<div class="phx-topic abstract-wrapper">Peru's state shipping line, Compania Peruana de Vapores, is in a sea of troubles. Last week </div>

Peru's state shipping line, Compania Peruana de Vapores, is in a sea of troubles. Last week

<div>Peru's state shipping line, Compania Peruana de Vapores, is in a sea of troubles.Last week it managed, with the help of a $4.8 million loan from the central government, to free two of three ships that were detained because of the company's bad debts. The ships, which faced possible auction, were being held hostage by angry creditors in ports in the United States, Britain and Panama.The Ricardo Palma, which had been held in San Francisco since Jan. 25, left last week after CPV paid $500,000 in bad debts.The embargo on the ship was lifted March 10, but its departure was...

Peru's state shipping line, Compania Peruana de Vapores, is in a sea of troubles. Last week it managed, with the help of a $4.8 million loan from the central government, to free two of three ships that were detained because of the company's bad debts. The ships, which faced possible auction, were being held hostage by angry creditors in ports in the United States, Britain and Panama.The Ricardo Palma, which had been held in San Francisco since Jan. 25, left last week after CPV paid $500,000 in bad debts. The embargo on the ship was lifted March 10, but its departure was delayed another eight days because its crew had gone on strike. The company had not paid them for the previous month. After CPV forked over another $14,400 in salaries and benefits, $380 a person for the month, the ship proceeded to Tacoma, Wash., to unload its cargo of fish meal. The lengthy stay of the Palma in San Francisco provoked a scandal in Peru following news reports from the United States that its crew was going hungry and the ship was infested with rats and cockroaches. CPV President Juan Manuel Ontaneda vehemently denied the reports. The chartered vessel Maringa, held in Panama for $700,000 in bad debts, also was released last week. Mr. Ontaneda said the Jose Pardo, embargoed in Liverpool, England, by an array of creditors owed $801,000, is soon to be released as well. CPV, which has a total of 11 ships, effectively ran out of money last August, according to Mr. Ontaneda. He petitioned the central government at that time for a further credit of approximately $25 million, but to no avail. There are doubts among central government officials that the company is anything but a sponge for scarce resources. CPV has been piling up losses every year since 1982. Although Mr. Ontaneda, appointed by President Alan Garcia, has reduced fixed costs and losses and raised sales, the company is projected to lose another $1 million this year. Partly explaining Mr. Ontaneda's success, the company enjoyed a two-year official favor in the form of a regulation that granted it 100 percent cargo reserve. Waivers were required for shippers to use other lines. The measure was intended to cut out Chilean lines, which had won much of the Peruvian traffic, and put CPV back on its feet. Sales rose from $38.1 million in 1985 to $63.5 million last year, despite Peruvian shippers' general preference for anything other than CPV. They say the company is unreliable. But Peru incurred the wrath of the Federal Maritime Commission, which after long deliberation, threatened two months ago to close U.S. ports to Peruvian ships if the rule was not dropped. It was. The change bodes ill for CPV's sales this year. In documents provided to The Journal of Commerce, CPV's largest losses came in operating costs. Last year, these ran to $65 million, which when added to $6.1 million in administrative costs, outweighed $63.5 million in sales and put the company $7.6 million in the red. This was an increase over its 1986 loss of $5.8 million. The previous four years were worse. In 1985, CPV lost $12.2 million; in 1984, $25.7 million; in 1983, $28.4 million; and 1982, $25.9 million. In 1981, the last year in which it made a profit, the company was a modest $1.7 million in the black. CPV has been caught in a swirl of accusations of corruption and mismanagement for several years, and its current administration appears to wield no immunity on this score. In the face of recent charges of poor management, the company's entire board was forced to resign, though President Garcia kept Mr. Ontaneda, a ruling party loyalist, on the job.

Maritime

PERU'S SHIP LINE WALLOWS IN SEA OF FINANCIAL WOES

<div class="phx-topic abstract-wrapper">When the proposed agreement is adopted in October, as expected, all international shipping will be bound by the decarbonization regulation, an official at the shipping association pointed out. </div>

When the proposed agreement is adopted in October, as expected, all international shipping will be bound by the decarbonization regulation, an official at the shipping association pointed out.

