<div class="phx-topic abstract-wrapper">Hong Kong's main cargo handler said higher exports fueled a 12.4 percent growth in its freight volum</div>

Hong Kong's main cargo handler said higher exports fueled a 12.4 percent growth in its freight volum

<div>Hong Kong's main cargo handler said higher exports fueled a 12.4 percent growth in its freight volume in September from a year ago, and it expected to sustain the growth momentum in the last quarter of this year.Tonnage throughput at the world's busiest international air cargo terminal in September totaled 199,501 metric tons, Hong Kong Air Cargo Terminals (Hactl) said in a statement.Hactl set a new weekly tonnage record of 49,097 tons the week of Sept. 20-26, breaking the previous record of 48,428 tonsset Nov. 17-23 of last year.Freight in the third quarter rose 13.2 percent from a year ago...

Hong Kong's main cargo handler said higher exports fueled a 12.4 percent growth in its freight volume in September from a year ago, and it expected to sustain the growth momentum in the last quarter of this year. Tonnage throughput at the world's busiest international air cargo terminal in September totaled 199,501 metric tons, Hong Kong Air Cargo Terminals (Hactl) said in a statement. Hactl set a new weekly tonnage record of 49,097 tons the week of Sept. 20-26, breaking the previous record of 48,428 tonsset Nov. 17-23 of last year. Freight in the third quarter rose 13.2 percent from a year ago to 568,594 tons. Total freight in the first nine months of the year grew 15.2 percent from a year ago to 1.64 million tons. "Growth in the third quarter was fueled by the surge in export volume in the latter half of September amid the pre-National Day rush," the firm's marketing director Warren Bishop said. China's National Day fell on Oct. 1. "We expect growth momentum to be sustained throughout the last quarter, and are confident that we can manage this growth."

Air Cargo

New record boosts Hong Kong cargo

<div class="phx-topic abstract-wrapper">A drop in air freight charter rates has put the option of project cargoes moving by air back on the table.</div>

A drop in air freight charter rates has put the option of project cargoes moving by air back on the table.

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<div class="phx-topic">Air freight specialists are predicting buoyant times ahead for project cargo as shippers seek certainty amid geopolitical and trade upheaval. Shippers are increasingly balancing out the extra cost of using air freight against the penalties or costs of a project being delivered late if they opt for sea freight, experts say. Dan Morgan-Evans, group director for cargo at specialist air freight broker Air Charter Service (ACS), said he is seeing a pattern. “Some projects have a rush of air freight at the start, then use shipping, then there is a rush of air freight at the end,” he said. Project cargo freight forwarder Trans Global Projects (TGP) launched a dedicated air freight department in Bremen, Germany, on Jan. 5 to expand its capabilities for time-critical and complex cargo operating under its own International Air Transport Association (IATA) license. Swiss company Natco held an IATA license in Bremen before becoming part of TGP a decade ago, but since then TGP has been booking air freight from Bremen through other IATA licensed forwarders. “As a strategic investment, it makes sense to reactivate our IATA license,” Andreas Menzel, TGP’s managing director for Germany and Benelux, told the Journal of Commerce. “We do see some of our customers looking for quick solutions. With all the trade interruptions globally, including the Suez Canal and other impacts, air freight is becoming more and more critical to deliver time-sensitive cargo.” Bremen will serve as a hub for urgent shipments and engineered solutions, supported by Natco’s air freight and air charter expertise and TGP’s global resources, he added. <h3>Lower charter costs attract cargoes </h3>Uncertainty in the heavy-lift air cargo market is creating opportunities, said Morgan-Evans. “Last year there were all sorts of ups and downs and uncertainties in the market,” he said. “Our teams are buoyant about the idea of project cargo this year simply because air freight prices have dropped and the cost of an aircraft charter is much lower than in previous years. This should give us an opportunity.” He said that over the past five years, the cost of aircraft charters has been so high that project cargo air freight volumes were below pre-COVID levels. “With prices now down and choice and competitiveness in the market, pricing is more at a level that facilitates project cargo air freight movements,” Morgan-Evans said. Menzel added that uncertainty is a factor for TGP, too. “With all the global political and short-term changes, it is never easy to do a steady plan,” he said. “We have to adapt and adjust to specific impacts.” That said, TGP is focusing on some growing sectors in its planning, including power, oil and gas, mining and renewables. “For large projects like substations and power plants, the closer it gets to the ‘go live’ date, basically the more air freight is being requested, especially because in the finalization of projects, there may be missing or damaged material,” Menzel said. Morgan-Evans also pointed to major opportunities coming out of China and other Asia-Pacific countries. “We see a lot more movement from China into Africa, South America, Latin America and Europe, whether that’s construction work for big projects, oil and gas or mining – we can see projects coming up in all these sectors,” he said. While mid-January is early to offer any certainty on project cargo air freight prospects, Morgan-Evans said ACS was working on a number of international inquiries for project cargo. “I caveat everything with what Trump does, but we are pretty confident this will be a good year for project cargo for us,” he said. Contact Felicity Landon on <a href="mailto:felicity@felicitylandon.com">felicity@felicitylandon.com.</a></div>

