<div class="phx-topic abstract-wrapper">Ocean carriers are canceling services and telling some shippers they can expect weeklong delays due to considerable and unexplained congestion through the Panama Canal.
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Ocean carriers are canceling services and telling some shippers they can expect weeklong delays due to considerable and unexplained congestion through the Panama Canal.

<div>Ocean carriers are canceling services and telling some shippers they can expect weeklong delays due to considerable and unexplained congestion through <a>the Panama Canal</a>.Various reports have cited adverse weather conditions in the area as El Nino has reduced rainfall and lowered the water levels of the Gatun and Alhajuela lakes, which feed water to the canal’s locks. The canal authority in <a>September</a> announced plans to restrict the size of vessel drafts passing through the waterway for the first time since 1998, but the restrictions were suspended after rainfall kept water levels at safe levels. Other reports have cited repairs to...

Ocean carriers are canceling services and telling some shippers they can expect weeklong delays due to considerable and unexplained congestion through the Panama Canal . Various reports have cited adverse weather conditions in the area as El Nino has reduced rainfall and lowered the water levels of the Gatun and Alhajuela lakes, which feed water to the canal’s locks. The canal authority in September announced plans to restrict the size of vessel drafts passing through the waterway for the first time since 1998, but the restrictions were suspended after rainfall kept water levels at safe levels. Other reports have cited repairs to existing canal locks as an explanation for the delays. The Panama Canal Authority has not responded to multiple JOC.com requests for comment on the factors behind the backlog, nor the measures that were being taken to remedy them. Vessels awaiting transit are now facing up to 10-day delays, carriers have told shippers this week, far more than the average transit times of 24 to 30 hours. The canal was experiencing significant vessel traffic as of Wednesday afternoon. Twelve container ships were transiting the canal and 22 others were awaiting transit — 17 on the Pacific side and five on the Atlantic, according to data from AIS Live , a sister product of JOC.com within IHS. l The congestion began to mount in the last month, according to freight forwarder OEC Group. “Beginning in mid-October, the Panama Canal began experiencing congestion issues on both the Atlantic and Pacific sides,” the company said in a message to customers on Tuesday. Now in early November, the company said, “vessels are currently waiting several days at anchor before being granted entry to the canal.” Cosco Container Lines has told customers that at least eight vessels have been delayed or otherwise impacted by the congestion. One ship, the Cosco Auckland, is facing a 10-day delay, the company said. CMA CGM announced it would cancel its Manhattan Bridge Service effective Nov. 12, terminating service to the Port of New York-New Jersey and Virginia for the vessel Amalthea on its Vespucci service rotation. “Due to operational issues resulting from delays in transiting the Panama Canal, there has been a decision to cancel the sailing,” the company told customers. Cargo bound for New York-New Jersey and Norfolk, Virginia booked on the Amalthea, originally scheduled to arrive in New York on Nov. 4, has been transloaded to a new ship in Cartagena and will be delayed approximately nine days. The carrier said it would continue making adjustments to ensure service continuity. Cosco’s message to customers cited reports that “weather conditions” were behind the recent backlog. Those reports, however, could not be corroborated Wednesday afternoon. The canal faced a similar backlog in March and April that was pegged to the lingering effects of U.S. West Coast port congestion tied to slowdowns during protracted contract negotiations between the International Longshore and Warehouse Union and the Pacific Maritime Association. There was no clear cause for the most recent delays, however. The canal, which is undergoing a $5.25 billion expansion project, has been facing delays of its own of late. The newly expanded canal will allow container ships capable of carrying more than 11,000 20-foot-equivalent units to transit the waterway, more than twice the vessel size that can pass through the existing locks. The project is expected to be completed by April, but some of the newly installed locks have begun to leak and repairs will be more extensive than previously indicated, authorities have said, leaving the date for their completion uncertain. The central concern for the shipping industry is the extent repairs to leaking locks could delay the commercial opening of the expanded waterway. The canal authority has said Grupo Unidos Por el Canal, the consortium building the locks, hasn’t changed the date for opening of the new locks, despite seepage in a sill tied to a problem with steel enforcement. Panama Canal Administrator Jorge Quijano has assured shipping leaders that the canal’s new, larger locks should open on schedule. The nation’s foreign ministry already has sent invitations to some 70 heads of state for the opening ceremony. Contact Reynolds Hutchins at reynolds.hutchins@ihs.com and follow him on Twitter: @Hutchins_JOC .

Container lines

Delays of 10 days reported at Panama Canal

<div class="phx-topic abstract-wrapper">The appointment of Maersk’s terminals arm came just hours Panama’s Supreme Court nullified the concessions Hutchison had held at the Balboa and Cristobal ports for almost 30 years.</div>

The appointment of Maersk’s terminals arm came just hours Panama’s Supreme Court nullified the concessions Hutchison had held at the Balboa and Cristobal ports for almost 30 years.

