMA CGM to connect incremental volumes out of southern India by offering more reliable and faster transits than its existing coverage for the region via the “NEWMO” service out of Ennore Port (Chennai) that has longer roundtrip times. The reconfigured Medex, meanwhile, is due to begin westbound operations when the CMA CGM Ural arrives in Mundra on April 2. The changes to the route will introduce stops at Djibouti, Valencia and Fos-sur-Mer while dropping Abu Dhabi and Jebel Ali from the itinerary. Medex will call Mundra, Nhava Sheva, Colombo, Djibouti, Jeddah, Port Said, Valencia, Fos-sur-Mer, Genoa, Malta, Piraeus, Beirut, Port Said, Jeddah and Mundra. <h3>Rates on the rise </h3>Ocean rates on the India-Europe trade lane have more than doubled since the start of the war in the Middle East, according to forwarders. Sources put average spot booking rates from West India to North Europe at $3,000 to $3,200 per FEU, up from $1,400 to $1,500/FEU reported in late February. Local forwarder executives who spoke with the Journal of Commerce have linked the rate boost in large part to capacity disruptions along with the impact of emergency fuel fees now being levied by carriers. “We do not see the rate surge as a sign of a recovering market,” said an executive at a Mumbai-based forwarding house who didn’t want to be identified. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

CMA CGM will add a new call at Colombo Port in Sri Lanka to its India-North Europe “Epic” loop and revamp its “Medex” India-Mediterranean route amid operational pressures due to the war in the Middle East. Both moves are effective from early April. The call at Colombo will enable CMA CGM to handle Pakistan shipments that it was previously transshipping via the Persian Gulf. The new Epic rotation will start with the CMA CGM Gemini’s arrival in Mundra, slated for April 3. The new rotation for Epic will call Mundra, Nhava Sheva, Colombo, Tangier Med, Southampton, Rotterdam, Hamburg, Antwerp, Le Havre, Algeciras and Nhava Sheva. Cosco Shipping is a vessel-sharing partner on the Epic, contributing three ships out of 10 vessels currently deployed on the rotation. The new Colombo call on the Epic loop will also allow CMA CGM to connect incremental volumes out of southern India by offering more reliable and faster transits than its existing coverage for the region via the “NEWMO” service out of Ennore Port (Chennai) that has longer roundtrip times. The reconfigured Medex, meanwhile, is due to begin westbound operations when the CMA CGM Ural arrives in Mundra on April 2. The changes to the route will introduce stops at Djibouti, Valencia and Fos-sur-Mer while dropping Abu Dhabi and Jebel Ali from the itinerary. Medex will call Mundra, Nhava Sheva, Colombo, Djibouti, Jeddah, Port Said, Valencia, Fos-sur-Mer, Genoa, Malta, Piraeus, Beirut, Port Said, Jeddah and Mundra. Rates on the rise Ocean rates on the India-Europe trade lane have more than doubled since the start of the war in the Middle East, according to forwarders. Sources put average spot booking rates from West India to North Europe at $3,000 to $3,200 per FEU, up from $1,400 to $1,500/FEU reported in late February. Local forwarder executives who spoke with the Journal of Commerce have linked the rate boost in large part to capacity disruptions along with the impact of emergency fuel fees now being levied by carriers. “We do not see the rate surge as a sign of a recovering market,” said an executive at a Mumbai-based forwarding house who didn’t want to be identified. Contact Bency Mathew at bencyvmathew@gmail.com .

CMA CGM reorganizes India-Europe/Med network amid Middle East port woes 

<div class="phx-topic abstract-wrapper">An estimated 30% of Asia-Europe air cargo is routed via the Middle East, so the sudden closure of airspace in the Persian Gulf has left forwarders scrambling for capacity on freighters and passenger aircraft out of Asia. </div>

An estimated 30% of Asia-Europe air cargo is routed via the Middle East, so the sudden closure of airspace in the Persian Gulf has left forwarders scrambling for capacity on freighters and passenger aircraft out of Asia.