Air freight specialists are predicting buoyant times ahead for project cargo as shippers seek certainty amid geopolitical and trade upheaval. Shippers are increasingly balancing out the extra cost of using air freight against the penalties or costs of a project being delivered late if they opt for sea freight, experts say. Dan Morgan-Evans, group director for cargo at specialist air freight broker Air Charter Service (ACS), said he is seeing a pattern. “Some projects have a rush of air freight at the start, then use shipping, then there is a rush of air freight at the end,” he said. Project cargo freight forwarder Trans Global Projects (TGP) launched a dedicated air freight department in Bremen, Germany, on Jan. 5 to expand its capabilities for time-critical and complex cargo operating under its own International Air Transport Association (IATA) license. Swiss company Natco held an IATA license in Bremen before becoming part of TGP a decade ago, but since then TGP has been booking air freight from Bremen through other IATA licensed forwarders. “As a strategic investment, it makes sense to reactivate our IATA license,” Andreas Menzel, TGP’s managing director for Germany and Benelux, told the Journal of Commerce. “We do see some of our customers looking for quick solutions. With all the trade interruptions globally, including the Suez Canal and other impacts, air freight is becoming more and more critical to deliver time-sensitive cargo.” Bremen will serve as a hub for urgent shipments and engineered solutions, supported by Natco’s air freight and air charter expertise and TGP’s global resources, he added. Lower charter costs attract cargoes Uncertainty in the heavy-lift air cargo market is creating opportunities, said Morgan-Evans. “Last year there were all sorts of ups and downs and uncertainties in the market,” he said. “Our teams are buoyant about the idea of project cargo this year simply because air freight prices have dropped and the cost of an aircraft charter is much lower than in previous years. This should give us an opportunity.” He said that over the past five years, the cost of aircraft charters has been so high that project cargo air freight volumes were below pre-COVID levels. “With prices now down and choice and competitiveness in the market, pricing is more at a level that facilitates project cargo air freight movements,” Morgan-Evans said. Menzel added that uncertainty is a factor for TGP, too. “With all the global political and short-term changes, it is never easy to do a steady plan,” he said. “We have to adapt and adjust to specific impacts.” That said, TGP is focusing on some growing sectors in its planning, including power, oil and gas, mining and renewables. “For large projects like substations and power plants, the closer it gets to the ‘go live’ date, basically the more air freight is being requested, especially because in the finalization of projects, there may be missing or damaged material,” Menzel said. Morgan-Evans also pointed to major opportunities coming out of China and other Asia-Pacific countries. “We see a lot more movement from China into Africa, South America, Latin America and Europe, whether that’s construction work for big projects, oil and gas or mining – we can see projects coming up in all these sectors,” he said. While mid-January is early to offer any certainty on project cargo air freight prospects, Morgan-Evans said ACS was working on a number of international inquiries for project cargo. “I caveat everything with what Trump does, but we are pretty confident this will be a good year for project cargo for us,” he said. Contact Felicity Landon on felicity@felicitylandon.com.

Air Cargo Forwarder News

Air Cargo Carriers News

Project cargo

Fast-tracked project schedules boost heavy-lift air freight volumes

<div class="phx-topic abstract-wrapper">The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date.</div>

The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date.