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<div class="phx-topic">Maersk’s APM Terminals on Friday was appointed the interim administrator of the Balboa and Cristobal terminals that bookend the Panama Canal after the country’s Supreme Court nullified the operating concessions long held by the Panama Ports Company, a subsidiary of Hutchinson Port Holdings. The Panama Maritime Authority said it hoped for an orderly and coordinated transition from Panama Ports to APMT, noting Hong Kong conglomerate CK Hutchison Holdings is a “globally recognized organization known for its strong corporate reputation.” ”In this context, we trust in their constructive collaboration during this phase, for the benefit of the port system’s stability,” the maritime authority said in a statement announcing the Maersk takeover. This came a day after Panama Ports Company <a href="https://www.joc.com/article/panama-court-voids-ck-hutchison-canal-terminal-leases-6161145">angrily rejected the Supreme Court’s decision to cancel its concessions</a>, saying the ruling “lacks legal basis and jeopardizes not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity, but also the rule of law and legal certainty in the country.” PPC also warned it could take national and international legal action against the Panamanian government in response to the court decision, which it said was the latest development in an ongoing campaign that included “a range of surprise actions” targeting the terminal concessions and PPC. PPC did not immediately respond to questions from the Journal of Commerce on whether it would allow APM Terminals to take over operational control of the terminals. PPC has operated the terminals at Balboa on the Pacific side of the canal and Cristobal on the Atlantic coast since 1997 following the award of an initial 25-year concession that was extended in 2021, deals the Supreme Court has now ruled unconstitutional. The maritime authority did not say when APM Terminals would assume responsibility as temporary operator, how long its assignment would last or the process for appointing a new terminal operator. In a separate statement Friday, APM Terminals said it would begin “operations at the terminals in compliance with all legal formalities and procedures.” ”This will only occur after the decision of the Supreme Court of Justice of Panama becomes final, a timeframe beyond the company’s control,” APMT said. The terminal operator said it “confirms its willingness” to temporarily assume operation of both terminals. ”This aims to mitigate risks that could affect essential services for regional and global trade and to support Panama’s logistics hub,” it said. The maritime authority said Panama, as the owner of the ports, guarantees the operational continuity of the national port system, which it said were “proceeding normally, without interruption, and maintaining optimal levels of productivity, efficiency, and service quality for shipping lines and their clients.” <h3>ACP seeks developers for two new terminals </h3>The legal wrangle over PPC’s concession and APM Terminals interim appointment came as the Panama Canal Authority (ACP) announced Friday that it was asking international terminal operators to prequalify to develop two new container terminals at either end of the canal. Companies have to submit prequalification documents by April 8. The common-user terminals, estimated to cost a total of $2.6 billon, will be built in Corozal at the Pacific entrance of the canal, and Telfers lsland at the canal’s Atlantic entrance. APMT was one of the 12 terminal operators that had individual meetings in October with ACP officials to discuss the project. Others were Cosco Shipping Ports, CMA Terminals, DP World, Hanseatic Global Terminals, MOL, PSA International, SSA Marine-Grupo Carrix, Terminal Investment Limited (TiL), ONE, and Evergreen. Several already run existing terminals. SSA Marine operates Manzanillo International Terminals, while Evergreen is concessionaire for Colon Container Terminal, both on the Atlantic side of the canal. Singapore’s PSA operates its Panama International Terminal on the Pacific Coast. The two new terminals are specifically aimed at boosting Panama’s annual transshipment capacity to between 5 million TEUs and 6 million TEUs and strengthen Panama’s position as a globally competitive intermodal hub. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com.</a></div>

