<div class="phx-topic abstract-wrapper">Container vessels rode at anchor in the St. Lawrence River Wednesday as the Port of Montreal remained shut down for the third consecutive day and shippers expressed anxiety about growing costs.</div>

Container vessels rode at anchor in the St. Lawrence River Wednesday as the Port of Montreal remained shut down for the third consecutive day and shippers expressed anxiety about growing costs.

<div>Container vessels rode at anchor in the St. Lawrence River Wednesday as the Port of Montreal remained shut down for the third consecutive day and shippers expressed anxiety about growing costs.The Montreal Port Authority reported Wednesday that its grain terminal can receive and ship cargo but that no other container or bulk and breakbulk ships are in port.The Maritime Employers Association is maintaining its lockout, the MPA said in a statement. Rail freight cars that had been loaded before the shutdown now are leaving the terminals.No vessel requiring the work of longshoremen for its operation is in the Port.Sebastien Goulet,...

Container vessels rode at anchor in the St. Lawrence River Wednesday as the Port of Montreal remained shut down for the third consecutive day and shippers expressed anxiety about growing costs. The Montreal Port Authority reported Wednesday that its grain terminal can receive and ship cargo but that no other container or bulk and breakbulk ships are in port. The Maritime Employers Association is maintaining its lockout, the MPA said in a statement. Rail freight cars that had been loaded before the shutdown now are leaving the terminals. No vessel requiring the work of longshoremen for its operation is in the Port. Sebastien Goulet, spokesman for the Syndicat des debardeurs, local 375 of the Canadian Union of Public Employees told The Journal of Commerce that the Maritime Employers Association had rejected a request by the union to start the talks Wednesday and keep them going around the clock. He said the MEA responded that it needed more time. Instead, the two will meet, along with two federal government-appointed mediators, at 9.30 a.m. Thursday. Employers on Monday locked out 850 longshoremen at the port in a labor dispute. They have agreed to meet with union representatives Thursday and Friday to resume failed negotiations. The Montreal branch of the MEA, through spokesman Gilles Corriveau, told The Journal of Commerce that the MEA wants to reduce the numbers of senior longshoremen, now 107, who have job security under the expired labor contract and who are paid to be available when not working. He said the MEA does not want to end this program because having longshore workers on call and available is important to the employers, but the number should be lower. The longshore union&rsquo;s Sebastien Goulet told The Journal of Commerce that the union has offered to reduce the 850 longshore workers by 50 persons. The union also proposed to streamline the process of calling workers to load and unload vessels. Corriveau said the Thursday meeting is for the MEA to respond to the union presentation. Then, he said, a dialogue would follow. Meanwhile, the Canadian International Freight Forwarders Association (CIFFA) told members Wednesday that vessels are at anchor in the St. Lawrence river, awaiting developments. If the lockout lasts only a few days, it is assumed that vessels will not be diverted to other ports due to all the technical, legal and financial costs involved, Ciffa said. In short, the steamship lines have not communicated their decisions yet regarding diversions and one might expect not to hear until after the meetings on Thursday and Friday, CIFFA said. If the shutdown is not resolved quickly, it will have a serious impact on all businesses that rely on the Port of Montreal,&rdquo; said Wal-Mart Canada spokeswoman Susan Schutt in a statement. Montreal is an important port for the U.S. Midwest. Up to one-half of the 1.25 million 20-foot equivalent container units handled at the port go to or come from the United States. There could be layoffs as a result of the lockout among exporters, AbitibiBowater told the Bloomberg news service. Spokesman Jean-Philippe Cote said North America&rsquo;s biggest newsprint maker has products stored in warehouses but could need to make temporary layoffs if the lockout drags on. Paper manufacturer Cascades said the timing of a $19 million project to improve a Quebec plant may be delayed because parts for machines are being held up. -- Contact Courtney Tower at ctower@sympatico.ca .

Maritime

Forwarding

Montreal Lockout Talks Delayed to Thursday

<div class="phx-topic abstract-wrapper">Just over 7,000 TEUs of capacity is scheduled to be withdrawn through blank sailings in September even as carriers increase their deployed capacity by 2%.</div>

Just over 7,000 TEUs of capacity is scheduled to be withdrawn through blank sailings in September even as carriers increase their deployed capacity by 2%.

