<div class="phx-topic abstract-wrapper">Mexican President Carlos Salinas de Gortari sent a formal request to President Bush asking that the </div>

Mexican President Carlos Salinas de Gortari sent a formal request to President Bush asking that the

<div>Mexican President Carlos Salinas de Gortari sent a formal request to President Bush asking that the two countries begin negotiating the details of a free trade agreement.Gustavo Petricioli, Mexico's ambassador to the United States, said Friday the request was made to Mr. Bush in late August and added that formal, official negotiations between the two trading partners would begin "maybe by the middle of next year."Mr. Petricioli made his remarks at a press conference on the upcoming trade negotiations.While he noted that many "very sensitive" trade issues exist between the United States and Mexico, including textiles and agriculture, Mr. Petricioli...

Mexican President Carlos Salinas de Gortari sent a formal request to President Bush asking that the two countries begin negotiating the details of a free trade agreement. Gustavo Petricioli, Mexico's ambassador to the United States, said Friday the request was made to Mr. Bush in late August and added that formal, official negotiations between the two trading partners would begin "maybe by the middle of next year."Mr. Petricioli made his remarks at a press conference on the upcoming trade negotiations. While he noted that many "very sensitive" trade issues exist between the United States and Mexico, including textiles and agriculture, Mr. Petricioli said his personal guess is that a free trade pact could be implemented by the two countries in a couple years. The question of the role of the third North American trading partner, Canada, in the negotiations was less than clear, however. Canada, which already is involved in a free trade agreement with the United States, is expected to seek a role in the Mexican talks. But Mr. Petricioli indicated Canada may hold nothing more than an observer status, at least initially. ''Now, the talks are just bilateral," he said. But he added that Canada will be present and will be kept informed by Mexico. He added that there is a need to accommodate Canada since any U.S.-Mexico free trade pact could have an impact on the U.S.-Canada agreement. Mr. Petricioli said it was possible that later in the negotiations Canada could be made a full participant. Generally, Mr. Petricioli said, a free trade agreement between the United States and Mexico would "provide both countries the higher capacity to compete in the world" and also would spur U.S. investment in Mexico. He said Mexico must create 1 million new jobs annually for its citizens and that an improvement in trade would be one way to achieve an expanded economy. Noting the strong interaction between the two nations' economies now, Mr. Petricioli said half of all Mexican salaries are spent in the United States or on U.S. products. "No other country in the world spends more than 2 percent of its salaries in the U.S.," Mr. Petricioli said. Underscoring the possible benefits a free trade agreement could bring to the Mexican economy, Mr. Petricioli repeatedly said the pact would demonstrate that "there is life after debt."

Maritime

MEXICO ASKS US FOR TRADE TALKS

<div class="phx-topic abstract-wrapper">“Lumpy” project cargo demand is expected to lead to overutilization of the global multipurpose vessel fleet, participants in a Journal of Commerce webinar were told.</div>

“Lumpy” project cargo demand is expected to lead to overutilization of the global multipurpose vessel fleet, participants in a Journal of Commerce webinar were told.