<div class="phx-topic">The US Surface Transportation Board dealt a blow Friday to Union Pacific Railroad’s $85 billion deal to acquire Norfolk Southern Railway, ruling the merger application UP filed last month is “incomplete.” The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date. UP must inform the STB before Feb. 17 whether it plans to refile an amended application, and can refile any time prior to June 22. Once resubmitted, the STB will initiate a similar 30-day review of the application’s completeness, which likely means it will not issue a final decision on the merger itself until at least the second half of 2027. "Given the deficiencies...the board finds the application is incomplete and, under the terms of the statute, must be rejected,” STB wrote in its ruling. “The board’s decision to reject the application should not be read as an indication of how the board might ultimately assess any revised application or future informational needs, should applicants decide to submit a revised application." In Friday’s 15-page decision, the STB highlighted three major deficiencies in the application, which was submitted by UP on Dec. 19. First, the regulators ruled that the traffic analysis underpinning the application is deficient because it uses market share totals from 2023 and fails to provide future market share projections. Second, the STB took issue with UP failing to disclose what’s called a “Schedule 5.8.” The document defines what counts as a “materially burdensome regulatory condition,” a regulatory outcome that could give UP the contractual right to walk away from the deal. UP had argued that the document didn’t need to be disclosed to the STB because it contains attorney-related work products. BNSF Railway, Canadian Pacific Kansas City, and Canadian National all filed objections to UP’s application based on the first two issues that were flagged by STB. The STB also found that the related Terminal Railroad Association of St. Louis control application was misclassified as a “minor” transaction instead of a “significant” transaction. STB applies different procedural and evidentiary requirements to major, significant, and minor transactions. By deeming something significant instead of minor, it means the board wants to examine the issues involved more closely. The STB also noted several minor, technical issues that should be addressed in a revised application. While the board did not specify what those issues were, a Journal of Commerce analysis of the application found spelling errors and cities labeled with the incorrect state. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a></div>

The US Surface Transportation Board dealt a blow Friday to Union Pacific Railroad’s $85 billion deal to acquire Norfolk Southern Railway, ruling the merger application UP filed last month is “incomplete.” The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date. UP must inform the STB before Feb. 17 whether it plans to refile an amended application, and can refile any time prior to June 22. Once resubmitted, the STB will initiate a similar 30-day review of the application’s completeness, which likely means it will not issue a final decision on the merger itself until at least the second half of 2027. "Given the deficiencies...the board finds the application is incomplete and, under the terms of the statute, must be rejected,” STB wrote in its ruling. “The board’s decision to reject the application should not be read as an indication of how the board might ultimately assess any revised application or future informational needs, should applicants decide to submit a revised application." In Friday’s 15-page decision, the STB highlighted three major deficiencies in the application, which was submitted by UP on Dec. 19. First, the regulators ruled that the traffic analysis underpinning the application is deficient because it uses market share totals from 2023 and fails to provide future market share projections. Second, the STB took issue with UP failing to disclose what’s called a “Schedule 5.8.” The document defines what counts as a “materially burdensome regulatory condition,” a regulatory outcome that could give UP the contractual right to walk away from the deal. UP had argued that the document didn’t need to be disclosed to the STB because it contains attorney-related work products. BNSF Railway, Canadian Pacific Kansas City, and Canadian National all filed objections to UP’s application based on the first two issues that were flagged by STB. The STB also found that the related Terminal Railroad Association of St. Louis control application was misclassified as a “minor” transaction instead of a “significant” transaction. STB applies different procedural and evidentiary requirements to major, significant, and minor transactions. By deeming something significant instead of minor, it means the board wants to examine the issues involved more closely. The STB also noted several minor, technical issues that should be addressed in a revised application. While the board did not specify what those issues were, a Journal of Commerce analysis of the application found spelling errors and cities labeled with the incorrect state. Contact Ari Ashe at ari.ashe@spglobal.com

Rail News

North-American rail

Surface

STB rejects UP-NS merger application as ‘incomplete’

<div class="phx-topic abstract-wrapper">The state senate is considering a new bill that would block state funds from going toward port automation, with longshore workers adding their support.</div>

The state senate is considering a new bill that would block state funds from going toward port automation, with longshore workers adding their support.