Feature image

<div class="phx-topic">Rates on the trans-Atlantic westbound ocean trade — a route dominated by Gemini Cooperation and Mediterranean Shipping Co. (MSC) — have been stuck at loss-making levels for weeks, yet carriers are showing little appetite for blank sailings to raise prices. Spot rates assessed by Platts, a sister company of the Journal of Commerce, are at $1,600 per FEU this week, far below the breakeven level ocean carriers say is around $2,100/FEU. Rates have lost only $100 since mid-May. While carriers on the North Europe-US East Coast route are scheduled to increase deployed capacity to 376,132 TEUs in September, up 2% compared to August, just 7,349 TEUs in capacity will be withdrawn via blank sailings, according to data from rate benchmarking platform Xeneta. However, Destine Ozuygur, product marketing manager for Xeneta, cautioned about reading too much into the low blank sailings levels. “Blanks used to be a standard measure against persistent demand deficit, but it’s also become a widely used tool for ad-hoc reliability management,” Ozuygur said. “Carriers are far more comfortable admitting them into schedules in the short-term, and repealing them, than they used to be. ”Regardless of the tariff or rate environment, we would naturally expect at least a few more blanks to trickle in over the coming weeks,” she added. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="004f46ea-f9b5-4bd8-96be-a0146f19f1f0"></dynamic-object></div>The restructured ocean alliances have adjusted market share on the trans-Atlantic, leaving the trade lane dominated by MSC and Gemini partners Maersk and Hapag-Lloyd. Data from Alphaliner shows that after splitting from its 2M partner Maersk, MSC increased its Atlantic market share from 41.1% to 41.8% over the 12 months from July 2024 to July 2025. MSC now deploys a fleet of more than 500,000 TEUs between Europe and North America. Hapag-Lloyd remains the second-largest carrier in the trade, but its market share of 14.9% is significantly lower than the 19.6% share it held in July 2024. Hapag-Lloyd's Gemini-partner Maersk increased its market share from 8.9% in July last year to 14.4% this year. “With the absence of both Ocean Alliance and Premier Alliance on this trade, reliability is largely left to Gemini, MSC and the non-alliances services,” said Ozuygur. Despite a lack of wider carrier representation, the present incumbents are not exactly setting reliability records. North Europe to US East Coast schedule reliability in July was 38%, a dismal level by any measure, although still a significant improvement on January’s 24%, Xeneta data showed. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="face521b-d4c4-40cd-b809-f10a6707a371"></dynamic-object></div>Some of the blame can be attributed to ongoing European port congestion that slows vessel turnarounds, which on the relatively short transits across the Atlantic “adds another layer of constraint and reduces effective service frequency,” C.H. Robinson noted in a recent market update. <h3>Addressing a new tariff landscape </h3>The schedule reliability and capacity deployed through the rest of the year will likely depend on how demand shapes up in the new trans-Atlantic tariff landscape. In a July 27 deal, a 15% tariff was applied to most EU goods exported to the US instead of the 30% tariff President Donald Trump had previously threatened, <a href="https://www.joc.com/article/trans-atlantic-trade-dispute-averted-as-us-eu-reach-weekend-deal-6051144">averting a destructive trade war</a>. The deal included provisions for zero tariffs on certain US exports to the EU and left the door open for negotiations on further market access. Frontloading in June as US-EU trade tensions escalated saw North Europe to US East Coast volume grow 14.2% year over year to almost 200,000 TEUs, according to PIERS, a sister product of the Journal of Commerce within S&amp;P Global. It was short-lived, however, with July volume sliding to 198,750 TEUs. <div class="wrapper-narrow"><dynamic-object type="jocchartid" resource-id="808b5499-12f0-4682-8df3-9427d1d05738"></dynamic-object></div>Most observers believe the 15% tariff, while significantly higher than the pre-deal tariffs of around 4.8%, is not high enough to create a material change in shipper behavior on the trans-Atlantic. But Emily Stausbøll, senior analyst at Xeneta, said while 15% was more manageable than the threatened 30%, it was expected to keep demand muted considering frontloading in Q2 has left fewer goods needing to be moved over the rest of the year. “We are still in a waiting period before we see the real effects of tariffs on prices and US consumer demand, with frontloading and retailers absorbing some of these extra costs,” Stausbøll told the Journal of Commerce. “But at some point, this will be passed on and should lower demand on this trade over the longer term.” The “wait-and-see” approach was also highlighted by an executive from one of the ocean carriers on the trans-Atlantic who said the market did not seem to have been heavily affected by the tariffs. “There have been clients taking a wait-and-see approach and others adding some shipments, but that is not having a major impact on the trade route, partly due to tariffs not being high enough to affect trade flows,” the carrier executive said, adding that the trade lane was expected to “settle without much change.” Xeneta’s Ozuygur agreed that shippers were taking a wait-and-see approach, noting that after the trade agreement, the trans-Atlantic was on a more stable and positive footing than during the volatile buildup to the deal. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