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<div class="phx-topic">Strong and sustained volumes in the power business through 2027 and a promising outlook for mining will keep project cargo volumes buoyant, but only if shippers can maintain flexibility and secure tightening slots on multipurpose vessels, speakers participating in a Journal of Commerce webinar said. Brian Odell, lead ocean/barge/port mode specialist for power generation technology manufacturer GE Power, said he had not seen a “hint of slowdown” coming into 2026. And Jonathan Cournoyer, global discipline director for logistics at management, engineering and development consultancy HATCH, added that the push for security of supply of critical and rare minerals has prompted many countries to develop their own mines, further supporting project cargo demand this year. ”We’re lucky enough to have a lot of work in the pipeline,” Cournoyer said. “But we’re still a little bit worried about what could happen.” Pain points for the pair, both speakers on a Journal of Commerce breakbulk and project cargo 2026 outlook webcast on Jan. 22, include geopolitics, tariffs and near-static multipurpose and heavy-lift fleet supply. Recognizing that tariffs are “here to stay,” Cournoyer said HATCH accounts for tariffs in its evaluation of project costs. “For our US projects, this is very critical because a lot of the vendors located in the US that fabricate in the US actually become a lot more competitive than they would have if the tariffs were not there,” he said. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="fb97885d-0b88-4d65-99f6-10558c9e7c79"></dynamic-object></div>Odell also spoke about the practical issue of cargo readiness and making sure GE Power “can keep up with the vessels that we are putting on charter or have contracts with.” He said he manages the “ocean uncertainty” of tariffs by being flexible with vessels and route solutions and working closely with carriers. ”It’s just making sure I have the best information at the time to help plan, but keeping that flexibility in there,” Odell said. Odell said he leans on contracts of affreightments to secure shipping slots and rates at least a year out, building them around GE Power’s highest-volume areas or highest-volume flows. “That way, when it comes time for the projects to start rolling, they know who the contacts are, they can build that relationship with the carrier and the provider, and they can work with them directly and get exactly what they need,” he said. <h3>‘Lumpy’ cargo demand muddies outlook </h3>Also on the webcast, Susan Oatway, senior research analyst for breakbulk and project cargo at S&amp;P Global Market Intelligence, said that the cargo demand picture was “lumpy.” With crude oil prices down to nearly $60 per barrel, she described that cargo-supplying sector as “decidedly patchy.” S&amp;P Global is the parent company of the Journal of Commerce.On the fleet outlook, Oatway said the focus is on heavy-lift capability because the growth in demand is “almost certainly going to be there.” She forecasts heavy-lift fleet growth of 4.1% per year for the next four years, with newbuilding orders “trickling in.” Taken together, MPV/heavy-lift fleet growth is expected to average just under 2% through 2029, according to a Journal of Commerce/S&amp;P Global forecast. “My worry is that there are too many factors that can destabilize that market,” she said. “Excess container capacity, reopening of the Red Sea, increased port congestion — all of those will have a destabilizing effect in a way that is quite difficult to predict. ”And that’s even before we mention geopolitics and tariffs,” she added. Odell added that he has concerns that freight rates are going to increase due to overutilization because of what he called “a gold rush for power generation” in the US. ”It’s always trying to keep ahead of that,” he said, referring to those with cargo from other sectors having to book early to secure the capacity they need. Contact Carly Fields at <a href="mailto:carly.fields@spglobal.com">carly.fields@spglobal.com.</a></div>

Strong and sustained volumes in the power business through 2027 and a promising outlook for mining will keep project cargo volumes buoyant, but only if shippers can maintain flexibility and secure tightening slots on multipurpose vessels, speakers participating in a Journal of Commerce webinar said. Brian Odell, lead ocean/barge/port mode specialist for power generation technology manufacturer GE Power, said he had not seen a “hint of slowdown” coming into 2026. And Jonathan Cournoyer, global discipline director for logistics at management, engineering and development consultancy HATCH, added that the push for security of supply of critical and rare minerals has prompted many countries to develop their own mines, further supporting project cargo demand this year. ”We’re lucky enough to have a lot of work in the pipeline,” Cournoyer said. “But we’re still a little bit worried about what could happen.” Pain points for the pair, both speakers on a Journal of Commerce breakbulk and project cargo 2026 outlook webcast on Jan. 22, include geopolitics, tariffs and near-static multipurpose and heavy-lift fleet supply. Recognizing that tariffs are “here to stay,” Cournoyer said HATCH accounts for tariffs in its evaluation of project costs. “For our US projects, this is very critical because a lot of the vendors located in the US that fabricate in the US actually become a lot more competitive than they would have if the tariffs were not there,” he said. Odell also spoke about the practical issue of cargo readiness and making sure GE Power “can keep up with the vessels that we are putting on charter or have contracts with.” He said he manages the “ocean uncertainty” of tariffs by being flexible with vessels and route solutions and working closely with carriers. ”It’s just making sure I have the best information at the time to help plan, but keeping that flexibility in there,” Odell said. Odell said he leans on contracts of affreightments to secure shipping slots and rates at least a year out, building them around GE Power’s highest-volume areas or highest-volume flows. “That way, when it comes time for the projects to start rolling, they know who the contacts are, they can build that relationship with the carrier and the provider, and they can work with them directly and get exactly what they need,” he said. ‘Lumpy’ cargo demand muddies outlook Also on the webcast, Susan Oatway, senior research analyst for breakbulk and project cargo at S&P Global Market Intelligence, said that the cargo demand picture was “lumpy.” With crude oil prices down to nearly $60 per barrel, she described that cargo-supplying sector as “decidedly patchy.” S&P Global is the parent company of the Journal of Commerce. On the fleet outlook, Oatway said the focus is on heavy-lift capability because the growth in demand is “almost certainly going to be there.” She forecasts heavy-lift fleet growth of 4.1% per year for the next four years, with newbuilding orders “trickling in.” Taken together, MPV/heavy-lift fleet growth is expected to average just under 2% through 2029, according to a Journal of Commerce/S&P Global forecast. “My worry is that there are too many factors that can destabilize that market,” she said. “Excess container capacity, reopening of the Red Sea, increased port congestion — all of those will have a destabilizing effect in a way that is quite difficult to predict. ”And that’s even before we mention geopolitics and tariffs,” she added. Odell added that he has concerns that freight rates are going to increase due to overutilization because of what he called “a gold rush for power generation” in the US. ”It’s always trying to keep ahead of that,” he said, referring to those with cargo from other sectors having to book early to secure the capacity they need. Contact Carly Fields at carly.fields@spglobal.com.