Feature image

<div class="phx-topic">The US’ formal rejection of the International Maritime Organization’s (IMO) net-zero framework agreement will have little impact on the emissions regulation that, once adopted, will still require compliance from all ships trading internationally, according to shipping association Bimco. The net-zero proposal will be promulgated at the next meeting of the IMO’s Marine Environment Protection Committee (MEPC) in October, where it is expected to pass with the required two-thirds majority. “Even when, or if, the US places reservations that the rule will not apply to them, it will, because all ships of non-US flag trading internationally are bound by their flag (and) US-flag ships will also be required to comply if they trade internationally,” Lars Robert Pedersen, deputy secretary-general and director of regulatory affairs at Bimco, told the Journal of Commerce Wednesday. Only about 80 merchant ships currently trade internationally under the US flag, according to maritime insurers UK P&amp;I Club. Vowing “to protect the American people and their economic interests,” the White House on Tuesday called on IMO members to reject the agreement and threatened to retaliate against those supporting the proposal. “Our fellow IMO members should be on notice that we will look for their support against this action and not hesitate to retaliate or explore remedies for our citizens should this endeavor fail,” Secretary of State Marco Rubio, Secretary of Commerce Howard Lutnick, Secretary of Energy Chris Wright and Secretary of Transportation Sean Duffy said in a joint statement. <h3>‘A global carbon tax on Americans’ </h3>“Whatever its stated goals, the proposed framework is effectively a global carbon tax on Americans levied by an unaccountable UN organization,” the US statement said, adding that the US would not accept any environmental regulation that “unduly or unfairly burdens the United States or harms the interests of the American people.” Despite the formal rejection by the White House and its ongoing criticism of the UN and its many agencies, the statement drew a typically diplomatic response from the IMO. "The IMO net-zero framework was approved in April 2025 and represents a collective commitment by member states to deliver on shared goals outlined in the Revised IMO Strategy on the Reduction of GHG emissions that was adopted in 2023,” an IMO spokesperson told the Journal of Commerce. “The upcoming MEPC session in October provides the appropriate platform to address any concerns from member states ahead of the adoption process,” the IMO added. Considering <a href="https://www.joc.com/article/us-pulls-out-of-imo-climate-talks-threatens-retaliation-for-emissions-fees-5980359">the US decision to walk out of the MEPC’s 83rd meeting</a> in April in protest over the decarbonization talks, and with the now-formal rejection of the net-zero framework, it appears unlikely the US will attend the MEPC October meeting to “address any concerns.” The World Shipping Council (WSC), a trade body representing the container shipping and roll-on/roll-off industry, declined to comment, saying the matter has become a political one rather than being about policy. <h3>Shipping faces progressively increasing charges </h3>No universal carbon levy was agreed to at the contentious MEPC meeting in April but if the framework is adopted in October, shipping’s global carbon emissions will carry progressively increasing charges for the first time. A <a href="https://www.joc.com/article/imo-deal-on-fuel-intensity-pricing-hailed-as-major-step-forward-5986720">key standard in the new regulation</a> will be the fuel intensity used by global shipping, measured on a well-to-wake basis that covers the full lifecycle of the fuel. Starting in 2027, ships must lower their fuel intensity by a certain percentage compared with the baseline set in 2008. But Rico Luman, senior economist for transport and logistics at global bank at ING, believes the lack of US participation in the net-zero framework could hamper the adoption of the IMO regulation. “The system, when enforced in 2027, will apply globally and also applies to journeys to and from the US...if the US doesn’t accept the effectuation, this will complicate the whole system,” Luman said in a statement, adding that the US threat to retaliate could make other IMO members hesitate in their support of the proposal. Luman said there may be a “more climate-friendly” US administration in place in the years after the first reporting of the IMO measure is required in 2028, but any delay will hamper reaching the IMO’s already ambitious shipping decarbonization targets in 2040 and 2050. ”There’s not much time left as implementation usually takes years of preparation — also to enable companies to prepare themselves — and CO2 emissions have failed to get on a downward track over the last few years,” Luman said. Contact Greg Knowler at <a href="mailto:greg.knowler@spglobal.com">greg.knowler@spglobal.com</a>. </div>

