<div class="phx-topic abstract-wrapper">Japan's Hitachi Transport System agreed to acquire a 51 percent stake in U.S. logistics service provider J.P. Holding Company.
 
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Japan's Hitachi Transport System agreed to acquire a 51 percent stake in U.S. logistics service provider J.P. Holding Company.

<div>Japan's Hitachi Transport System agreed to acquire a 51 percent stake in U.S. logistics service provider J.P. Holding Company.The share transfer, which will strengthen Hitachi&amp;rsquo;s 3PL business, is expected to be completed in mid-October, the Tokyo-based logistics company said in a statement.Hitachi did not disclose financial terms, but Nikkei, Japan's biggest business daily, said the Japanese firm would pay about $33.8 million.Hitachi Transport System posted group revenue of $3.97 billion in fiscal 2008. J.P. Holding generated $115 million in revenue in 2008. Hitachi said it will aggressively promote joint sales efforts.Contact Hisane Masaki at <a>yiu45535@nifty.com</a>.</div>...

Japan's Hitachi Transport System agreed to acquire a 51 percent stake in U.S. logistics service provider J.P. Holding Company. The share transfer, which will strengthen Hitachi&rsquo;s 3PL business, is expected to be completed in mid-October, the Tokyo-based logistics company said in a statement. Hitachi did not disclose financial terms, but Nikkei, Japan's biggest business daily, said the Japanese firm would pay about $33.8 million. Hitachi Transport System posted group revenue of $3.97 billion in fiscal 2008. J.P. Holding generated $115 million in revenue in 2008. Hitachi said it will aggressively promote joint sales efforts. Contact Hisane Masaki at yiu45535@nifty.com .

Transport, Trade and Regulation News

Hitachi to Acquire Majority of J.P. Holding

<div class="phx-topic abstract-wrapper">The “K-shaped” US economy has split the outlook for apparel demand, with premium brands performing well while those targeting more cost-conscious consumers struggle. </div>

The “K-shaped” US economy has split the outlook for apparel demand, with premium brands performing well while those targeting more cost-conscious consumers struggle.

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<div class="phx-topic">(The following story appears in the Top 100 Importers and Exporters issue of the Journal of Commerce magazine to be published May 4, 2026.) Clothing retailers and brands will likely remain cautious in their ordering this year amid still-rising costs and uneven consumer demand that reflects a “K-shaped” US economy. US apparel and footwear imports fell 7.2% year over year in the first two months of 2026 after a 2.4% decline in 2025, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global, as the industry worked through inventory corrections. Last year’s decline brought the five-year annual compound growth rate for the sector down to just 0.1%, a figure that underscores a lack of sustained demand growth since the COVID-19 pandemic. In recent earnings calls, executives from across the sector said inventory is largely balanced, but sales remain inconsistent, with higher-income consumers continuing to spend while middle- and lower-income households pull back — what economists call the “K-shaped” economy. As a result, premium brands and retailers are performing relatively well, while some mid-market players targeting cost-conscious consumers are under intense pressure. Deckers Brands, for example, reported continued strength in its UGG and HOKA franchises, selling those shoes at full price. By contrast, Nike said it is still working through inventory challenges in North America, resorting to promotions and other discounts to draw down unsold stock.<div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="5e628056-1478-4e46-a0c4-8443c45aad01"></dynamic-object></div>“You can’t just sit there and say, ‘Everything’s great,’” Nike CEO Elliott Hill told employees following the company’s earnings call, according to a report from Bloomberg News, emphasizing the need for a more candid assessment of business conditions. A similar dynamic is playing out in the apparel sector. Luxury brand Ralph Lauren reported strong demand for its products sold at full prices. VF Corporation, however, reported weakness in sales of Vans apparel and shoes, requiring more promotions, while children’s clothing designer and retailer Carter’s said it would institute “disciplined cost controls” to combat higher tariff costs and margin compression. <h3>Rising costs, changing sourcing </h3>The prospect of rising costs for raw materials and transportation — due largely to the war in the Middle East — will further erode margins for struggling companies like VF Corp and Carter’s. Clothing manufacturers rely on petroleum-based textiles, including polyester, nylon and spandex, and they typically only hold six to eight weeks of inventory, according to the American Apparel and Footwear Association (AAFA). The <a href="https://www.joc.com/article/ocean-carriers-wait-for-clarity-on-safe-hormuz-passage-after-us-iran-ceasefire-6201132">ongoing closure of the Strait of Hormuz</a>, blocked to virtually all commercial shipping traffic since the war began on Feb. 28, has increased the price of those raw materials, <a href="https://www.joc.com/article/cost-hit-ocean-carriers-roll-out-series-of-rate-increases-fuel-surcharges-6202474">as well as the cost of bunker fuel</a>. “If this situation in Iran — or the knock-on effects thereof — last six months to a year, then we’re talking about broader supply chain impacts,” AAFA Executive Vice President Nate Herman told the Journal of Commerce. At the same time, higher gasoline prices will act as a brake on consumer spending, particularly among lower-income households forced to prioritize getting to and from work and school over discretionary purchases. Apparel and footwear are essential goods, but consumers can delay buying new items for as long as their existing wardrobe still functions, Herman explained. Lingering uncertainty surrounding US import tariffs and trade policy will also continue to drag on ordering. Last year, significantly higher tariff costs, particularly for Chinese-made goods, prompted many apparel shippers to change their sourcing, as well as order less product, a trend that will likely continue this year given the industry’s deep ties to Asia. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="bef3016d-dd2f-4ed9-9310-f4e88395cce1"></dynamic-object></div>China’s share of US apparel and footwear imports fell to 34.1% in 2025 from 41.7% in 2024, while southeast Asian countries Vietnam, Bangladesh, Indonesia and Cambodia all gained share, according to PIERS. That shift can also be seen in routing decisions. Inbound clothing shipments to the Port of New York and New Jersey, for example, grew 5% last year, while imports to the Los Angeles–Long Beach port complex and Northwest Seaport Alliance slipped 1.7% and 28.9%, respectively. Although the US Supreme Court’s ruling invalidating tariffs the Trump administration imposed under the International Emergency Economic Powers Act (IEEPA) puts <a href="https://www.joc.com/article/first-wave-of-ieepa-refunds-to-us-importers-to-start-april-20-cbp-6203623">importers in a position to recoup those duties</a>, the administration is already moving to replace them with similar tariffs that are more likely to withstand legal challenges. The Office of the United States Trade Representative (USTR) on March 11 <a href="https://www.joc.com/article/potential-new-us-tariffs-cloud-sourcing-strategies-peak-season-demand-6187613">launched two separate Section 301 investigations</a> — one related to “structural excess capacity and production in manufacturing sectors” and a second aimed at forced labor — widely expected to result in new and higher tariffs. Neither investigation is specific to apparel, but the risk of additional tariffs, particularly on goods from Vietnam, Bangladesh, Indonesia, and Cambodia, could complicate efforts to diversify sourcing away from China. <h3>Watching USMCA review </h3>Clothing companies are also paying close attention to the upcoming review of the United States-Mexico-Canada Agreement (USMCA), which could influence nearshoring strategies and cross-border freight flows via intermodal, truckload and less-than truckload. In a March 3 letter to USTR Jamieson Greer, more than 500 business organizations urged the administration to extend USMCA and avoid changes that could disrupt supply chains. “Supply chains are built on trillions in long-term investment, which have been refined over the years to be highly efficient to comply with USMCA’s rigorous framework,” the letter said. “Material changes to USMCA requirements or rules of origin could lead to multi-year supply chain disruptions at significant cost to companies invested in America, raise consumer prices, and erode North American competitiveness.” Separately, the USTR also on March 3 released its annual “Notorious Markets” report, identifying dozens of online and physical markets involved in counterfeiting apparel and footwear brands. The AAFA believes counterfeit goods, particularly through e-commerce platforms, are undercutting legitimate importers. Those concerns intersect with broader cargo security challenges. As recently as March 22, law enforcement recovered more than $7 million in stolen cargo in three raids across Southern California, including apparel and footwear. The incidents highlight ongoing risks tied to organized retail crime, even as legislative efforts such as the Combating Organized Retail Crime Act of 2025 appear to have stalled in Congress. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com.</a></div>