Energy projects

Project cargo

Breakbulk News

Power, mining bullishness offset by tightening MPV ship supply

<div class="phx-topic abstract-wrapper">Taiwan’s third-largest carrier has said it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. </div>

Taiwan’s third-largest carrier has said it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia.

<div class="phx-topic">Taiwan’s Wan Hai Lines is adding to its Asia terminal network with an $89 million deal to lease terminal C-9 at Osaka’s Hanshin container port complex in Japan as part of its strategy to reduce costs and improve efficiencies by having its own dedicated berths. The move also strengthens Wan Hai’s presence in Japan following the launch of separate intra-Asia services linking Japan with Vietnam and Thailand in the last two years. Currently, Wan Hai operates six regional services with calls at Osaka. The carrier previously acquired Pier 5 at Tokyo’s Ohi terminal complex in 2003. Wan Hai said it would lease Osaka’s C-9 terminal in partnership with Mitsui Warehouse Terminal Service from Kobe-Osaka International Port Corporation. The carrier did not specify the length of the lease. Wan Hai acquired its stake from Mitsui’s former partner in the terminal, Mitsubishi Logistics Corporation. The lease agreement was approved internally by the carrier’s directors last week. Wan Hai, Taiwan’s third-largest carrier, said last year it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. C-9 is Wan Hai's first terminal deal since it opened Haiphong International Container Terminal in northern Vietnam in 2018. The carrier’s other terminal investments in Asia include berths in Taichung and Taipei in Taiwan, Cai Mep and Da Nang in Vietnam and Qingdao, China. Contact Keith Wallis at <a href="keithwallis@hotmail.com.">keithwallis@hotmail.com</a>.</div>

Taiwan’s Wan Hai Lines is adding to its Asia terminal network with an $89 million deal to lease terminal C-9 at Osaka’s Hanshin container port complex in Japan as part of its strategy to reduce costs and improve efficiencies by having its own dedicated berths. The move also strengthens Wan Hai’s presence in Japan following the launch of separate intra-Asia services linking Japan with Vietnam and Thailand in the last two years. Currently, Wan Hai operates six regional services with calls at Osaka. The carrier previously acquired Pier 5 at Tokyo’s Ohi terminal complex in 2003. Wan Hai said it would lease Osaka’s C-9 terminal in partnership with Mitsui Warehouse Terminal Service from Kobe-Osaka International Port Corporation. The carrier did not specify the length of the lease. Wan Hai acquired its stake from Mitsui’s former partner in the terminal, Mitsubishi Logistics Corporation. The lease agreement was approved internally by the carrier’s directors last week. Wan Hai, Taiwan’s third-largest carrier, said last year it would expand its network of terminals and storage facilities to obtain competitive tariffs at key ports in Asia. C-9 is Wan Hai's first terminal deal since it opened Haiphong International Container Terminal in northern Vietnam in 2018. The carrier’s other terminal investments in Asia include berths in Taichung and Taipei in Taiwan, Cai Mep and Da Nang in Vietnam and Qingdao, China. Contact Keith Wallis at keithwallis@hotmail.com .

