Don’t Blame Us For The Chaos In The Container Market: World Shipping Council
The World Shipping Council sees anomalous demand behind current peaks in container rates. File Image / Pixabay
the container industry body World Navigation Council issued a strong defense of its members after reports of we President Joe biden issuance of a decree aimed at increasing competition between liners.
Biden is due to officially announce the order later on Friday, according to media reports, leading the Federal Maritime Commission to “protect US exporters from the high costs imposed by ocean carriers.”
Container freight rates have increased over the past year due to increased demand and COVID-19 lockdowns disrupting operations at some ports.
In an emailed statement on Friday, the World Shipping Council said abnormal demand levels were causing delays and price hikes, and more regulation would not solve the problem.
“Shipping carriers are using all available capacity and are doing their utmost to manage operational disruptions caused by COVID-19,” the organization said in the statement.
“But when marine terminals cannot clear cargo already at the docks, ships cannot dock to unload and load the cargo.
“And the sea terminals cannot clear the cargo through customs if the importers of that cargo don’t have a warehouse or distribution space to put these containers.
“And containers are stuck in many places in the United States awaiting adequate rail and road capacity to move them.”
The current supply chain disruptions are the result of a historic increase in Americans’ demand for goods from overseas.
The current market situation will only be resolved when demand is normalized again, John butlerthe organization’s CEO said in the statement.
“The current supply chain disruptions are the result of a historic increase in Americans’ demand for goods from overseas,” he said.
“There is no ‘problem’ of market concentration to ‘fix’, and punitive measures imposed on carriers on the basis of incorrect economic assumptions will not solve congestion problems.
“Only standardized demand and the end of operational challenges related to COVID will resolve supply chain bottlenecks.
“We urge everyone to make decisions based on the real facts about the situation before creating long-term negative results through reckless regulatory changes to deal with a temporary situation.”