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Why Supply Chain Due Diligence Is Becoming a Business Imperative

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Why Supply Chain Due Diligence Is Becoming a Business Imperative

Supply chain due diligence requirements are growing quickly. What’s driving this shift, and why are so many companies struggling to keep up?

Supply chain due diligence is becoming much more data-driven. Regulators increasingly expect companies to provide verifiable information about where products come from, how they’re made, and whether human rights and environmental standards are being met. EUDR, the EU Forced Labour Regulation, PPWR, and the emerging Digital Product Passport framework are all moving toward the same expectation: trusted, structured supply chain data.

Read also: Set Up a Compliance-Ready Export Supply Chain

This summer alone illustrates how quickly expectations are changing. New guidance on the EU Forced Labour Regulation arrived in June, the Digital Product Passport registry launched in July, and PPWR follows in August. Many companies are still trying to meet those expectations with disconnected systems and manual processes, an approach that simply doesn’t scale as regulations become more complex.

We’ve seen the difference firsthand. One brand completed a full due diligence assessment in 31 minutes, while another needed several hours and a team of six. The regulation didn’t change between them, just their data readiness. 

You often describe supply chain due diligence as a “pre-competitive” issue rather than a competitive advantage. What do you mean by that, and why are major retailers beginning to collaborate instead of building their own proprietary systems?

Supply chain due diligence is not something companies should compete on. The goal is to create a common foundation for collecting and assessing supply chain data so everyone is working from the same baseline. The real competitive advantage comes from how companies act on those insights, not from maintaining proprietary questionnaires or duplicative compliance processes.

Historically, each retailer developed its own supplier questionnaires, due diligence workflows, and corrective action requirements. For brands selling to multiple retailers, that often meant providing the same information repeatedly in slightly different formats. Major retailers are increasingly recognizing that standardizing these processes doesn’t diminish their competitive position. Instead, it reduces administrative burden for suppliers, improves data consistency, and gives retailers higher-quality, more comparable information for managing supply chain risk. When data can be shared through a common framework, everyone spends less time on repetitive reporting and more time addressing the issues that actually matter.

Many smaller brands don’t have dedicated compliance teams. How has the current approach to supplier questionnaires, audits, and certifications disproportionately affected SMBs?

Smaller brands feel this most because they don’t have a dedicated compliance function to absorb the work. Large organizations may have specialists managing supplier questionnaires, audits, certifications, and corrective action plans, but many SMBs are trying to meet the same expectations with only a handful of employees.

That’s the gap solutions like One Retail Hub aim to close. Instead of managing a different process for every retailer relationship, a brand completes one shared assessment and reuses its existing documentation wherever it’s needed. It gives smaller brands access to the same standardized process larger organizations use, without requiring them to build an entire compliance function first.

Retailers have historically relied on their own questionnaires and compliance processes. Why is that model becoming increasingly unsustainable for global supply chains?

Every retailer asking suppliers to complete a different questionnaire may have been manageable when due diligence expectations were relatively limited. It becomes much harder when every new regulation requires more evidence, more supplier engagement, and more product-level documentation. Companies end up repeating the same work across multiple systems instead of building on information they’ve already collected.

The challenge is not just the time involved, but the growing cost of compliance. Even large brands are feeling that pressure, while smaller businesses often lack the resources to keep up. The industry needs to make compliance more practical so companies can spend less time managing administrative requirements and more time strengthening their supply chains.

How can the industry reduce the cost of compliance without lowering standards?

The industry can reduce the cost of compliance by reducing duplication, not by lowering standards. Companies shouldn’t have to collect the same evidence five different times simply because five customers ask for it in different ways.

Some manufacturers now spend around 150 hours every month on data collection and reporting, with dedicated staff focused solely on paperwork and traceability. By standardizing how due diligence information is collected and reused, companies can significantly reduce administrative effort while maintaining the same level of transparency and accountability. The goal is not to ask for less information, but to make it much easier to manage and apply across different requirements.

How can better supply chain data help companies do more than just meet compliance requirements?

