Yet ACL, the world’s oldest continually operating container line, now faces an unprecedented challenge. This provision is bad enough that it might drive them out of the U.S. market entirely. But owned by the Grimaldi Group of Italy, ACL is at a crossroads. This is particularly notable given a pair of proposed fines focused on Chinese-built containerships recently. With CEO Andrew Abbott at the helm, the company is now faced with an unfortunate choice. Should these fines be levied, they may be forced to pull their vessels out of the Atlantic entirely. This deregulatory action will have a huge effect on American exporters and importers alike. It is most dangerous for those who rely on ACL’s unique services linking North America and North Europe.
ACL has established itself as the only company currently operating combination container-roll-on-roll-off ships on this route. They do an outstanding job moving a variety of complex cargo, from vehicles, construction equipment, aircraft to project cargo. Despite a challenging year in 2024, which marked ACL’s smallest volume year since 1967, the company has seen a 50% increase in U.S. exports since January 2024. Imports include tractors, combines, construction equipment, tributaries, and other oversized exports. Since they are bound for Europe, they come from big ports such as New York, Baltimore, and Norfolk and go directly to Europe.
Though the possible penalties are significant, they are part of a larger regulatory push to remedy competitive disadvantages caused by Chinese-built ships. Now, Abbott cautions, the unintended consequences of these measures threaten to do more damage to American interests than their intended targets.
“This hits American exporters and importers worse than anybody else,” – Andrew Abbott, CEO of niche ocean carrier ACL
If forced to exit the U.S. market, ACL would likely reroute its imports or exports to Canadian or Mexican ports. An immediate shift like this would paralyze the existing supply chain. Further, it would have serious consequences for domestic manufacturers who use ACL as their primary carrier on the North Atlantic. The ripple effect of this decision would soon be felt even further, reaching the truck drivers and warehouse workers who support ACL’s U.S. headquarters.
The company’s unusual position in the market makes it uniquely vulnerable to these proposed fines. Though some of the impact can likely be mitigated by larger ocean carriers, ACL’s U.S. operations are much more vulnerable. Abbott has argued that the very operators these regulatory moves are aimed at may be left relatively unscathed.
“The Chinese operators that they’re trying to go against because of the way they operate their ships, and the number of ports that they’re calling, are probably going to be among the least affected by this new setup. So the guys you want to target are getting off scot free, and the guys who were in your own country get nailed,” – Andrew Abbott, CEO of niche ocean carrier ACL
ACL’s potential departure from the U.S. would leave a void in the market for oversized and project cargo heading to Europe. This instance further illustrates the importance of ACL as a U.S. – flagged North Atlantic carrier. They play a huge role in delivering those services too small for larger carriers to economically provide.
The company’s mission is supported out of their 11 U.S. offices, which house about 300 employees. The supply chain pipeline supporting these knife-edge operations depends on a host of indispensable roles from truck drivers to warehouse workers. Further, any interruption in service could derail their efforts and severely threaten their livelihoods.