<div class="phx-topic">Air cargo out of Asia is capitalizing on airlines relocating capacity from the war-torn Middle East, but the rising demand for direct flights to Europe is being quickly snapped up by forwarders. An estimated 30% of Asia-Europe air cargo is routed via the Middle East, and the sudden closure of airspace in the Persian Gulf left forwarders scrambling for capacity on freighters and passenger aircraft out of Asia. Darren Greene, head of air, ocean and customs at EFL Distribution, the Irish partner of Hong Kong-based U-Freight Group, said there was heavy demand for space on air freight services being rerouted through London, Frankfurt and Istanbul. “In addition to rising surcharges, freighter aircraft capacity is tightening significantly, with space becoming increasingly scarce on these new routes,” Greene told the Journal of Commerce. To handle the demand, Hong Kong-based Cathay Pacific has redirected capacity from canceled Dubai and Riyadh services to London, Paris and Zurich while increasing the size of aircraft on its Asia-Europe routes. Singapore Airlines has also suspended all flights to Dubai and increased its European services. While the additional capacity is predominantly aimed at providing lift for passengers unable to fly via the Middle East, the long-haul aircraft offer considerable below-deck cargo space. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="1f8878b6-9e77-46fc-bdf5-c1982da8007e"></dynamic-object></div>Despite the capacity additions from Asian carriers and European airlines adding Asia-Europe flights, rates that leveled off last week have started to climb again, possibly on reports of growing backlogs at key hubs and rising fuel costs, according to Freightos. Data from the online rate marketplace showed Southeast Asia-Europe prices are up 17% from last week at $5/kg, China-Europe rates jumped 25% to $5.01/kg, and China-US prices rose 9% to $7.28/kg. “While base freight rates remain stable, the introduction of fuel and war risk surcharges has created significant cost constraints,” Greene said. <h3>Fuel price rise outstripping rate increases </h3>The rate increases are being outstripped by rising fuel prices that, before the war, made up about 30% of an airline’s total operating costs. Global average jet fuel prices increased to $197 per barrel for the week ending March 20, up 25% on the previous week and more than double the last week of February, according to the latest price data published by the International Air Transport Association (IATA). Carriers have responded with fuel surcharges that are being revised regularly. Cathay Pacific tripled its fuel surcharge in mid-March to HK$12.9 per kilogram (US$1.65) that will be valid until March 31. “If the steep increase of fuel costs cannot be effectively mitigated, we would not be able to sustain the effective operations of our network,” Cathay Pacific said in a statement Thursday. “To enable a more agile response to the volatile jet fuel prices, we will review and revise the fuel surcharge every two weeks to better capture jet fuel price movements in either upward or downward direction,” the carrier said. “This increased frequency of review is intended as a temporary measure and will be revisited when the Middle East situation stabilizes.” Singapore Airlines is charging CNY15/kg ($2.17) on long-haul shipments originating in China. Lufthansa Cargo will raise its fuel surcharge from €1.20/kg to €1.45 ($1.39 to $1.68) from March 30. Korean Air Cargo announced an “urgent adjustment” to its fuel surcharge policy effective April 1 without giving a surcharge price for cargo, while Maersk Air Freight has implemented emergency fuel surcharges and intermodal fuel fees because of the volatility in jet fuel prices. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Air cargo out of Asia is capitalizing on airlines relocating capacity from the war-torn Middle East, but the rising demand for direct flights to Europe is being quickly snapped up by forwarders. An estimated 30% of Asia-Europe air cargo is routed via the Middle East, and the sudden closure of airspace in the Persian Gulf left forwarders scrambling for capacity on freighters and passenger aircraft out of Asia. Darren Greene, head of air, ocean and customs at EFL Distribution, the Irish partner of Hong Kong-based U-Freight Group, said there was heavy demand for space on air freight services being rerouted through London, Frankfurt and Istanbul. “In addition to rising surcharges, freighter aircraft capacity is tightening significantly, with space becoming increasingly scarce on these new routes,” Greene told the Journal of Commerce. To handle the demand, Hong Kong-based Cathay Pacific has redirected capacity from canceled Dubai and Riyadh services to London, Paris and Zurich while increasing the size of aircraft on its Asia-Europe routes. Singapore Airlines has also suspended all flights to Dubai and increased its European services. While the additional capacity is predominantly aimed at providing lift for passengers unable to fly via the Middle East, the long-haul aircraft offer considerable below-deck cargo space. Despite the capacity additions from Asian carriers and European airlines adding Asia-Europe flights, rates that leveled off last week have started to climb again, possibly on reports of growing backlogs at key hubs and rising fuel costs, according to Freightos. Data from the online rate marketplace showed Southeast Asia-Europe prices are up 17% from last week at $5/kg, China-Europe rates jumped 25% to $5.01/kg, and China-US prices rose 9% to $7.28/kg. “While base freight rates remain stable, the introduction of fuel and war risk surcharges has created significant cost constraints,” Greene said. Fuel price rise outstripping rate increases The rate increases are being outstripped by rising fuel prices that, before the war, made up about 30% of an airline’s total operating costs. Global average jet fuel prices increased to $197 per barrel for the week ending March 20, up 25% on the previous week and more than double the last week of February, according to the latest price data published by the International Air Transport Association (IATA). Carriers have responded with fuel surcharges that are being revised regularly. Cathay Pacific tripled its fuel surcharge in mid-March to HK$12.9 per kilogram (US$1.65) that will be valid until March 31. “If the steep increase of fuel costs cannot be effectively mitigated, we would not be able to sustain the effective operations of our network,” Cathay Pacific said in a statement Thursday. “To enable a more agile response to the volatile jet fuel prices, we will review and revise the fuel surcharge every two weeks to better capture jet fuel price movements in either upward or downward direction,” the carrier said. “This increased frequency of review is intended as a temporary measure and will be revisited when the Middle East situation stabilizes.” Singapore Airlines is charging CNY15/kg ($2.17) on long-haul shipments originating in China. Lufthansa Cargo will raise its fuel surcharge from €1.20/kg to €1.45 ($1.39 to $1.68) from March 30. Korean Air Cargo announced an “urgent adjustment” to its fuel surcharge policy effective April 1 without giving a surcharge price for cargo, while Maersk Air Freight has implemented emergency fuel surcharges and intermodal fuel fees because of the volatility in jet fuel prices. Contact Greg Knowler at greg.knowler@spglobal.com .