Once the data exists in one place, verified and structured, compliance becomes the floor, not the ceiling. The same supplier information that proves EUDR or forced labour compliance can also show a brand where its Scope 3 emissions are coming from, which suppliers carry disproportionate risk, and where sourcing decisions can reduce both cost and impact.

We’re seeing brands use that information for real-time visibility rather than year-end reporting. Linking purchase orders to mapped suppliers means a brand knows, the moment an order is placed, exactly which facility will produce it and what that facility’s track record looks like. That’s a sourcing decision made with foresight instead of a compliance report written in hindsight.

The same data also strengthens product claims. If a brand says a garment contains 30 percent recycled material, it should have a verified data trail that supports that claim just as confidently as it would support a regulatory audit.

The long-term goal is for supply chain data to reach the same level of rigor as financial data. Better sourcing decisions, stronger risk management, and more credible product claims are what make it valuable long after the reporting requirement is met.

What needs to happen for compliance to become simpler and less expensive for companies across the supply chain?

The key is moving away from fragmented, retailer-by-retailer compliance and toward shared infrastructure. 

Industry initiatives such as One Retail Hub demonstrate what that can look like by giving brands a standardized way to complete and share HREDD assessments across participating retailers while building on documentation they already have. AI can also help identify, organize, and reuse relevant information, making the process faster and more efficient without changing the underlying requirements.

As more retailers align around common frameworks, compliance becomes much easier to scale, allowing companies to spend more time improving supply chain transparency and strengthening due diligence rather than managing repetitive reporting.

Looking ahead, how do you see supply chain compliance changing over the next few years?

The biggest shift is away from compliance as an annual project. Right now, most teams still treat each regulation as its own sprint: gather evidence, submit it, then move on to the next requirement. Over the next few years, compliance will become much more continuous, with data collected as products move through the supply chain rather than assembled retroactively when a deadline arrives.

The second shift is from fragmented systems toward shared infrastructure. One Retail Hub is an early example of that, with multiple retailers agreeing that a common questionnaire is more effective than maintaining separate versions of the same process. I expect more of the industry to reach the same conclusion, not because collaboration is fashionable, but because the alternative simply doesn’t scale as regulations continue to multiply.

The third shift is that scrutiny will move earlier in the process. The EU Forced Labour Regulation’s latest guidance makes it clear that a company’s existing traceability can influence whether an investigation proceeds before it formally begins. That’s a preview of where the industry is heading more broadly. Companies with structured, retrievable data won’t just report faster. They’ll also be better positioned to demonstrate compliance from the outset.

Taken together, compliance stops being a reactive function and becomes business infrastructure that supports sourcing, risk management, product claims, and broader supply chain decision-making.

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Shipping Industry Pushes Back Against Proposed Hormuz Transit Fees

The global shipping industry has called on the United Nations (UN) and the International Maritime Organization (IMO) to reject any proposal that would introduce mandatory transit fees for vessels passing through the Strait of Hormuz, warning that such charges could disrupt global trade and undermine long-standing international maritime law.

Read also: Container Shipping Giants Shift from Chartering to Fleet Ownership

In a joint letter sent to UN Secretary-General António Guterres and IMO Secretary-General Arsenio Dominguez, eight major international shipping organizations stressed that freedom of navigation through international waterways must remain protected and should not become part of political negotiations.

The appeal follows reports that Iran and Oman are discussing a new framework for managing shipping through the Strait of Hormuz. While negotiations remain ongoing, industry leaders fear the talks could lead to compulsory transit charges or service fees for commercial vessels using the strategic waterway.

According to the organizations, introducing mandatory payments for passage through Hormuz would break with decades of established maritime practice and could have far-reaching consequences for global commerce.

The industry argues that any form of compulsory transit fee—even if labeled as a service charge—would increase shipping costs, drive up freight expenses, and ultimately contribute to higher energy prices, inflation, and rising costs across international supply chains.

Shipping groups also warned that allowing transit fees in one of the world’s busiest maritime chokepoints could encourage similar measures in other critical waterways, fundamentally altering the principles of free navigation protected under international law.

