French ocean liner CMA CGM said in a press statement dated September 6 that it would not hike freight rates further until February 1, 2022. CMA CGM said that any further increases in spot freight rates would be put on hold on all of the company’s services operated under its brands. CMA CGM is the first major container liner to announce such a move which is expected to put pressure on its rivals across the globe.
The move also comes as market participants expect global freight rates to increase further after hitting new records in 2021. A global container rate index soared 390% year-on-year to $7,645 per FEU on September 8. Over the past year, container rates have skyrocketed due to equipment and shipping space shortages.
At the same time, wait times at major ports and a lack of port workers significantly prolonged turnaround time for containers. Inland, the number of truck drivers is dwindling, while pandemic-related restrictions create delays at rail and road hubs.
