Latest news with #OceanAlliance
Boston Globe
09-05-2025
- Business
- Boston Globe
How will Trump's trade war with China affect shipping up to Boston? Quite a bit, Massport says.
Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Gleason informed the Massport board that shipping consortium Ocean Alliance will adjust its schedule of Evergreen-operated ships from a weekly service at Conley to every two weeks due to a reduction in the cargo volume being imported into New England from China. The port authority, she said, doesn't know its schedule for Conley beyond June. Gleason said her staff anticipated this scenario as a byproduct of the tariff tiff between the US and China. The change, she said, also affects Evergreen visits to the ports of New York, Charleston, S.C., and Savannah, Georgia. Advertisement Gleason also presented a forecast for June that shows a significant drop-off in shipping volume from the same month a year ago, with fewer Evergreen visits and retailers in general cutting back on orders. She estimates 8,900 TEUs — or 20-foot containers — worth of cargo will be processed at Conley in June, down by roughly a third from the 13,600 TEUs processed in June 2024. ('TEU' stands for 'Twenty-foot Equivalent Unit,' the amount of cargo that can fit in a standard 20-foot container.) Advertisement It's too early to predict the potential impact on the 300 or so International Longshoremen's Association workers who handle cargo at Conley, or the other businesses in and around Boston that help move freight in and out of the port. US Representative Stephen Lynch, a Democrat from South Boston, said a typical visit from an Evergreen ship can put 70 to 80 ILA members to work as they move cargo on and off the ship over a 24-hour period. Should a major China tariff remain in place for much longer, it could have a huge economic impact here, Lynch said. 'I'm hoping for the best, but this wasn't done with a lot of thought,' he said. 'It would normally take several years to do a major trade agreement.' The loss of two ship visits represents a small portion of the roughly 20 ship visits that Massport says occurs at Conley each month. However, China is arguably the most important country for goods moved in and out of Conley, representing half of its imports last year and around a third of its total business. Evergreen is the primary shipper of Chinese goods in and out of the port, though other companies carry products from China as well. Top Chinese imports for the Boston port include furniture, plastic items, electric machinery, toys, and seafood. Advertisement Jon Chesto can be reached at
Yahoo
28-04-2025
- Business
- Yahoo
Trump Says US Ships Should Travel Panama, Suez Canals for Free
Already having stated his desires for U.S. military and commercial ships to get free passage through the Panama Canal, President Donald Trump has expanded his wish list. The U.S. president said in a post on Truth Social Saturday that U.S. vessels should also get free passage in another major trade artery, Egypt's Suez Canal. More from Sourcing Journal Moody's Downgrades US Port Outlook to 'Negative' on Sinking Cargo Volume California Ports Brace for Sharp Tariff-Driven Volume, Traffic Drop Revised Port Fees Remain 'Major Headache' for Ocean Alliance 'Those Canals would not exist without the United States of America,' the president claimed. 'I've asked Secretary of State Marco Rubio to immediately take care of, and memorialize, this situation!' The Suez Canal connects vessels from the Indian Ocean to the Mediterranean Sea, and was the main passage for ships on the Asia-to-Europe trade lane before the Red Sea crisis began in the wake of the Israel-Hamas war. Since December 2023, most container ships have avoided the Suez Canal due to ongoing attacks on commercial vessels by Houthi militants in Yemen. Container ships instead have been diverting their routes around southern Africa's Cape of Good Hope, tacking on one-to-two weeks of transit times to their destination. Egypt acknowledged in 2024 that its canal revenues had plunged by around 60 percent, a loss of $7 billion, as a result of the mass diversions. The Suez Canal Authority sets the fees for all passing ships. Multiple Egyptian lawmakers expressed their annoyance with Trump's comments. 