(The following story appears in the Top 100 Importers and Exporters issue of the Journal of Commerce magazine to be published May 4, 2026.) Clothing retailers and brands will likely remain cautious in their ordering this year amid still-rising costs and uneven consumer demand that reflects a “K-shaped” US economy. US apparel and footwear imports fell 7.2% year over year in the first two months of 2026 after a 2.4% decline in 2025, according to PIERS, a sister product of the Journal of Commerce within S&P Global, as the industry worked through inventory corrections. Last year’s decline brought the five-year annual compound growth rate for the sector down to just 0.1%, a figure that underscores a lack of sustained demand growth since the COVID-19 pandemic. In recent earnings calls, executives from across the sector said inventory is largely balanced, but sales remain inconsistent, with higher-income consumers continuing to spend while middle- and lower-income households pull back — what economists call the “K-shaped” economy. As a result, premium brands and retailers are performing relatively well, while some mid-market players targeting cost-conscious consumers are under intense pressure. Deckers Brands, for example, reported continued strength in its UGG and HOKA franchises, selling those shoes at full price. By contrast, Nike said it is still working through inventory challenges in North America, resorting to promotions and other discounts to draw down unsold stock. “You can’t just sit there and say, ‘Everything’s great,’” Nike CEO Elliott Hill told employees following the company’s earnings call, according to a report from Bloomberg News, emphasizing the need for a more candid assessment of business conditions. A similar dynamic is playing out in the apparel sector. Luxury brand Ralph Lauren reported strong demand for its products sold at full prices. VF Corporation, however, reported weakness in sales of Vans apparel and shoes, requiring more promotions, while children’s clothing designer and retailer Carter’s said it would institute “disciplined cost controls” to combat higher tariff costs and margin compression. Rising costs, changing sourcing The prospect of rising costs for raw materials and transportation — due largely to the war in the Middle East — will further erode margins for struggling companies like VF Corp and Carter’s. Clothing manufacturers rely on petroleum-based textiles, including polyester, nylon and spandex, and they typically only hold six to eight weeks of inventory, according to the American Apparel and Footwear Association (AAFA). The ongoing closure of the Strait of Hormuz , blocked to virtually all commercial shipping traffic since the war began on Feb. 28, has increased the price of those raw materials, as well as the cost of bunker fuel . “If this situation in Iran — or the knock-on effects thereof — last six months to a year, then we’re talking about broader supply chain impacts,” AAFA Executive Vice President Nate Herman told the Journal of Commerce. At the same time, higher gasoline prices will act as a brake on consumer spending, particularly among lower-income households forced to prioritize getting to and from work and school over discretionary purchases. Apparel and footwear are essential goods, but consumers can delay buying new items for as long as their existing wardrobe still functions, Herman explained. Lingering uncertainty surrounding US import tariffs and trade policy will also continue to drag on ordering. Last year, significantly higher tariff costs, particularly for Chinese-made goods, prompted many apparel shippers to change their sourcing, as well as order less product, a trend that will likely continue this year given the industry’s deep ties to Asia. China’s share of US apparel and footwear imports fell to 34.1% in 2025 from 41.7% in 2024, while southeast Asian countries Vietnam, Bangladesh, Indonesia and Cambodia all gained share, according to PIERS. That shift can also be seen in routing decisions. Inbound clothing shipments to the Port of New York and New Jersey, for example, grew 5% last year, while imports to the Los Angeles–Long Beach port complex and Northwest Seaport Alliance slipped 1.7% and 28.9%, respectively. Although the US Supreme Court’s ruling invalidating tariffs the Trump administration imposed under the International Emergency Economic Powers Act (IEEPA) puts importers in a position to recoup those duties , the administration is already moving to replace them with similar tariffs that are more likely to withstand legal challenges. The Office of the United States Trade Representative (USTR) on March 11 launched two separate Section 301 investigations — one related to “structural excess capacity and production in manufacturing sectors” and a second aimed at forced labor — widely expected to result in new and higher tariffs. Neither investigation is specific to apparel, but the risk of additional tariffs, particularly on goods from Vietnam, Bangladesh, Indonesia, and Cambodia, could complicate efforts to diversify sourcing away from China. Watching USMCA review Clothing companies are also paying close attention to the upcoming review of the United States-Mexico-Canada Agreement (USMCA), which could influence nearshoring strategies and cross-border freight flows via intermodal, truckload and less-than truckload. In a March 3 letter to USTR Jamieson Greer, more than 500 business organizations urged the administration to extend USMCA and avoid changes that could disrupt supply chains. “Supply chains are built on trillions in long-term investment, which have been refined over the years to be highly efficient to comply with USMCA’s rigorous framework,” the letter said. “Material changes to USMCA requirements or rules of origin could lead to multi-year supply chain disruptions at significant cost to companies invested in America, raise consumer prices, and erode North American competitiveness.” Separately, the USTR also on March 3 released its annual “Notorious Markets” report, identifying dozens of online and physical markets involved in counterfeiting apparel and footwear brands. The AAFA believes counterfeit goods, particularly through e-commerce platforms, are undercutting legitimate importers. Those concerns intersect with broader cargo security challenges. As recently as March 22, law enforcement recovered more than $7 million in stolen cargo in three raids across Southern California, including apparel and footwear. The incidents highlight ongoing risks tied to organized retail crime, even as legislative efforts such as the Combating Organized Retail Crime Act of 2025 appear to have stalled in Congress. Contact Ari Ashe at ari.ashe@spglobal.com.

