Maritime
January 2: FuelEU Sails In, Charging a Heavy Price for Vessel Emissions – But Who Pays? – The Loadstar
The beginning of 2025 marked the entry of FuelEU, the robust European legislation imposing major costs on shipowners for their vessel emissions.
Carriers have already announced their intention to pass these FuelEU costs on to their customers, Hapag-Lloyd having warned prices would “roughly double.”
Shipowners will pay around three times the cost of very-low-sulphur fuel oil (VLSFO) energy equivalent, or €2,400 per tonne, for non-compliance with FuelEU, an amount set to increase in the coming years.
Sequential years of non-compliance will cause a shipowner’s premium to increase cumulatively, even more than the successive annual increases, which means that, while it is open to shipowners not to comply with the legislation, FuelEU costs will grow to become a major drain on their operations.
January 3: Yang Ming Eyes Higher Contract Rates, with a ‘Focus on the Transpacific’ – The Loadstar
Yang Ming management expects oversupply concerns to ease this year as detours round the Cape of Good Hope continue.
The gap between container shipping supply and demand was 8% in 2024, and is expected to narrow to 4% in 2025, added the carrier.
CCO Kevin Lee added that, with freight rates being higher year on year and with high port handling costs, Yang Ming is optimistic about negotiating higher contract shipping rates this year.
January 8: ILA and USMX Announce Tentative Agreement on New Six-Year Master Contract – joint press release
The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) have reached a tentative agreement on all items for a new six-year master contract. The two sides agreed to continue to operate under the current contract until the union can meet with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract.
January 8: Alliance Reshuffle Will Increase Box Ship Shortage as Carriers Hunt ‘Buffers’ – The Loadstar
The combined capacity of the liners controlling more than 1% of the global liner fleet grew by 10.3% last year, according to Alphaliner.
And, despite the carriers’ relentless search for more tonnage in 2024, market demand remains strong, and the threat of overcapacity still hasn’t surfaced, reflected in low vessel idling and charter availability.
Alpahaliner noted that the charter market was short on tonnage above 3,000 teu, with vessels of 5,500 teu and above “especially limited until the summer.”
This low availability of vessels, it warned, had the potential to create further rises in charter rates.
It also noted that the commercially idle containership fleet ended the year “with a downtick” from what was already a low number. And over the past fortnight, Alphaliner again recorded “a reduction in carrier-controlled vessel idling”. In its latest survey, on 30 December, it recorded 58 ships, or 173,930 teu, as commercially idle.
It reported: “At only 0.6% of the total cellular fleet, the liner sector can still be considered ‘fully employed’, and there is zero structural idling.”
January 9: Proposal for IMO-Controlled Shipping Decarbonization Fund Gains Traction – The Loadstar
Some 47 governments and industry groups are lobbying the International Maritime Organization (IMO) to implement an emissions pricing mechanism for greenhouse gases (GHG) to raise a fund to decarbonize shipping.
The proposal is just one of many to be mulled by the IMO at the February meeting of its GHGs working group.
The market-based measure would aim to reduce the price gap between fossil and zero-emission fuels in a way that is not necessarily supported by the EU’s emissions trading system (ETS) or FuelEU Maritime.
Critics of the European systems say that, while they are perfectly capable of punishing shipowners for non-compliance, they do little to incentivize action by fuel refiners to make such low- and zero-emission fuels available to shipping.
January 15: Gaza Ceasefire Deal Sparks Hope for Red Sea Shipping Security, But Houthis Maintain Hard Line – gCaptain
A ceasefire agreement between Hamas and Israel, set to begin on January 19, could potentially ease maritime tensions in the Red Sea region, though Houthi rebels in Yemen remain firm on their conditions for ending attacks on commercial vessels.
The deal establishes a six-week initial ceasefire and includes the gradual withdrawal of Israeli forces from Gaza.
Maritime stakeholders are closely monitoring the development, as the agreement could be a turning point for vessels in the Red Sea region, where ships have endured numerous drone and missile attacks since October 7, 2023. These attacks have forced much of global trade to divert around the Cape of Good Hope, significantly extending voyage times while raising both costs and emissions.
However, Houthi forces in Yemen have set strict conditions for ceasing their maritime attacks. A spokesperson stated their military actions will only stop when “all military operations by the IDF are stopped, the siege on Gaza is lifted, humanitarian aid is allowed to flow freely, occupied territories in the Gaza Strip are withdrawn, and all military actions by the UK, U.S. and Israel in Yemen are ended.”
January 17: Strikes End, But Delays Continue at Australian Ports – The Loadstar
Australian freight forwarder International Cargo Express (ICE) has warned of backlogs at Australian ports affected by strikes against terminal operator Qube.
The union campaign against Qube – ongoing for months at ports including Brisbane, Kembla, Melbourne, Adelaide, Darwin and Fremantle – ended last week.