The US’ formal rejection of the International Maritime Organization’s (IMO) net-zero framework agreement will have little impact on the emissions regulation that, once adopted, will still require compliance from all ships trading internationally, according to shipping association Bimco. The net-zero proposal will be promulgated at the next meeting of the IMO’s Marine Environment Protection Committee (MEPC) in October, where it is expected to pass with the required two-thirds majority. “Even when, or if, the US places reservations that the rule will not apply to them, it will, because all ships of non-US flag trading internationally are bound by their flag (and) US-flag ships will also be required to comply if they trade internationally,” Lars Robert Pedersen, deputy secretary-general and director of regulatory affairs at Bimco, told the Journal of Commerce Wednesday. Only about 80 merchant ships currently trade internationally under the US flag, according to maritime insurers UK P&I Club. Vowing “to protect the American people and their economic interests,” the White House on Tuesday called on IMO members to reject the agreement and threatened to retaliate against those supporting the proposal. “Our fellow IMO members should be on notice that we will look for their support against this action and not hesitate to retaliate or explore remedies for our citizens should this endeavor fail,” Secretary of State Marco Rubio, Secretary of Commerce Howard Lutnick, Secretary of Energy Chris Wright and Secretary of Transportation Sean Duffy said in a joint statement. ‘A global carbon tax on Americans’ “Whatever its stated goals, the proposed framework is effectively a global carbon tax on Americans levied by an unaccountable UN organization,” the US statement said, adding that the US would not accept any environmental regulation that “unduly or unfairly burdens the United States or harms the interests of the American people.” Despite the formal rejection by the White House and its ongoing criticism of the UN and its many agencies, the statement drew a typically diplomatic response from the IMO. "The IMO net-zero framework was approved in April 2025 and represents a collective commitment by member states to deliver on shared goals outlined in the Revised IMO Strategy on the Reduction of GHG emissions that was adopted in 2023,” an IMO spokesperson told the Journal of Commerce. “The upcoming MEPC session in October provides the appropriate platform to address any concerns from member states ahead of the adoption process,” the IMO added. Considering the US decision to walk out of the MEPC’s 83rd meeting in April in protest over the decarbonization talks, and with the now-formal rejection of the net-zero framework, it appears unlikely the US will attend the MEPC October meeting to “address any concerns.” The World Shipping Council (WSC), a trade body representing the container shipping and roll-on/roll-off industry, declined to comment, saying the matter has become a political one rather than being about policy. Shipping faces progressively increasing charges No universal carbon levy was agreed to at the contentious MEPC meeting in April but if the framework is adopted in October, shipping’s global carbon emissions will carry progressively increasing charges for the first time. A key standard in the new regulation will be the fuel intensity used by global shipping, measured on a well-to-wake basis that covers the full lifecycle of the fuel. Starting in 2027, ships must lower their fuel intensity by a certain percentage compared with the baseline set in 2008. But Rico Luman, senior economist for transport and logistics at global bank at ING, believes the lack of US participation in the net-zero framework could hamper the adoption of the IMO regulation. “The system, when enforced in 2027, will apply globally and also applies to journeys to and from the US...if the US doesn’t accept the effectuation, this will complicate the whole system,” Luman said in a statement, adding that the US threat to retaliate could make other IMO members hesitate in their support of the proposal. Luman said there may be a “more climate-friendly” US administration in place in the years after the first reporting of the IMO measure is required in 2028, but any delay will hamper reaching the IMO’s already ambitious shipping decarbonization targets in 2040 and 2050. ”There’s not much time left as implementation usually takes years of preparation — also to enable companies to prepare themselves — and CO2 emissions have failed to get on a downward track over the last few years,” Luman said. Contact Greg Knowler at greg.knowler@spglobal.com .

Transport, Trade and Regulation News

US rejection of IMO ‘net-zero’ framework won’t change outcome: Bimco

<div class="phx-topic abstract-wrapper">The funds will mostly be spent on further development of its platform for shippers, including investment in AI.</div>

The funds will mostly be spent on further development of its platform for shippers, including investment in AI.

