This measure is effective immediately from September 9, 2021 and until February 1, 2022
The group is ‘prioritizing its long-term relationship with customers in the face of an unprecedented situation in the shipping industry’
Global container shipping liner CMA CGM announced it will stop any further increases in spot freight rates effective September 9, 2021 to support its customers battling unprecedented challenges in the shipping industry.
In a customer advisory on September 9, the French ocean carrier said the group “has decided to put any further increases in spot freight rates on hold for all services operated under its brands (CMA CGM, CNC, Containerships, Mercosul, ANL, APL).”
This decision applies to spot rates and is effective immediately until February 1, 2022, it added.
Spot rates are prices negotiated on a daily basis with a validity of less than 30 days, specifically as reflected in market indices.
The news comes as a welcome development for shippers who since the beginning of 2021 have seen container shipping spot freight rates surge at a dizzying pace due to port congestion and the major imbalance between demand and maritime container transport effective capacity.
The Marseille-based group, like other global box carriers, has seen profits spike on the back of high freight rates and saturated vessel capacity.
CMA CGM said it is also investing heavily to strengthen its service offering. The group has increased the capacity of its operated fleet by 11% since December 31, 2019 through the addition of new vessels and the purchase of second-hand vessels.
Over the last 15 months, the group has also increased its container fleet by 780,000 TEUs.
Through these measures, CMA CGM said it is aiming at “strengthening its valuable customer relationships and providing support as they navigate today’s difficult supply chain challenges.”