'Egypt will not accept this cheap blackmail,' said Mustafa Bakry, a member of Egypt's parliament, in a post on X. 'There are international rules that must be respected, and there is Egyptian sovereignty that must not be violated.' Another parliament member, Mahmoud Badr, wrote on his X account that 'the Suez Canal was built by Egyptians with their blood and is protected by the Egyptian army.' Trump did not specify whether his demand applied to U.S.-flagged ships or U.S.-owned ships, but either way, American commercial traffic through the Suez Canal is minimal. Only one U.S.-flagged vessel has used the Suez route since January 2024, largely due to Houthi-led disruptions, according to MarineTraffic data. The Panama Canal is a different story, with 157 U.S.-flagged ships having transited the 51-mile waterway over the past 16 months. Tankers accounted for 107 of those crossings. In total, about 32 vessels cross the canal daily. Following Trump's social media post, Panama President José Raúl Mulino followed up with one of his own indicating that there is there is no such agreement for free passage under the neutrality agreements put into effect in 1977. He added that any special cooperation must be established by the Panama Canal Authority (ACP) in compliance with current regulations. Trump's eyes have been on the Panama Canal since winning the 2024 presidential election, repeatedly threatening to 'take back' the canal over concerns of Chinese influence over the waterway. The U.S. completed construction of the canal in 1914 and administered it for 85 years until officially transferring ownership to Panama on Dec. 31, 1999. Secretary Rubio has already been at the center of the Panama Canal controversy, having had to walk back previous State Department claims that the Panamanian government agreed to no longer charge fees for U.S. ships. Mulino strongly denied the State Department assertions, leading to Rubio's retreat. At the time, the ACP said it would prioritize the transit of U.S. Navy vessels sailing through the canal. According to the authority, the U.S. has paid $25.4 million in transit fees for its military ships over the past 26 years. Aside from the canal itself, drama continues to surround the $23 billion, 45-port deal that would put ports on both sides of the waterway into the hands of a BlackRock-led consortium. Mediterranean Shipping Company (MSC), a member of the buying group, has reportedly considered separately buying the 43 non-Panama Ports from owner Hong Kong-based CK Hutchison as the U.S.-China tensions escalate. The acquisition is being investigated by China's top antitrust regulator. On Monday, China's foreign ministry dialed up more scrutiny of the Hutchison-BlackRock deal, saying all parties involved in the transaction mustn't circumvent the review or the regulator would pursue legal action. 'China firmly opposes using economic coercion and bullying to harm other countries' legitimate rights and interests, said spokesperson Guo Jiakun. 'We hope that all parties concerned will act prudently and have thorough communication with competent Chinese authorities.' As for the Suez Canal, there is no timeline of when normalcy will return to the conflict-ridden Red Sea, preventing much shipping activity from resuming there. On Saturday, the Houthis warned container shipping owners, operations and managers of the risks of moving goods for 15 aerospace and defense companies it had sanctioned. Boeing and Lockheed Martin are included on that list. 'The existence of any such relationship will expose your company and fleet to sanctions, and, in the event your company is listed on the sanctions list, its fleet will be prohibited from transiting the Red Sea, Bab al-Mandeb Strait, the Gulf of Aden, the Arabian Sea and the Indian Ocean,' Houthi's Humanitarian Operations Coordination Center (HOCC) sent in the reported email. 'Furthermore, the company's fleet will be subject to targeting wherever reachable by the Yemeni Armed Forces.' The U.S. imposed its own sanctions Monday on three vessels and their owners for delivering oil and gas products to the designated terrorist organization. The sanctions came hours after the Iran-aligned group said 68 were killed in an American airstrike that hit a prison. American military forces have ramped up near-daily airstrikes in Yemen after the ending of the Israel-Hamas ceasefire.