The letter was signed by some of the world’s largest maritime organizations, including the Asian Shipowners’ Association (ASA), BIMCO, Cruise Lines International Association (CLIA), European Shipowners (ECSA), International Chamber of Shipping (ICS), INTERCARGO, INTERTANKO, and the World Shipping Council (WSC).

Industry leaders said maintaining unrestricted passage through international straits is essential to global trade, energy security, and resilient supply chains. They cautioned that introducing tolls would create uncertainty for shipowners and cargo interests while weakening protections established under the United Nations Convention on the Law of the Sea (UNCLOS).

The organizations also highlighted the human cost of recent instability in the region, noting that seafarers have continued operating under dangerous conditions during months of conflict. They emphasized that crew safety must remain a top priority and should not be further jeopardized by political or regulatory uncertainty.

The latest appeal builds on earlier industry guidance issued during the regional conflict, which advised ship operators to prepare for a range of security threats while transiting the Strait of Hormuz. Those recommendations covered risks such as missile attacks, electronic interference, GPS disruption, AIS spoofing, sea mines, and heavy vessel congestion.

Maritime organizations also cautioned that diverting vessels away from the established Traffic Separation Scheme could create additional navigational hazards, as surrounding waters are not designed to safely accommodate large volumes of opposing commercial traffic.

While previous guidance focused primarily on operational safety, the new appeal centers on preserving the legal framework that governs international shipping routes. Industry leaders argue that any future agreement covering the Strait of Hormuz should continue to guarantee toll-free passage and uphold internationally recognized principles of freedom of navigation.

The organizations concluded by reaffirming their willingness to work alongside the IMO and the United Nations to ensure that existing international maritime laws remain intact and that the Strait of Hormuz continues to operate as a free and open passage for global commerce.

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Container Shipping Giants Shift from Chartering to Fleet Ownership

The container shipping industry has undergone a significant structural shift since the early days of the pandemic, according to a report from The Maritime Executive. At the start of the health crisis, the largest ocean carriers relied heavily on chartered vessels to maintain flexibility in fleet sizing, but that approach has now been reversed.

Read also: Container Lines Boost Owned Fleet Share to 63%

Ownership Now Dominates Among Top Carriers

Data from Sea-Intelligence indicates that the 12 largest container lines now own roughly 63 percent of their operated capacity on average. This marks a clear departure from the previous capital-light model, where most tonnage was leased rather than owned.

Individual strategies vary widely across the sector. Israel’s ZIM has maintained a charter-heavy approach, owning only about 15 ships while chartering the remaining 101 vessels in its fleet. At the opposite end, Taiwan’s Wan Hai has eliminated all chartered tonnage and now owns its entire fleet of 124 ships. MSC, HMM, and Evergreen also lean heavily toward ownership.

MSC Leads the Ownership Push

MSC’s aggressive acquisition of secondhand vessels and rapid newbuild ordering during the early 2020s has been a major factor in shifting the industry average. The carrier now operates more than 1,000 hulls with a total capacity of 7.3 million TEU afloat. Its owned fleet alone exceeds the combined fleet of its nearest rival, Maersk Line, and continues to expand. In June, reports linked MSC to orders for another 20 vessels of 20,000 TEU each at Hengli Heavy Industries, which would bring its orderbook to roughly 2.6 million TEU.

Other carriers that have moved decisively toward ownership include CMA CGM, PIL, and Evergreen, all of which now own a majority of their fleets.

Operational and Financial Benefits

The shift toward owned tonnage offers carriers greater predictability and control, both operationally and on the balance sheet. Owned vessels are insulated from charter market volatility, such as the extreme rate spikes seen during the pandemic. Carriers with owned ships avoid end-of-charter bidding wars and do not have to comply with shipowners’ specifications regarding maintenance, trading areas, or other operational constraints. This provides more flexibility in planning service routes and improves the ability to capture peak earnings when container rates rise. In a boom market, an owned vessel remains available even when chartered ships are taken by other parties.