Port News

Container lines

Marine terminals

International ports

Container Shipping News

Wan Hai expands Asia terminal network with $89 million Osaka port lease

<div class="phx-topic abstract-wrapper">Echo’s Doug Waggoner said the opportunity to acquire ITS came as part of his company’s virtually constant search for potential additions.</div>

Echo’s Doug Waggoner said the opportunity to acquire ITS came as part of his company’s virtually constant search for potential additions.

<div class="phx-topic">Echo Global Logistics’ <a href="https://www.joc.com/article/broker-echo-buys-its-logistics-to-build-drayage-intermodal-presence-6155888">acquisition of ITS Logistics</a> cements Echo’s position as a top-five third-party logistics provider (3PL), CEO Doug Waggoner told the Journal of Commerce Monday. “It’s going to position us well as one of the biggest diversified, high-growth, non-asset providers on the market,” Waggoner said. “ITS is a big bite of the apple for us.” The deal, Echo’s biggest since its 2015 acquisition of Command Transportation for $420 million, is complementary to the company’s business, both in terms of services and customer bases, Waggoner said. Privately-held Echo, the fifth-largest brokerage in the US, secures a major network of drayage, intermodal and drop trailer assets with the ITS deal. Terms of the acquisition, announced last week, were not disclosed. “We’re heavy in industrial and food and beverage, and they’re heavy in automative and retail and e-commerce,” he said. “They didn’t have cross-border exposure. So there’s a huge opportunity to go to their automotive customers and let us handle the cross-border piece.” The fit works from the standpoint of customer size as well, as Echo’s freight brokerage business largely serves small and medium-sized shippers for spot capacity needs and larger enterprise shippers for contract space needs, while ITS has had a focus on larger enterprises. In terms of services, Waggoner said ITS’ drayage and warehousing networks, along with its fleet of 5,000 trailers, fit in with Echo’s focus on managed transportation services and truckload and less-than-truckload brokerage. <h3>ITS ‘fills a gap’ </h3>The opportunity to acquire ITS came as part of Echo’s virtually constant search for potential additions, with Waggoner saying the company considers 50 to 100 companies annually, with “a small subset where we drill down more deeply.” He said the hard-charging culture of ITS’ executive team and its 48% compound annual growth rate since 2013, even through a downturn in freight rates over the past few years, were impressive. “They fill a gap in our product offering that we needed,” Waggoner said. “We’re not just a broker. We have warehousing, cross-border, retail consolidation, and the truckload market is only a part of what we do, and that diversification has allowed us to grow in the market.” Waggoner wouldn’t be drawn on whether the acquisition signals the start of a period of consolidation in the 3PL space, especially because the two businesses are complementary, rather than doubling down on a specific mode or segment. He did say he is bullish on the market for 2026. “The signs we’re seeing are that the market is going to improve in ’26,” he said. “It’s been balancing on a fulcrum of a tight market and a loose market.” Waggoner cited the exit of truckload carriers from the market, federal regulatory crackdowns on commercial drivers, and extreme weather events as factors that could tighten the sector. “When the truckload market tightens, that’s a rising tide that floats all boats,” he said. Relevant to Echo’s business, Waggoner said any tightness will drive the company’s current 60-40 ratio of contract freight to spot freight to flip to 60-40 in the other direction. With more cargo moving on higher spot rates, that could compound topline growth for brokers with scale. Waggoner pointed specifically to proprietary AI-based pricing and quoting tools developed during the down cycle that he said will really show their value when the market tightens and spot rates become more in play. He estimated the brokerage market has grown to be a $100 billion segment of the industry, largely because large brokers, including Echo, have won business from shippers. “Shippers are agnostic as to whether you have trucks or not,” he said. “When they’re running a routing guide, we’re another carrier to them and one with really good technology. And that effectively increases the size of the market.” The combined Echo-ITS would create a company with $5.4 billion in revenue. The deal is expected to close in the first half of the year. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>.</div>

