CMA CGM to Halt Spot Freight Rate Rises until February

September 9, 2021

© Val Traveller / Adobe Stock
© Val Traveller / Adobe Stock

French container shipping group CMA CGM said on Thursday it was stopping all increases in its spot freight rates until February in a gesture to customers after a surge in shipping costs during the coronavirus pandemic.

The pandemic has strained global logistics due to sanitary restrictions and a sharp rebound in economic activity following a slump last year.

"Although these market-driven rate increases are expected to continue in the coming months, the group has decided to put any further increases in spot freight rates on hold for all services operated under its brands," it said in a statement.

"This decision applies to spot rates and is effective immediately until February 1, 2022."

CMA CGM, founded and controlled by the Saade family, is one of the world's largest container lines.

Like its peers, the Marseille-based group has seen earnings climb on the back of high freight rates and saturated vessel capacity.

The group said it had increased the capacity of its operated fleet by 11% since the end of 2019.

Shipping congestion has been exacerbated in recent weeks by backlogs at some Chinese ports as the authorities in China have tried to curb renewed COVID-19 cases.


(Reporting by Gus Trompiz; Editing by Edmund Blair, William Maclean)

Logistics News

Chartwell Marine Secures Design Contract for Island Community Ferry

Chartwell Marine Secures Design Contract for Island Community Ferry

BIO-UV Group, Microwise to Tackle Port-Side Ballast Water Treatment

BIO-UV Group, Microwise to Tackle Port-Side Ballast Water Treatment

DCSA+ Welcomes Contship as New Terminal Partner

DCSA+ Welcomes Contship as New Terminal Partner

HII Names Daniel Marks Vice President of Contracts and Pricing at Ingalls Shipbuilding

HII Names Daniel Marks Vice President of Contracts and Pricing at Ingalls Shipbuilding

Subscribe for Maritime Logistics Professional E‑News

Gatik, a self-driving truck company, secures $600M in contract revenue
NTSB: FAA failed to act properly before fatal Washington DC collision
Boeing and Israel's Technion will develop sustainable aviation fuel as the sector struggles with its 2050 goal