CMA CGM, the world’s third largest shipping company, suddenly announced that it would freeze freight rates until February next year, firing the first shot!
html On September 9, CMA CGM (CMA CGM), the world's third largest and major shipping company on North American routes, suddenly announced that from now until February next year, the spot (spot) freight rates of all its subsidiaries will stop increasing.CMA CGM said that in the face of the unprecedented shipping industry situation, the Group puts long-term relationships with customers first. Since 2021, due to factors such as port congestion and a serious imbalance between demand and container ship capacity, container shipping spot freight rates have continued to rise. Although these market-driven freight rates are expected to continue to rise in the coming months, the Group It has been decided to freeze freight rates for its brands CMA CGM, CNC, Containerships, Mercosul, ANL and APL until February 1, 2022.
CMA CGM, COSCO Shipping and Evergreen are all members of the Ocean Alliance. According to Alphaliner data, the Ocean Alliance is the largest player in North American routes, with the three operators having a total market share of 37.8%. Alliance members share ships, but prices and volumes are set separately. CMA CGM is also the world's third largest container shipping company, operating in 150 countries, more than 400 ports, and 170 routes.
CMA CGM is the first operator to announce a freeze on freight rates after shipping quotations have skyrocketed in the past year, which may further affect freight rate increases.
The person in charge of a shipping company said that CMA CGM’s freight rates are much higher than those of most companies, and if they can maintain the current freight rates, they will make a lot of money.
People in the freight forwarding industry pointed out that CMA CGM’s freight rates are originally very transparent. Many cargoes are booked through the website. Unlike some shipping companies, old customers can also seek more favorable transportation conditions through the business department. Due to the company’s October The shipping space has been booked, and it is meaningless to push for a price increase. In addition, China, the United States and the European Union have strengthened their supervision of freight rates. This should be the main reason why the company decided to freeze freight rates until February 1 next year.
People in the freight forwarding industry also said that the spot price will be frozen, but the surcharge will not be included. The actual charges still depend on the market supply and demand mechanism.
On the other hand, CMA CGM is actively investing in the air cargo business. It is reported that CMA CGM Air Cargo, headquartered in France, will establish a French air operator certificate and plans to launch 777F all-cargo aircraft services next year. The group acquired four ex-Qatar Airways A330-200F all-cargo aircraft earlier this year, all of which are now operated by Air Belgium.
Recently, in order to curb the spread of the epidemic, China has closed several important loading and unloading ports, further exacerbating shipping congestion. Spot shipping rates have reached unprecedented levels due to port congestion, supply chain disruptions and surging demand.
According to a Drewry report, as of September 9, the spot freight rate from Shanghai to Los Angeles reached US$11,568, an annual increase of 199%, while that from Shanghai to Rotterdam was US$14,287, an annual increase of 564%. However, CMA CGM, one of the major players in North American routes, has announced that it will suspend freight rate increases, which may further affect freight rate increases.
CMA CGM is headquartered in Marseille, France. It was founded and controlled by the Saade family. It is the third largest container shipping company in the world. It currently owns 570 container ships. Since December 31, 2019, by adding new ships and purchasing second-hand ships, Fleet capacity increased by 11%, and profits in the first quarter of this year reached US$2.1 billion, an annual increase of more than 2,000%.