Source: IndexBox Market Intelligence Platform  

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Shipping Industry Must Adapt to New Era of Geopolitical Risk

A business commentary published on July 28, 2026, in Splash247 examines how the global shipping industry must adapt to a new era of geopolitical risk. The article, drawing on an essay by Robert Pape in the July edition of Foreign Affairs, argues that the widespread availability of cheap precision weapons has eroded the long-standing assumption of American military dominance over trade routes.

Read also: Supply Chain Redesign Is Now a Strategic Imperative Amid Geopolitical Shocks

The End of the Implicit Warranty

For roughly three decades, global trade operated under an unspoken guarantee that U.S. naval and air power would keep sea lanes open at predictable costs. This assumption was cemented by the 1991 Gulf War, where a coalition force swiftly dismantled a large army, leading the world to conclude that resistance to the American-led order was futile. Insurers priced risk accordingly, companies built lean supply chains, and charterers stopped budgeting for war-related disruptions.

That guarantee has now expired. Confidence eroded gradually through a series of incidents in the Red Sea and the Strait of Hormuz, where weaker actors armed with commercially available drones and missiles costing a few thousand dollars discovered they did not need to win a naval battle. They only needed to make underwriters nervous. The downing of a $35 million attack helicopter by a modest Shahed drone demonstrates that the calculus of deterrence has reversed. Precision warfare, once a monopoly of major powers, is now accessible off the shelf, and this diffusion benefits the weaker side.

Commercial Unusability vs. Physical Closure

The Strait of Hormuz has not physically closed; tankers still transit it. The key consequence is that a waterway can remain physically open while becoming commercially unusable. Insurance premiums spike, transit times lengthen, capacity is diverted around Africa, and the certainty that supported decades of lean supply chains disappears. Confidence, not cargo capacity, is the resource under attack. If similar tactics are applied to the Taiwan Strait, through which roughly one-fifth of global maritime trade passes, the disruption would be unprecedented for the industry.

The article describes this situation as a predictability recession — not a decline in trade volumes, but a decline in the confidence with which trade can be planned. It calls for shipping companies to abandon assumptions that have guided decision-making since the Gulf War.

Four Required Shifts in Thinking

First, route planning can no longer treat chokepoints as fixed infrastructure with occasional weather-like disruptions. They are now contested commercial-military spaces with volatile risk profiles that can shift within weeks, not years.

Second, insurance and freight-rate models built on historical baselines will underprice the next crisis, because each new crisis is generated by technology that did not exist when the baseline was set. Dynamic, scenario-weighted pricing must replace static risk tables.

Third, redundancy in routing, bunkering, port relationships, and war-risk coverage stops being a cost center and becomes a core competitive asset. Companies that treated resilience as overhead during low-volatility decades will be caught unprepared.

Fourth, geopolitical judgment can no longer sit at the periphery of commercial decision-making, consulted occasionally through a risk memo. It must be continuously integrated into routing, chartering, insurance, and capital allocation decisions.

A New Executive Role Proposed

The article argues that the industry needs a new C-suite position: a chief geostrategic officer. This would not be a risk officer bolted onto compliance or a consultant retained for quarterly briefings. Instead, it would be an executive fluent in both statecraft and shipping economics, tasked with translating military movements, sanctions regimes, and regional flashpoints into live commercial decisions — which routes to book, which cargoes to insure and at what premium, which ports to avoid, and which contracts need war-risk clauses rewritten this quarter. The discipline required is constant awareness of shifting ground, rigorous commercial assessment, and the instinct to act before the insurance market reprices the risk.

The Gulf War convinced a generation of executives that geopolitics was background noise, safely delegated to governments. The current conflict involving Iran and its shadow over Taiwan should convince this generation of the opposite: geopolitics is now a front-line commercial variable, moving faster than annual strategy cycles can absorb. Shipping companies that build the organizational muscle to read and act on that variable in real time will not only survive the predictability recession but will price risk better than competitors and win business that others are too slow to quote.

Read also:

https://www.indexbox.io/blog/shipping-industry-must-adapt-to-new-era-of-geopolitical-risk/

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Container Spot Rates Extend Decline as Global Shipping Demand Softens

Container freight rates continued to slide this week as rising vessel capacity and weaker cargo demand put fresh pressure on key east-west shipping routes, according to the latest figures from Drewry’s World Container Index (WCI).