<div class="phx-topic">A persistent low-rate truckload environment hasn’t hampered the growth of shipper-focused procurement and orchestration software provider GoodShip, which has landed a $25 million funding round on the back of significantly growing revenue in 2024. The funding round will mostly be spent on further development of its platform for shippers, including investment in AI, GoodShip said in a statement Tuesday. The company has raised $40 million to date. GoodShip was founded in 2022 to help shippers benchmark their truckload contract rates and has evolved to help users build bids and do scenario planning to apportion volume to various carriers and brokers. Its revenue growth comes as the truckload market is contending with a prolonged period of overcapacity and dampened demand, partly due to economic uncertainty in 2025. But GoodShip CEO Ryan Soskin told the Journal of Commerce the platform is meant to be used in all supply-demand environments. “Even in a soft market, we’re finding that there are very meaningful savings and service opportunities,” Soskin said. “It’s just that they have been historically hard to find, buried in the aggregate of massive amounts of data for large shippers.” As an example, he said nearly every GoodShip customer identifies situations where they have over-tendered freight to high-cost carriers. “If the lane overall is moving close to market average, the shipper usually doesn’t know to dig in to individual lane-carrier combinations within the lane that may be uncompetitive,” Soskin said. “We pinpoint these opportunities for them, and typically making a few minor tweaks results in massive savings.” GoodShip’s customers include Kellanova, Tropicana, Central Garden &amp; Pet, KeHe Distributors, and KBX Logistics. Soskin said the company is seeing traction in food and beverage, consumer packaged goods, paper/packaging, and industrials. Contact Eric Johnson at <a href="mailto:eric.johnson@spglobal.com">eric.johnson@spglobal.com</a>. </div>

A persistent low-rate truckload environment hasn’t hampered the growth of shipper-focused procurement and orchestration software provider GoodShip, which has landed a $25 million funding round on the back of significantly growing revenue in 2024. The funding round will mostly be spent on further development of its platform for shippers, including investment in AI, GoodShip said in a statement Tuesday. The company has raised $40 million to date. GoodShip was founded in 2022 to help shippers benchmark their truckload contract rates and has evolved to help users build bids and do scenario planning to apportion volume to various carriers and brokers. Its revenue growth comes as the truckload market is contending with a prolonged period of overcapacity and dampened demand, partly due to economic uncertainty in 2025. But GoodShip CEO Ryan Soskin told the Journal of Commerce the platform is meant to be used in all supply-demand environments. “Even in a soft market, we’re finding that there are very meaningful savings and service opportunities,” Soskin said. “It’s just that they have been historically hard to find, buried in the aggregate of massive amounts of data for large shippers.” As an example, he said nearly every GoodShip customer identifies situations where they have over-tendered freight to high-cost carriers. “If the lane overall is moving close to market average, the shipper usually doesn’t know to dig in to individual lane-carrier combinations within the lane that may be uncompetitive,” Soskin said. “We pinpoint these opportunities for them, and typically making a few minor tweaks results in massive savings.” GoodShip’s customers include Kellanova, Tropicana, Central Garden & Pet, KeHe Distributors, and KBX Logistics. Soskin said the company is seeing traction in food and beverage, consumer packaged goods, paper/packaging, and industrials. Contact Eric Johnson at eric.johnson@spglobal.com .

Surface

Truckload

Logistics Technology News

Truckload procurement tool GoodShip lands $25 million funding round

<div class="phx-topic abstract-wrapper">Ports in Europe and Asia, especially Rotterdam, Antwerp, Singapore and Shanghai, have been grappling with congestion-related issues such berthing and cargo delays for several months.</div>

Ports in Europe and Asia, especially Rotterdam, Antwerp, Singapore and Shanghai, have been grappling with congestion-related issues such berthing and cargo delays for several months.