Maersk’s APM Terminals on Friday was appointed the interim administrator of the Balboa and Cristobal terminals that bookend the Panama Canal after the country’s Supreme Court nullified the operating concessions long held by the Panama Ports Company, a subsidiary of Hutchinson Port Holdings. The Panama Maritime Authority said it hoped for an orderly and coordinated transition from Panama Ports to APMT, noting Hong Kong conglomerate CK Hutchison Holdings is a “globally recognized organization known for its strong corporate reputation.” ”In this context, we trust in their constructive collaboration during this phase, for the benefit of the port system’s stability,” the maritime authority said in a statement announcing the Maersk takeover. This came a day after Panama Ports Company angrily rejected the Supreme Court’s decision to cancel its concessions , saying the ruling “lacks legal basis and jeopardizes not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity, but also the rule of law and legal certainty in the country.” PPC also warned it could take national and international legal action against the Panamanian government in response to the court decision, which it said was the latest development in an ongoing campaign that included “a range of surprise actions” targeting the terminal concessions and PPC. PPC did not immediately respond to questions from the Journal of Commerce on whether it would allow APM Terminals to take over operational control of the terminals. PPC has operated the terminals at Balboa on the Pacific side of the canal and Cristobal on the Atlantic coast since 1997 following the award of an initial 25-year concession that was extended in 2021, deals the Supreme Court has now ruled unconstitutional. The maritime authority did not say when APM Terminals would assume responsibility as temporary operator, how long its assignment would last or the process for appointing a new terminal operator. In a separate statement Friday, APM Terminals said it would begin “operations at the terminals in compliance with all legal formalities and procedures.” ”This will only occur after the decision of the Supreme Court of Justice of Panama becomes final, a timeframe beyond the company’s control,” APMT said. The terminal operator said it “confirms its willingness” to temporarily assume operation of both terminals. ”This aims to mitigate risks that could affect essential services for regional and global trade and to support Panama’s logistics hub,” it said. The maritime authority said Panama, as the owner of the ports, guarantees the operational continuity of the national port system, which it said were “proceeding normally, without interruption, and maintaining optimal levels of productivity, efficiency, and service quality for shipping lines and their clients.” ACP seeks developers for two new terminals The legal wrangle over PPC’s concession and APM Terminals interim appointment came as the Panama Canal Authority (ACP) announced Friday that it was asking international terminal operators to prequalify to develop two new container terminals at either end of the canal. Companies have to submit prequalification documents by April 8. The common-user terminals, estimated to cost a total of $2.6 billon, will be built in Corozal at the Pacific entrance of the canal, and Telfers lsland at the canal’s Atlantic entrance. APMT was one of the 12 terminal operators that had individual meetings in October with ACP officials to discuss the project. Others were Cosco Shipping Ports, CMA Terminals, DP World, Hanseatic Global Terminals, MOL, PSA International, SSA Marine-Grupo Carrix, Terminal Investment Limited (TiL), ONE, and Evergreen. Several already run existing terminals. SSA Marine operates Manzanillo International Terminals, while Evergreen is concessionaire for Colon Container Terminal, both on the Atlantic side of the canal. Singapore’s PSA operates its Panama International Terminal on the Pacific Coast. The two new terminals are specifically aimed at boosting Panama’s annual transshipment capacity to between 5 million TEUs and 6 million TEUs and strengthen Panama’s position as a globally competitive intermodal hub. Contact Keith Wallis at keithwallis@hotmail.com.

Port News

Trans-Pacific

Marine terminals

International ports

Container Shipping News

Maritime

APMT to run Hutchison's Panama terminals on interim basis after court ruling 

<div class="phx-topic abstract-wrapper">The move comes after Spain turned away three US-flagged ships and a Danish multipurpose vessel on the grounds they were carrying military cargo bound for Israel.</div>

The move comes after Spain turned away three US-flagged ships and a Danish multipurpose vessel on the grounds they were carrying military cargo bound for Israel.

<div class="phx-topic">Spanish-flagged vessels could be looking at US fees of up to $2.3 million per voyage and bans from US ports as Washington doubles down on a probe prompted by Spain’s refusal of multiple US-flagged ships and a Danish multipurpose vessel (MPV) delivering weapons and military cargo to Israel. The US Federal Maritime Commission (FMC) is considering industry comments through Feb. 20 after issuing a late-December notice requesting new information on whether Spain is creating conditions “unfavorable” to foreign trade. The FMC’s notice indicated that in November 2024, Spain barred three US-flagged vessels that were operating under the US Maritime Administration’s (MARAD) Maritime Security Program, which supports the US Department of Defense during emergencies and wartime. According to the FMC, Spain turned the ships away on grounds they were carrying cargo to Israel. The FMC also cited policy changes the Spanish government adopted last September to limit military cargo shipments to Israel. “Spain’s recent announcement and information from multiple sources indicate that the basic conditions the commission initiated this investigation to address still exist and are likely creating general or special conditions unfavorable to shipping in US foreign commerce,” the FMC stated in the December notice. The three US-flagged ships were container vessels — the Maersk Denver, the Maersk Nysted, and the Maersk Seletar, which were denied access in Spain after departing from New York ports. The FMC’s investigation indicates that Spain also turned away a Danish MPV vessel, the Marianne Danica, in May 2024 on grounds that it was transporting weapons to Israel. Spanish newspaper El País reported that the ship was carrying 27 tons of explosive material from Chennai in India to the port of Haifa in Israel. Both container and multipurpose vessels are used to transport weapons and military cargo. MPVs can carry advanced weaponry as well as roll-on/roll-off military equipment such as tanks and armored vehicles. <h3>Initial probe launched in December 2024 </h3>The FMC launched an initial investigation in December 2024 and received over 8,000 comments, many of which related to respondents’ positions on the Israel-Hamas conflict. The commission requested a second round of public comments after the Spanish government last September announced formal measures to halt the flow of certain cargo bound to or from Israel. The measures include banning ships and aircraft transporting weapons to Israel and barring tankers carrying fuel for the Israeli military from using Spanish ports and airspace. The FMC is collecting public input “on whether Spain is creating general or special conditions unfavorable to shipping in foreign trade,” and if so, what actions the agency should take in response. Among those actions, the FMC said it could impose fees of up to $2.3 million per voyage on Spanish-flagged ships calling US ports, restrict voyages to or from US ports, and limit cargo types and amounts. The commission could also order the Department of Homeland Security to detain, refuse, and fine vessels. The FMC’s inquiry is part of a broader overall effort by the agency to flex its muscle and effect changes that could reshape global maritime policy. In March 2025, the FMC launched an investigation into international maritime chokepoints, which the commission cited as a potential threat to US security. Last May, the FMC initiated an inquiry into whether foreign countries’ flagging practices, including “flags of convenience,” are creating barriers to US trade. The FMC has remained relatively silent on those investigations since then, but both remain active. Contact Autumn Cafiero Giusti at <a href="mailto:autumn@autumngiusti.com">autumn@autumngiusti.com.</a></div>