Read also: Container Shipping Recovery Speeds: From Pandemic to Red Sea Crisis

The benchmark index fell 4% to $4,374 per 40-foot container, marking its second consecutive weekly decline as carriers continue adding capacity despite softer market conditions.

The sharpest drop was seen on the Transpacific trade lane, where spot rates from Shanghai to Los Angeles fell 6% to $5,878 per FEU, while rates from Shanghai to New York declined 4% to $7,598 per FEU.

Drewry attributed the decline to an increase in available shipping capacity combined with slowing cargo demand. The consultancy noted that carriers have reduced the number of blank sailings on the Transpacific route, with six cancellations scheduled for next week, compared with nine this week, indicating more vessels are returning to service.

Despite the recent downward trend, Drewry expects freight rates on the Transpacific trade to remain relatively stable over the coming week.

The market is also closely watching developments in U.S. trade policy. The current 10% universal U.S. import tariff is set to expire on July 24, with revised tariff measures expected to be introduced in early August. The uncertainty is prompting importers to closely monitor shipping schedules and inventory strategies.

Asia-Europe routes also experienced declines, although the decreases were less pronounced.

Rates from Shanghai to Genoa dropped 5% to $5,988 per FEU, while Shanghai to Rotterdam slipped 1% to $4,824 per FEU.

According to Drewry, carriers have scheduled four blank sailings on the Asia-Europe route next week—double the number recorded the previous week. However, overall vessel capacity continues to grow faster than cargo demand, placing additional pressure on freight prices.

The consultancy expects rates on the Asia-Europe trade lane to soften further in the near term.

Meanwhile, geopolitical risks remain firmly on the industry’s radar. Drewry said ongoing tensions surrounding the Strait of Hormuz and the broader U.S.-Iran conflict have prompted several ocean carriers to introduce Emergency Fuel Surcharges (EFS) beginning in August to offset rising operating costs.

Although those geopolitical concerns have not yet reversed the recent decline in spot freight rates, Drewry noted that developments in the Middle East, coupled with uncertainty over upcoming U.S. tariff changes, could significantly influence container shipping markets in the weeks ahead.

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Maersk and Hapag-Lloyd Resume Suez Canal Transit Under Gemini Cooperation

On July 6, 2026, The Maritime Executive reported that Maersk and Hapag-Lloyd have reached a joint agreement to try once more to resume using the Suez Canal and Red Sea for one of their service routes within the Gemini Cooperation. This represents the second occasion in 2026 that these two carriers have attempted to bring their itineraries back to that area.

Read also: Maersk Updates Intermodal Fuel Surcharges Across Europe Effective July 2026

The initial service to be restored connects Asia, the Mediterranean region, and Turkey. According to the companies, the Majestic Maersk, a 19,000 TEU container vessel registered under the Danish flag, will be the first ship to complete this passage. Based on AIS data and the published schedule, the vessel left Malaysia and is expected to arrive at the Suez Canal around July 24.

Maersk explained that this choice was made after a comprehensive evaluation of safety conditions in the Red Sea zone. It noted that reverting to this path offers faster transit times, greater sustainability, and the highest operational efficiency for client needs. Nonetheless, the firm cautioned that it will keep assessing the situation and might have to adjust individual sailings or implement a broader shift back to the Cape of Good Hope route. Maersk confirmed that contingency measures are already prepared.

With strong encouragement from the Suez Canal Authority, Maersk carried out its initial trial return voyages in November and December 2025. Those were the first instances since late 2023 that the carrier had dispatched ships into the southern Red Sea, following an incident where Houthi forces fired upon several of its vessels. By January 2026, Maersk was prepared to restart certain independent services through the Suez Canal and Red Sea, and one month later, the Gemini Cooperation with Hapag-Lloyd declared the reintroduction of its first routes to that region.

That resumption proved temporary. After hostilities erupted between the United States and Iran at the close of February, Maersk and Hapag-Lloyd once again halted their operations through the Red Sea.