Echo Global Logistics’ acquisition of ITS Logistics cements Echo’s position as a top-five third-party logistics provider (3PL), CEO Doug Waggoner told the Journal of Commerce Monday. “It’s going to position us well as one of the biggest diversified, high-growth, non-asset providers on the market,” Waggoner said. “ITS is a big bite of the apple for us.” The deal, Echo’s biggest since its 2015 acquisition of Command Transportation for $420 million, is complementary to the company’s business, both in terms of services and customer bases, Waggoner said. Privately-held Echo, the fifth-largest brokerage in the US, secures a major network of drayage, intermodal and drop trailer assets with the ITS deal. Terms of the acquisition, announced last week, were not disclosed. “We’re heavy in industrial and food and beverage, and they’re heavy in automative and retail and e-commerce,” he said. “They didn’t have cross-border exposure. So there’s a huge opportunity to go to their automotive customers and let us handle the cross-border piece.” The fit works from the standpoint of customer size as well, as Echo’s freight brokerage business largely serves small and medium-sized shippers for spot capacity needs and larger enterprise shippers for contract space needs, while ITS has had a focus on larger enterprises. In terms of services, Waggoner said ITS’ drayage and warehousing networks, along with its fleet of 5,000 trailers, fit in with Echo’s focus on managed transportation services and truckload and less-than-truckload brokerage. ITS ‘fills a gap’ The opportunity to acquire ITS came as part of Echo’s virtually constant search for potential additions, with Waggoner saying the company considers 50 to 100 companies annually, with “a small subset where we drill down more deeply.” He said the hard-charging culture of ITS’ executive team and its 48% compound annual growth rate since 2013, even through a downturn in freight rates over the past few years, were impressive. “They fill a gap in our product offering that we needed,” Waggoner said. “We’re not just a broker. We have warehousing, cross-border, retail consolidation, and the truckload market is only a part of what we do, and that diversification has allowed us to grow in the market.” Waggoner wouldn’t be drawn on whether the acquisition signals the start of a period of consolidation in the 3PL space, especially because the two businesses are complementary, rather than doubling down on a specific mode or segment. He did say he is bullish on the market for 2026. “The signs we’re seeing are that the market is going to improve in ’26,” he said. “It’s been balancing on a fulcrum of a tight market and a loose market.” Waggoner cited the exit of truckload carriers from the market, federal regulatory crackdowns on commercial drivers, and extreme weather events as factors that could tighten the sector. “When the truckload market tightens, that’s a rising tide that floats all boats,” he said. Relevant to Echo’s business, Waggoner said any tightness will drive the company’s current 60-40 ratio of contract freight to spot freight to flip to 60-40 in the other direction. With more cargo moving on higher spot rates, that could compound topline growth for brokers with scale. Waggoner pointed specifically to proprietary AI-based pricing and quoting tools developed during the down cycle that he said will really show their value when the market tightens and spot rates become more in play. He estimated the brokerage market has grown to be a $100 billion segment of the industry, largely because large brokers, including Echo, have won business from shippers. “Shippers are agnostic as to whether you have trucks or not,” he said. “When they’re running a routing guide, we’re another carrier to them and one with really good technology. And that effectively increases the size of the market.” The combined Echo-ITS would create a company with $5.4 billion in revenue. The deal is expected to close in the first half of the year. Contact Eric Johnson at eric.johnson@spglobal.com .

Logistics Technology News

Drayage

Truckload

Truck brokers

ITS acquisition a ‘big bite’ for Echo in market diversification drive: CEO

<div class="phx-topic abstract-wrapper">After announcing a pause on ship attacks in November, the Iran-backed militants posted a pair of threatening videos over the weekend that are sure to cause fresh concerns for ocean carriers planning a return to the Red Sea.</div>

After announcing a pause on ship attacks in November, the Iran-backed militants posted a pair of threatening videos over the weekend that are sure to cause fresh concerns for ocean carriers planning a return to the Red Sea.