<div class="phx-topic">Longshore workers in Washington State have thrown their support behind a bill that permanently blocks state money from funding port automation, arguing that technology already in place at the ports of Seattle and Tacoma has impacted waterfront jobs. Local members of the International Longshore and Warehouse Union (ILWU) on Thursday testified before a state senate committee about a bill introduced earlier this month that would allow the use of state money to buy zero-emission cargo equipment but also ban the “purchase [of] fully automated marine container cargo handling equipment.”The bill is a follow-up to 2021 legislation that also blocked state funding for automated cargo handling equipment but was set to expire at the end of 2031. The new bill does not have a sunset clause, and the current expiration date “is starting to creep toward the present day,” state Sen. Jesse Salomon, the bill’s sponsor, said Thursday. “The point of this is to make sure that as we move forward into the future, humans still are valued for the work that they do, and we don’t fully automate,” Salomon said. The bill represents the latest effort by West Coast longshore workers to stem further encroachment of automation technology at ports. Last year, California ILWU members threw their support behind <a href="https://www.joc.com/article/stakeholders-differ-on-newsoms-move-to-kill-automation-ban-at-california-ports-6097378">an unsuccessful bill that would have prevented automated cargo handling from connecting to the state’s power grid</a>.<h3>Union questions state funds for marine terminals</h3>Dan McKisson, president of ILWU Washington Area District Council representing 5,000 dockworkers statewide, said in his testimony that while the union supports state funding of zero-emission equipment and infrastructure upgrades, marine terminals do not need state money because most of them “are multi-million international companies or controlled by private equity.” “This bill does not prohibit [terminals] from purchasing automated cargo handling equipment,” McKisson said. “International companies benefit from using taxpayer dollars for automated equipment. It does not benefit ports, workers, and the community.”Most of the technological upgrades at Seattle and Tacoma ports have focused on speeding up truck processing at terminal gates. As with nearly all US ports, Seattle and Tacoma have used optical character readers (OCRs) for scanning incoming containers for decades, along with using remote speaker boxes at gates in place of longshore clerks. Kesa Sten, the president of ILWU Local 52 that represents clerks and checkers, said such “computerized auto gates” have meant fewer such jobs and have led to inefficiencies, such as in-gating damaged containers. “Private companies wish to use automation to shift labor costs to others in the supply chain and to do the same work with fewer workers,” Sten said, adding that when she started on the job, every gate booth had a clerk. But now, “one person can do the job of five” checking in truckers.“That is fast, that is efficient, but it is also job erosion,” she said. “We welcome advances that enhance our job, not eliminate them.”Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Longshore workers in Washington State have thrown their support behind a bill that permanently blocks state money from funding port automation, arguing that technology already in place at the ports of Seattle and Tacoma has impacted waterfront jobs. Local members of the International Longshore and Warehouse Union (ILWU) on Thursday testified before a state senate committee about a bill introduced earlier this month that would allow the use of state money to buy zero-emission cargo equipment but also ban the “purchase [of] fully automated marine container cargo handling equipment.” The bill is a follow-up to 2021 legislation that also blocked state funding for automated cargo handling equipment but was set to expire at the end of 2031. The new bill does not have a sunset clause, and the current expiration date “is starting to creep toward the present day,” state Sen. Jesse Salomon, the bill’s sponsor, said Thursday. “The point of this is to make sure that as we move forward into the future, humans still are valued for the work that they do, and we don’t fully automate,” Salomon said. The bill represents the latest effort by West Coast longshore workers to stem further encroachment of automation technology at ports. Last year, California ILWU members threw their support behind an unsuccessful bill that would have prevented automated cargo handling from connecting to the state’s power grid . Union questions state funds for marine terminals Dan McKisson, president of ILWU Washington Area District Council representing 5,000 dockworkers statewide, said in his testimony that while the union supports state funding of zero-emission equipment and infrastructure upgrades, marine terminals do not need state money because most of them “are multi-million international companies or controlled by private equity.” “This bill does not prohibit [terminals] from purchasing automated cargo handling equipment,” McKisson said. “International companies benefit from using taxpayer dollars for automated equipment. It does not benefit ports, workers, and the community.” Most of the technological upgrades at Seattle and Tacoma ports have focused on speeding up truck processing at terminal gates. As with nearly all US ports, Seattle and Tacoma have used optical character readers (OCRs) for scanning incoming containers for decades, along with using remote speaker boxes at gates in place of longshore clerks. Kesa Sten, the president of ILWU Local 52 that represents clerks and checkers, said such “computerized auto gates” have meant fewer such jobs and have led to inefficiencies, such as in-gating damaged containers. “Private companies wish to use automation to shift labor costs to others in the supply chain and to do the same work with fewer workers,” Sten said, adding that when she started on the job, every gate booth had a clerk. But now, “one person can do the job of five” checking in truckers. “That is fast, that is efficient, but it is also job erosion,” she said. “We welcome advances that enhance our job, not eliminate them.” Contact Michael Angell at michael.angell@spglobal.com .