Maersk indicated that the current restart is the beginning of a gradual effort to reestablish transits. However, it cautioned that no definitive schedule has been set at this stage.

The Suez Canal Authority noted that in 2023, Maersk completed 1,158 transits carrying a total net cargo of 127 million tons. Although shipping traffic has been slowly returning to the Suez Canal, large container vessels have been slower to resume. CMA CGM has been the leading major carrier to reinstate services through the area. The Suez Canal Authority had expressed its belief that Maersk would take the lead, prompting other carriers to follow and bring their ships back to this more efficient route.

 

https://www.indexbox.io/blog/maersk-and-hapag-lloyd-resume-suez-canal-transit-under-gemini-cooperation/

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Shipping Container Rates Surge as Tanker Rates Fall Amid Middle East Ceasefire

Shipping container rates from east Asia and China to the United States continued to climb as importers accelerated shipments ahead of potential new tariffs, according to a report from ICIS. Meanwhile, liquid tanker rates softened amid a tentative ceasefire in the Middle East.

Read also: Shipping Container Rates from Asia to US Rise Again Amid Iran Conflict and Peak Season

Strait of Hormuz Developments

Vessel traffic through the Strait of Hormuz increased this week following a six-day ceasefire between the United States and Iran. However, the 8,500 TEU container vessel Ever Lovely was struck by a projectile on 25 June, prompting the International Maritime Organization to suspend its evacuation process. Lars Jensen, president of consultancy Vespucci Maritime, noted that Iran has not claimed responsibility for the attack, while a U.S. official attributed the incident to Iran. According to the Strait of Hormuz tracker, 12 vessels transited the waterway in the past 24 hours.

Current U.S. President Donald Trump accused Iran of the attack in a social media post and described it as a violation of the agreement. Iranian state news agencies reported that three foreign tankers attempting an unauthorized passage through the strait were turned back after a military warning. Iran’s Deputy Foreign Minister Kazem Gharibabadi warned on social media that Tehran will reject any parallel shipping routes or maritime decision-making that bypasses its authority as a key coastal state.

Container Rate Surge

Transpacific container rates spiked again this week, with prices ranging from $5,200 to $6,200 per FEU to the West Coast and from $6,300 to $7,500 per FEU to the East Coast. Supply chain advisors Drewry reported a 12% increase from Shanghai to Los Angeles and a 6% rise from Shanghai to New York. Year-on-year, Drewry’s rates to the East Coast are up 25%, and rates to the West Coast are up 54%. Drewry attributed the robust transpacific demand to importers frontloading shipments ahead of potential tariff changes and higher bunker-related costs. The firm expects rates to rise further in the coming weeks as general rate increases and peak season surcharges are scheduled for July.

Rates from online shipping marketplace Freightos increased by 19% to the West Coast and by 13% to the East Coast. Judah Levine, head of research at Freightos, said rates continue to climb as peak demand from an early busy season keeps vessels full at least into July. Levine added that spot rates will begin to ease from current or near-term levels as demand decreases, regardless of developments in the Strait.

The New York Shipping Exchange Freight Index surged by 23% to both the West Coast and the East Coast. The Shanghai Containerized Freight Index, which tracks rates for containers leaving Shanghai, rose by 3.7% and is now approximately 2.5 times the level seen at the start of the U.S.-Iran conflict.

Container ships and container shipping costs are relevant to the chemical industry because, while most chemicals are liquids shipped in tankers, container vessels transport polymers such as polyethylene and polypropylene in pellet form, as well as titanium dioxide.

Tanker Rate Decline

U.S. chemical tanker freight rates assessed by ICIS were mostly lower, with decreases from the U.S. Gulf across most trade lanes. Most market participants remain cautious, awaiting resolution of the ongoing Middle East conflict. Rates on the U.S. Gulf to Rotterdam route plunged on weaker demand, partially offset by limited availability, especially for larger parcels. Space among regular carriers remains scarce, and contract of affreightment nominations have utilized most available tonnage.