ICE said that, while this marked a positive step forward, “the widespread delays in loading, unloading and transporting goods have created a significant backlog, expected to impact supply chains in the short term.”
January 20: In Inaugural Address, Trump Pledges to Take Back Panama Canal – The Maritime Executive
In his inaugural address, President Donald Trump devoted more than a minute to his pledge to take the Panama Canal back from Panamanian control. In response, Panamanian president José Raúl Mulino, a conservative populist and American-trained maritime lawyer, reiterated that the Canal belongs to Panama.
“The Canal is and will continue to be Panama’s and its administration will continue to be under Panamanian control with respect to its permanent neutrality,” Mulino said. “For 25 years, without interruption, we have managed and expanded it responsibly to serve the world and its commerce, including the United States.”
France and the U.S. built the original canal at the turn of the last century. It was administered by American forces until its final transfer to local control in 1999.
A Panamanian-financed and -built upgrade, the “New Panama Canal,” was completed in 2016 and now accounts for the majority of Canal Zone revenue. In 2023, the older American-built section delivered about 45 percent of total Canal Zone earnings. Both are operated by the Autoridad del Canal de Panama (ACP), a division of the Panamanian government.
In his inaugural address, Trump claimed that “China is operating the Panama Canal.”
January 21: Panama Audits Hutchison PPC After Trump’s Complaints of Chinese Influence – The Maritime Executive
After criticism from President Donald Trump about the Panama Canal’s operations, the Panamanian government has announced an audit of the local unit of Hutchison Port Holdings, the Hong Kong-based giant that manages container terminals near each end of the waterway. Hutchison is a Chinese firm, and Trump has accused Panama of allowing China to “operate” the Canal, which was held by the U.S. up until 1999. The president has pledged to “take back” the Canal Zone, declaring his ambitions to “expand our territory.”
Ahead of Trump’s inauguration, Panamanian Comptroller General Anel Bolo Flores promised to conduct a probe to ensure that Hutchison is in compliance with its 25-year concession for the Balboa and Cristobal container terminals. The Panama Maritime Authority renewed the concession for Hutchison’s Panama Ports Company in 2021, under a previous administration, and Flores said that the local branch of Hutchison would be subjected to a “severe and strong” financial audit.
January 24: France Faces More Port Strikes to Protest Lack of Action on Pension Reforms – The Maritime Executive
The long-running dispute between the French government and the powerful trade unions over proposed pension reforms is again prompting threats of port strikes across the country. The government has been pushing for pension reforms and changes to France’s work rules since 2023.
The CGT Federation of Ports and Docks filed notice last week that it plans to renew its strikes and work slowdowns to demonstrate its frustration at the lack of movement by the government. According to the union, talks took place between January and July 2023 and again in 2024. The union staged a 24-hour strike in June 2024, blocking the container, bulk and ro-ro terminals in Le Havre while an estimated 600 dockworkers blocked the main entrance to Marseille-Fos in the south.
The union suspended the protests last summer after the French government collapsed. President Emmanuel Macron dissolved parliament and called special elections, which were inconclusive. Macron has vowed to continue through his current term, which is due to end in 2027 despite the collapse of two governments and continued instability.
According to the union, there had been talks in December and an indication by the government of a willingness to resolve the dispute. However, the union contends the offer was withdrawn in January.
January 28: Chinese New Year Rush and Threat of Tariffs Leaves Box Ports Congested – The Loadstar
The Chinese factory rush to get goods out before the new year holiday, and the threat of U.S. import tariffs, have seen global container port congestion hit a three-month high.
Approximately 3.3 million TEU, or nearly 11% of the container shipping fleet, is held up at ports in Asia, Europe and North America, according to a Linerlytica report.
The consultancy said: “Chinese ports are extremely congested in the run-up to the holidays, with both the Yangtze River ports and Pearl River Delta ports recording a significant surge in gate and berth congestion. The pre-holiday cargo rush has been exacerbated by heavy demand to beat potential U.S. tariffs for Chinese imports, with carriers also scrambling to build cargo roll pools ahead of the holiday lull.”
January 28: With Panama Canal-U.S. Tensions Rising, ‘All Options on the Table,’ Warns Trump’s Top Maritime Official – CNBC
Louis Sola, President Donald Trump’s newly appointed head of the U.S. Federal Maritime Commission, said that no-bid contracts give China an unfair advantage at the Panama Canal and nearby ports, and that reports saying Chinese companies are getting canal tolls refunded are “alarming.”
Trump has threatened to reassert U.S. control over the canal, a threat categorically rejected by Panama’s government. At a Senate hearing about trade and security issues at the canal, several Republican senators voiced support for an aggressive U.S. stance.
The FMC head says the U.S. can issue substantial daily fines to the Panamanian government and bar Panamanian-flagged vessels from calling at U.S. ports if it finds that Panama’s laws or practices are harmful to U.S. shipping.