Maritime

Port News

Supply chain

North American ports

Rising costs, uneven demand crimping US clothing imports

<div class="phx-topic abstract-wrapper">Transport unions have mobilized members in Ireland, the UK, France, Germany and Italy with the average price of diesel in the EU up 33% since the start of the war in the Middle East.</div>

Transport unions have mobilized members in Ireland, the UK, France, Germany and Italy with the average price of diesel in the EU up 33% since the start of the war in the Middle East.

<div class="phx-topic">Truckers across Europe have been taking to the streets in protest over soaring fuel prices, with the industry squeezed between rising operating costs and war-related inflation that risks dampening consumer demand. Transport unions have mobilized truckers in Ireland, the UK, France, Germany and Italy, with the average price of diesel in the European Union reaching €2.169 ($2.56) per litre, up 33% since the war in the Middle East started, according to the most recent data from the International Road Transport Union (IRU). Paolo Montrone, senior vice president and head of global trades at Kuehne + Nagel, said many of the truckers were small companies that are heavily exposed to rising fuel prices and any weakening demand. “The margins of these truck operators are very thin, so when there is a big spike in cost, clearly the livelihood of many small operators is threatened,” Montrone told the Journal of Commerce. “The capability and the time spent to absorb one of their biggest operating costs is very small.” The IRU warned that the 2026 volume growth forecast now looks unlikely because of the war, saying the road transport sector was now facing “a more fragmented, cost-intensive and uncertain operating environment.” Diesel prices are on the rise amid threatened shortages of fuel. With the Strait of Hormuz blockaded by both Iran and the US, some 20% of world’s daily supply of oil has been unable to move from the Persian Gulf region. <h3>Truckers demand relief </h3>With fuel comprising up to 35% of the operating expenses of European road hauliers, transport unions are pushing back against the fast-rising prices. Italian truckers are planning a nationwide strike from April 20-25 in protest over fuel prices that are above €2 per litre, with “limited cost recognition by clients,” according to labor union Trasportiunita, which has called for a shutdown of road transport activities. Ireland’s fuel supply network was plunged into chaos last week when protests by truckers and farmers blocked access to oil supplies and the port of Galway, causing massive traffic jams across the country. While the government has cut fuel taxes, there are fears the simmering protests could resume unless prices start to decline. Truckers and farmers in Northern Ireland held traffic-disrupting slow-moving protests this week amid growing calls for the UK government to cut fuel taxes. Fuel price protests have also been reported in Germany where haulage association BGL said diesel costs increased 28% in March compared to the previous month, raising operating costs for trucks by around €1,200 ($1,415) per vehicle per month. The German government has agreed to cut the energy tax on diesel and petrol by €17c per liter for two months, while designing a relief package for businesses and holding gas stations to only one price increase per day. Industry groups are demanding the government instead apply a “diesel price brake.” The Organization of European Road Transport Operators (OTRE) held a series of protests in France in late March and early April. While the protests have ended for now, OTRE has warned that companies are on the brink of bankruptcy and that the government’s current relief measures are insufficient. France is giving small-to-medium enterprises a €20c per liter fuel subsidy for April, part of a €50 million aid package for the road transport sector. <h3>Weakening economic indicators </h3>The fast-rising energy costs are being accompanied by weakening economic indicators across Europe and the UK. The European Central Bank GDP growth forecast for 2026 has been revised down by 0.3 of a percentage point to 0.9% and by 0.1 of a percentage point to 1.4% for 2027 because of the Middle East war. Inflation is expected to rise to 2.6% in 2026, up from the 2.2% forecast made in December. The International Monetary Fund (IMF) this week downgraded the UK’s 2026 GDP by half a percentage point, the largest downgrade among the world’s advanced economies. Average diesel prices in the UK are up by more than 30% since late February. Another indicator of economic challenges facing Europe is the eurozone purchasing manager’s index (PMI) compiled by S&amp;P Global, parent company of the Journal of Commerce. Chris Williamson, chief business economist at S&amp;P Global Market Intelligence, said March’s PMI indicated that the eurozone economy has already been hit hard by the war in the Middle East. “The encouraging signs of growth seen earlier in the year have been eradicated thanks to surging energy prices, choked supply chains, financial market volatility and a renewed downturn in demand,” Williamson said in a sobering analysis of the March PMI results. “The accompanying surge in prices raises the unwelcome specter of stagflation, or worse, in the near-term,” he added. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Truckers across Europe have been taking to the streets in protest over soaring fuel prices, with the industry squeezed between rising operating costs and war-related inflation that risks dampening consumer demand. Transport unions have mobilized truckers in Ireland, the UK, France, Germany and Italy, with the average price of diesel in the European Union reaching €2.169 ($2.56) per litre, up 33% since the war in the Middle East started, according to the most recent data from the International Road Transport Union (IRU). Paolo Montrone, senior vice president and head of global trades at Kuehne + Nagel, said many of the truckers were small companies that are heavily exposed to rising fuel prices and any weakening demand. “The margins of these truck operators are very thin, so when there is a big spike in cost, clearly the livelihood of many small operators is threatened,” Montrone told the Journal of Commerce. “The capability and the time spent to absorb one of their biggest operating costs is very small.” The IRU warned that the 2026 volume growth forecast now looks unlikely because of the war, saying the road transport sector was now facing “a more fragmented, cost-intensive and uncertain operating environment.” Diesel prices are on the rise amid threatened shortages of fuel. With the Strait of Hormuz blockaded by both Iran and the US, some 20% of world’s daily supply of oil has been unable to move from the Persian Gulf region. Truckers demand relief With fuel comprising up to 35% of the operating expenses of European road hauliers, transport unions are pushing back against the fast-rising prices. Italian truckers are planning a nationwide strike from April 20-25 in protest over fuel prices that are above €2 per litre, with “limited cost recognition by clients,” according to labor union Trasportiunita, which has called for a shutdown of road transport activities. Ireland’s fuel supply network was plunged into chaos last week when protests by truckers and farmers blocked access to oil supplies and the port of Galway, causing massive traffic jams across the country. While the government has cut fuel taxes, there are fears the simmering protests could resume unless prices start to decline. Truckers and farmers in Northern Ireland held traffic-disrupting slow-moving protests this week amid growing calls for the UK government to cut fuel taxes. Fuel price protests have also been reported in Germany where haulage association BGL said diesel costs increased 28% in March compared to the previous month, raising operating costs for trucks by around €1,200 ($1,415) per vehicle per month. The German government has agreed to cut the energy tax on diesel and petrol by €17c per liter for two months, while designing a relief package for businesses and holding gas stations to only one price increase per day. Industry groups are demanding the government instead apply a “diesel price brake.” The Organization of European Road Transport Operators (OTRE) held a series of protests in France in late March and early April. While the protests have ended for now, OTRE has warned that companies are on the brink of bankruptcy and that the government’s current relief measures are insufficient. France is giving small-to-medium enterprises a €20c per liter fuel subsidy for April, part of a €50 million aid package for the road transport sector. Weakening economic indicators The fast-rising energy costs are being accompanied by weakening economic indicators across Europe and the UK. The European Central Bank GDP growth forecast for 2026 has been revised down by 0.3 of a percentage point to 0.9% and by 0.1 of a percentage point to 1.4% for 2027 because of the Middle East war. Inflation is expected to rise to 2.6% in 2026, up from the 2.2% forecast made in December. The International Monetary Fund (IMF) this week downgraded the UK’s 2026 GDP by half a percentage point, the largest downgrade among the world’s advanced economies. Average diesel prices in the UK are up by more than 30% since late February. Another indicator of economic challenges facing Europe is the eurozone purchasing manager’s index (PMI) compiled by S&P Global, parent company of the Journal of Commerce. Chris Williamson, chief business economist at S&P Global Market Intelligence, said March’s PMI indicated that the eurozone economy has already been hit hard by the war in the Middle East. “The encouraging signs of growth seen earlier in the year have been eradicated thanks to surging energy prices, choked supply chains, financial market volatility and a renewed downturn in demand,” Williamson said in a sobering analysis of the March PMI results. “The accompanying surge in prices raises the unwelcome specter of stagflation, or worse, in the near-term,” he added. Contact Greg Knowler at greg.knowler@spglobal.com .

Trucking News

Surface

Surging fuel prices drive protesting European truckers into the streets

<div class="phx-topic abstract-wrapper">Several leading indexes and data sources show trucking rates rising across modes, including truckload and LTL, driven by fuel costs and tighter capacity. </div>

Several leading indexes and data sources show trucking rates rising across modes, including truckload and LTL, driven by fuel costs and tighter capacity.