Spanish-flagged vessels could be looking at US fees of up to $2.3 million per voyage and bans from US ports as Washington doubles down on a probe prompted by Spain’s refusal of multiple US-flagged ships and a Danish multipurpose vessel (MPV) delivering weapons and military cargo to Israel. The US Federal Maritime Commission (FMC) is considering industry comments through Feb. 20 after issuing a late-December notice requesting new information on whether Spain is creating conditions “unfavorable” to foreign trade. The FMC’s notice indicated that in November 2024, Spain barred three US-flagged vessels that were operating under the US Maritime Administration’s (MARAD) Maritime Security Program, which supports the US Department of Defense during emergencies and wartime. According to the FMC, Spain turned the ships away on grounds they were carrying cargo to Israel. The FMC also cited policy changes the Spanish government adopted last September to limit military cargo shipments to Israel. “Spain’s recent announcement and information from multiple sources indicate that the basic conditions the commission initiated this investigation to address still exist and are likely creating general or special conditions unfavorable to shipping in US foreign commerce,” the FMC stated in the December notice. The three US-flagged ships were container vessels — the Maersk Denver, the Maersk Nysted, and the Maersk Seletar, which were denied access in Spain after departing from New York ports. The FMC’s investigation indicates that Spain also turned away a Danish MPV vessel, the Marianne Danica, in May 2024 on grounds that it was transporting weapons to Israel. Spanish newspaper El País reported that the ship was carrying 27 tons of explosive material from Chennai in India to the port of Haifa in Israel. Both container and multipurpose vessels are used to transport weapons and military cargo. MPVs can carry advanced weaponry as well as roll-on/roll-off military equipment such as tanks and armored vehicles. Initial probe launched in December 2024 The FMC launched an initial investigation in December 2024 and received over 8,000 comments, many of which related to respondents’ positions on the Israel-Hamas conflict. The commission requested a second round of public comments after the Spanish government last September announced formal measures to halt the flow of certain cargo bound to or from Israel. The measures include banning ships and aircraft transporting weapons to Israel and barring tankers carrying fuel for the Israeli military from using Spanish ports and airspace. The FMC is collecting public input “on whether Spain is creating general or special conditions unfavorable to shipping in foreign trade,” and if so, what actions the agency should take in response. Among those actions, the FMC said it could impose fees of up to $2.3 million per voyage on Spanish-flagged ships calling US ports, restrict voyages to or from US ports, and limit cargo types and amounts. The commission could also order the Department of Homeland Security to detain, refuse, and fine vessels. The FMC’s inquiry is part of a broader overall effort by the agency to flex its muscle and effect changes that could reshape global maritime policy. In March 2025, the FMC launched an investigation into international maritime chokepoints, which the commission cited as a potential threat to US security. Last May, the FMC initiated an inquiry into whether foreign countries’ flagging practices, including “flags of convenience,” are creating barriers to US trade. The FMC has remained relatively silent on those investigations since then, but both remain active. Contact Autumn Cafiero Giusti at autumn@autumngiusti.com.

Transport, Trade and Regulation News

Supply chain

Breakbulk News

FMC weighs hefty fees, port bans for Spanish vessels

<div class="phx-topic abstract-wrapper">CEO Mark Rourke said a spot rate surge in December was the first sign of truckload capacity exits having a material impact on prices that will eventually lead to the carrier being able to charge shippers higher rates.</div>

CEO Mark Rourke said a spot rate surge in December was the first sign of truckload capacity exits having a material impact on prices that will eventually lead to the carrier being able to charge shippers higher rates.