January 31: Gemini Cooperation Launches Operations – press release
Gemini Cooperation, which was jointly planned and implemented by Hapag-Lloyd AG and Maersk A/S, starts operations on February 1. The ambition is to deliver a fast, flexible and interconnected ocean network with industry-leading reliability of over 90% once fully phased in. By June 2025, all vessels are expected to operate according to the new schedule.
Air
January 10: IATA Calls for International Coordination When Addressing Security Threats – Air Cargo News
IATA has called for international cooperation when developing future security requirements following the introduction of “disjointed” security measures last year in response to the discovery of two incendiary devices in parcel networks.
IATA head of global cargo Brendan Sullivan said various countries quickly introduced new security requirements last year after improvised incendiary devices (IIDs) were found in European parcel networks, but there was little coordination between states.
“IATA is committed to ensuring that these emerging threats are appropriately addressed,” he said. “In response to this, several states imposed additional security requirements or recommendations for inbound cargo and mail and some of those additional security measures were not appropriately developed or coordinated at an international level.
“This resulted in a disjointed and not-suitable operating environment where it was different in different parts of the world.”
January 13: Air Cargo Capacity Grew 10% in 2024, with Passenger Belly Capacity Back to Pre-COVID Levels – Air Cargo News
Air cargo capacity grew by double-digit percentage levels last year, with bellyhold capacity continuing to recover and freighter space remaining above pre-COVID levels.
Figures from data provider and consultant Rotate show that in 2024 total air cargo capacity in airfreight tonne km terms (ATK) was up 10% year on year, to 442bn ATK.
The increase was led by the return of passenger services, as bellyhold capacity increased 13% year on year and is now just 1% behind pre-COVID 2019 levels.
Meanwhile, freighter capacity was up 8% year on year in 2024, as the industry continues to rely on all-cargo aircraft more than it did in the past.
Compared with 2019 levels, freighter capacity is up 43%.
Rail
January 14: STB Approves CN Acquisition of Iowa Northern with Conditions – Progressive Railroading
The U.S. Surface Transportation Board has approved, with conditions, CN’s request for the board’s authority to acquire and operate Iowa Northern Railway Co.’s 218-mile rail system.
Trucking
January 1: U.S. FMCSA Delays Broker-Authority ‘Immediate Suspension,’ Other Regs Provisions – Overdrive
The U.S. Federal Motor Carrier Safety Administration has announced plans to delay implementation of certain provisions of its rules requiring stricter financial responsibilities for brokers and freight forwarders from January 16, 2025, until a full year later – January 16, 2026.
FMCSA said it would delay the new broker responsibilities to wait for its big registration system overhaul to take place.
“FMCSA is taking this action because the Agency determined that only its forthcoming online registration system will be used to accept filings and track notifications, and this functionality will not be added to its legacy systems,” the agency wrote.
January 3: District Court of South Carolina Slams the Brakes on Broker Liability – JD Supra
In a negligence action brought against transportation broker Echo Global Logistics, Inc., the District Court for the District of South Carolina held that Congress expressly pre-empted state laws related to brokers’ services under the Federal Aviation Administration Authorization Act. The court also held that the so-called safety exception to that pre-emption does not apply to brokers.
January 11: C.H. Robinson – and 3PL Industry – Win Another Broker Liability Case in U.S. 7th Circuit Court – FreightWaves
The 3PL industry’s latest win in the legal battle over broker liability comes in a U.S. federal appellate court, where a pro-broker precedent already exists.
In the most recent case, the U.S. Court of Appeals for the 7th Circuit, in a decision handed down January 3, held that C.H. Robinson did not have an “agency” relationship with carrier Caribe Transport, affirming a lower court ruling.
January 28: Western Express Prevails at U.S. Federal Appeals Level in Case ATA Saw as Important – FreightWaves
With so much focus on nuclear verdicts in the trucking industry, a decision last week in a U.S. federal appeals court went in a different direction with a significant victory for a major carrier.
Western Express, a privately held truckload carrier with what it says is more than 3,600 power units, has prevailed in an appeals case in the Fourth Circuit involving a 2018 crash in Rockbridge County, Virginia, on Interstate 81 that resulted in “devastating and permanent injuries” to Andre Le Doux, according to a court document.
The January 23 decision from the three-judge panel was unanimous.
The case was considered important enough to impact the body of law that governs trucking negligence that the American Trucking Associations (ATA) filed an amicus brief in support of Western Express.
January 31: U.S. Bipartisan Bill Takes Aim at Freight Fraud – Land Line
A bipartisan bill aimed at fighting freight fraud has been introduced in the House and Senate. The Household Goods Shipping Consumer Protection Act would attempt to crack down on fraud involving residential moving companies, but it also would assist in the overall effort to fight freight fraud.
The bill would restore and codify the Federal Motor Carrier Safety Administration’s authority to issue civil penalties against bad actors. The legislation also requires brokers, freight forwarders and carriers to provide a valid business address to FMCSA before acquiring operating authority.