<div class="phx-topic">The cost of trucking in the US is rising, no matter who’s doing the math. Data from industry and government indexes such as the Cass Freight Index, the TD Cowen/AFS Freight Index and the US Producer Price Index (PPI) all show higher trucking costs gained traction in the first quarter, particularly as fuel costs soared in March. The three-year decline in freight demand may still be with us, but not the accompanying “rate recession.” Price increases are most evident in the truckload spot market but are being felt in contract rates and less-than-truckload (LTL) and intermodal rail rates, too. The pricing data indicates that first-quarter rate hikes were more than a sign of short-term disruption caused by winter storms, signaling that shippers should brace for even higher costs. Shipper-paid truckload spot rates in March reached levels not seen since 2022, according to Journal of Commerce research released last week. Those spot rates rose 17 cents from February to a weighted average of $2.73 per mile on lanes longer than 250 miles. The unweighted national average on lanes greater than 250 miles rose 18 cents between February and March to $2.96 per mile, up 27.2% year over year, according to an analysis of data from Cargo Chief, DAT Freight &amp; Analytics, Loadsmart, and other sources. A 32% war-driven surge in <a href="https://www.joc.com/article/diesel-shock-puts-floor-under-trucking-rates-as-demand-shows-some-life-6192894">retail diesel costs</a> from February to March drove the gains in pricing. The average US retail diesel price jumped by $1.20 to $4.92 per gallon in March from the prior month, according to US Energy Information Administration (EIA) data. As of Monday, the US average diesel price at the pump was $5.61 per gallon, up more than $2, or 56.7%, from a year ago, according to the EIA. <h3>Ramped-up rates </h3>Even without the fuel impact, truckload rates are higher than a year ago. The Journal of Commerce Intermodal Savings Index, which analyzes 120 modally competitive lanes in the US, shows that truckload contract rates, excluding fuel, were up 4.4% year over year in March. That is consistent with what two shippers, a big box retailer and an automotive shipper told the Journal of Commerce in discussing their recently negotiated truckload rates that were up in the low-to-mid-single digits compared with prior contracts. The shippers, who asked not to be identified, said motor carriers are more aggressive in pushing up rates than in prior cycles. Other industry data supports those claims and the Journal of Commerce analysis. The truckload PPI, released Tuesday by the US Bureau of Labor Statistics, rose 4.3% year over year to 177.8 in March, its first annualized increase since February 2025. The PPI covers a broad range of “selling” prices, including spot and contract rates paid by shippers, and includes fuel surcharges. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="c3e4f5b0-0670-419f-9a5a-7147f7e87cdf"></dynamic-object></div>Drilling into more specific data, truckload linehaul cost per shipment rose 10.2% in the first quarter from the previous quarter, according to the TD Cowen/AFS index, released Tuesday. The TD Cowen/AFS truckload rate per mile index is expected to reach 10.1% in the second quarter, its highest level in three years, up from 9% in the first quarter. “Broadly speaking, we are seeing upward rate pressure,” said Andy Dyer, CEO of AFS Logistics, a logistics provider managing $11 billion in freight spend. That pressure “is almost exclusively driven by supply-side dynamics,” Dyer told the Journal of Commerce. “There is no significant uptick in demand and no reason to think current conditions will produce a change in the near future.” The Cass Freight Index, released Monday, showed total shipments declined 4.5% in March from a year ago, but the average shipment cost rose 4.2% during the same period, another sign a supply-side recovery is happening without an underlying economic driver. “Tightness in dry van truckload [TL] conditions is starting to radiate to other markets, so far mainly reefer and flatbed TL, but eventually this tightness will drive demand in LTL and intermodal as well,” Tim Denoyer, vice president and senior analyst at ACT Research, said. <h3>Crossing modal lines </h3>That freight or demand shift has already begun to occur, according to intermodal marketing companies (IMCs) and shippers. One non-asset-based IMC told the Journal of Commerce that its volume last month was double that of March 2025. A large Midwest-based shipper who did not want to be identified said it has also seen an increase in tender rejections and decrease in on-time performance from intermodal partners. “All of our intermodal providers tell us that it’s a driver availability issue,” the shipper said. As spot rates soar, more truck drivers that would typically handle intermodal drayage loads are likely to pursue higher-priced freight. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="8afcfdff-15ff-4ec3-8c50-af1aba47062e"></dynamic-object></div>LTL rates remain elevated as well, despite low shipment volumes. The LTL PPI rose 1.8% from February to March and was up 7.2% year over year. AFS Freight’s Dyer attributed the gain in part to fuel surcharges but also to pricing discipline by LTL carriers. “Pricing discipline has become more pervasive and durable than it ever was previously,” Dyer said in an interview. And shippers confronting truckload and parcel price shocks are transferring more freight to LTL carriers, he said. The TD Cowen/AFS LTL rate per pound index is expected to climb to 68.4% in the second quarter, a new high. Contact William B. Cassidy at <a href="mailto:bill.cassidy@spglobal.com">bill.cassidy@spglobal.com</a>.Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