<div class="phx-topic">Yemen’s Houthi militants have warned of new attacks on shipping in the Red Sea as tensions escalate between the US and Iran, raising questions over whether moves by some carriers to return services to the shorter Suez Canal route will actually happen. A Houthi video posted on YouTube over the weekend showed a ship on fire accompanied by the headline: “Soon.” It was followed by another video, this one from Houthi spokesman Brigadier Yahya Saree, pointing to “the escalation of possibilities” of the US launching a military strike against Iran, which he said would be met by retaliation against the US and Israel. The Iran-backed Houthi announced a pause on ship attacks in November following the Israel-Hamas ceasefire in Gaza that was agreed the previous month and have so far honored that pledge. But Iran’s clampdown on anti-government protests in late December sparked a threat earlier this month by US President Donald Trump to respond militarily, with a carrier strike group led by the USS Abraham Lincoln now heading for the region. Even before the new Houthi threat, CMA CGM, one of the main Red Sea users over the past two years, said it would <a href="https://www.joc.com/article/cma-cgm-backs-off-plans-to-resume-suez-transits-for-asia-europe-services-6155264">scale back plans to send three Asia-Europe westbound services</a> through the Suez, citing the “complex and uncertain international context.” <h3>Maersk India-US service due to begin shorter route </h3>Maersk’s <a href="https://www.joc.com/article/maersk-set-to-resume-regular-suez-transits-on-india-usec-mecl-loop-sources-6152441">MECL service from India to the US East Coast</a> is due to be rerouted through the Suez and Red Sea beginning Monday. While no change of plan has been announced, the volatility in the region prompted the carrier to include a caveat in its Jan. 15 advisory announcing a return to the shorter route. “Maersk has contingency plans in place should the security situation deteriorate, which may necessitate reverting individual MECL sailings or the wider structural change of the MECL service back to the Cape of Good Hope route,” the carrier said. While Maersk tests the waters and CMA CGM continues to send regional and back-haul services through the Red Sea, most of the other major carriers are content to maintain longer transits around southern Africa until the fluid geopolitical environment stabilizes. Carriers have used the longer route since the Houthis began attacks against commercial shipping in late 2023 in response to the Israel-Hamas war. Resuming services through the Suez represents more than just a routing change. Oversupplied carriers have benefited from the longer route absorbing about 8% of global capacity, preventing rates from falling. “A full-scale return of liner services to the Red Sea would initially be disruptive, with increased risks of port congestion, landside capacity constraints and short-term cost implications,” Bjoern Schoon, senior vice president of ocean freight at DHL Global Forwarding/Asia-Pacific, said in a market update last week. “However, once networks stabilize, it will benefit shippers through faster transit times, and the trade is likely to become more competitive on pricing,” Schoon added. Contact Greg Knowler at <a href="">greg.knowler@spglobal.com</a>.</div>

Yemen’s Houthi militants have warned of new attacks on shipping in the Red Sea as tensions escalate between the US and Iran, raising questions over whether moves by some carriers to return services to the shorter Suez Canal route will actually happen. A Houthi video posted on YouTube over the weekend showed a ship on fire accompanied by the headline: “Soon.” It was followed by another video, this one from Houthi spokesman Brigadier Yahya Saree, pointing to “the escalation of possibilities” of the US launching a military strike against Iran, which he said would be met by retaliation against the US and Israel. The Iran-backed Houthi announced a pause on ship attacks in November following the Israel-Hamas ceasefire in Gaza that was agreed the previous month and have so far honored that pledge. But Iran’s clampdown on anti-government protests in late December sparked a threat earlier this month by US President Donald Trump to respond militarily, with a carrier strike group led by the USS Abraham Lincoln now heading for the region. Even before the new Houthi threat, CMA CGM, one of the main Red Sea users over the past two years, said it would scale back plans to send three Asia-Europe westbound services through the Suez, citing the “complex and uncertain international context.” Maersk India-US service due to begin shorter route Maersk’s MECL service from India to the US East Coast is due to be rerouted through the Suez and Red Sea beginning Monday. While no change of plan has been announced, the volatility in the region prompted the carrier to include a caveat in its Jan. 15 advisory announcing a return to the shorter route. “Maersk has contingency plans in place should the security situation deteriorate, which may necessitate reverting individual MECL sailings or the wider structural change of the MECL service back to the Cape of Good Hope route,” the carrier said. While Maersk tests the waters and CMA CGM continues to send regional and back-haul services through the Red Sea, most of the other major carriers are content to maintain longer transits around southern Africa until the fluid geopolitical environment stabilizes. Carriers have used the longer route since the Houthis began attacks against commercial shipping in late 2023 in response to the Israel-Hamas war. Resuming services through the Suez represents more than just a routing change. Oversupplied carriers have benefited from the longer route absorbing about 8% of global capacity, preventing rates from falling. “A full-scale return of liner services to the Red Sea would initially be disruptive, with increased risks of port congestion, landside capacity constraints and short-term cost implications,” Bjoern Schoon, senior vice president of ocean freight at DHL Global Forwarding/Asia-Pacific, said in a market update last week. “However, once networks stabilize, it will benefit shippers through faster transit times, and the trade is likely to become more competitive on pricing,” Schoon added. Contact Greg Knowler at  greg.knowler@spglobal.com .