Rates on the trans-Atlantic westbound ocean trade — a route dominated by Gemini Cooperation and Mediterranean Shipping Co. (MSC) — have been stuck at loss-making levels for weeks, yet carriers are showing little appetite for blank sailings to raise prices. Spot rates assessed by Platts, a sister company of the Journal of Commerce, are at $1,600 per FEU this week, far below the breakeven level ocean carriers say is around $2,100/FEU. Rates have lost only $100 since mid-May. While carriers on the North Europe-US East Coast route are scheduled to increase deployed capacity to 376,132 TEUs in September, up 2% compared to August, just 7,349 TEUs in capacity will be withdrawn via blank sailings, according to data from rate benchmarking platform Xeneta. However, Destine Ozuygur, product marketing manager for Xeneta, cautioned about reading too much into the low blank sailings levels. “Blanks used to be a standard measure against persistent demand deficit, but it’s also become a widely used tool for ad-hoc reliability management,” Ozuygur said. “Carriers are far more comfortable admitting them into schedules in the short-term, and repealing them, than they used to be. ”Regardless of the tariff or rate environment, we would naturally expect at least a few more blanks to trickle in over the coming weeks,” she added. The restructured ocean alliances have adjusted market share on the trans-Atlantic, leaving the trade lane dominated by MSC and Gemini partners Maersk and Hapag-Lloyd. Data from Alphaliner shows that after splitting from its 2M partner Maersk, MSC increased its Atlantic market share from 41.1% to 41.8% over the 12 months from July 2024 to July 2025. MSC now deploys a fleet of more than 500,000 TEUs between Europe and North America. Hapag-Lloyd remains the second-largest carrier in the trade, but its market share of 14.9% is significantly lower than the 19.6% share it held in July 2024. Hapag-Lloyd's Gemini-partner Maersk increased its market share from 8.9% in July last year to 14.4% this year. “With the absence of both Ocean Alliance and Premier Alliance on this trade, reliability is largely left to Gemini, MSC and the non-alliances services,” said Ozuygur. Despite a lack of wider carrier representation, the present incumbents are not exactly setting reliability records. North Europe to US East Coast schedule reliability in July was 38%, a dismal level by any measure, although still a significant improvement on January’s 24%, Xeneta data showed. Some of the blame can be attributed to ongoing European port congestion that slows vessel turnarounds, which on the relatively short transits across the Atlantic “adds another layer of constraint and reduces effective service frequency,” C.H. Robinson noted in a recent market update. Addressing a new tariff landscape The schedule reliability and capacity deployed through the rest of the year will likely depend on how demand shapes up in the new trans-Atlantic tariff landscape. In a July 27 deal, a 15% tariff was applied to most EU goods exported to the US instead of the 30% tariff President Donald Trump had previously threatened, averting a destructive trade war . The deal included provisions for zero tariffs on certain US exports to the EU and left the door open for negotiations on further market access. Frontloading in June as US-EU trade tensions escalated saw North Europe to US East Coast volume grow 14.2% year over year to almost 200,000 TEUs, according to PIERS, a sister product of the Journal of Commerce within S&P Global. It was short-lived, however, with July volume sliding to 198,750 TEUs. Most observers believe the 15% tariff, while significantly higher than the pre-deal tariffs of around 4.8%, is not high enough to create a material change in shipper behavior on the trans-Atlantic. But Emily Stausbøll, senior analyst at Xeneta, said while 15% was more manageable than the threatened 30%, it was expected to keep demand muted considering frontloading in Q2 has left fewer goods needing to be moved over the rest of the year. “We are still in a waiting period before we see the real effects of tariffs on prices and US consumer demand, with frontloading and retailers absorbing some of these extra costs,” Stausbøll told the Journal of Commerce. “But at some point, this will be passed on and should lower demand on this trade over the longer term.” The “wait-and-see” approach was also highlighted by an executive from one of the ocean carriers on the trans-Atlantic who said the market did not seem to have been heavily affected by the tariffs. “There have been clients taking a wait-and-see approach and others adding some shipments, but that is not having a major impact on the trade route, partly due to tariffs not being high enough to affect trade flows,” the carrier executive said, adding that the trade lane was expected to “settle without much change.” Xeneta’s Ozuygur agreed that shippers were taking a wait-and-see approach, noting that after the trade agreement, the trans-Atlantic was on a more stable and positive footing than during the volatile buildup to the deal. Contact Greg Knowler at greg.knowler@spglobal.com .

Container Shipping News

Container lines

Trans-Atlantic

Trans-Atlantic carriers limit capacity cuts despite ongoing rate weakness

<div class="phx-topic abstract-wrapper">With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades, writes Jeremy Masters. </div>

With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades, writes Jeremy Masters.

