Mar 26, 20222 min read

Major ocean carriers under investigation

Updated: Apr 7, 2022

This week's overview 👀

🚢 Major ocean carriers under investigation for record high freight rates

🚚 Trucking: foreseeable hindered growth in capacity over 2022

💡 The figure of the week

- 1 913 kgs -

That is the average kgs of CO2 per TEU shipped worldwide. All the while, 1/3rd of the containers shipped annually are empty.

While trade imbalances contribute to 2/3rd of the problem, the inefficiencies contribute to 1/3rd of the problem. easyGroupage connects the moving industry through its neutral online platform to increase container occupanices.

💬 The Quote of the week

“Following last week’s White House statement on global foreign alliances controlling almost all ocean freight shipping, two congressional oversight committees have opened an investigation against Maersk, CMA CGM & Hapag-Lloyd. The panels have requested information from the carriers regarding their high rates increases and surcharges over 2021.”

Over 2021, as put forward by the panels, the world’s 10 major carriers have seen a profit of $150bn, nine times greater than 2020. While these 10 companies control 85% of the world’s container capacity, the committees’ goals are to protect US small & medium-sized businesses amidst these record freight prices increases.

They argue that the three targeted companies show a significant gap between their cost increases and their high shipping rates increases, resulting in peak profits. These committees sent their letters out on Wednesday, just a day after President Biden’s State of the Union address, in which he stressed this same issue.).

Trucking: driver shortages keep a lid on capacity increases

It is no secret that trucking rates in the US, just like ocean shipping rates, have seen astonishing peak highs over 2021. However, growth is disparate amongst trucking companies, especially in full truckload, when focusing on the 25 largest companies.

Those that could offer a larger pool of solutions in terms of capacity reaped greater benefits than those with a more finite capacity. At the forefront, for instance, more flexible non-asset based carriers dispatching deliveries to leased owner-operators were at an advantage.

As argued by sector experts, two main factors hinder effective trucking solutions today: the absence of drivers, and the simple lack of trucks and chassis. Even with peak salaries for truckers, the available workforce is limited. Supply chain struggles complicate the efficient procurement of parts for new trucks under manufacturing. A situation to closely follow, thus, with many experts fearing a further increase in rates and a tightened lid on trucking capacities. High demand and low offer.