Latest Houthi threat renews questions about Suez route as US-Iran tensions rise 

<div class="phx-topic abstract-wrapper">The agency ruled in 2024 that shippers can pick their own chassis when they arrange for truck transportation, but compliance with that ruling remains unclear. </div>

The agency ruled in 2024 that shippers can pick their own chassis when they arrange for truck transportation, but compliance with that ruling remains unclear.

<div class="phx-topic">The Federal Maritime Commission (FMC) is launching its second probe into chassis restrictions ocean carriers put on truckers when hauling a container. The probe comes after the agency ruled in 2024 that shippers can choose their own chassis when they contract with their own trucker. In a federal register notice Friday, the FMC said it plans to open a 60-day window for comments about “service contract terms or other means to mandate that motor carriers [truckers] and shippers use the ocean common carriers’ designated chassis.” The comments are sought in relation to an investigation by the FMC over allegations that “ocean common carriers may be in violation of the Shipping Act by unjustly and unreasonably restricting truckers and shippers from negotiating and dealing with chassis providers.”The investigation stems from <a href="https://www.joc.com/article/fmc-rules-for-truckers-in-chassis-dispute-with-ocean-carriers-5234355">the 2024 agency ruling</a> that ocean carriers have to stop mandating what specific chassis must be used under merchant haulage contracts. The agency upheld an administrative law judge’s earlier decision in a case between the American Trucking Association and the Ocean Carrier Equipment Management Association (OCEMA) that <a href="https://www.joc.com/article/ocema-appeals-chassis-ruling-to-fmc-commissioners-5193253">container lines violate the Shipping Act when they restrict chassis choice</a> among shippers who are arranging their own container trucking. <a href="https://www.joc.com/article/fmc-says-investigating-potential-violations-of-recent-ruling-on-chassis-control-5192272">The FMC was already investigating compliance</a> with a cease-and-desist order in the 2024 ruling, which is still ongoing. The new probe is looking for “any information concerning new or ongoing ocean common carrier practices ... to affect, restrict, or inhibit chassis provider selection,” the notice said. Part of the new probe involves whether ocean carriers designate single chassis providers at Chicago and Memphis rail ramps, if providers have enough chassis on-hand, any reimbursement for truckers on chassis split, and whether truckers are given notice about a container being under merchant or carrier haulage, the latter allowing an ocean carrier to choose a chassis. Along with the inland rail ramps, the FMC said its investigation is looking at chassis choice at the Savannah, Los Angeles, and Long Beach ports. As part of the probe into the Southern California market, the FMC is seeking how the “Pool of Pools” (PoP) operated by the three main chassis providers for the LA-LB ports distinguishes between “carrier haulage and merchant haulage containers and coordinate billing accordingly,” the notice said. OCEMA did not immediately respond to a request for comment into the new investigation.<h3>‘Sweetheart Deals’</h3>Robert Loya, chief executive of the Harbor Trucking Association, which represents drayage providers in Southern California, told the Journal of Commerce that some shippers have merchant haulage contracts that include a chassis at no additional cost, requiring the trucker to use the ocean carrier’s designated chassis. But servicing the LA-LB ports with the trucker’s own chassis and one from the PoP can result in wasted miles and more costs, he added.Returning an empty container on a PoP chassis can require a trip back to the trucker’s own yard for a shipper without an ocean carrier-provisioned chassis. Truckers are also forced to pay gate fees that marine terminals charge for temporarily storing PoP chassis.“The intermodal equipment providers have negotiated sweetheart deals with the shipping lines to use their chassis, then that gets negotiated into the ocean contract with the beneficial cargo owner,” Loya said. “That puts pressure on us, so we’re forced by the lines to use their chassis. That’s the rub for us.”<h3>Chassis mis-mounts</h3>An executive of a Tennessee-based drayage provider told the Journal of Commerce that ocean carrier chassis pools at inland rail terminals are vulnerable to shortages in times of high demand, resulting in potential delays if a trucker cannot use their own chassis.Containers can also come off a train and be mis-mounted onto the wrong chassis, causing a trucker to wait for the correct chassis. The executive said that what appears to be a no-cost chassis can mean added costs and inefficiencies for truckers.