Larger requirements continue to be well represented, with several large lots of methanol and ethanol fixed or indicated to the ARA region. Some interest was also noted for smaller lots of various chemicals. From the U.S. Gulf to Asia, the market remains uneventful, resulting in lower freight ideas. Very few new inquiries were reported over the past week, though a large parcel of ethanol was quoted for a second-half July lifting. For the U.S. Gulf to South America trade lane, the market weakened further as rates continued to be pressured lower. Very few cargoes are being fixed by charterers due to a lack of buyers in the region. The market is strongly supported by solid COA nominations, which naturally pushes spot rates even lower. On the bunker side, fuel prices were lower amid the continued decline in energy prices.

Source: IndexBox Market Intelligence Platform  

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DHL Partners with Vela for Wind-Powered Cargo Shipping

DHL Global Forwarding has agreed to utilize wind-powered cargo vessels developed by French startup Vela, according to a report published on June 25, 2026. The service is expected to commence next year, with Vela’s first commercial transatlantic voyages planned for 2027.

Read also: DHL Supply Chain Begins Construction of European Battery Logistics Hub in Holtum

Vela is developing aluminum trimarans approximately 67 meters in length. Each vessel can transport up to 415 tonnes of cargo, which is roughly five times the volume of a freight aircraft, yet remains significantly smaller than a conventional container ship. The ships are designed to cruise at about 14 knots using wind propulsion. Instead of adhering to fixed liner routes, the vessels will optimize their journeys based on weather patterns and wind conditions.

Vela has stated that the service could cut greenhouse gas emissions by up to 99% compared to air freight and by approximately 90% relative to traditional sea transport. The company is focusing on high-value and time-sensitive goods, such as pharmaceuticals, cosmetics, and luxury items, where shippers seek faster options than standard ocean freight but with a lower carbon footprint than air cargo.

DHL’s participation provides the project with a significant commercial anchor, as wind-powered shipping startups work to transition from demonstration projects to regular cargo operations. Vela intends to build a fleet of five trimarans by 2030, enabling weekly transatlantic sailings. Additional cargo capacity will also be offered to other companies.

The initiative is part of a broader resurgence of wind propulsion in commercial shipping, a trend that was prominently displayed at the Posidonia exhibition in Greece earlier this month.

Source: IndexBox Market Intelligence Platform  

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Strait of Hormuz Recovery Could Take Months, Warns Freight Forwarder

A freight forwarder has joined chemical executives in warning that traffic through the Strait of Hormuz will require several months to return to normal, contingent on the United States and Iran maintaining their latest peace agreement, according to a report by ICIS.

Read also: Strait of Hormuz Traffic Won’t Normalize Until Mines Cleared, Shipping Groups Say

The strait serves as a major conduit for the world’s fuel, feedstock, and plastics, and delays in its reopening are expected to keep prices elevated. Over the past month, demand destruction has exerted a bearish influence on chemicals pricing, yet many product prices remain above pre-conflict levels despite the current downtrend.

Once the strait reopens, repositioning vessels will take time due to the distances involved in traveling to and from the Persian Gulf. Lynn Stacy, managing director at freight forwarder OEC Group Liquid Logistics Solutions, explained in an interview with ICIS that moving a container ship is not like moving a speedboat. A tanker carrying crude from the Middle East can take four to six weeks to reach its destination, after which the oil must be offloaded into storage. A refinery then processes the oil, and the resulting products must go back into storage, at which point logistics begins again.

During the conflict, OEC Group successfully redirected Persian Gulf shipments through the Red Sea, initially landing at the port of Jeddah in Saudi Arabia. When Jeddah became congested, shipments were diverted to King Abdullah Port. Once on land, products were shipped by truck, which increased logistics costs. However, customers involved in drilling and oil production were willing to pay the premium, as the cost of shutting down for one day greatly outweighs the additional logistics expenses.

It remains unclear how much damage Middle Eastern infrastructure sustained, Stacy said. Damage to storage could create a bottleneck for refiners, who need a place to store their output. As storage runs out, refiners reduce operating rates, and run rates could remain depressed until sufficient storage capacity is available.