North American ports

Longshore labor

Marine terminals

Washington State weighs permanent ban on funding port automation

<div class="phx-topic abstract-wrapper">The orders come amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators. </div>

The orders come amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators.

<div class="phx-topic">Multipurpose vessel (MPV) operators are continuing to add to their fleets, with owners in Germany and China placing orders for up to 12 ships totaling approximately $450 million.   The move comes amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators. Nordic Hamburg Group signed firm contracts this week for three 13,300-deadweight metric ton (dwt) heavy-lift multipurpose vessels, plus options for two similar vessels with Wuhu Shipyard, the east China shipbuilder said in a statement. The shipyard did not disclose financial details, but shipbrokers said the total order was worth about $150 million. The ships will be equipped with two 250-metric ton cranes to give a combined lifting capacity of 500 metric tons, “which can efficiently carry wind power equipment and other large equipment,” the statement said. The Ice-class vessels will have cargo hold totaling 936,000 cubic feet and will be over 20% more fuel efficient than older vessels, the shipyard added. The ships are likely to be delivered in 2027. Nordic Hamburg owns and manages a fleet of about 60 ships, including container ships and container and roll-on/roll-off (conro) ships, in addition to MPVs. Separately, Chinese shipowner Fujian Highton Development has ordered up to seven 62,000-dwt multipurpose and heavy-lift vessels from China’s Taizhou Kouan Shipbuilding. The deal, with a total value of about $300 million, comprises a firm contract for three ships to be delivered in 2029 and options for four similar ships. Fujian’s investment in the first three vessels will be capped at $130 million, the company said in a filing to the Shanghai stock exchange. Fujian, which operates about 80 MPVs and dry cargo ships, is planning to expand to 100 vessels by 2030. Contact Keith Wallis at <a href=" keithwallis@hotmail.com.">keithwallis@hotmail.com</a>.</div>

Multipurpose vessel (MPV) operators are continuing to add to their fleets, with owners in Germany and China placing orders for up to 12 ships totaling approximately $450 million.   The move comes amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators. Nordic Hamburg Group signed firm contracts this week for three 13,300-deadweight metric ton (dwt) heavy-lift multipurpose vessels, plus options for two similar vessels with Wuhu Shipyard, the east China shipbuilder said in a statement. The shipyard did not disclose financial details, but shipbrokers said the total order was worth about $150 million. The ships will be equipped with two 250-metric ton cranes to give a combined lifting capacity of 500 metric tons, “which can efficiently carry wind power equipment and other large equipment,” the statement said. The Ice-class vessels will have cargo hold totaling 936,000 cubic feet and will be over 20% more fuel efficient than older vessels, the shipyard added. The ships are likely to be delivered in 2027. Nordic Hamburg owns and manages a fleet of about 60 ships, including container ships and container and roll-on/roll-off (conro) ships, in addition to MPVs. Separately, Chinese shipowner Fujian Highton Development has ordered up to seven 62,000-dwt multipurpose and heavy-lift vessels from China’s Taizhou Kouan Shipbuilding. The deal, with a total value of about $300 million, comprises a firm contract for three ships to be delivered in 2029 and options for four similar ships. Fujian’s investment in the first three vessels will be capped at $130 million, the company said in a filing to the Shanghai stock exchange. Fujian, which operates about 80 MPVs and dry cargo ships, is planning to expand to 100 vessels by 2030. Contact Keith Wallis at keithwallis@hotmail.com .

Energy projects

Heavy-haul transport

Breakbulk News

Maritime

Carriers expand MPV fleets with $450 million in new vessel orders

<div class="phx-topic abstract-wrapper">But the US’ largest intermodal provider said during its fourth-quarter earnings call it is not forecasting a market inflection just yet, citing the “false starts” the industry has seen during the past 18 months.</div>

But the US’ largest intermodal provider said during its fourth-quarter earnings call it is not forecasting a market inflection just yet, citing the “false starts” the industry has seen during the past 18 months.

