Since the beginning of 2020, due to the impact of COVID-19, global shipping rates have skyrocketed and container prices have reached new highs, severely affecting the global supply chain.

Disruptions in global supply chains have been exacerbated by the COVID-19 pandemic, which has also raised concerns among regulators around the world.  According to a source close to domestic regulators, "Transportation regulators are also paying close attention to the rising containerized freight rates."  

"Sky-high shipping" cooling play?  China, US and EU hold global Maritime Regulatory Summit  

Faced with global logistics woes and unusually high shipping prices, maritime regulators in China, the US and Europe held a meeting.  The Us Federal Maritime Commission (FMC) announced on its website on September 8 that the Ministry of Transportation of China, the US Maritime Commission and the European Union held a "Global Shipping Regulation Summit".  The conference, hosted by the European Commission, will be held online on September 7, 2021.  

According to introduction, the meeting discussed a number of issues of great concern:  

1. Analysis of demand and supply related to international shipping after the outbreak of COVID-19, current difficulties faced by the shipping industry, and the reasons for the impact of the shipping industry.  

2. Actions taken so far by relevant jurisdictions and regulatory authorities in response to the foregoing events and their results.  

3. What might be done in the future to get the industry back on track.  

FMC Chairman Daniel Maffei told the conference: "Unusually high sea freight and container prices have caused widespread concern among regulators, lawmakers and the public around the world.  Today's summit provides a platform for national maritime container regulators to share information on what their regulatory and enforcement mechanisms have observed in the market to address container carriers' pricing adjustments."  

Shipping companies scared?   CMA CGM, the world's third largest shipping company, has announced that it will freeze spot container freight rates until February 1, 2022.  The first shot in the industry!  

Hapag-lloyd, another shipping giant, followed suit: "We believe spot rates have peaked and will not increase rates further."  "We hope that the markets slowly begin to calm down," Mr. Haberot added in the statement.  However, Herberot did not give the freeze spot freight schedule.  

In the market skyrocketed at the same time, Da Fei Shipping, Haberot and other international shipping giants suddenly announced a freeze in freight rates, which also let the troubled shipping industry saw a glimmer of light.  It is expected that other shipping companies will also respond in succession in the future!  

In fact, even at current high "frozen" prices, the shipping giants can make a lot of money.  Even smaller shipping lines that were in the red in the years before the pandemic, unable to generate economies of scale, have joined larger shipping lines in the black.  

As a result, some freight forwarders and shippers aren't buying it either. For them, it's more of a "marketing ploy" because the shipping companies have pushed up rates so high that the suspension of price increases can guarantee their profits.  

In addition, there are shipping analysts in the research report pointed out that the sea freight freeze is only freezing spot prices, this move does not necessarily exclude surcharges will also increase, which has become a major burden for importers and exporters, and surcharges are usually excluded from the freight benchmark.  

Previously, the phenomenon of surcharge arbitrarily collected by shipping companies in the United States has attracted the attention of the White House, and the United States Federal Maritime Commission (FMC) to investigate.  

Industry insiders said: these shipping companies mean that global shipping prices may tend to be relatively stable. "These companies are just on the lookout for price adjustments, but the current high prices are unlikely to be lowered. In fact, this price is the result of supply and demand in the market, and is also affected by the epidemic."  

In fact, even at current high "frozen" prices, the shipping giants can make a lot of money.  Even smaller shipping lines that were in the red in the years before the pandemic, unable to generate economies of scale, have joined larger shipping lines in the black.  

As a result, some freight forwarders and shippers aren't buying it either. For them, it's more of a "marketing ploy" because the shipping companies have pushed up rates so high that the suspension of price increases can guarantee their profits.  

In addition, there are shipping analysts in the research report pointed out that the sea freight freeze is only freezing spot prices, this move does not necessarily exclude surcharges will also increase, which has become a major burden for importers and exporters, and surcharges are usually excluded from the freight benchmark.  

Previously, the phenomenon of surcharge arbitrarily collected by shipping companies in the United States has attracted the attention of the White House, and the United States Federal Maritime Commission (FMC) to investigate.  

Industry insiders said: these shipping companies mean that global shipping prices may tend to be relatively stable. "These companies are just on the lookout for price adjustments, but the current high prices are unlikely to be lowered. In fact, this price is the result of supply and demand in the market, and is also affected by the epidemic."