There may be a turnaround in shipping issues! China, the United States and Europe hold a maritime regulatory summit

Recently, supply chain problems have occurred frequently and shipping prices have been rising. The rising shipping prices have created two situations: on the one hand, shipping companies are making a lot of money, and on the other hand, sellers' costs are rising. The balance between the two sides has gradually been broken. The recent abnormal shipping prices have also attracted the attention of relevant departments. On September 7, the Chinese, American and European delegations held a global maritime regulatory summit to discuss issues such as bottlenecks and service interruptions encountered in the supply chain . According to the latest news release from the U.S. Federal Maritime Commission, the meeting involved three main topics:

sector developments since the start of the COVID-19 pandemic (supply and demand analysis, supply chain bottlenecks related to ocean freight and identification of causes of service disruptions);

the response actions taken to date by relevant jurisdictions and authorities and their outcomes ;

Future development directions and possible actions to enhance the resilience and smooth operation of relevant departments.

FMC Chairman Maffei said at the meeting that the performance of ocean carriers in meeting service demand and the unusually high cost of transporting ocean containers have attracted the interest and attention of global regulators, legislators and the public . However, the specific content of the meeting has not yet been announced.

On Thursday, September 9, the day after the meeting , CMA CGM took the lead in announcing that it would stop all spot freight rate increases , effective from the 9th to February 1, 2022. CMA CGM Group said the decision applies to its brands CMA CGM, CNC, Containerships, Mercosul, ANL and APL.

According to the Shanghai Containerized Freight Index, container freight rates have been rising for 17 consecutive weeks, and prices on other routes are also rising. This meeting, coupled with the CMA CGM Group’s first move, has sent a signal to the shipping industry that there may be a turnaround, and the shipping problem is expected to be alleviated.

It is reported that this meeting was hosted by the European Commission and held via teleconference. The participating delegations include my country's Ministry of Transport, the European Union delegation, and members of the US Federal Provincial Committee.

Ocean Freight

Regulatory Summit

Transition