<div class="phx-topic">Container shipping is heading for increased volatility due to ongoing tariff uncertainty, South Korean carrier HMM said Wednesday. “The expiry of tariff grace periods and ongoing renegotiations are expected to increase market volatility, with regional demand shifts likely to sustain supply chain congestion,” the carrier said in a first-half earnings commentary. HMM noted the Shanghai Containerized Freight Index (SCFI) averaged 1,701 points in the first half of 2025, down 27% from a year earlier, reflecting, it said, “weaker freight rates amid continued US protectionist tariff measures and trade tensions.” “HMM will address these conditions through flexible fleet deployment….and cost reductions via vessel efficiency improvements,” the carrier said. Those measures involve the deployment of more fuel-efficient vessels, including seven 9,000-TEU methanol-powered container ships due for delivery through the first half of next year. HMM has already taken delivery of the first two ships in the series. HMM said the seven car carriers it ordered in 2023 will be delivered beginning next month, while four multipurpose vessels will also be deployed as part of continuing efforts to diversify its fleet portfolio. HMM gave no further details about demand shifts or congestion, but ports in Europe and Asia, especially Rotterdam, Antwerp, Singapore and Shanghai, have been grappling with congestion-related issues such berthing and cargo delays for several months. These have been partly caused by shippers reacting to the nature of the Trump administration’s erratic implementation of tariff policies. HMM’s interim H1 results mirrored those of its peers, <a href="https://www.joc.com/article/yang-ming-wan-hai-profits-drop-on-weaker-volumes-6061944">including Taiwan’s Yang Ming Marine Transport</a>, with falling cargo volumes and freight rates weighing on profitability and revenue in the second quarter. HMM’s net profit fell 12% to $342 million in the second quarter compared with the first quarter and was down 29% year on year. Q2 revenue also fell both quarter on quarter and year over year. But HMM’s strong first quarter buoyed its H1 net profit, which increased 5.7% to $879 million year over year. Contact Keith Wallis at <a href="mailto:keithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Container shipping is heading for increased volatility due to ongoing tariff uncertainty, South Korean carrier HMM said Wednesday. “The expiry of tariff grace periods and ongoing renegotiations are expected to increase market volatility, with regional demand shifts likely to sustain supply chain congestion,” the carrier said in a first-half earnings commentary. HMM noted the Shanghai Containerized Freight Index (SCFI) averaged 1,701 points in the first half of 2025, down 27% from a year earlier, reflecting, it said, “weaker freight rates amid continued US protectionist tariff measures and trade tensions.” “HMM will address these conditions through flexible fleet deployment….and cost reductions via vessel efficiency improvements,” the carrier said. Those measures involve the deployment of more fuel-efficient vessels, including seven 9,000-TEU methanol-powered container ships due for delivery through the first half of next year. HMM has already taken delivery of the first two ships in the series. HMM said the seven car carriers it ordered in 2023 will be delivered beginning next month, while four multipurpose vessels will also be deployed as part of continuing efforts to diversify its fleet portfolio. HMM gave no further details about demand shifts or congestion, but ports in Europe and Asia, especially Rotterdam, Antwerp, Singapore and Shanghai, have been grappling with congestion-related issues such berthing and cargo delays for several months. These have been partly caused by shippers reacting to the nature of the Trump administration’s erratic implementation of tariff policies. HMM’s interim H1 results mirrored those of its peers, including Taiwan’s Yang Ming Marine Transport , with falling cargo volumes and freight rates weighing on profitability and revenue in the second quarter. HMM’s net profit fell 12% to $342 million in the second quarter compared with the first quarter and was down 29% year on year. Q2 revenue also fell both quarter on quarter and year over year. But HMM’s strong first quarter buoyed its H1 net profit, which increased 5.7% to $879 million year over year. Contact Keith Wallis at keithwallis@hotmail.com .

Container Shipping News

Container lines

Tariff turmoil to increase market volatility, supply chain disruption: HMM

<div class="phx-topic abstract-wrapper">The nearly two-year project to complete Bayport’s Wharf 7 will allow the terminal to handle more ships as work on widening the Houston Ship Channel continues. </div>

The nearly two-year project to complete Bayport’s Wharf 7 will allow the terminal to handle more ships as work on widening the Houston Ship Channel continues.

<div class="phx-topic">The Port of Houston will open a new berth in December at one of its two container terminals, bringing it a step further to be able to handle up to five post-Panamax vessels simultaneously. Port Houston Authority said in a statement to the Journal of Commerce Tuesday that it expects to complete <a href="https://www.joc.com/article/gulf-coast-ports-eyeing-expansion-amid-modest-growth-forecast-5222528">Wharf 7 at the Bayport Terminal this December</a>, nearly two years after construction began. Cranes for the new wharf are expected to arrive in March 2026, with the port planning to use Bayport’s existing crane fleet in the interim. The 1,000-foot wharf will allow Bayport to service five post-Panamax ships at once, up from four currently. Port Houston said the new wharf will “decrease the anchor wait time for vessels, allowing for quicker turnaround time for our customers.” As that project wraps up, Port Houston will also begin work on another Bayport berth, Wharf 1. The agency will put design and construction of Wharf 1 out to bid this September and plans to award a primary contractor by January. The eventual completion of Wharf 1 will mark the culmination of Port Houston’s near-term plans for Bayport, which has seen $750 million of investments since 2023. Bayport has two additional berthing areas, Wharves 8 and 9, which could be developed in the next decade, depending on the port’s growth forecasts. Last October, Bayport handled the largest container ship to ever call the Port of Houston, the 11,356-TEU CMA CGM Cassiopeia. Between 2019 and 2024, the port’s container volume has grown an average of 4.3% per year. The work at Bayport coincides with <a href="https://www.joc.com/article/port-houston-secures-131-million-in-federal-funds-for-ship-channel-work-6013360">ongoing work to expand the Houston Ship Channel</a> to allow two-way traffic for post-Panamax vessels. Port Houston expects to complete widening of a five-mile portion of the Houston Ship Channel between the Bayport and Barbours Cut container terminals by the third quarter of 2025, with the full project done by 2029. Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