<div class="phx-topic">The US truckload market is “fragile” enough given the capacity now exiting that a disruption or demand catalyst could quickly send prices higher and mark the end of the freight recession, according to J. B. Hunt. But the US’ largest intermodal provider is not forecasting an inflection just yet, citing what it called the “false starts” the market has seen during the past 18 months. “[An] uptick in demand could create an environment that’s different than what we’ve seen in the last several years,” J.B. Hunt CEO Shelley Simpson said late Thursday during the company’s fourth-quarter earnings call. “Having said that, we’re not holding our breath ... We want to finish up at least January and February and see what happens there.” Spot market truckload rates paid by the shipper rose 19 cents month over month in December to $2.46 per mile on lanes greater than 250 miles, according to a Journal of Commerce analysis of data from DAT Freight and Analytics, Sunset Transportation, and digital platform Loadsmart. Shippers have told the Journal of Commerce, however, that the December spot market surge has not emerged as a topic in ongoing truckload contract negotiations. “Most customers view recent market tightening as temporary and seasonal rather than a structural shift,” Spencer Frazier, J.B. Hunt’s executive vice president of sales, said on the earnings call. “After several years of mixed signals and forecasting challenges, customers will only acknowledge a structural change after they feel a tighter market for a longer period of time, likely driven by some degree of both reduced capacity and stronger demand.” <h3>Intermodal markets still sluggish </h3>Intermodal demand, which often lags truckload, has yet to strengthen enough to shift pricing power back toward carriers. J.B. Hunt reported that its intermodal revenue was down 3% and volume down 2% year over year in the fourth quarter. Volume on the West Coast dropped 6%, while East Coast volume rose 5% in the fourth quarter. Intermodal operating income increased 16% year over year in the quarter, driven by lower costs and a strategy of walking away from low-margin freight. Over the past year, J.B. Hunt has emphasized yield and margin discipline even at the expense of weaker volume and revenue. To support that goal, the company has taken a tougher stance on pricing, a decision that has resulted in losing share to competitors in California. RailState, a rail visibility and analytics provider, reported that Union Pacific Railroad’s (UP’s) domestic intermodal volume out of Southern California increased more than 20% year over year in the fourth quarter, while BNSF Railway’s volume fell about 5%. The divergence suggests that UP partners such as Hub Group and Schneider National have captured business at J.B. Hunt’s expense in Southern California. BNSF is J.B. Hunt’s exclusive partner in the western US. Despite J.B. Hunt’s emphasis on margins, there is no indication that intermodal pricing dynamics have shifted materially from a year ago. During the 2025 bid cycle, intermodal providers were generally able to secure rate increases on outbound lanes from California, but struggled to do so elsewhere. “We’re a little bit hesitant to suggest that we think there’s some big pricing opportunity, but we’ll be quick to identify when we see the market shift...,” Darren Field, J.B. Hunt’s president of intermodal, said during the call. Field added that it’s too early to gauge 2026 contract pricing, noting that many of the intermodal bids in the fourth quarter were backhaul routes. Pricing on those lanes was flat to down last year as e-commerce giant Amazon continued to offer low rates to third-party shippers to fill capacity on return moves to Southern California. Field also made brief remarks about the UP-Norfolk Southern merger application filed Dec. 19 with the US Surface Transportation Board. “We continue to digest the application and had expected more intermodal-specific questions to be addressed in the merger application than there were [addressed],” he said. Analysts did not ask Field to elaborate. J.B. Hunt did not respond to a Journal of Commerce request for comment on which intermodal-related issues it expected to be addressed in the filing but were not. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

