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<div class="phx-topic abstract-wrapper">The fight underscores how explosive the petition is becoming.</div>

The fight underscores how explosive the petition is becoming.

<div>Shippers and others in the supply chain contend they should not have to pay for storage at marine terminals when it is impossible for them to pick up containers.WASHINGTON — A <a>shipper-led coalition</a> is clashing with container lines and marine terminal operators over who should have the last word on a petition that could spur maritime regulators to give guidance on when detention and demurrage fees are unreasonable.The fight before Federal Maritime Commission (FMC) staff even <a>makes its recommendations</a> to the five commissioners on how to proceed underscores how explosive the petition is becoming, although it’s unclear whether the agency...

Shippers and others in the supply chain contend they should not have to pay for storage at marine terminals when it is impossible for them to pick up containers. WASHINGTON — A shipper-led coalition is clashing with container lines and marine terminal operators over who should have the last word on a petition that could spur maritime regulators to give guidance on when detention and demurrage fees are unreasonable. The fight before Federal Maritime Commission (FMC) staff even makes its recommendations to the five commissioners on how to proceed underscores how explosive the petition is becoming, although it’s unclear whether the agency will respond. The FMC said it also hasn’t decided whether to allow the supplemental comments filed by the Coalition For Fair Port Practices, which consists of beneficial cargo owners (BCOs), forwarders, and truckers. The National Retail Federation-led coalition in December filed a petition for rulemaking to seek a policy statement on when it would be unreasonable to charge fines for not picking up or returning containers and chassis because of events out of BCOs’ control, such as labor action or severe weather. The World Shipping Council (WSC) hours before the deadline on public comments responded, saying that the guidance absolving shippers from detention and demurrage fees could exacerbate port congestion. The group, whose members control 90 percent of global container ship capacity, argued in its Feb. 28 comments to the FMC that the coalition’s case relied on an antiquated case that predates the advent of containerized shipping. Then on March 30, the coalition filed a petition for leave to supplement the record on the request to the FMC, seeking to correct it. The coalition argued that container lines and marine terminal operators have incorrectly “mischaracterized the policy statement as a request for a legislative rule,” the coalition stated. The group reiterated that the FMC has the authority to respond to the petition by judging whether charging BCOs for factors they are unable to control is fair under the Shipping Act of 1984. The coalition defended its stance that the precedent created by the FMC’s repeal of New York demurrage rules in 1993 is applicable to the petition. The coalition also attacked some comments arguing the FMC should reject the petition because the existing regulatory system is sufficient, the issue is a commercial matter, and because some marine terminal operator schedules and carrier tariffs allow for an extension of free time. “While the petition for rulemaking pointed out that some marine terminal operators and ports have tariffs that allow for additional free time, other ports do not; and even those that do publish tariffs providing for additional free time, the tariffs are inconsistent and can be changed unilaterally at any time,” the coalition said. “Moreover, some ports automatically extend free time in certain circumstances, while others simply reserve the right to extend free time.” The coalition said assertions that its requested policy statement would spur carriers and multimodal transport operators to reduce free time were “sky-will-be-falling prediction.” In response, the group of BCOs, forwarders, and truckers said free time isn’t a gratuity, but an obligation included in the rates charged. Additionally, the coalition said the policy statement wouldn’t increase congestion but reduce it, arguing that since the existing system allows carriers and MTOs to collect fees, there is a disincentive for the latter to aggressively work to prevent labor disruptions. The WSC struck back with a response that was backed by the National Association of Waterfront Employers. The WSC said the supplement isn’t allowed by FMC rules since the petition cited the wrong rule in their request, one for adjudications, not rulemaking proceedings. It was one of several procedural digs the WSC made against the coalition’s supplement request. “The problem here is not with the commission’s authority with respect to policy statements, but rather with the fact that the petition seeks commission action that would be a substantive rule, not a policy statement,” the WSC said. “Moreover, however characterized, the relief requested seeks commission action that is beyond the agency’s statutory authority.” In response to the coalition’s litany of testimony from BCOs when they were charged detention and demurrage even though they couldn’t pick up or drop-off equipment, the WSC said there isn’t enough factual basis for the commission to make a judgement on. The carrier group said the coalition doesn’t “attempt to contest WSC’s factual analysis and conclusions with respect to the original petition’s 15 exhibits, thereby conceding WSC’s argument that those exhibits fail to constitute a sufficient factual basis for the commission to proceed.” Contact Mark Szakonyi at mark.szakonyi@ihsmarkit.com and follow him on Twitter: @szakonyi_joc .

Detention-demurrage fight heats up for last word to FMC

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<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.

<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 ports 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 (AAPA), wrote in a May letter to US Trade Representative (USTR) 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 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 from 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 ports 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 (AAPA), wrote in a May letter to US Trade Representative (USTR) 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 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 from 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 with 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 ending June 30, ONE reported revenue of $4 billion, down 4% year over year. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 49% to $616 million, earnings before interest and taxes (EBIT) dropped 94% to $38 million and net profit of $86 million was almost 90% lower compared with 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, although utilization fell from 100% to 90%. While all of 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 with 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 with 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 order book that, at 9.1 million TEUs, is about 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 with 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 ending June 30, ONE reported revenue of $4 billion, down 4% year over year. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 49% to $616 million, earnings before interest and taxes (EBIT) dropped 94% to $38 million and net profit of $86 million was almost 90% lower compared with 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, although utilization fell from 100% to 90%. While all of 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 with 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 with 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 order book that, at 9.1 million TEUs, is about 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

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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. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. 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