Shipping costs continue to soar! FMC requires Maersk and CMA CGM to submit internal documents!

It is learned that according to foreign media reports, the US Federal Maritime Commission (FMC) recently asked global leading shipping companies such as Maersk, CMA CGM Group and Hapag-Lloyd to submit relevant documents and information before March 16 to explain the reasons for the increase in freight rates in the past two years.

The documents included internal and external communications regarding trans-Pacific freight rates, communications with other carriers regarding trans-Pacific freight rates, and lists of customer contracts over the years.

It is reported that the US Congress is expressing concern about the rising shipping costs: the shipping price from Asia to the West Coast of the United States has climbed to US$16,155/40-foot container (204% higher than the same period last year), and the freight rate from Asia to the East Coast of the United States has soared to US$18,250 (218% higher than the same period last year).

As freight rates climb, ocean carriers have become the focus of regulation. In July 2021, the FMC announced an audit of nine major liner companies, including Maersk, Mediterranean Shipping Company, CMA CGM, and Hapag-Lloyd, to ensure that they comply with FMC regulations on U.S. demurrage and port charges. However, most industry insiders were opposed to this review at the time.

In a letter to carriers, the FMC expressed further concern that shipping lines could use the short-term price surge to lock in long-term contracts at high prices.

The World Shipping Council said that with demand for ocean freight services into the United States reaching record levels, market dynamics are influencing prices - rather than carriers joining together to lock in high prices. These vessel sharing agreements (VSAs) do not include commercial cooperation, but are purely operational contracts that enable carriers to share space on each other's ships, thereby improving efficiency and supporting services to more ports.

Editor✎Irene/

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