The cost of trucking in the US is rising, no matter who’s doing the math. Data from industry and government indexes such as the Cass Freight Index, the TD Cowen/AFS Freight Index and the US Producer Price Index (PPI) all show higher trucking costs gained traction in the first quarter, particularly as fuel costs soared in March. The three-year decline in freight demand may still be with us, but not the accompanying “rate recession.” Price increases are most evident in the truckload spot market but are being felt in contract rates and less-than-truckload (LTL) and intermodal rail rates, too. The pricing data indicates that first-quarter rate hikes were more than a sign of short-term disruption caused by winter storms, signaling that shippers should brace for even higher costs. Shipper-paid truckload spot rates in March reached levels not seen since 2022, according to Journal of Commerce research released last week. Those spot rates rose 17 cents from February to a weighted average of $2.73 per mile on lanes longer than 250 miles. The unweighted national average on lanes greater than 250 miles rose 18 cents between February and March to $2.96 per mile, up 27.2% year over year, according to an analysis of data from Cargo Chief, DAT Freight & Analytics, Loadsmart, and other sources. A 32% war-driven surge in retail diesel costs from February to March drove the gains in pricing. The average US retail diesel price jumped by $1.20 to $4.92 per gallon in March from the prior month, according to US Energy Information Administration (EIA) data. As of Monday, the US average diesel price at the pump was $5.61 per gallon, up more than $2, or 56.7%, from a year ago, according to the EIA. Ramped-up rates Even without the fuel impact, truckload rates are higher than a year ago. The Journal of Commerce Intermodal Savings Index, which analyzes 120 modally competitive lanes in the US, shows that truckload contract rates, excluding fuel, were up 4.4% year over year in March. That is consistent with what two shippers, a big box retailer and an automotive shipper told the Journal of Commerce in discussing their recently negotiated truckload rates that were up in the low-to-mid-single digits compared with prior contracts. The shippers, who asked not to be identified, said motor carriers are more aggressive in pushing up rates than in prior cycles. Other industry data supports those claims and the Journal of Commerce analysis. The truckload PPI, released Tuesday by the US Bureau of Labor Statistics, rose 4.3% year over year to 177.8 in March, its first annualized increase since February 2025. The PPI covers a broad range of “selling” prices, including spot and contract rates paid by shippers, and includes fuel surcharges. Drilling into more specific data, truckload linehaul cost per shipment rose 10.2% in the first quarter from the previous quarter, according to the TD Cowen/AFS index, released Tuesday. The TD Cowen/AFS truckload rate per mile index is expected to reach 10.1% in the second quarter, its highest level in three years, up from 9% in the first quarter. “Broadly speaking, we are seeing upward rate pressure,” said Andy Dyer, CEO of AFS Logistics, a logistics provider managing $11 billion in freight spend. That pressure “is almost exclusively driven by supply-side dynamics,” Dyer told the Journal of Commerce. “There is no significant uptick in demand and no reason to think current conditions will produce a change in the near future.” The Cass Freight Index, released Monday, showed total shipments declined 4.5% in March from a year ago, but the average shipment cost rose 4.2% during the same period, another sign a supply-side recovery is happening without an underlying economic driver. “Tightness in dry van truckload [TL] conditions is starting to radiate to other markets, so far mainly reefer and flatbed TL, but eventually this tightness will drive demand in LTL and intermodal as well,” Tim Denoyer, vice president and senior analyst at ACT Research, said. Crossing modal lines That freight or demand shift has already begun to occur, according to intermodal marketing companies (IMCs) and shippers. One non-asset-based IMC told the Journal of Commerce that its volume last month was double that of March 2025. A large Midwest-based shipper who did not want to be identified said it has also seen an increase in tender rejections and decrease in on-time performance from intermodal partners. “All of our intermodal providers tell us that it’s a driver availability issue,” the shipper said. As spot rates soar, more truck drivers that would typically handle intermodal drayage loads are likely to pursue higher-priced freight. LTL rates remain elevated as well, despite low shipment volumes. The LTL PPI rose 1.8% from February to March and was up 7.2% year over year. AFS Freight’s Dyer attributed the gain in part to fuel surcharges but also to pricing discipline by LTL carriers. “Pricing discipline has become more pervasive and durable than it ever was previously,” Dyer said in an interview. And shippers confronting truckload and parcel price shocks are transferring more freight to LTL carriers, he said. The TD Cowen/AFS LTL rate per pound index is expected to climb to 68.4% in the second quarter, a new high. Contact William B. Cassidy at bill.cassidy@spglobal.com .Contact Ari Ashe at ari.ashe@spglobal.com .

Truckload

Broad increase in US truck pricing seen gaining steam

<div class="phx-topic abstract-wrapper">CMA CGM and MSC have repurposed some of their vessels for feeder and shuttle activity while they await the opportunity for safe passage out of the war zone, sources say.</div>

CMA CGM and MSC have repurposed some of their vessels for feeder and shuttle activity while they await the opportunity for safe passage out of the war zone, sources say.

<div class="phx-topic">As efforts to secure the safe passage of container ships trapped in the Persian Gulf and Strait of Hormuz face increasing uncertainty, affected liners have established contingency plans to keep their stranded vessels in operation as long as it’s feasible, according to industry sources with knowledge of the matter. Among the top liners, CMA CGM and Mediterranean Shipping Co. have the most container ships stuck inside Hormuz — 13 and 15 vessels, respectively, available data shows. Sources say the French carrier has temporarily positioned five of its ships into container shuttle/feeder operations between ports north of the 100-mile-long strait, including Doha in Qatar, Jebel Ali in the United Arab Emirates, Dammam in Saudi Arabia, and ports in Kuwait and Bahrain. MSC has also repurposed some of its ships unable to exit Hormuz for regional shuttle activity, the sources said. South of Hormuz, Khor Fakkan and Fujairah in the UAE and Sohar in Oman remain the focal alternative ports for carriers handling trades into the Persian Gulf. Khor Fakkan continues to battle significant congestion issues, with vessel waits stretching to a week in most cases, except for carrier calls seeking to discharge only UAE loads, the sources said. At the same time, the latest operational updates do not suggest any serious harbor-choking problems and/or cargo evacuation delays at Fujairah and Sohar. CMA CGM is now offering weekly calls out of West India (Mundra/Hazira/Nhava Sheva) for connections into Fujairah and Sohar by downgrading its BIGEX (India-Red Sea) network from a two-string operation into a single loop. A 21-day round-trip voyage involves three 2,500-TEU ships. Hapag-Lloyd has begun operating ad-hoc sailings out of Nhava Sheva into Fujairah, with cargo bookings for Jebel Ali and Abu Dhabi handled by road or so-called land bridge options. <h3>Transshipment boom in India </h3>Meanwhile, the Middle East supply chain chaos is proving to be a heavy blow for Indian exporters already reeling under multiple demand headwinds. According to data obtained by the Journal of Commerce from port sources, Indian containerized cargo movements to the Persian Gulf are down by almost 80% from the normal pattern on the trade lane. The UAE is the second-largest trading partner for India. While Indian export flows struggle, March port data points to significant additional transshipment activity at major Indian ports as carriers rerouted vessels away from the war zone. Nhava Sheva handled about 121,000 TEUs of container relays, up from 35,000 TEUs in February, whereas Mundra’s transshipments hit a new high of 220,000 TEUs last month, approximately 50,000 TEUs more than normal. As a result, some fresh congestion has emerged at those busy ports. Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>. </div>