<div class="phx-topic">In <a href="https://www.joc.com/article/high-variance-exists-in-carriers-cross-trade-products-6045899">my column of July 18</a>, we looked at the wide range of transshipment services that the top five operators are offering in non-core trades. At some point in the life of these trades, carriers will consider whether there is sufficient promise to deploy direct services. There are a number of motivations behind this. <div class="wrapper-narrow float-right-element"><img src="/images/phoenix/6066828_0.1.jpg"></img></div>Carriers will want to have first-mover advantage. Transshipment — particularly between two deep-sea services — can produce very variable products. Carriers offering a direct service will have the chance to establish pole position. Secondly, those with suitable tonnage will see an opportunity. Some of the carriers’ raids of small- to mid-range tonnage in the second-hand markets (plus ongoing delivery of newbuilds) will have greater flexibility in feeder, regional and developing trades to upgrade from transshipment without swamping a trade with big ships. Finally, with all the capacity injections, both current and future, a glut beckons that will bring rates down on a widespread basis. As ships are moveable assets, they can quickly spread overcapacity contagion from one trade to another. New direct services will certainly not be enough to swing the dial back; carriers will need to be nimble on multiple capacity-eating fronts for that. But investing in new linkages and moving overcapacity out has some attractions. <h3>‘High-potential’ trades </h3>Using Container Trade Statistics (CTS)’s extensive volume data at a granular level, we looked at several developing trades and arrived at the conclusion that there are many with high potential. In any new or expanded deployment, carriers will look at: a) the evolution of volumes in the trade and the expected utilization if they deploy a premium product; b) the evolution of rates in the trade, which in most cases will be reasonably healthy as a transshipment trade but might be impacted by an injection of new direct capacity; and c) the cost of ship, port and equipment systems, including imbalances. New direct connections are the obvious starting point, but carriers also have the possibility to link in feeder hubs and partially piggyback on other direct routes. This has the advantage of access to a wider pool of cargo and derisking developing trades that can be volatile. The <a href="https://www.joc.com/article/msc-will-expand-africa-us-trade-with-new-calls-6063823">announcement from Mediterranean Shipping Co.</a> that it will serve the US-to-West Africa trade as part of its South Africa service certainly adds one substantive trade to their direct network. But by offering the US Gulf, Mexico and parts of Central America to West Africa and South Africa off Freeport and connecting West Africa to South Africa, MSC opens up other important flows of developing business and the possibility for double-dipping. East Coast South America (ECSA) to West Africa is also emerging strongly. To serve this trade, carriers transship over the Med or North Europe with heavy diversion time. The least diverted is with MSC via Las Palmas in the Canary Islands, but that is still a combined 5,515 nautical miles ex-Rio to Abidjan in West Africa against 2,932 nautical miles direct. There are few obvious links to other trades, however, so carriers would need to be comfortable about getting critical mass just in these lanes. <h3>India-ECSA an ‘emerging trade’ </h3>A good example of an emerging trade that combines several themes is India to ECSA. There is an HMM product from Kattupalli East India to Brazil, and the big carriers have a variety of transshipment products from Northwest India via South Africa, Sri Lanka, Morocco and Singapore. Per CTS stats, volume indication from 2020 to date is as follows for India ports to ECSA TEUs: <div class="wrapper-full"><table><colgroup><col width="33.33%"></col><col width="33.33%"></col><col width="33.33%"></col></colgroup><thead><tr><th>Year</th><th class="align-right">Indian Sub Cont. to ECSA</th><th class="align-right">ECSA to Indian Sub Cont.</th></tr></thead><tbody><tr><td>2022 </td><td class="align-right">96,718 </td><td class="align-right">96,921</td></tr><tr><td>2023</td><td class="align-right">123,658</td><td class="align-right">105,835</td></tr><tr><td>2024</td><td class="align-right">149,615</td><td class="align-right">163,004</td></tr><tr><td>YTD 2025</td><td class="align-right">61,393</td><td class="align-right">89,274</td></tr></tbody><tfoot><tr><td colspan="3">Source: Container Trade Statistics</td></tr></tfoot></table></div>In addition to the positive progression in direct volumes, any carrier serving this trade naturally must go around the Cape of Good Hope, so a call at South African ports, although in competition with other direct services, offers a chance to significantly increase cargo catchment. There would, of course, be more competition in these directly linked trades, but the following 2024 annual TEUs figures illustrate the opportunity: <div class="wrapper-full"><table><colgroup><col width="50%"></col><col width="50%"></col></colgroup><tbody><tr><td>Indian Sub Cont. to Southern Africa</td><td class="align-right">123,303</td></tr><tr><td>Southern Africa to ECSA</td><td class="align-right">10,128</td></tr><tr><td>ECSA to Southern Africa</td><td class="align-right">88,017</td></tr><tr><td>Southern Africa to Indian Sub Cont.</td><td class="align-right">151,591</td></tr></tbody><tfoot><tr><td colspan="2">Source: Container Trade Statistics</td></tr></tfoot></table></div> Adding an Indian Ocean transshipment hub like Port Louis in Mauritius would offer more possibilities to mix and match markets and build a well-utilized, remunerative product. There are plenty of possibilities out there and carriers can do their homework on how trade volumes are developing. With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades. Jeremy Masters is managing director of Shipping Masters. Contact him at <a href="mailto:jeremy@shippingmastershk.com">jeremy@shippingmastershk.com</a>. </div>