The US truckload market is “fragile” enough given the capacity now exiting that a disruption or demand catalyst could quickly send prices higher and mark the end of the freight recession, according to J. B. Hunt. But the US’ largest intermodal provider is not forecasting an inflection just yet, citing what it called the “false starts” the market has seen during the past 18 months. “[An] uptick in demand could create an environment that’s different than what we’ve seen in the last several years,” J.B. Hunt CEO Shelley Simpson said late Thursday during the company’s fourth-quarter earnings call. “Having said that, we’re not holding our breath ... We want to finish up at least January and February and see what happens there.” Spot market truckload rates paid by the shipper rose 19 cents month over month in December to $2.46 per mile on lanes greater than 250 miles, according to a Journal of Commerce analysis of data from DAT Freight and Analytics, Sunset Transportation, and digital platform Loadsmart. Shippers have told the Journal of Commerce, however, that the December spot market surge has not emerged as a topic in ongoing truckload contract negotiations. “Most customers view recent market tightening as temporary and seasonal rather than a structural shift,” Spencer Frazier, J.B. Hunt’s executive vice president of sales, said on the earnings call. “After several years of mixed signals and forecasting challenges, customers will only acknowledge a structural change after they feel a tighter market for a longer period of time, likely driven by some degree of both reduced capacity and stronger demand.” Intermodal markets still sluggish Intermodal demand, which often lags truckload, has yet to strengthen enough to shift pricing power back toward carriers. J.B. Hunt reported that its intermodal revenue was down 3% and volume down 2% year over year in the fourth quarter. Volume on the West Coast dropped 6%, while East Coast volume rose 5% in the fourth quarter. Intermodal operating income increased 16% year over year in the quarter, driven by lower costs and a strategy of walking away from low-margin freight. Over the past year, J.B. Hunt has emphasized yield and margin discipline even at the expense of weaker volume and revenue. To support that goal, the company has taken a tougher stance on pricing, a decision that has resulted in losing share to competitors in California. RailState, a rail visibility and analytics provider, reported that Union Pacific Railroad’s (UP’s) domestic intermodal volume out of Southern California increased more than 20% year over year in the fourth quarter, while BNSF Railway’s volume fell about 5%. The divergence suggests that UP partners such as Hub Group and Schneider National have captured business at J.B. Hunt’s expense in Southern California. BNSF is J.B. Hunt’s exclusive partner in the western US. Despite J.B. Hunt’s emphasis on margins, there is no indication that intermodal pricing dynamics have shifted materially from a year ago. During the 2025 bid cycle, intermodal providers were generally able to secure rate increases on outbound lanes from California, but struggled to do so elsewhere. “We’re a little bit hesitant to suggest that we think there’s some big pricing opportunity, but we’ll be quick to identify when we see the market shift...,” Darren Field, J.B. Hunt’s president of intermodal, said during the call. Field added that it’s too early to gauge 2026 contract pricing, noting that many of the intermodal bids in the fourth quarter were backhaul routes. Pricing on those lanes was flat to down last year as e-commerce giant Amazon continued to offer low rates to third-party shippers to fill capacity on return moves to Southern California. Field also made brief remarks about the UP-Norfolk Southern merger application filed Dec. 19 with the US Surface Transportation Board. “We continue to digest the application and had expected more intermodal-specific questions to be addressed in the merger application than there were [addressed],” he said. Analysts did not ask Field to elaborate. J.B. Hunt did not respond to a Journal of Commerce request for comment on which intermodal-related issues it expected to be addressed in the filing but were not. Contact Ari Ashe at ari.ashe@spglobal.com .

Trucking News

Truckload

Intermodal providers

Truckload at a tipping point; intermodal still lagging: J.B. Hunt

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Monthly publication providing an editorial deep dive into global supply chain news

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

A premium access index of savings using domestic intermodal vs. OTR 

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Intermodal Savings Index

An in-depth analysis of transport trends in the multipurpose and heavy-lift fleet segment

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

An extensive dashboard of charts organized by trade lane, mode, and topic

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Gateway

Customers scoring their intermodal partners to identify the best service providers

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Intermodal Service Scorecard

A premium access outlook critical to shippers and transportation providers

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Quarterly Intelligence

The premier conference for the global container shipping and supply chain community

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The only editorially independent conference for the breakbulk & project cargo industry

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The Journal of Commerce’s air cargo news covers the movement of air cargo, including air cargo shipping, air cargo carriers, air freight forwarders, air freight, air shipments, cargo airports and cargo news. It also tracks air cargo trends, air freight news, shifting of cargo between air and ocean, airports and airfreight delays and congestion.

Journal of Commerce offers extensive air freight forwarder news and analysis of air cargo forwarding, including topics such as strategies, capacity, services.

Air Cargo Forwarder News | Journal of Commerce

Stay informed with air cargo carriers news. Journal of Commerce covers updates on air cargo carriers, air craft carrier capacity, rates routings and technology.

Air Cargo Carriers News | Journal of Commerce

Get the latest air cargo news and analysis with JOC. From carriers to trends, get insights into air freight news, air cargo shipping, and more.

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