Yahoo
23-04-2025
- Business
- Yahoo
Revised Port Fees Remain ‘Major Headache' for Ocean Alliance
With the U.S. Trade Representative (USTR) watering down its fees on Chinese ships set to dock at American ports, major ocean carriers aligned with the most impacted shipping firms will likely have to pull more weight during their While China-based Cosco Shipping and its subsidiary Orient Overseas Container Line (OOCL) are expected to pay up the most, the overflow from President Donald Trump's 'anti-China tax' expected to cause a 'major headache' for Ocean Alliance partners CMA CGM and Evergreen, said Alphaliner in a weekly report. More from Sourcing Journal Blank Sailings Rattle Trans-Pacific Trade as China Imports Nosedive President Xi Aims to Cement 'Iron Clad Friendships' in Asia Amid US Tariff Drama China Warns Other Nations That 'Appeasement Cannot Bring Peace' in Trade War With US According to the shipping research tool and database, Cosco should arrange so that CMA CGM and Evergreen vessels increase their trans-Pacific sailings within the vessel-sharing agreement so that the Ocean Alliance members don't see a significant hit to their service capabilities. The Ocean Alliance recorded 54.1 percent schedule reliability in February, ahead of the launch of its updated 'Day 9' network which into effect in April. The ocean carriers officially deployed a combined 390 container vessels with an estimated total nominal capacity of nearly 5 million 20-foot equivalent units (TEUs) across 41 weekly service loops and more than 520 direct port pairs. Twenty-two of the weekly loops are trans-Pacific services that call at U.S. ports. The companies have never specified how many vessels they individually have provided to the alliance. Cosco may be able to skirt the port fees if the liner withdraws their ships and replaces them with slots on fee-exempt ships operated by the alliance partners, according to Linerlytica. 'Although port fees on Chinese-operated and Chinese-built ships are retained, carriers will be able to circumvent the fees by swapping out all of the affected ships in the next 180 days as the fee will no longer apply on the operators' fleet composition or prospective orders but only on ships calling at U.S. ports on a per-voyage basis (changed from the initial per-port call charge),' said Linerlytica in a post Monday. Given that exemptions were granted for smaller ships below 4,000 TEUs or 55,000 deadweight tons (dwt), Cosco could also opt to sail more ships within that limit. According to its website, the Chinese carrier operates 11 vessels that fit under that threshold. Based on Linerlytica's analysis, 'all of the main carriers have sufficient exempt ships available to make the switch without severe operational disruptions.' World Shipping Council president and CEO Joe Kramek still called the USTR's decision 'a step in the wrong direction' on the grounds that it would raise prices for consumers and weaken U.S. trade. The Council also said that structuring the fees based on ship size 'disproportionately penalizes larger, more efficient vessels' that deliver essential goods, including components used in U.S. production lines. Only 20 percent of the current fleet of container ships calling at U.S. ports are affected by the remodeled port fees, and they are expected to be swapped with exempt ships over the next six months. 'If all major carriers were equally affected by the cost increase, shipping lines might take a 'wait and see' approach, and just pass on the additional cost to the cargo owners and—ultimately—consumers,' said Alphaliner. 'This is, however, not the case since Chinese carriers have been targeted in a way that leaves them with limited options, while others could try and move Korean- and Japanese-built tonnage to U.S.-related services.' South Korea's HMM (Hyundai Merchant Marine) and Taiwan's Evergreen and Yang Ming would all be likely be major beneficiaries of the new port fee structure, as the companies have a minimal presence of China-built ships. The USTR's action indicated that Chinese-built ships calling at U.S. ports will be charged $18 per net vessel tonnage, or $120 per container discharged depending on which is higher, starting Oct. 14. By April 2028, the charge will have risen incrementally to either $33 per net tonnage of the vessel, or $250 per container discharged. Chinese vessel operators like Cosco must pay an additional $50 per net tonnage, regardless of where its ships were built, which will gradually increase to $140 by April 2028. These fees are still an improvement over the initial proposal, which observed that Chinese-built ships would be hit with a fine of up to $1.5 million per port call. These fees would have also been cumulative for each individual port call, instead of the modified fee per total U.S. voyage. Clarksons Research calculated that only 9 percent of U.S. port calls in 2024 by container ships would have been subject to the new scope, down significantly from the 43 percent estimated under the previously proposed actions. The research firm says the final proposal could theoretically generate annual fees of $12 billion in 2026, before rising to $18 billion in 2028 based on current vessel deployment patterns. This is down from estimates of between $40 billion and $52 billion under the previously proposed measures.