Stacy indicated that if the strait opened immediately, supply chains could return to normal sometime in the first quarter of 2027. His expectations align with those of chemical executives who have also warned that supply chains will take months to recover. LyondellBasell CEO Peter Vanacker told ICIS that the industry assumption is that the situation will have a very long tail, taking much longer than weeks, months, or quarters to balance out. Dow CFO Jeff Tate also expects a months-long process due to the sequence of events required before traffic returns to normal.

Stacy warned that if fighting resumes, traffic would seize up, as no ocean carrier would risk sending a vessel through the strait again. In response to the uncertainty, Stacy said his clients have been shipping as much as they can as fast as they can, aiming to make as much money as possible because the situation could stop abruptly.

Source: IndexBox Market Intelligence Platform  

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Container Shipping Recovery Speeds: From Pandemic to Red Sea Crisis

A chart published by Sea-Intelligence this week illustrates how rapidly each major container shipping disruption since 2012 has seen delays revert to pre-crisis levels. The pattern indicates quicker recoveries: three months following the 2014 US West Coast labor dispute, one month after Hanjin’s 2016 bankruptcy, 15 to 26 months for the pandemic, and two months for the Red Sea crisis. The Hormuz situation, still ongoing, is marked with a question mark.

Read also: Freight Forwarders Face New Profitability Pressures as Global Shipping Markets Stabilize

Imaad Asad, a shipping analyst at Sea-Intelligence, noted that carriers have fundamentally altered their operations by deliberately inserting buffers into their schedules. During the pandemic, the absence of such buffers meant any disturbance rapidly triggered a system-wide breakdown. Now, by proactively lengthening transit times, shipping lines absorb the impact of disruptions before they escalate. The industry has exchanged speed for stability, and the chart presents a flattering picture.

Simon Heaney, a container shipping analyst at Drewry, offered a more structural perspective. He observed that the crises differ greatly in scale; for container shipping, Hormuz is far less operationally disruptive than Red Sea diversions, which were themselves minor compared to covid. He added that a surplus of vessels has been key to the industry’s enhanced ability to absorb shocks. The sector has adapted to a state of perpetual crisis, aided by having extra ships to reposition. Disruptions yield diminishing returns for carriers. Their ideal scenario is an event that simultaneously triggers a demand spike and a logistics capacity squeeze, which has occurred only modestly with Hormuz.

Judah Levine, head of research at Freightos, concurred that scale is paramount. The pandemic created unprecedented congestion at major ports worldwide, accounting for the exceptionally long recovery period. The Red Sea crisis affected a smaller portion of total container volumes and offered a feasible alternative via the Cape of Good Hope, allowing recovery even as rerouting continued. Hormuz operationally impacted only the 2-3% of global volumes that normally pass through the strait. Levine stated that the extent of delays and recovery times largely corresponds to the severity of the disruptions, while noting that lessons from the pandemic—especially carriers retaining excess capacity as a precaution—are now being applied to new challenges.

Peter Tirschwell, founder of the TPM conference, strongly disagreed. He argued that the key point is that delays are worsening over time, not that recovery from shocks is accelerating. He referenced the World Bank’s Container Port Performance Index, which measures lifts per hour and has never rebounded after covid. Container carrier leaders acknowledge that long-term port delay deterioration is a reality the industry must confront for years ahead.

Peter Sand, chief analyst at Xeneta, contended that the frequency and character of disruptions have changed. He stated that disruptions have become more frequent since covid began, and their impact is more severe than before the pandemic. He cautioned against viewing crises as interchangeable, emphasizing that each is unique and failing to recognize their differences leads to being caught off guard. His broader argument was that freight volatility is now structural, no longer just a manageable risk but a permanent aspect of the operating environment.

The contrast between resilience and genuine system health is evident in the World Bank’s Global Supply Chain Stress Index, which tracks the volume of TEUs stuck in delays. That index currently sits at its highest point since the pandemic peak—over 2 million TEUs under stress—even as the Sea-Intelligence recovery chart suggests shocks are being absorbed more quickly. Meanwhile, the Shanghai Containerized Freight Index has risen back above $2,000 per TEU. Faster recovery from individual events does not equate to a supply chain functioning normally.

Source: IndexBox Market Intelligence Platform