“The trucker is squeezed,” she said. “The frustration is that there’s no change after years. The US would have been better served if we had chassis choice during the pandemic. We need a faster and more fluid way to move freight.”Contact Michael Angell at <a href="mailto: michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Federal Maritime Commission (FMC) is launching its second probe into chassis restrictions ocean carriers put on truckers when hauling a container. The probe comes after the agency ruled in 2024 that shippers can choose their own chassis when they contract with their own trucker. In a federal register notice Friday, the FMC said it plans to open a 60-day window for comments about “service contract terms or other means to mandate that motor carriers [truckers] and shippers use the ocean common carriers’ designated chassis.” The comments are sought in relation to an investigation by the FMC over allegations that “ocean common carriers may be in violation of the Shipping Act by unjustly and unreasonably restricting truckers and shippers from negotiating and dealing with chassis providers.” The investigation stems from the 2024 agency ruling that ocean carriers have to stop mandating what specific chassis must be used under merchant haulage contracts. The agency upheld an administrative law judge’s earlier decision in a case between the American Trucking Association and the Ocean Carrier Equipment Management Association (OCEMA) that container lines violate the Shipping Act when they restrict chassis choice among shippers who are arranging their own container trucking. The FMC was already investigating compliance with a cease-and-desist order in the 2024 ruling, which is still ongoing. The new probe is looking for “any information concerning new or ongoing ocean common carrier practices ... to affect, restrict, or inhibit chassis provider selection,” the notice said. Part of the new probe involves whether ocean carriers designate single chassis providers at Chicago and Memphis rail ramps, if providers have enough chassis on-hand, any reimbursement for truckers on chassis split, and whether truckers are given notice about a container being under merchant or carrier haulage, the latter allowing an ocean carrier to choose a chassis. Along with the inland rail ramps, the FMC said its investigation is looking at chassis choice at the Savannah, Los Angeles, and Long Beach ports. As part of the probe into the Southern California market, the FMC is seeking how the “Pool of Pools” (PoP) operated by the three main chassis providers for the LA-LB ports distinguishes between “carrier haulage and merchant haulage containers and coordinate billing accordingly,” the notice said. OCEMA did not immediately respond to a request for comment into the new investigation. ‘Sweetheart Deals’ Robert Loya, chief executive of the Harbor Trucking Association, which represents drayage providers in Southern California, told the Journal of Commerce that some shippers have merchant haulage contracts that include a chassis at no additional cost, requiring the trucker to use the ocean carrier’s designated chassis. But servicing the LA-LB ports with the trucker’s own chassis and one from the PoP can result in wasted miles and more costs, he added. Returning an empty container on a PoP chassis can require a trip back to the trucker’s own yard for a shipper without an ocean carrier-provisioned chassis. Truckers are also forced to pay gate fees that marine terminals charge for temporarily storing PoP chassis. “The intermodal equipment providers have negotiated sweetheart deals with the shipping lines to use their chassis, then that gets negotiated into the ocean contract with the beneficial cargo owner,” Loya said. “That puts pressure on us, so we’re forced by the lines to use their chassis. That’s the rub for us.” Chassis mis-mounts An executive of a Tennessee-based drayage provider told the Journal of Commerce that ocean carrier chassis pools at inland rail terminals are vulnerable to shortages in times of high demand, resulting in potential delays if a trucker cannot use their own chassis. Containers can also come off a train and be mis-mounted onto the wrong chassis, causing a trucker to wait for the correct chassis. The executive said that what appears to be a no-cost chassis can mean added costs and inefficiencies for truckers. “The trucker is squeezed,” she said. “The frustration is that there’s no change after years. The US would have been better served if we had chassis choice during the pandemic. We need a faster and more fluid way to move freight.” Contact Michael Angell at michael.angell@spglobal.com .

FMC takes second look at ocean carrier limits on chassis choice

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