In my column of July 18 , we looked at the wide range of transshipment services that the top five operators are offering in non-core trades. At some point in the life of these trades, carriers will consider whether there is sufficient promise to deploy direct services. There are a number of motivations behind this. Carriers will want to have first-mover advantage. Transshipment — particularly between two deep-sea services — can produce very variable products. Carriers offering a direct service will have the chance to establish pole position. Secondly, those with suitable tonnage will see an opportunity. Some of the carriers’ raids of small- to mid-range tonnage in the second-hand markets (plus ongoing delivery of newbuilds) will have greater flexibility in feeder, regional and developing trades to upgrade from transshipment without swamping a trade with big ships. Finally, with all the capacity injections, both current and future, a glut beckons that will bring rates down on a widespread basis. As ships are moveable assets, they can quickly spread overcapacity contagion from one trade to another. New direct services will certainly not be enough to swing the dial back; carriers will need to be nimble on multiple capacity-eating fronts for that. But investing in new linkages and moving overcapacity out has some attractions. ‘High-potential’ trades Using Container Trade Statistics (CTS)’s extensive volume data at a granular level, we looked at several developing trades and arrived at the conclusion that there are many with high potential. In any new or expanded deployment, carriers will look at: a) the evolution of volumes in the trade and the expected utilization if they deploy a premium product; b) the evolution of rates in the trade, which in most cases will be reasonably healthy as a transshipment trade but might be impacted by an injection of new direct capacity; and c) the cost of ship, port and equipment systems, including imbalances. New direct connections are the obvious starting point, but carriers also have the possibility to link in feeder hubs and partially piggyback on other direct routes. This has the advantage of access to a wider pool of cargo and derisking developing trades that can be volatile. The announcement from Mediterranean Shipping Co. that it will serve the US-to-West Africa trade as part of its South Africa service certainly adds one substantive trade to their direct network. But by offering the US Gulf, Mexico and parts of Central America to West Africa and South Africa off Freeport and connecting West Africa to South Africa, MSC opens up other important flows of developing business and the possibility for double-dipping. East Coast South America (ECSA) to West Africa is also emerging strongly. To serve this trade, carriers transship over the Med or North Europe with heavy diversion time. The least diverted is with MSC via Las Palmas in the Canary Islands, but that is still a combined 5,515 nautical miles ex-Rio to Abidjan in West Africa against 2,932 nautical miles direct. There are few obvious links to other trades, however, so carriers would need to be comfortable about getting critical mass just in these lanes. India-ECSA an ‘emerging trade’ A good example of an emerging trade that combines several themes is India to ECSA. There is an HMM product from Kattupalli East India to Brazil, and the big carriers have a variety of transshipment products from Northwest India via South Africa, Sri Lanka, Morocco and Singapore. Per CTS stats, volume indication from 2020 to date is as follows for India ports to ECSA TEUs: Year Indian Sub Cont. to ECSA ECSA to Indian Sub Cont. 2022 96,718 96,921 2023 123,658 105,835 2024 149,615 163,004 YTD 2025 61,393 89,274 Source: Container Trade Statistics In addition to the positive progression in direct volumes, any carrier serving this trade naturally must go around the Cape of Good Hope, so a call at South African ports, although in competition with other direct services, offers a chance to significantly increase cargo catchment. There would, of course, be more competition in these directly linked trades, but the following 2024 annual TEUs figures illustrate the opportunity: Indian Sub Cont. to Southern Africa 123,303 Southern Africa to ECSA 10,128 ECSA to Southern Africa 88,017 Southern Africa to Indian Sub Cont. 151,591 Source: Container Trade Statistics Adding an Indian Ocean transshipment hub like Port Louis in Mauritius would offer more possibilities to mix and match markets and build a well-utilized, remunerative product. There are plenty of possibilities out there and carriers can do their homework on how trade volumes are developing. With a global capacity surplus in the offing, or already biting, now is a great time to invest and move capacity off surplus trades. Jeremy Masters is managing director of Shipping Masters. Contact him at jeremy@shippingmastershk.com .

A sea of opportunities exists to swap transshipment for direct services

<div class="phx-topic abstract-wrapper">The difficulties have led to transshipment delays and rolled cargo, which has caused increased yard density at some ports that has exacerbated delays, shipping sources say. </div>

The difficulties have led to transshipment delays and rolled cargo, which has caused increased yard density at some ports that has exacerbated delays, shipping sources say.