The Port of Houston will open a new berth in December at one of its two container terminals, bringing it a step further to be able to handle up to five post-Panamax vessels simultaneously. Port Houston Authority said in a statement to the Journal of Commerce Tuesday that it expects to complete Wharf 7 at the Bayport Terminal this December , nearly two years after construction began. Cranes for the new wharf are expected to arrive in March 2026, with the port planning to use Bayport’s existing crane fleet in the interim. The 1,000-foot wharf will allow Bayport to service five post-Panamax ships at once, up from four currently. Port Houston said the new wharf will “decrease the anchor wait time for vessels, allowing for quicker turnaround time for our customers.” As that project wraps up, Port Houston will also begin work on another Bayport berth, Wharf 1. The agency will put design and construction of Wharf 1 out to bid this September and plans to award a primary contractor by January. The eventual completion of Wharf 1 will mark the culmination of Port Houston’s near-term plans for Bayport, which has seen $750 million of investments since 2023. Bayport has two additional berthing areas, Wharves 8 and 9, which could be developed in the next decade, depending on the port’s growth forecasts. Last October, Bayport handled the largest container ship to ever call the Port of Houston, the 11,356-TEU CMA CGM Cassiopeia. Between 2019 and 2024, the port’s container volume has grown an average of 4.3% per year. The work at Bayport coincides with ongoing work to expand the Houston Ship Channel to allow two-way traffic for post-Panamax vessels. Port Houston expects to complete widening of a five-mile portion of the Houston Ship Channel between the Bayport and Barbours Cut container terminals by the third quarter of 2025, with the full project done by 2029. Contact Michael Angell at michael.angell@spglobal.com .

Port News

Port infrastructure

Marine terminals

North American ports

New Houston berth to enhance post-Panamax handling

<div class="phx-topic abstract-wrapper">Union Pacific Railroad is instituting surcharges for the second consecutive year out of Los Angeles, although it’s unclear how long the current uptick in volume will last. </div>

Union Pacific Railroad is instituting surcharges for the second consecutive year out of Los Angeles, although it’s unclear how long the current uptick in volume will last.

<div class="phx-topic">Union Pacific Railroad will impose a surcharge of $500 per container on low-volume shippers and $300 on high-volume domestic intermodal shippers exceeding their weekly allotments in Southern California, the railroad said Monday. The fees coincide with a double-digit increase in domestic intermodal volumes last week compared with the beginning of June during the lull in port activity, according to data provider RailState. The uptick began shortly after July 4, according to quarterly earnings calls for Hub Group and Schneider National, who exclusively use Union Pacific in the western US. The surcharge on low-volume customers, who ship less than 500 loads per year, takes effect Aug. 17. Surcharges on higher-volume customers begin Aug. 24. It follows peak-season surcharges (PSSs) announced <a href="https://www.joc.com/article/jb-hunt-says-surcharges-necessary-to-maintain-peak-season-service-6044880">last month by J.B. Hunt Transport Services</a> and more targeted, customer-by-customer surcharges in recent weeks by Hub Group, Schneider National and STG Logistics, according to shippers and recent earnings calls. “Union Pacific is experiencing an increase in demand for [rail-owned] domestic container capacity out of Southern California,” UP said in the announcement. “Action is being taken to reposition containers and increase train capacity to meet the demands of shippers.” One non-asset-based intermodal marketing company (IMC) said that UP experienced a significant increase in volume since J.B. Hunt’s announcement, requiring the railroad to reposition thousands of rail-owned containers from elsewhere to cover demand. Surcharges typically apply only after a contractual shipper exceeds a set threshold, often about 20% above its weekly average. For example, a shipper moving 100 containers per week on average might be allotted 120 loads per week in the peak season. The surcharge would only apply on shipments above 120. Shippers often divert freight to another intermodal provider, shift to the spot market or use a truckload carrier to avoid the surcharges, depending on which option is most economical. <h3>Not a surprising decision </h3>Union Pacific’s domestic and international intermodal volume has grown progressively since July 4, which partner Hub Group cited on its quarterly earnings call two weeks ago. “Near-term trends off the West Coast are strong and we are seeing indications of an early West Coast peak season,” said Phil Yeager, CEO of Hub Group, on an Aug. 1 earnings call. “How long does the West Coast peak really continue? It remains a little bit unclear, but we’re at least seeing some really robust demand right now.” BNSF Railway saw a similar surge in international intermodal, although that strength did not trickle down to domestic intermodal in the same way, according to RailState. Hub Group and Schneider said on their quarterly earnings calls two weeks ago that they had instituted PSSs for some customers amid stronger July demand in Southern California. The $500 and $300 per container figures <a href="https://www.joc.com/article/up-joins-peers-in-assessing-peak-season-surcharges-for-southern-california-5709819">are identical to the starting points last year</a>, which were put into effect on Sept. 1, 2024. Unlike last year, however, it is not clear whether enough import volume is headed to the West Coast to sustain the surcharges into November, or whether demand will taper earlier. It is also uncertain whether conditions will warrant surcharges in Oakland and the Lathrop-Stockton area in Northern California, as occurred last year. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>. </div>