<div class="phx-topic">Schneider National was disappointed with freight demand in the fourth quarter but remains hopeful that regulatory crackdowns in the trucking industry will pull out enough supply in 2026 to end the freight recession. Schneider CEO Mark Rourke said during the company’s Q4 earnings call Thursday the intermodal provider was “not satisfied” with its results, which included a more than 30% drop in net income. But he said a spot rate surge in December was the first sign of truckload capacity exits having a material impact on prices that will eventually lead to the carrier being able to charge shippers higher rates. The US Department of Transportation has been pressuring states to cancel non-domiciled commercial driver’s licenses for immigrants with expired or invalid work authorizations and those seeking asylum. It has also taken drivers out of service who cannot demonstrate the ability to read and understand English and shut down driving schools that do not rigorously train students before qualifying them to operate a rig. “The industry is already feeling the impact of supply rationalization related to regulatory actions in areas such as non-domiciled CDLs, English language proficiency, and driver school certifications,” Rourke said. “We expect capacity attrition to continue to ramp up, and we continue to believe the impact is likely to be greater than what we saw from the electronic logging mandate in 2017.” Rourke, however, said the USDOT crackdowns will tighten available truck capacity over quarters, not months. He also said economic drivers of freight demand must recover in 2026 to truly flip the market toward carriers. “The trajectory of consumer spending, the impacts from the (Republican-led appropriations bill), and interest rate policy all have the potential to significantly influence the timing and magnitude of improvement in market conditions,” he said. Schneider grew revenue 4.5% year over year to $1.4 billion during the fourth quarter. But net income of $22.1 million was down 32% from the year-ago quarter. Schneider reported Q4 truckload revenues of $610 million, up nearly $50 million compared with the prior year, driven by a 21% increase in dedicated volume. Logistics revenues were $329.3 million, up 2% compared to the same quarter in 2024. <h3>Intermodal volume gains </h3>Results in the trucking and logistics divisions were propped by the integration of the Cowan Systems business. Schneider bought the Baltimore-based trucking company for $390 million, with the deal closing at the end of 2024. Cowan’s business lines included one-way truckload, dedicated truckload, and logistics brokerage. Schneider’s intermodal revenues in the fourth quarter were $268.2 million, down 3% from the year-ago period and driven by a 5% decrease in revenue per order. Intermodal volume increased 3%, suggesting Schneider was able to take market share from competitor J.B. Hunt Transport Services, which dropped 2% year over year in the fourth quarter. Schneider, meanwhile, also announced Rourke would transition to the role of executive chairman effective July 1, 2026, and that longtime company executive Jim Filter will become the new CEO. Filter will become only the fifth CEO in the history of the company, which has been around since 1935. Filter is currently the executive vice president and group president of transportation logistics, a position he has held since 2022. He ran Schneider’s intermodal division prior to that. “Despite a challenging market in 2025, our actions throughout the year have strengthened our foundation and positioned us to benefit as conditions continue to improve,” Filter said on Thursday’s call. Contact Dan Ronan at <a href="mailto:contactdanronan@gmail.com">contactdanronan@gmail.com.</a></div>

Schneider National was disappointed with freight demand in the fourth quarter but remains hopeful that regulatory crackdowns in the trucking industry will pull out enough supply in 2026 to end the freight recession. Schneider CEO Mark Rourke said during the company’s Q4 earnings call Thursday the intermodal provider was “not satisfied” with its results, which included a more than 30% drop in net income. But he said a spot rate surge in December was the first sign of truckload capacity exits having a material impact on prices that will eventually lead to the carrier being able to charge shippers higher rates. The US Department of Transportation has been pressuring states to cancel non-domiciled commercial driver’s licenses for immigrants with expired or invalid work authorizations and those seeking asylum. It has also taken drivers out of service who cannot demonstrate the ability to read and understand English and shut down driving schools that do not rigorously train students before qualifying them to operate a rig. “The industry is already feeling the impact of supply rationalization related to regulatory actions in areas such as non-domiciled CDLs, English language proficiency, and driver school certifications,” Rourke said. “We expect capacity attrition to continue to ramp up, and we continue to believe the impact is likely to be greater than what we saw from the electronic logging mandate in 2017.” Rourke, however, said the USDOT crackdowns will tighten available truck capacity over quarters, not months. He also said economic drivers of freight demand must recover in 2026 to truly flip the market toward carriers. “The trajectory of consumer spending, the impacts from the (Republican-led appropriations bill), and interest rate policy all have the potential to significantly influence the timing and magnitude of improvement in market conditions,” he said. Schneider grew revenue 4.5% year over year to $1.4 billion during the fourth quarter. But net income of $22.1 million was down 32% from the year-ago quarter. Schneider reported Q4 truckload revenues of $610 million, up nearly $50 million compared with the prior year, driven by a 21% increase in dedicated volume. Logistics revenues were $329.3 million, up 2% compared to the same quarter in 2024. Intermodal volume gains Results in the trucking and logistics divisions were propped by the integration of the Cowan Systems business. Schneider bought the Baltimore-based trucking company for $390 million, with the deal closing at the end of 2024. Cowan’s business lines included one-way truckload, dedicated truckload, and logistics brokerage. Schneider’s intermodal revenues in the fourth quarter were $268.2 million, down 3% from the year-ago period and driven by a 5% decrease in revenue per order. Intermodal volume increased 3%, suggesting Schneider was able to take market share from competitor J.B. Hunt Transport Services, which dropped 2% year over year in the fourth quarter. Schneider, meanwhile, also announced Rourke would transition to the role of executive chairman effective July 1, 2026, and that longtime company executive Jim Filter will become the new CEO. Filter will become only the fifth CEO in the history of the company, which has been around since 1935. Filter is currently the executive vice president and group president of transportation logistics, a position he has held since 2022. He ran Schneider’s intermodal division prior to that. “Despite a challenging market in 2025, our actions throughout the year have strengthened our foundation and positioned us to benefit as conditions continue to improve,” Filter said on Thursday’s call. Contact Dan Ronan at contactdanronan@gmail.com.

