Archives
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- April 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
Freight News
Shippers enraged by global shipping crisis
[ February 18, 2021 // Chris ]The Global Shippers’ Alliance (GSA) says that it is “furious” at the chaotic state of the shipping market “and the lack of mechanisms to resolve it”.
“Production, marketing and distribution are all disrupted and economic costs are beyond measure,” said chairman Denis Choumert, chairman of GSA and the European Shippers’ Council.
Godfried Smit, secretary general of European Shippers’ Council, added: “Many major European ports are jammed, while container ships are waiting for a berth, inbound containers are sitting in the terminals to be cleared and shipping lines are refusing outbound bookings because they want to expedite return of the containers to the Far East”. He said that outbound freight rates have risen 5-6 times but “exporters may still not get a booking”.
Toto Dirgantoro, chairman of the Asian Shippers’ Alliance and the Indonesian National Shippers’ Council said: “Freight rates from the Far East to Europe have increased 10 to 15 times on some occasions and three to four times to North America, even for contract rates, and spot rates would be much higher. Shipping lines are accepting bookings based on profitability or long-term strategic importance, and, hence, small to medium sized shippers are sacrificed”.
GSA believes that resolution of the current situation might be well beyond competition authorities’ jurisdiction. The ESC met with the European Union DG Competition in January 2021. “Shipping lines need to release more core information about capacity planning, capacity changes, service changes, demand forecast, etc. to clear themselves out of collusion claims. Shippers have little access to this sort of information and should rely on relevant authorities to safeguard their interests. Shippers are never on the same playing field with liners,” Smit stated.
GSA highlights the responsibility that carriers have in exchange of the protection they have from standard competition laws. “They should not abuse of these privileges as it seems to be the case today,” says GSA.
It added that it is worrisome that the European Commission recently allowed the renewal of the block exemption for liner shipping consortia without adding any tool or adjustment to check liners and better consider shippers’ interests, which could have been instrumental in preventing or mitigating some of the damage shippers are currently suffering.
Tags: Global Shippers Alliance; European Shippers Council