Executive Commentary |
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vessel performance , can further reduce carbon footprint .
Governments and regulators can also help by implementing carbon pricing mechanisms , offering subsidies , establishing fair regulations and introducing uniform rules to provide clear guidance for the shipping industry actors . The development of global infrastructure that enables the use of lower carbon and cleaner fuels at ports can also boost such efforts .
If the recent trend of the global shipping order book is taken to be an indication , then the industry is already moving in the right direction . This year , methanol ships account for ~ 21 % of the order book while LNG ships account for ~ 33 %. In the container segment alone , ~ 55 % of vessels ordered are LNG powered . However , most of these ships will be dual-fueled , and could still be operated using conventional fuels if regulations permit .
Jacksonville Port Authority ( JAXPORT )
Eric Green
CEO www . jaxport . com
The container industry is set to experience perhaps one of its most significant shifts in the last decade as shippers and ocean carriers adopt to alliance changes set to take effect in 2025 . The musical chairs will result in new partners and new ship rotations .
One example is the Gemini Cooperation , the partnership between Hapag-Lloyd and Maersk . When Gemini brings its new North America Shuttle service to JAXPORT next year , it will provide transshipment service linking Cartagena , Colombia , with Miami and Jacksonville . The service promises increased schedule reliability over traditional models by streamlining port calls .
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By working together , stakeholders can ensure that challenges such as decarbonization and the need to transition to cleaner energy sources are met .
Jon Monroe Consulting
Jon Monroe
President www . jonmonroe . com
Volatility and uncertainty are at an all-time high in trans-Pacific trade . As we approach the new year , our perspective on ocean carriers and supply chain management is set to evolve significantly . Two key developments to watch are
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When the dust settles , new connectivity created by the upcoming alliance changes will allow us to reach more global ports than ever before .
On the landside , one challenge consistently facing ports is the ability to stay ahead of capacity constraints as cargo volumes into the East Coast continue to grow . Shippers and ocean carriers want to know if US ports can provide the facilities , equipment and inland transportation options to stay ahead of throughput .
That is why we continue to prioritize strategic growth . Currently , we are handling about 50 % of the container volumes we will be able to handle when our major growth projects at Blount Island wrap up next year . We know the growth is coming , and we are not waiting until we become congested to build the capacity .
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“ Whether justified or not , ILA President Harold Daggett is firmly committed to halting the progress of automation in the industry . The pressing question is whether ocean carriers will concede to the ILA ’ s demands .”
Jon Monroe
“ When the dust settles , new connectivity created by the upcoming alliance changes will allow us to reach more global ports than ever before .”
Eric Green
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the impending International Longshoremen ’ s Association ( ILA ) contract deadline and carrier schedule alterations due to shifting alliances .
Whether justified or not , ILA President Harold Daggett is firmly committed to halting the progress of automation in the industry . The pressing question is whether ocean carriers will concede to the ILA ’ s demands . This issue will be one of the first significant challenges of 2025 and heavily influence how carriers navigate the year ahead . Carriers may have little motivation to compromise , as allowing a strike could give them the leverage to increase shipping rates . With rising operational costs and market dynamics at play , the stakes are high , and both sides will need to carefully consider their strategies . As this conflict unfolds , it could reshape the landscape of labor relations and operational practices in the maritime sector .
The second critical issue will be how carriers navigate the transition into the new alliance structure . Mediterranean Shipping Co . and the Gemini Alliance are pursuing distinctly different strategies ; while these approaches aren ’ t mutually exclusive , one could set a precedent that influences the other alliances . These changes could create a disruptive environment until the transition is complete .
On one hand , MSC is banking on a substantial fleet to offer fast , direct services . However , this strategy raises questions — haven ’ t we seen this before ? MSC seems to overlook the importance of schedule reliability , possibly counting on disruptions to bolster profitability . This reliance on a high-volume , low-reliability model may ultimately backfire if customers prioritize consistency and dependability over speed . As the alliances evolve , it will be fascinating to see which strategies prevail and how they shape the future of maritime logistics .
In contrast , Gemini is aiming for over 90 % schedule reliability , likely seeking to attract shippers through consistent service with minimal disruptions . Their new offering relies on a hub-and-spoke model , utilizing terminals that they own and control . MSC has expressed skepticism about this approach , which raises the question : do they doubt its feasibility , or do they simply hope to see it fail ?
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