NEWSLETTER

With a comprehensive portfolio of ocean freight forwarding services around the globe, the U-Freight Group notes that according to a report on the Loadstar website, competition authorities around the world have facilitated the disruption in global supply chains by effectively creating “a supportive legal framework for alliances and consortia” to manage global rates.

That’s one of the conclusions of a report issued recently by the International Transport Forum (ITF) a think tank that is politically autonomous, but administratively integrated into the OECD, which adds that effectively global regulation has failed shippers and forwarders by engineering a situation in which shipping lines can legally ‘manufacture’ capacity shortages.

The ITF argues: “The logical outcome of this process is a select group of highly interconnected liner companies that are able to sustain high freight rates via co-ordination, withdrawing and repositioning their ship capacities at will. Shifting the policy from allowing price co-ordination to allowing capacity co-ordination seems to have deteriorated rather than increased competition in liner shipping.”

The report calls for competition authorities around the world, including the Federal Maritime Commission in the USA and the European Commission’s Competition Directorate, to “limit the possibilities of joint capacity management in order to introduce more real competition between carriers”.

You can read the full article here: https://theloadstar.com/disruption-and-high-freight-rates-created-by-competition-authorities-says-itf/

You can find more information about the U-Freight Group’s ocean freight services on this website or by speaking to your usual contact in our company.