<div class="phx-topic">Tight feeder capacity between secondary ports in Asia and the region's main transshipment hubs are hitting both exports from Asia and imports to the region from the US and Europe, forwarders and carriers say. Shippers are having to wait up to a month to secure space on some carriers serving Thailand and Indonesia, according to forwarders who spoke with the Journal of Commerce. The difficulties have led to transshipment delays and rolled cargo, which has caused increased yard density at some ports that has exacerbated delays, shipping sources say. The problems have been compounded by bad weather, including typhoons in China, carriers said. ”For Thailand, cargo bookings must be made at least three to four weeks ahead,” a spokesperson for FIBS Logistics in Singapore said. “Most bookings for Indonesian cargo are only being accepted with a minimum lead time of two to three weeks.” The spokesperson said FIBS Logistics has been impacted by the delays on its own customer shipments, with even short-haul services affected. “We need to book two to three weeks in advance for cargo from Batam, Indonesia, for connections to the mother vessel in Singapore,” the source said. "These delays are largely due to feeder capacity shortages, which are impacting both exports and imports across Asia and resulting in cargo rolling." Forwarder Rhenus Logistics said the feeder capacity shortages began in June and have been the result of a tariff-related cargo surge from Southeast Asia. “We have been experiencing some challenges with feeder capacity out of Southeast Asia over the past three months,” Scott Dudley, Rhenus’ head of ocean freight for North America, told the Journal of Commerce. “These challenges are mainly tied to carriers and alliances operating transshipment services out of Southeast Asia cargo origins.” <h3>Carriers being particular on US export choices </h3>The disruption at transshipment hubs, including those in Asia, has led carriers to pick and choose which export cargo from the US to accept. “If it's a direct lane, they have a very high appetite,” said M. Can Fidan, executive vice president of business development at New York-based forwarder MTS Logistics. “If it's a transshipment or if it is off their hub-and-spoke lanes, then they are not. ”So, it’s a very interesting environment where carriers are actually looking for cargo on the export, but only looking for cargo that fits their shipping model, rather than a general area,” he added. A Hong Kong-based freight forwarder said it is fortunate the disruption largely comes after the cargo rush caused by shippers consigning shipments early to beat the Trump administration’s mid-August tariff deadline. “Transshipping cargo to and from second-tier markets like Thailand, the Philippines and Vietnam is a mess right now, with cargo rolling and delays at the key hub ports,” the source said. “But it would be significantly worse if these countries hadn’t cut tariff deals with the US at the end of July.” <h3>Multiple-day delays </h3>Highlighting congestion and cargo delays at key Asian gateways, CMA CGM, Hapag-Lloyd and Kuehne + Nagel all reported disrupted operations at Singapore, Shanghai, Ningbo, Qingdao and Malaysia’s Port Klang in recent customer advisories. CMA CGM said it had up to 60,000 TEUs of transshipment cargo waiting at Singapore last week. “Overall yard density (in Singapore) is high — around 85% to 90% that is impacting overall operations productivity,” the carrier said in a trans-Pacific weekly update. CMA CGM said Singapore terminal operator PSA is rejecting port-in/port-out (PIPO) boxes and vessels that are discharging more containers than loading containers until yard density drops back to a normal level. Heavy berth congestion meant there was at least a two-day delay at all of PSA’s Singapore terminals, both CMA CGM and Kuehne + Nagel said. Shanghai is also heavily congested with a two- to three-day delay at the city center Waigaiqiao terminals and up to a four-day wait at the deepwater Yangshan terminals due to continuing disruption caused by the port’s closure during Typhoon Co-May at the end of July, carriers said. The typhoon was one of three tropical storms to disrupt port operations in eastern and southern China since mid-July. Hapag-Lloyd said vessels are having to wait up to three days to berth at Ningbo due to the bunching of vessels and up to two days at Qingdao. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Tight feeder capacity between secondary ports in Asia and the region's main transshipment hubs are hitting both exports from Asia and imports to the region from the US and Europe, forwarders and carriers say. Shippers are having to wait up to a month to secure space on some carriers serving Thailand and Indonesia, according to forwarders who spoke with the Journal of Commerce. The difficulties have led to transshipment delays and rolled cargo, which has caused increased yard density at some ports that has exacerbated delays, shipping sources say. The problems have been compounded by bad weather, including typhoons in China, carriers said. ”For Thailand, cargo bookings must be made at least three to four weeks ahead,” a spokesperson for FIBS Logistics in Singapore said. “Most bookings for Indonesian cargo are only being accepted with a minimum lead time of two to three weeks.” The spokesperson said FIBS Logistics has been impacted by the delays on its own customer shipments, with even short-haul services affected. “We need to book two to three weeks in advance for cargo from Batam, Indonesia, for connections to the mother vessel in Singapore,” the source said. "These delays are largely due to feeder capacity shortages, which are impacting both exports and imports across Asia and resulting in cargo rolling." Forwarder Rhenus Logistics said the feeder capacity shortages began in June and have been the result of a tariff-related cargo surge from Southeast Asia. “We have been experiencing some challenges with feeder capacity out of Southeast Asia over the past three months,” Scott Dudley, Rhenus’ head of ocean freight for North America, told the Journal of Commerce. “These challenges are mainly tied to carriers and alliances operating transshipment services out of Southeast Asia cargo origins.” Carriers being particular on US export choices The disruption at transshipment hubs, including those in Asia, has led carriers to pick and choose which export cargo from the US to accept. “If it's a direct lane, they have a very high appetite,” said M. Can Fidan, executive vice president of business development at New York-based forwarder MTS Logistics. “If it's a transshipment or if it is off their hub-and-spoke lanes, then they are not. ”So, it’s a very interesting environment where carriers are actually looking for cargo on the export, but only looking for cargo that fits their shipping model, rather than a general area,” he added. A Hong Kong-based freight forwarder said it is fortunate the disruption largely comes after the cargo rush caused by shippers consigning shipments early to beat the Trump administration’s mid-August tariff deadline. “Transshipping cargo to and from second-tier markets like Thailand, the Philippines and Vietnam is a mess right now, with cargo rolling and delays at the key hub ports,” the source said. “But it would be significantly worse if these countries hadn’t cut tariff deals with the US at the end of July.” Multiple-day delays Highlighting congestion and cargo delays at key Asian gateways, CMA CGM, Hapag-Lloyd and Kuehne + Nagel all reported disrupted operations at Singapore, Shanghai, Ningbo, Qingdao and Malaysia’s Port Klang in recent customer advisories. CMA CGM said it had up to 60,000 TEUs of transshipment cargo waiting at Singapore last week. “Overall yard density (in Singapore) is high — around 85% to 90% that is impacting overall operations productivity,” the carrier said in a trans-Pacific weekly update. CMA CGM said Singapore terminal operator PSA is rejecting port-in/port-out (PIPO) boxes and vessels that are discharging more containers than loading containers until yard density drops back to a normal level. Heavy berth congestion meant there was at least a two-day delay at all of PSA’s Singapore terminals, both CMA CGM and Kuehne + Nagel said. Shanghai is also heavily congested with a two- to three-day delay at the city center Waigaiqiao terminals and up to a four-day wait at the deepwater Yangshan terminals due to continuing disruption caused by the port’s closure during Typhoon Co-May at the end of July, carriers said. The typhoon was one of three tropical storms to disrupt port operations in eastern and southern China since mid-July. Hapag-Lloyd said vessels are having to wait up to three days to berth at Ningbo due to the bunching of vessels and up to two days at Qingdao. Contact Keith Wallis at keithwallis@hotmail.com .

