The ministry of Transport to intervene in the ship company to stop sailing, soaring freight to drop?

According to Zest Shipping Media, Chinese authorities will interfere with the management of freight rates and capacity on trans-Pacific routes.The Ministry of Transport is discussing a ban on shipping companies raising spot rates from China to the United States, and requires shipping companies to resume suspension from the 42nd week.Although the news has not been confirmed by the government, Zest Shipping Media noted that CosCO Shipping Dropped its planned GRI on September 15 and expects other Shipping companies to follow suit.

Had been reported that the Ministry of Transport port circle of maritime bureau has been sent to cosco shipping container lines co., LTD., maersk logistics co., LTD., the Mediterranean shipping company, CGM co., LTD., herb ROM co., LTD., evergreen Marine shares 6 container liner companies issued about please help to provide the international container liner routes on the letter.According to the letter, in view of the recent fluctuations of freight rates between China and the United States, companies are requested to provide relevant information sheets, analysis of the reasons for the recent fluctuations of freight rates between China and the United States and Between China and Europe, and further work arrangements.

Lars Jensen, of Sea Intelligence, said Chinese authorities' intervention would have an unprecedented impact on the market and could damage shipping companies' ability to manage capacity in the face of extreme demand fluctuations.In a tight market, there is little problem with banning empty traffic for now, but if operators are barred from managing capacity, the shipping industry is likely to face a new downturn.

Growth has slowed, but for the seventh week in a row, trans-pacific trade to the U.S. west coast exceeded $3,000 a teu, hitting a record high of $3,813.

High demand on trans-Pacific routes has also had a knock-on effect on European routes.As profits on American routes become more attractive, more empty containers are being poured into transatlantic routes, hurting demand in Europe.

Freight forwarders claim that suspensions, typhoons and golden week congestion in the coming weeks, shipping companies' capacity controls and other variables and dynamics are causing disruptions in global supply chains.

Another source said he had seen a MSC ship docked in Singapore with empty containers to save on port warehousing costs, and other shipping lines were following suit, with a shortage of empty containers across Asia.