CMA CGM TO INVEST $20B IN US SHIPPING, SUPPLY CHAIN CAPABILITIES
France-based container shipping and logistic giant CMA CGM Group on Thursday announced it will invest $20 billion over four years in its U.S.-flag fleet, port terminals, an air cargo airline based in Chicago and warehouses to align with President Donald Trump’s goal of increasing America’s domestic shipbuilding and maritime transportation capacity. Trump recently declared his intention to reinvigorate the U.S. shipbuilding industry and the merchant maritime sector to compete with China and strengthen the military industrial base. Trump sided with union dockworkers in their tense contract negotiations with maritime employers that operate U.S. port terminals, calling out foreign shipping lines for making huge profits from access to U.S. ports. A strike was averted in January when the International Longshoremen’s Association agreed to deal with terminal operators.
CONTAINER VOLUMES POST THIRD-BEST JANUARY AT PORT OF NY-NJ
January container volumes at the Port of New York and New Jersey showed continued growth at the East Coast’s largest import gateway. The hub handled 720,283 twenty-foot equivalent units, according to the Port Authority of New York & New Jersey, an increase of 7.9% y/y and the port’s third highest ever for the month. The fast start continues the growth
observed in recent years, topping only by January 2022 at 765,050 TEUs and January 2021’s 721,284 TEUs. The growth continues the port’s positive momentum from 2024, when frontloading by imports ahead of tariffs and potential labor disruptions boosted import volumes. Flows were also aided by importers pulling imports forward ahead of Lunar New
Year. Loaded containers saw a 6.6% year-over-year increase, rising from 447,514 TEUs in January 2024 to 476,874 TEUs in January 2025. Empty container volume grew at a faster rate, increasing by 10.7% from 219,832 TEUs to 243,409 TEUs. Loaded import TEUs rose by 10.3%, from 342,790 in January 2024 to 378,168 in January 2025. Export loaded TEUs experienced a decrease of 5.7%, from 104,724 to 98,706 over the same period. Intermodal rail lifts saw a slight decline of 1%, from 53,013 in January 2024 to 52,487 in January 2025.
MSC THE BIG WINNER AS HUTCHISON LOSES INTEREST IN GLOBAL PORTS
CK Hutchison’s “disinterest” in the terminals business epitomised by a lack of investment over a decade or so, was ultimately to be a major gain for the world’s largest stand-alone container line, MSC.According to port industry sources the sale of Hutchison Ports business, excluding terminals in Hong Kong and mainland China, to a consortium consisting of MSC subsidiary Terminal Investment Limited (TiL) and major US investment company Blackrock was due to the Hong Kong listed company’s terminal portfolio “treading water for 10 years”. Mexican port volumes have increased substantially since Donald Trump’s first tariffs were imposed in 2018-19, during his first term in office.Often considered as a backdoor to the US Xeneta data reveals that Mexico’s port volumes, particularly on the trade route between China and Mexico, have seen a significant surge with record-breaking demand and substantial growth in container shipments. Rapid growth in volumes has led to volatility in freight rates on this trade lane, with June 2024 marking a peak in volume
with 135,724 teu shipped between China and Mexico. “This deal will put MSC and TiL in a dominant position in the Hamburg-Le Havre range with its recent deal HHLA deal, its Rotterdam terminals and its dominant position in Antwerp and Le Havre.”Apart from its stake in HHLA, MSC has a terminal in Bremerhaven, it has a joint venture with Hutchison in Rotterdam’s ECT Delta terminal and is dominant in Antwerp and Le Havre.
PROFITS AND VOLUMES UP FOR RCL, GROWS FLEET
Thai Stock Exchange-listed RCL reported a full year net profit for 2024 of THB9.17 billion ($272.5 million) up 511% from THB1.5 billion in 2023. The company said the jump in profit was largely driven by a 34% rise in freight income to THB8.83 billion which in turn was primarily due to both increased volumes and higher freight income.In 2024 volumes carried by RCL increased to 2.45 million teu up 12% compared to 2023.Average freight rates improved last reaching $404 per teu in 2024, reflecting an 18% increase compared to $343 per teu in 2023. Additionally, RCL recognized revenue from the reversal on impairment of vessels amounting to THB847 million, though at the same time recorded a provision for dispute of THB450 million.The company has been expanding its services geographically into markets such as the Middle East, the Indian subcontinent, and East Africa, as well as growing its reefer services.RCL took delivery of five new buildings last year of which three were deployed on its own services and two chartered out taking advantage of high charter rates. The company has 10 more vessels under construction.