Union Pacific Railroad will impose a surcharge of $500 per container on low-volume shippers and $300 on high-volume domestic intermodal shippers exceeding their weekly allotments in Southern California, the railroad said Monday. The fees coincide with a double-digit increase in domestic intermodal volumes last week compared with the beginning of June during the lull in port activity, according to data provider RailState. The uptick began shortly after July 4, according to quarterly earnings calls for Hub Group and Schneider National, who exclusively use Union Pacific in the western US. The surcharge on low-volume customers, who ship less than 500 loads per year, takes effect Aug. 17. Surcharges on higher-volume customers begin Aug. 24. It follows peak-season surcharges (PSSs) announced last month by J.B. Hunt Transport Services and more targeted, customer-by-customer surcharges in recent weeks by Hub Group, Schneider National and STG Logistics, according to shippers and recent earnings calls. “Union Pacific is experiencing an increase in demand for [rail-owned] domestic container capacity out of Southern California,” UP said in the announcement. “Action is being taken to reposition containers and increase train capacity to meet the demands of shippers.” One non-asset-based intermodal marketing company (IMC) said that UP experienced a significant increase in volume since J.B. Hunt’s announcement, requiring the railroad to reposition thousands of rail-owned containers from elsewhere to cover demand. Surcharges typically apply only after a contractual shipper exceeds a set threshold, often about 20% above its weekly average. For example, a shipper moving 100 containers per week on average might be allotted 120 loads per week in the peak season. The surcharge would only apply on shipments above 120. Shippers often divert freight to another intermodal provider, shift to the spot market or use a truckload carrier to avoid the surcharges, depending on which option is most economical. Not a surprising decision Union Pacific’s domestic and international intermodal volume has grown progressively since July 4, which partner Hub Group cited on its quarterly earnings call two weeks ago. “Near-term trends off the West Coast are strong and we are seeing indications of an early West Coast peak season,” said Phil Yeager, CEO of Hub Group, on an Aug. 1 earnings call. “How long does the West Coast peak really continue? It remains a little bit unclear, but we’re at least seeing some really robust demand right now.” BNSF Railway saw a similar surge in international intermodal, although that strength did not trickle down to domestic intermodal in the same way, according to RailState. Hub Group and Schneider said on their quarterly earnings calls two weeks ago that they had instituted PSSs for some customers amid stronger July demand in Southern California. The $500 and $300 per container figures are identical to the starting points last year , which were put into effect on Sept. 1, 2024. Unlike last year, however, it is not clear whether enough import volume is headed to the West Coast to sustain the surcharges into November, or whether demand will taper earlier. It is also uncertain whether conditions will warrant surcharges in Oakland and the Lathrop-Stockton area in Northern California, as occurred last year. Contact Ari Ashe at ari.ashe@spglobal.com .

Rail News

Intermodal providers

UP seeks surcharges amid intermodal volumes surge

Use code TPM26GW995 at checkout to save $500 on first year of a Gold subscription and 20% on a TPM26 registration!

