China set to step in and hold down box line rates, with ocean freight ‘a global mess’

Chinese authorities are set to interfere in both pricing and capacity management on the transpacific, as rates soared to record highs again this week.

China’s ministry of communications today discussed refusing to allow carriers to increase the spot rate from China to the US, and that their suspended sailings must be reinstated from week 42.

The move was reported by Zest Shipping Media, but not confirmed by the government. Zest noted that Cosco had already abandoned its planned GRI for 15 September, and other carriers are expected to follow suit.

Sea Intelligence’s Lars Jensen noted: “This would have an unprecedented impact on the market and, more worryingly, potentially derail the carriers’ ability to manage capacity in the face of extreme demand volatility.

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Source: The Load Star