Surge in container freight rates remains as a focus of EU

SHANGHAI, Jul 20 (SMM) — SMM understands that the surge in container freight rates is being closely watched by the European Union, which just adds to the US call for more competition among shipping alliances. Arianna Podesta, a spokesperson for the EU's antitrust agency, said in an email that the European Commission is "closely monitoring the shipping industry" and is beginning to collect information to "determine the scope of any intervention that can promote the restoration of normal operations."

US President Biden signed a new executive order last Friday, which includes requiring US regulators to take more measures to promote competition in the maritime industry, as the maritime alliance controls more than 80% of the market. The order will encourage the Federal Maritime Commission to impose sanctions on shippers' excessive charging of US exporters, focusing on the high fees charged for waiting to load and unload cargo.

According to the Drewry's composite World Container index  released last Thursday, the cost of shipping a box of goods from China to the United States stood close to $10,000, a 5% increase from the previous week and a 229% increase from the same period last year.

Podesta stated that the EU has been negotiating with representatives of liner companies, port operators, carriers, shippers and freight forwarders to fully understand the current situation.