Demand for direct Asia-Europe air cargo fills rerouted Middle East flights

Use code GTT26W at checkout and save $900 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

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

Use code SSFTW30 at checkout to save 30% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT to S/SP - Wide Box

SPRING SALE!

Use code GW595 and upgrade to Gold for just $595! Valid for first year of subscription.

Upgrade Subscription - S/SP to Gold - Wide Box

SAVE $900 ON A GOLD SUBSCRIPTION

Use code SSLW30 at checkout and save 30% on an annual Silver or Silver Plus subscription!

Subscribe Now - Anonymous to S/SP - Wide Box

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code SSGFTW895 at checkout to save $600 on first year of a Gold subscription!

Subscribe Now - FT to Gold - Wide Box

Use code SSLW895 at checkout and save $600 on first year of a Gold subscription!

Subscribe Now - Anonymous to Gold - Wide Box

SPRING SALE: Use code SSFTW30 to save 30% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT to S/SP - Offer Box

Subscribe and Save

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

Group Subscriptions - Offer Box

Group Subscriptions

SPRING SALE: Use code SSLW30 at checkout and save 30% on an annual Silver or Silver Plus subscription!

Subscribe Now - Anonymous to S/SP - Offer Box

SUBSCRIBE TODAY

UPGRADE TO GOLD AND SAVE: Use code GTT26W at checkout and save $900 on first year of a Gold subscription!

Upgrade Subscription

SPRING SALE: Use code SSLW895 at checkout and save $600 on an annual Gold subscription!

Subscribe Now - Anonymous to Gold - Offer Box

SAVE $900 ON A GOLD SUBSCRIPTION: Use code GW595 and upgrade to Gold for just $595! Valid on first year of subscription.

Upgrade Subscription - S/SP to Gold - Offer Box

SPRING SALE: Use code SSGFTW895 and save $600 on the first year of a Gold subscription!

Subscribe Now - FT to Gold - Offer Box

SUBSCRIBE AND SAVE

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

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

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

ISI Report - Rectangle Box

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

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

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

Gateway - Rectangle Box

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The only editorially independent conference for the breakbulk & project cargo industry

Latest News

More News & Analysis

Port of Savannah’s container stevedore picks new president

War adding $40-$50 million per week to Hapag-Lloyd's costs: CEO

Freightos to trim up to 15% of headcount amid AI adaptation process