Freight News, Sea

Lines taking advantage of capacity crunch, say shippers and forwarders

[ November 27, 2020   //   ]

The European Shippers Council (ESC) and European forwarders organisation CLECAT have urged carriers to respect contractual obligations and ensure a regular flow of cargo and containers during the current crisis. ESC president Denis Choumert said that “shipping lines have been taking advantage of the capacity crunch to increase revenues much beyond their costs…Carriers have been passing on tremendous hikes in spot rates, imposing heavy surcharges above the fixed-term contractual rates.”
Clecat president Willem van der Schalk added that the costs for the freight forwarding industry were huge, ranging from the re-booking of shipments to sometimes even losing customers.”
European shippers and forwarders call on liner carriers to put an end to the present situation and to respect contractual agreements.
They added that the privileges enjoyed by lines under the Consortia Block Exemption Regulation, renewed in April this year, were now excessive as they allow carriers to use tools to manipulate the market. They are also “perplexed” that the European Commission has not responded in any way to the current crisis whereas the US Federal Maritime Commission has stepped up its scrutiny of liner activity.

Tags: ,