Yahoo
21-04-2025
- Business
- Yahoo
China's Cosco says US port charges threaten global supply chains
China's largest container carrier on Monday lashed out at a U.S. plan to charge its ships steep fees to dock at American ports. 'We firmly oppose the accusations and the subsequent measures,' Cosco Shipping Lines said in a statement. 'Such measures not only distort fair competition and impede the normal functioning of the global shipping industry, but also threaten its stable and sustainable development. 'Ultimately, these actions risk undermining the security, resilience, and orderly operation of global industrial and supply chains.' The watered-down plan for port fees was revealed Friday by the U.S. trade representative following pushback by traders and maritime stakeholders to an initial proposal for millions of dollars in flat port charges. The revised plan sets fees tied to a ship's size or number of containers carried by a ship, whichever is greater. Cosco, the world's fourth-largest container line, operates some of the biggest vessels between Asia and the United States. It's likely Cosco will feel the effects not just from the port fees but in fewer calls at U.S. ports as part of the Ocean Alliance with Chinese carrier OOCL and Evergreen of Taiwan. The charges followed an investigation by the USTR that found China had leveraged unfair trade practices to build a dominant position in global shipping and shipbuilding. Cosco in the statement denied the accusations, calling the USTR finding 'discriminatory.' 'As a responsible global provider of shipping and logistics services, we consistently uphold the principles of integrity, transparency, and compliance in international industry competition,' the statement said. 'We remain steadfast in our commitment to supporting global trade and delivering high-quality, reliable commercial shipping and logistics solutions to our clients worldwide.' Find more articles by Stuart Chirls plans phased approach to port fees for Chinese ships Trump trade war halts ships, strands empty containers Analyst warns of 'carnage' on shifts in container shipping US considering making port fees more affordable for Chinese ships: Report The post China's Cosco says US port charges threaten global supply chains appeared first on FreightWaves.
Yahoo
03-03-2025
- Business
- Yahoo
After bouyant year, CMA CGM sees ‘unprecedented uncertainty' in 2025
Red Sea diversions and tariff fears boosted container carrier CMA CGM results in 2024, but the company sees a less clear outlook this year. The world's third-largest liner operator reported full-year revenue of $55.5 billion in 2024, up 18% y/y. Earnings before interest, taxes, depreciation and amortization was $13.4 billion, with an EBITDA margin of 24.2%. Net income for the privately held company was $5.71 billion, up 2.07% y/y. Revenue from container shipping was $36.5 billion, ahead 16.2% from 2023. EBITDA soared to $11.24 billion, up 51.9%. EBITDA margin was 7.2 points better at 30.8%, which compares to 31.2% for competitors Ocean Network Express, 24.6% for Maersk (OTC: AMKBY) and 24.2% for Hapag-Lloyd. CMA CGM with Cosco Shipping of China, Taiwan's Evergreen, and OOCL of Hong Kong operates in the capacity-sharing Ocean Alliance, which has been extended until 2032. In an earnings call reported by Bloomberg, company executives said that the effect of U.S. tariffs on Chinese imports could be mitigated by the shift of supply chains to other regions. CMA CGM's global twenty-foot equivalent unit volume climbed 7.8% to 23.57 million TEUs, ahead of overall market growth of 6.2%. Logistics revenue totaled $18.4 billion, a 20.9% increase from 2023. The ocean shipping industry is also facing substantial proposed U.S. charges on Chinese-made vessels, which could have substantial effects on the Ocean Alliance's operations. 'Our group has delivered strong results this year, driven by our shipping activities. Our logistics business has also performed well, supported by the strategic investments made in recent years' said Rodolphe Saadé, chairman and chief executive whose family controls the Marseilles, France-based company, in an earnings release. 'In 2025, in a context of heightened geopolitical tensions and unprecedented uncertainty, our group will continue to strengthen its position with an expanding low-carbon fleet, state-of-the-art infrastructure, and a workforce trained to tackle the challenges ahead. With these solid foundations, I am confident in our ability to adapt and continue delivering exemplary service to our customers.' The company said conflicts in the Middle East led to disruptions in the Red Sea and Gulf of Aden, which forced vessels to divert on longer voyages around Africa's Cape of Good Hope. While the earnings release did not explicitly state it, CMA CGM and other major carriers saw 2024 results buoyed by lower capacity and corresponding higher rates. At the same time, CMA CGM was the only major liner in 2024 that continued to operate some scheduled services in the Red Sea under military escort. CMA CGM said expected increases in tariffs 'impeded the fluidity of world trade in 2024.' The company in 2024 acquired 48% of Santos Brasil, the leading port infrastructure operator in Brazil and operator of the largest container terminal in South America. It also signed a joint partnership agreement with Marsa Maroc to operate part of Morocco's Nador West Med container terminal and inaugurated the Khalifa terminal in Abu Dhabi, a key hub for international trade. The post After bouyant year, CMA CGM sees 'unprecedented uncertainty' in 2025 appeared first on FreightWaves.
