Antitrust Investigations

2021 carrier bonanza could presage a crash of the ocean titans in 2022

Reading supply chain industry tea leaves has become near-impossible over the past couple of years. Nonetheless, the first missive from Fiata this year contains some notably spikey wording, which suggests 2022 will see increasing opposition to the growing influence of cash-rich box shipping lines outside their core business.
Newton’s third law of motion contends that, when two bodies interact they apply an equal force to each other, but in opposite directions. …

The post 2021 carrier bonanza...

https://theloadstar.com/2021-carrier-bonanza-could-presage-a-crash-of-the-ocean-titans-in-2022/

M&A radar: Cargotec + Konecranes merger – increasingly shaky, with two ‘buts’

One of the biggest mergers in the container handling equipment sector – a key provider to the supply chain – is looking increasingly shaky by the day, as competition regulators around the world begin to voice their opposition.
The proposed merger of two Finnish engineering behemoths in the sector – Cargotec and Konecranes* – both listed on the Helsinki Stock Exchange and hitherto very much fierce competitors, appears to be on …

The post M&A radar: Cargotec + Konecranes merger – increasingly...

https://theloadstar.com/ma-radar-cargotec-konecranes-merger-increasingly-shaky-with-two-buts/

Shippers and forwarders mull legal bid against alliances to cap soaring rates

The European Commission has said it does not regard the huge container spot rate increases between Asia and Europe as sufficient justification to investigate carriers for an infringement of the Block Exemption Regulation (BER) for consortia.
The European Shippers’ Council (ESC) and European freight forwarder association CLECAT had presented the EC with data relating to the increase in blank sailings, a decrease in reliability “and especially the outrageous price hikes that …

The post Shippers...

https://theloadstar.com/shippers-and-forwarders-mull-legal-bid-against-alliances-to-cap-soaring-rates/

Shippers and forwarders claim carriers breach contracts to demand higher rates

As Asia-Europe container spot rates continue to skyrocket, shippers and freight forwarders are accusing carriers of breaching short- and long-term contracts to “charge whatever they want”.
In a joint letter to the Competition Directorate of the European Commission (EC), the European Freight Forwarders Association (CLECAT) and European Shippers’ Council (ESC) have protested about the “damage” the carriers’ behaviour is “causing to trade growth at a time of economic recession”.
According to the …

T...

https://theloadstar.com/shippers-and-forwarders-claim-carriers-breach-contracts-to-demand-higher-rates/

More box ships skip UK hub ports and forwarders urge EC to intervene

As carriers continue to leave import containers stranded at North European ports and charge exporters more than $5,000 to ship a box to Asia, the pressure is growing for regulatory intervention.
And UK importers today face major challenges from the decision by Ocean Alliance members to divert five more vessels from Felixstowe to Zeebrugge in December.
An advisory on Friday told UK customers that the Cosco Shipping Azalea, Ever Goods, Ever Globe, CSCL Jupiter and CSCL …

The post More box ships...

https://theloadstar.com/more-box-ships-skip-uk-hub-ports-and-forwarders-urge-ec-to-intervene/

Supply chain radar: The ocean freight competition rub – Hello Herfindahl, my old friend

Not so long ago, container lines competed with each other on price, with disastrous results.
The well documented race to the bottom on pricing, and race to the top on ship-building, dovetailed with the 2008 financial crisis, sending the industry into a tailspin.
Fast forward a few years to another crisis and the carriers are in better shape, having cut capacity dramatically.
Couple that, though, with the big answer to yesterday’s problems – …

The post Supply chain radar: The ocean freight...

https://theloadstar.com/supply-chain-radar-the-ocean-freight-competition-rub-hello-herfindahl-my-old-friend/

Asia-US spot rates pushed to new highs, despite warnings from China and FMC

Container spot rates from Asia to the US, including space guarantees and equipment priority fees, have topped $4,000 per 40ft to the US west coast and $5,000 to the east coast.
Despite “guidance” by the Chinese Ministry of Transport and a warning by the US Federal Maritime Commission (FMC), several carriers have pushed ahead with their 15 September GRIs.
The FMC warned it may seek an injunction for a ‘collusion’ breach of …

The post Asia-US spot rates pushed to new highs, despite warnings from...

https://theloadstar.com/asia-us-spot-rates-hit-new-heights-despite-warnings-from-china-and-the-fmc/

FMC fires ‘collusion’ warning shot across the bows of transpacific carriers

US ocean regulator the Federal Maritime Commission (FMC) has fired a warning shot across the bows of container shipping lines, saying it will head to the courts if there is evidence of collusion on the transpacific trades.
Freight rates between Asia and the east and west coast of the US have reached record highs in recent months and, following a closed meeting of FMC commissioners yesterday, the regulator said it was …

The post FMC fires ‘collusion’ warning shot across the bows of transpacific...

https://theloadstar.com/fmc-fires-collusion-warning-shot-across-the-bows-of-transpacific-carriers/

Demand driving transpacific prices sky high, with Asia-Europe benefiting too

Container spot freight rates on the transpacific trades leapt this week, with prices from Asia to US west coast ports sailing way above $3,000 per feu – and looking set to jump higher.
Today’s Shanghai Containerised Freight Index (SCFI) reading – prices quoted for next week – was $3,406 per feu, an increase of 8.3% over last week’s reading of $3,144.
It showed a slight variation with the midweek Freightos Baltic Index …

The post Demand driving transpacific prices sky high, with Asia-Europe...

https://theloadstar.com/demand-driving-transpacific-prices-sky-high-with-asia-europe-benefiting-too/

CLdN calls for retraction of ‘misguided’ and ‘unnecessary’ state ferry subsidy

UK-Europe ro-ro operator CLdN today defended its decision to launch a judicial review into the British government’s £35m aid package to the ferry industry.
Appearing in front of the all-party Parliamentary Transport Select Committee via video link today, CLdN director Benjamin Dove-Seymour said the aid package awarded to six ferry operators across 16 routes between the UK and Europe and Northern Ireland, designated as “Public Service Obligation Routes”, was “misguided”.
Calling it …

The post CLdN...

https://theloadstar.com/cldn-calls-for-retraction-of-misguided-and-unnecessary-state-ferry-subsidy/

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