As efforts to secure the safe passage of container ships trapped in the Persian Gulf and Strait of Hormuz face increasing uncertainty, affected liners have established contingency plans to keep their stranded vessels in operation as long as it’s feasible, according to industry sources with knowledge of the matter. Among the top liners, CMA CGM and Mediterranean Shipping Co. have the most container ships stuck inside Hormuz — 13 and 15 vessels, respectively, available data shows. Sources say the French carrier has temporarily positioned five of its ships into container shuttle/feeder operations between ports north of the 100-mile-long strait, including Doha in Qatar, Jebel Ali in the United Arab Emirates, Dammam in Saudi Arabia, and ports in Kuwait and Bahrain. MSC has also repurposed some of its ships unable to exit Hormuz for regional shuttle activity, the sources said. South of Hormuz, Khor Fakkan and Fujairah in the UAE and Sohar in Oman remain the focal alternative ports for carriers handling trades into the Persian Gulf. Khor Fakkan continues to battle significant congestion issues, with vessel waits stretching to a week in most cases, except for carrier calls seeking to discharge only UAE loads, the sources said. At the same time, the latest operational updates do not suggest any serious harbor-choking problems and/or cargo evacuation delays at Fujairah and Sohar. CMA CGM is now offering weekly calls out of West India (Mundra/Hazira/Nhava Sheva) for connections into Fujairah and Sohar by downgrading its BIGEX (India-Red Sea) network from a two-string operation into a single loop. A 21-day round-trip voyage involves three 2,500-TEU ships. Hapag-Lloyd has begun operating ad-hoc sailings out of Nhava Sheva into Fujairah, with cargo bookings for Jebel Ali and Abu Dhabi handled by road or so-called land bridge options. Transshipment boom in India Meanwhile, the Middle East supply chain chaos is proving to be a heavy blow for Indian exporters already reeling under multiple demand headwinds. According to data obtained by the Journal of Commerce from port sources, Indian containerized cargo movements to the Persian Gulf are down by almost 80% from the normal pattern on the trade lane. The UAE is the second-largest trading partner for India. While Indian export flows struggle, March port data points to significant additional transshipment activity at major Indian ports as carriers rerouted vessels away from the war zone. Nhava Sheva handled about 121,000 TEUs of container relays, up from 35,000 TEUs in February, whereas Mundra’s transshipments hit a new high of 220,000 TEUs last month, approximately 50,000 TEUs more than normal. As a result, some fresh congestion has emerged at those busy ports. Contact Bency Mathew at bencyvmathew@gmail.com .

Container lines

International ports

Container Shipping News

Carriers redeploy Hormuz-stranded ships for intra-Gulf shuttle operations

<div class="phx-topic abstract-wrapper">Decisions that before the conflict would have taken months are now being made in days, speeding up road transits, freeing urgently needed capacity and easing customs procedures, industry executives told a webinar. </div>

Decisions that before the conflict would have taken months are now being made in days, speeding up road transits, freeing urgently needed capacity and easing customs procedures, industry executives told a webinar.