Trucking News

Truckload

Intermodal providers

Surface

Schneider Q4 profit weakens, but company pins hopes on capacity exits

<div class="phx-topic abstract-wrapper">A surge in tariff-driven frontloading from Asia to North America earlier in the year led to a wait-and-see approach from US importers, resulting in weaker demand.</div>

A surge in tariff-driven frontloading from Asia to North America earlier in the year led to a wait-and-see approach from US importers, resulting in weaker demand.

<div class="phx-topic">Weak demand on the trans-Pacific and an oversupply of shipping capacity pulled down rate levels and dragged Ocean Network Express (ONE) to an $88 million loss in its fiscal third quarter that ended Dec. 31, the carrier said Friday. It was the Singapore-based liner’s first quarterly loss of its current financial year as a surge in US tariff-driven frontloading from Asia to North America earlier in the year led to a wait-and-see approach from US importers, resulting in weaker demand. ONE’s financial year runs from April to March. “Our Q3 FY2025 results reflect a challenging operating environment as we continue to navigate the complexities of the current global landscape,” ONE CEO Jeremy Nixon said in a statement. “Although market dynamics have impacted our performance during the quarter, we remain focused on disciplined capacity management, cost control and ongoing network optimization to enhance operational resilience,” Nixon added. A persistent increase in container ship supply and slowing demand eroded freight rates on the trans-Pacific and Asia-Europe trades. Data from PIERS, a sister company of the Journal of Commerce within S&amp;P Global, shows US containerized imports from China in October declined 16% year over year, November imports fell 18.2% and December was down 22.3%. This led to sharp year-over-year declines across ONE’s four main earnings metrics in its fiscal third quarter. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="3fc7098b-efc8-4b40-945d-b76f29f9698c"></dynamic-object></div>Revenue from the period fell 16% to just over $4 billion, earnings before interest, taxes, depreciation and amortization (EBITDA) were down 66% at $536 million; and an earnings before interest and taxes (EBIT) loss of $84 million was recorded, along with the $88 million net loss. <h3>Utilization falls on excess supply </h3>The oversupply of capacity could be seen in a drop in ONE’s volume and ship utilization during the fiscal quarter. Trans-Pacific volume of 678,000 TEUs was down 5% both year over year and compared with its second fiscal quarter. Utilization of 90% continued a steady decline over the last financial year when ships were 100% utilized. On Asia-Europe, demand dropped off after Golden Week at the beginning of October, although volume of 444,000 TEUs, while down 11% compared with the fiscal second quarter, was up 6% year over year. Still, an excess in market supply saw ship utilization falling sharply to 81%, down from 91% in the first half. For the first nine months of its financial year, ONE revenue of $12.5 billion was down 18% year over year, while EBITDA of $2 billion was down from $5.2 billion in the previous fiscal nine months. EBIT of $236 million was down from $3.6 billion and the carrier recorded a $283 million net profit in the most recent nine months compared with the $3.9 billion in the previous year. ONE expects demand and rates to improve “modestly” through its fourth quarter from January through March and has made a slight upward adjustment to its full-year 2025–26 forecast. The carrier is now expecting full-year revenue of $16.6 billion (previously $16.5 billion), EBITDA of $2.7 billion ($2.6 billion) and EBIT of $300 million ($250 million), with net profit remaining at $310 million. The forecast earnings reflect the enormous correction facing ocean carriers compared with last year. In its 2024–25 financial year, ONE posted revenue of $19.2 billion, EBITDA of $5.9 billion, EBIT of $3.8 billion and a net profit of $4.2 billion. Still, maritime consultant Drewry has upgraded its financial year 2025 profit forecast from $20 billion to $32 billion following “better than expected” third-quarter results from the carriers and has raised the outlook for 2026 from a $10 billion loss to a $1 billion profit. Contact Greg Knowler at <a href="">greg.knowler@spglobal.com</a>. </div>