Asia-Europe

Trans-Pacific

Tight Asia feeder capacity causing disruption for export, import shippers

<div class="phx-topic abstract-wrapper">The incident has sparked a wave of claim filings from individual shippers and state authorities against the world’s largest container carrier, resulting in arrest orders for as many as five sister ships thus far.</div>

The incident has sparked a wave of claim filings from individual shippers and state authorities against the world’s largest container carrier, resulting in arrest orders for as many as five sister ships thus far.

<div class="phx-topic">Mediterranean Shipping Co. is facing escalating legal pushback in India over a total loss declared for the MSC Elsa 3 that capsized off Cochin Port on May 25 with 643 containers on board, including 13 boxes reportedly containing loads classed as hazardous/dangerous goods. The incident, apparently caused by mechanical problems on the ship, has sparked a wave of claim suit filings from individual shippers and state authorities against the world’s largest container carrier, resulting in arrest orders for as many as five sister ships thus far — MSC Manasa F, MSC Polo II, MSC Akiteta II, MSC Palermo and MSC Makoto II — at Vizhinjam Port in southern India. Geneva-based MSC is the primary mainline customer of Vizhinjam, an emerging container transshipment hub managed by Indian port infrastructure conglomerate Adani Ports. Notably, the 2024-built MSC Palermo, able to carry 15,574 TEUs, is part of MSC’s premier Himalaya Express (HEX) network on the India-Europe/Mediterranean trades. Vizhinjam was added to the HEX rotation as a regular stop in June this year, complementing the weekly loop’s long-time port calls at Nhava Sheva and Mundra. The carrier is said to have secured the release of three detained ships after furnishing security deposits and/or guarantees requiring compliance. But court action in response to a state admiralty suit seeking over $1 billion in damages toward the wider environmental impact has left the 2,226-TEU MSC Akiteta II, used for MSC’s regional shuttle operations, stranded at Vizhinjam since early July. MSC did not respond to requests for comment. The MSC Elsa 3 casualty exposure is not limited to India. Sri Lanka is believed to be considering suing the carrier to seek compensatory damages for debris that washed onto its waterfront. As the implications amplify, MSC has filed a counter lawsuit seeking to limit its overall liability to $14 million, citing certain provisions of the Indian merchant shipping legislation and protocols of the International Convention on Civil Liability for Oil Pollution Damage, 1969 (CLC), sources say. MSC is the largest container carrier out of India, with growing landside investment interests that include terminal partnerships with Adani at Mundra and Ennore (Chennai). Contact Bency Mathew at <a href="mailto:bencyvmathew@gmail.com">bencyvmathew@gmail.com</a>.</div>

Mediterranean Shipping Co. is facing escalating legal pushback in India over a total loss declared for the MSC Elsa 3 that capsized off Cochin Port on May 25 with 643 containers on board, including 13 boxes reportedly containing loads classed as hazardous/dangerous goods. The incident, apparently caused by mechanical problems on the ship, has sparked a wave of claim suit filings from individual shippers and state authorities against the world’s largest container carrier, resulting in arrest orders for as many as five sister ships thus far — MSC Manasa F, MSC Polo II, MSC Akiteta II, MSC Palermo and MSC Makoto II — at Vizhinjam Port in southern India. Geneva-based MSC is the primary mainline customer of Vizhinjam, an emerging container transshipment hub managed by Indian port infrastructure conglomerate Adani Ports. Notably, the 2024-built MSC Palermo, able to carry 15,574 TEUs, is part of MSC’s premier Himalaya Express (HEX) network on the India-Europe/Mediterranean trades. Vizhinjam was added to the HEX rotation as a regular stop in June this year, complementing the weekly loop’s long-time port calls at Nhava Sheva and Mundra. The carrier is said to have secured the release of three detained ships after furnishing security deposits and/or guarantees requiring compliance. But court action in response to a state admiralty suit seeking over $1 billion in damages toward the wider environmental impact has left the 2,226-TEU MSC Akiteta II, used for MSC’s regional shuttle operations, stranded at Vizhinjam since early July. MSC did not respond to requests for comment. The MSC Elsa 3 casualty exposure is not limited to India. Sri Lanka is believed to be considering suing the carrier to seek compensatory damages for debris that washed onto its waterfront. As the implications amplify, MSC has filed a counter lawsuit seeking to limit its overall liability to $14 million, citing certain provisions of the Indian merchant shipping legislation and protocols of the International Convention on Civil Liability for Oil Pollution Damage, 1969 (CLC), sources say. MSC is the largest container carrier out of India, with growing landside investment interests that include terminal partnerships with Adani at Mundra and Ennore (Chennai). Contact Bency Mathew at bencyvmathew@gmail.com .