<div class="phx-topic">The huge volume of diverted Middle East-bound ocean cargo that overwhelmed land transport systems in the region has accelerated collaboration between countries in the Gulf Cooperation Council (GCC) that will outlast the war, regional industry leaders say. Decisions involving cross-border trade that before the conflict would have taken months are now being decided in days, speeding up road transits, freeing urgently needed capacity and easing customs procedures, a webinar organized by global road transport association IRU heard Wednesday. “What we have witnessed so far is that it’s not six countries in the region responding independently to a crisis,” said Achraf Ellili, CEO of Flow Progressive Logistics in Saudi Arabia. “It’s a coordinated effort and the entire logistics ecosystem is working together.” Ellili noted that cooperation between regional port authorities and customs regimes was happening “in real time across borders.” “That level of GCC coordination is something that I’ve never seen before in nearly three decades in this industry, and it signals a maturity in the regional logistics ecosystem,” he said. “The corridors we have created are not going to go back into the box. This is a new normal for the Middle East.” About 95% of all goods in the Persian Gulf countries are imported, mostly by ocean, and routed through the Middle East’s largest port — Jebel Ali in the UAE. When the war started on Feb. 28, the Strait of Hormuz was effectively closed to commercial traffic and ocean carriers offloaded containers at ports en route, such as Singapore or Colombo, or at the ports of Fujairah and Sohar on the Gulf of Oman just outside Hormuz, or Salalah on the Arabian Sea. Forwarders scrambled to find road transport solutions to get the stranded boxes to destinations in the UAE, Qatar, Bahrain and Iraq, and the land logistics were quickly overwhelmed by the wave of inbound volume. <h3>Proactive decisions ease bottlenecks </h3>But seven weeks on and with improving coordination between regional governments, the land transport bottlenecks, while still a challenge on some routes, have eased. “It was remarkable how proactive governments were with decisions taken in one or two days that normally would take months to happen,” Rami Karout, senior manager of Transports Internationaux Routiers (TIR) and transit development at the IRU, told the webcast. Karout attributed much of the smoother cross-border flows to the conflict-accelerated use of TIR, which was rolled out in the GCC in 2017. It is a UN-mandated, IRU-managed global customs transit system that simplifies cross-border trade. TIR allows sealed containers to transit GCC borders with minimal inspection using a single guarantee, cutting transit times by up to 92% and lowering costs. “The use of TIR in submitting advanced cargo information has been optimized during this crisis to facilitate the movement of goods and it has been severely tested,” Karout said. “Time is critical when it comes to cargo movements at the borders, especially now with costs skyrocketing, and if you have an element where operators can save time at borders, that is precious,” he added. While road transport will never be able to handle the millions of containers imported into the Persian Gulf every year, its role in the regional logistics chain has been strengthened by the war, according to Hasan Boz, deputy director general at the Turkish Ministry of Transport and Infrastructure. “After the crisis, the corridor connecting Turkey with Middle Eastern countries should not be considered only as an alternative or transit road,” Boz told the IRU webcast. “The corridor will help increase trade between Turkey and Saudi Arabia, between Turkey and Europe, Jordan and Romania or Bulgaria and Syria. “This corridor may be a transit route, but it will also increase bilateral trade in the region,” he added. Ellili said over the past few weeks, shippers have experienced reliability in transit times and predictability of GCC overland corridors and will likely keep a portion of their volume on land as a permanent diversification strategy. “Optionality is now a strategy for traders and manufacturers and carriers,” he said. “Single corridor dependency is no longer acceptable as a risk option and boards of directors are demanding dual corridor strategies. “In the last 49 days, we have stress tested the optionality of different corridors and optionality works,” Ellili added. Optionality has moved from a nice to have to a must have.” Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The huge volume of diverted Middle East-bound ocean cargo that overwhelmed land transport systems in the region has accelerated collaboration between countries in the Gulf Cooperation Council (GCC) that will outlast the war, regional industry leaders say. Decisions involving cross-border trade that before the conflict would have taken months are now being decided in days, speeding up road transits, freeing urgently needed capacity and easing customs procedures, a webinar organized by global road transport association IRU heard Wednesday. “What we have witnessed so far is that it’s not six countries in the region responding independently to a crisis,” said Achraf Ellili, CEO of Flow Progressive Logistics in Saudi Arabia. “It’s a coordinated effort and the entire logistics ecosystem is working together.” Ellili noted that cooperation between regional port authorities and customs regimes was happening “in real time across borders.” “That level of GCC coordination is something that I’ve never seen before in nearly three decades in this industry, and it signals a maturity in the regional logistics ecosystem,” he said. “The corridors we have created are not going to go back into the box. This is a new normal for the Middle East.” About 95% of all goods in the Persian Gulf countries are imported, mostly by ocean, and routed through the Middle East’s largest port — Jebel Ali in the UAE. When the war started on Feb. 28, the Strait of Hormuz was effectively closed to commercial traffic and ocean carriers offloaded containers at ports en route, such as Singapore or Colombo, or at the ports of Fujairah and Sohar on the Gulf of Oman just outside Hormuz, or Salalah on the Arabian Sea. Forwarders scrambled to find road transport solutions to get the stranded boxes to destinations in the UAE, Qatar, Bahrain and Iraq, and the land logistics were quickly overwhelmed by the wave of inbound volume. Proactive decisions ease bottlenecks But seven weeks on and with improving coordination between regional governments, the land transport bottlenecks, while still a challenge on some routes, have eased. “It was remarkable how proactive governments were with decisions taken in one or two days that normally would take months to happen,” Rami Karout, senior manager of Transports Internationaux Routiers (TIR) and transit development at the IRU, told the webcast. Karout attributed much of the smoother cross-border flows to the conflict-accelerated use of TIR, which was rolled out in the GCC in 2017. It is a UN-mandated, IRU-managed global customs transit system that simplifies cross-border trade. TIR allows sealed containers to transit GCC borders with minimal inspection using a single guarantee, cutting transit times by up to 92% and lowering costs. “The use of TIR in submitting advanced cargo information has been optimized during this crisis to facilitate the movement of goods and it has been severely tested,” Karout said. “Time is critical when it comes to cargo movements at the borders, especially now with costs skyrocketing, and if you have an element where operators can save time at borders, that is precious,” he added. While road transport will never be able to handle the millions of containers imported into the Persian Gulf every year, its role in the regional logistics chain has been strengthened by the war, according to Hasan Boz, deputy director general at the Turkish Ministry of Transport and Infrastructure. “After the crisis, the corridor connecting Turkey with Middle Eastern countries should not be considered only as an alternative or transit road,” Boz told the IRU webcast. “The corridor will help increase trade between Turkey and Saudi Arabia, between Turkey and Europe, Jordan and Romania or Bulgaria and Syria. “This corridor may be a transit route, but it will also increase bilateral trade in the region,” he added. Ellili said over the past few weeks, shippers have experienced reliability in transit times and predictability of GCC overland corridors and will likely keep a portion of their volume on land as a permanent diversification strategy. “Optionality is now a strategy for traders and manufacturers and carriers,” he said. “Single corridor dependency is no longer acceptable as a risk option and boards of directors are demanding dual corridor strategies. “In the last 49 days, we have stress tested the optionality of different corridors and optionality works,” Ellili added. Optionality has moved from a nice to have to a must have.” Contact Greg Knowler at greg.knowler@spglobal.com .

Middle East war accelerates regional cross-border cooperation

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