Subscribe Now - FT/Anonymous to Gold - Wide Box

SAVE ON A GOLD SUBSCRIPTION AND TPM26

Use code GTW695 at checkout and save $800 on first year of an annual Gold subscription!

Upgrade Subscription - Gold Trials

Become a Gold Subscriber and Save!

Use code TPMGW595 at checkout to save $900 on first year of a Gold subscription and 20% on a TPM26 registration!

Upgrade Subscription - S/SP to Gold - Wide Box

UPGRADE TO GOLD FOR JUST $595

Arm your team with the most trusted information portal for the international container shipping industry.

Group Subscriptions - Wide Box

Get into a group subscription today

Access Journal of Commerce content for 30 days

Free Trial - Wide Box

START A FREE TRIAL TODAY

Use code STS20 at checkout to save 20% on a Silver or Silver Plus annual subscription! 

Subscribe Now - FT/Anonymous to S/SP - Wide Box

SUBSCRIBE AND SAVE

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/

Photo 2.png

SSA Marine Mexico: True Commitment to Sustainability

SAVE ON A GOLD SUBSCRIPTION: Use code TPM26GW995 to save $500 on an annual Gold subscription and 20% on a TPM26 registration!

Subscribe Now - FT/Anonymous to Gold - Offer Box

UPGRADE TO GOLD AND SAVE: Use code GTW695 at checkout and save $800 on first year of a Gold subscription!

Upgrade Subscription

SUBSCRIBE AND SAVE: Use code STSW20 to save 20% on first year of a Silver or Silver Plus annual subscription!


Subscribe Now - FT/Anonymous to S/SP - Offer Box

GET INTO A GROUP SUBSCRIPTION: Arm your team with unlimited Journal of Commerce content

Group Subscriptions - Offer Box

Group Subscriptions

UPGRADE TO GOLD AND SAVE: Use code TPMGW595 at checkout to save $900 on first year of a Gold subscription and 20% on TPM26! 

Upgrade Subscription - S/SP to Gold - Offer Box

START A FREE TRIAL: Access Journal of Commerce content for 30 days

Free Trial - Offer Box

Free Trial

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

Journal of Commerce Magazine - Rectangle Box

Journal of Commerce Magazine

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

Breakbulk Report - Rectangle Box

Breakbulk Quarterly

Customers scoring their intermodal partners to identify the best service providers

Intermodal Service Scorecard - Rectangle Box

Intermodal Service Scorecard

A must-attend conference for shippers & logistics providers moving goods inland

Inland Conference - Rectangle Box

Attend Inland25

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

ISI Report - Rectangle Box

Intermodal Savings Index

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

Gateway - Rectangle Box

Gateway

A premium access outlook critical to shippers and transportation providers

QI Report - Rectangle Box

Quarterly Intelligence

The Journal of Commerce is the industry’s source for maritime news and analysis about ocean container shipping, logistics, supply chains, global shipping ports, shipping technology solutions and end-to-end connectivity. Coverage tracks the movement of containerized cargo — from origin to destination — handled by marine terminals in the US and abroad, depots, container ports, container lines, drayage, consignees and shippers, forwarders, non-vessel operating common carriers (NVOs) and off-dock warehousing providers, as well as pricing, capacity, volume and reliability on the trans-Pacific, Asia–Europe, North America–Caribbean, Central and South American and intra-Asia trades.

Discover comprehensive trucking news and trends with Journal of Commerce - from trucking LTL to regulation and trucking supply and demand.

Breakbulk News shipping | Journal of Commerce

Breakbulk News

Container shipping news and analysis of ocean container shipping, logistics, supply chains, technology and end-to-end connectivity.

Container Shipping News | Journal of Commerce

Stay informed on port news worldwide with Journal of Commerce. From decarbonization to labor updates, get insights on global developments.

Port News | Journal of Commerce

News and analysis of ocean containerized cargo movement, logistics, supply chains, technology, and end-to-end connectivity. Maritime news and analysis of containerized ocean cargo movement, breakbulk and roll-on and roll-off shipping from origin to destination.

Latest News

Journal of Commerce Magazine

SSA Marine Mexico: True Commitment to Sustainability

More News & Analysis

US rejection of IMO ‘net-zero’ framework won’t change outcome: Bimco

Truckload procurement tool GoodShip lands $25 million funding round

Tariff turmoil to increase market volatility, supply chain disruption: HMM