MSC’s legal woes escalate in India after late-May ship capsizing

<div class="phx-topic abstract-wrapper">Domestic intermodal volumes have been stagnant on partner BNSF Railway out of Los Angeles, likely dulling the justification for the original $1,500 fee.</div>

Domestic intermodal volumes have been stagnant on partner BNSF Railway out of Los Angeles, likely dulling the justification for the original $1,500 fee.

<div class="phx-topic">More than a month after imposing a $1,500 peak season surcharge that frustrated some targeted shippers moving goods out of Southern California, J.B. Hunt Transport Services has cut the fee by nearly half, several customers told the Journal of Commerce. The surcharge is primarily directed at retailers moving holiday merchandise in the third quarter. In recent weeks, J.B. Hunt has lowered the fee to approximately $800 per container, according to several shippers who did not want to be identified. J.B. Hunt did not respond to a request for comment. “J.B. Hunt told us that they re-evaluated and were able to work with BNSF to more efficiently reposition capacity to Los Angeles for any surge,” one J.B. Hunt customer said. J.B. Hunt’s decision to lower its surcharge might be related to the volume of the domestic intermodal shipments it handles. BNSF Railway, its exclusive West Coast partner, has seen stronger gains in international intermodal shipments than in domestic shipments during a recent uptick in port volumes in Los Angeles and Long Beach. International shipments rose more than 20% last week in Southern California compared with two months ago, according to data provider RailState. But BNSF’s domestic intermodal has been largely flat since January. J.B. Hunt reported that transcontinental intermodal freight — i.e. anything originating or terminating on the West Coast — declined 1% year over year in the second quarter. Because J.B. Hunt is BNSF’s largest domestic intermodal customer, the data suggests much of the same for J.B. Hunt in the third quarter. <h3>UP implemented its own surcharge </h3>After J.B. Hunt’s <a href="https://www.joc.com/article/jb-hunt-hits-some-shippers-with-big-surcharges-in-southern-california-6043454">initial announcement</a>, competitors introduced their own surcharges ranging from $300 to $900 per container, including one by Union Pacific Railroad (UP) for shippers using non-asset brokers. <a href="https://www.joc.com/article/up-seeks-surcharges-amid-intermodal-volumes-surge-6062080">UP is charging</a> $300 per container on high-volume shippers and $500 per box on low-volume shippers on excess freight in Southern California. Union Pacific has posted stronger results, with domestic intermodal in Southern California up nearly 20% last week compared with two months ago, according to RailState. UP partners Hub Group and Schneider National described July demand in Southern California as robust during recent quarterly earnings calls. Even with the increase in volume, intermodal service out of Southern California has remained stable. Both BNSF and UP have reported faster train speeds, fewer trains being held and a decline in idle railcars compared with their weekly averages since 2017, according to the US Surface Transportation Board. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

More than a month after imposing a $1,500 peak season surcharge that frustrated some targeted shippers moving goods out of Southern California, J.B. Hunt Transport Services has cut the fee by nearly half, several customers told the Journal of Commerce. The surcharge is primarily directed at retailers moving holiday merchandise in the third quarter. In recent weeks, J.B. Hunt has lowered the fee to approximately $800 per container, according to several shippers who did not want to be identified. J.B. Hunt did not respond to a request for comment. “J.B. Hunt told us that they re-evaluated and were able to work with BNSF to more efficiently reposition capacity to Los Angeles for any surge,” one J.B. Hunt customer said. J.B. Hunt’s decision to lower its surcharge might be related to the volume of the domestic intermodal shipments it handles. BNSF Railway, its exclusive West Coast partner, has seen stronger gains in international intermodal shipments than in domestic shipments during a recent uptick in port volumes in Los Angeles and Long Beach. International shipments rose more than 20% last week in Southern California compared with two months ago, according to data provider RailState. But BNSF’s domestic intermodal has been largely flat since January. J.B. Hunt reported that transcontinental intermodal freight — i.e. anything originating or terminating on the West Coast — declined 1% year over year in the second quarter. Because J.B. Hunt is BNSF’s largest domestic intermodal customer, the data suggests much of the same for J.B. Hunt in the third quarter. UP implemented its own surcharge After J.B. Hunt’s initial announcement , competitors introduced their own surcharges ranging from $300 to $900 per container, including one by Union Pacific Railroad (UP) for shippers using non-asset brokers. UP is charging $300 per container on high-volume shippers and $500 per box on low-volume shippers on excess freight in Southern California. Union Pacific has posted stronger results, with domestic intermodal in Southern California up nearly 20% last week compared with two months ago, according to RailState. UP partners Hub Group and Schneider National described July demand in Southern California as robust during recent quarterly earnings calls. Even with the increase in volume, intermodal service out of Southern California has remained stable. Both BNSF and UP have reported faster train speeds, fewer trains being held and a decline in idle railcars compared with their weekly averages since 2017, according to the US Surface Transportation Board. Contact Ari Ashe at ari.ashe@spglobal.com .

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J.B. Hunt reduces peak season surcharge on Southern California moves

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: https://www.ssamarine.mx/

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