Weak demand on the trans-Pacific and an oversupply of shipping capacity pulled down rate levels and dragged Ocean Network Express (ONE) to an $88 million loss in its fiscal third quarter that ended Dec. 31, the carrier said Friday. It was the Singapore-based liner’s first quarterly loss of its current financial year as a surge in US tariff-driven frontloading from Asia to North America earlier in the year led to a wait-and-see approach from US importers, resulting in weaker demand. ONE’s financial year runs from April to March. “Our Q3 FY2025 results reflect a challenging operating environment as we continue to navigate the complexities of the current global landscape,” ONE CEO Jeremy Nixon said in a statement. “Although market dynamics have impacted our performance during the quarter, we remain focused on disciplined capacity management, cost control and ongoing network optimization to enhance operational resilience,” Nixon added. A persistent increase in container ship supply and slowing demand eroded freight rates on the trans-Pacific and Asia-Europe trades. Data from PIERS, a sister company of the Journal of Commerce within S&P Global, shows US containerized imports from China in October declined 16% year over year, November imports fell 18.2% and December was down 22.3%. This led to sharp year-over-year declines across ONE’s four main earnings metrics in its fiscal third quarter. Revenue from the period fell 16% to just over $4 billion, earnings before interest, taxes, depreciation and amortization (EBITDA) were down 66% at $536 million; and an earnings before interest and taxes (EBIT) loss of $84 million was recorded, along with the $88 million net loss. Utilization falls on excess supply The oversupply of capacity could be seen in a drop in ONE’s volume and ship utilization during the fiscal quarter. Trans-Pacific volume of 678,000 TEUs was down 5% both year over year and compared with its second fiscal quarter. Utilization of 90% continued a steady decline over the last financial year when ships were 100% utilized. On Asia-Europe, demand dropped off after Golden Week at the beginning of October, although volume of 444,000 TEUs, while down 11% compared with the fiscal second quarter, was up 6% year over year. Still, an excess in market supply saw ship utilization falling sharply to 81%, down from 91% in the first half. For the first nine months of its financial year, ONE revenue of $12.5 billion was down 18% year over year, while EBITDA of $2 billion was down from $5.2 billion in the previous fiscal nine months. EBIT of $236 million was down from $3.6 billion and the carrier recorded a $283 million net profit in the most recent nine months compared with the $3.9 billion in the previous year. ONE expects demand and rates to improve “modestly” through its fourth quarter from January through March and has made a slight upward adjustment to its full-year 2025–26 forecast. The carrier is now expecting full-year revenue of $16.6 billion (previously $16.5 billion), EBITDA of $2.7 billion ($2.6 billion) and EBIT of $300 million ($250 million), with net profit remaining at $310 million. The forecast earnings reflect the enormous correction facing ocean carriers compared with last year. In its 2024–25 financial year, ONE posted revenue of $19.2 billion, EBITDA of $5.9 billion, EBIT of $3.8 billion and a net profit of $4.2 billion. Still, maritime consultant Drewry has upgraded its financial year 2025 profit forecast from $20 billion to $32 billion following “better than expected” third-quarter results from the carriers and has raised the outlook for 2026 from a $10 billion loss to a $1 billion profit. Contact Greg Knowler at  greg.knowler@spglobal.com . 

Asia-Europe

Frontloading drags ONE to a loss in its fiscal third quarter

<div class="phx-topic abstract-wrapper">The decision nullifies Hong Kong-based Hutchison’s ability to operate the Balboa and Christobal ports that bookend the Panama Canal and clouds its attempt to sell its global terminals portfolio.</div>

The decision nullifies Hong Kong-based Hutchison’s ability to operate the Balboa and Christobal ports that bookend the Panama Canal and clouds its attempt to sell its global terminals portfolio.

