Dive Brief:
The Competition Directorate of the European Commission, the European Freight Forwarders Association and the European Shippers Council sent a letter to the European Commission, accusing ocean carriers of breaking contracts, and are asking the regulatory authority to take steps to investigate the situation, according to a press release and emails from individuals involved in the discussions.
Along with contract violations, the concerns highlighted in the letter include carrier conditions for accepting bookings and the ability of ocean carriers to unilaterally set rates, according to the release.
The ocean alliances respective capacity management efforts have led to the recent hikes in container freight rates, the organizations said in their letter to the Commission, an excerpt of which was shared with Supply Chain Dive. The letter also notes that the carriers abilities to cut capacity while raising rates earlier in 2020 helped to create the current issues.
Supply chains generally tend to be well orchestrated for moving goods across global networks. Any short-term disruption can lead to bottlenecks as is the case with port congestion these days. Port congestions are not new to the industry and have been handled in the past as well. Since ports are gateways for global trade, any .
Outlook 2021: No relief in sight for LA-LB congestion problems joc.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from joc.com Daily Mail and Mail on Sunday newspapers.
Synopsis
The world’s top container line, A.P. Moller-Maersk A/S, this month called the challenges “the most dramatic stress test of the past 75 years.”
Shares of Maersk are flirting with an all-time high and the industry more broadly banked profits of $5.1 billion in the third quarter, a four-fold increase from a year earlier
Container shipping, the backbone of the global trading system, is showing signs of fatigue as the pandemic descends into its darkest days.
Carriers reaping the biggest profits in at least a decade are struggling to operate reliably as bottlenecks worsen around ports from southern England to Shanghai, contorting supply chains for everything from car parts to cosmetics and medical equipment.
The Real Cost Of Ocean Freight Out Of Asia Is Hitting Unbelievable Heights zerohedge.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zerohedge.com Daily Mail and Mail on Sunday newspapers.