<div class="phx-topic">The Panama Supreme Court late Thursday ruled that the longstanding leases allowing CK Hutchison to operate two marine terminals that bookend the Panama Canal are unconstitutional, further clouding an attempt to sell its global terminals portfolio. The decision nullifies Hong Kong-based Hutchison’s ability to operate the Balboa and Christobal ports and represents a victory for US President Donald Trump, who has pressured Panama to end the leases over what he claims is China’s outsized influence on the canal’s operations via the terminals. The Trump administration has called the concession bidding process unfair.Hutchison had already agreed to sell the two terminals to a consortium of BlackRock’s Global Infrastructure Partners and Mediterranean Shipping Co. subsidiary Terminal Investments Limited (TiL) as part of a $22.8 billion sale of its 43 terminal operations worldwide. But the deal has run into opposition from Beijing over ties between Trump and BlackRock leadership. As a way around that opposition, Hutchison last summer confirmed it was in talks with a “major strategic investor from China.” China’s involvement as part of the buying consortium would likely draw Trump’s attention again. Hutchison said in a statement the court’s decision was “inconsistent with the relevant legal framework and the law that approved the contract” enabling its operation of the terminals. The company said the bidding process that secured its concessions for the facilities was transparent. CK Hutchison can try to delay the Panama court decision by seeking clarification on the ruling. But ultimately, the Panamanian government will seek an interim operator for the two terminals and then decide whether to put their operating lease out for tender. Hutchison’s concession for the Panama ports began in 1997 and was renewed for another 25-year lease in 2021. <h2>Potential Maersk involement </h2>Panama President José Raúl Mulino said in a statement that APMT Terminals, part of Maersk, has “shown a willingness” to operate the two terminals in the interim until a long-term lease is tendered. APMT said in a separate statement Friday that it would only take over operations if all legal requirements involving the Hutchison case were completed, and emphasized it isn’t involved in the Supreme Court ruling nor in future planning for the Balboa and Cristobal terminals. Maersk in October <a href="https://www.joc.com/article/maersk-considering-investment-in-panamas-new-terminals-6100150">signaled its intent</a> to invest in two terminals the Panama Canal Authority (ACP) <a href="https://www.joc.com/article/panama-canal-mulls-developing-corozal-to-allay-neutrality-fears-over-hutchison-deal-6023330">hopes to build</a> in Corozal, on the Pacific side of the canal, and near Colon on the Atlantic side. In April, Maersk <a href="https://www.joc.com/article/panama-canal-mulls-developing-corozal-to-allay-neutrality-fears-over-hutchison-deal-6023330">bought the Panama Canal Railway</a>, the short-line railroad that links the ports of Balboa and Colon. Maersk, which is the railway’s largest customer, also operates a logistics park in the country. Louis Sola, then chairman of the Federal Maritime Commission, told US senators during a January 2025 hearing that US terminal operators did not get a fair shake in Panama due to corruption in the government. US-based SSA Marine, Singapore-based PSA and Taiwan-based Evergreen Terminal also have terminals in Panama. Contact Mark Szakonyi at <a href="mark.szakonyi@spglobal.com">mark.szakonyi@spglobal.com</a>. </div>

The Panama Supreme Court late Thursday ruled that the longstanding leases allowing CK Hutchison to operate two marine terminals that bookend the Panama Canal are unconstitutional, further clouding an attempt to sell its global terminals portfolio. The decision nullifies Hong Kong-based Hutchison’s ability to operate the Balboa and Christobal ports and represents a victory for US President Donald Trump, who has pressured Panama to end the leases over what he claims is China’s outsized influence on the canal’s operations via the terminals. The Trump administration has called the concession bidding process unfair. Hutchison had already agreed to sell the two terminals to a consortium of BlackRock’s Global Infrastructure Partners and Mediterranean Shipping Co. subsidiary Terminal Investments Limited (TiL) as part of a $22.8 billion sale of its 43 terminal operations worldwide. But the deal has run into opposition from Beijing over ties between Trump and BlackRock leadership. As a way around that opposition, Hutchison last summer confirmed it was in talks with a “major strategic investor from China.” China’s involvement as part of the buying consortium would likely draw Trump’s attention again. Hutchison said in a statement the court’s decision was “inconsistent with the relevant legal framework and the law that approved the contract” enabling its operation of the terminals. The company said the bidding process that secured its concessions for the facilities was transparent. CK Hutchison can try to delay the Panama court decision by seeking clarification on the ruling. But ultimately, the Panamanian government will seek an interim operator for the two terminals and then decide whether to put their operating lease out for tender. Hutchison’s concession for the Panama ports began in 1997 and was renewed for another 25-year lease in 2021. Potential Maersk involement Panama President José Raúl Mulino said in a statement that APMT Terminals, part of Maersk, has “shown a willingness” to operate the two terminals in the interim until a long-term lease is tendered. APMT said in a separate statement Friday that it would only take over operations if all legal requirements involving the Hutchison case were completed, and emphasized it isn’t involved in the Supreme Court ruling nor in future planning for the Balboa and Cristobal terminals. Maersk in October signaled its intent to invest in two terminals the Panama Canal Authority (ACP) hopes to build in Corozal, on the Pacific side of the canal, and near Colon on the Atlantic side. In April, Maersk bought the Panama Canal Railway , the short-line railroad that links the ports of Balboa and Colon. Maersk, which is the railway’s largest customer, also operates a logistics park in the country. Louis Sola, then chairman of the Federal Maritime Commission, told US senators during a January 2025 hearing that US terminal operators did not get a fair shake in Panama due to corruption in the government. US-based SSA Marine, Singapore-based PSA and Taiwan-based Evergreen Terminal also have terminals in Panama. Contact Mark Szakonyi at  mark.szakonyi@spglobal.com .

Panama court voids CK Hutchison canal terminal leases

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