Container shipping line CMA CGM has announced the freezing of its spot market prices for moving goods to allay fears over soaring freight costs. According to a report by The Financial Times, the French carrier will keep spot market rates for customers shipping cargo at current levels for five months, even though prices are expected to rise in the coming months.
It now costs over US$20,000 to ship a standard 40-foot container from China to the east coast of the US, up from less than $3,000 two years ago, according to Freightos, a pricing agency.
CMA CGM said: “The group is prioritising its long-term relationship with customers in the face of an unprecedented situation in the shipping industry”.
The move will put pressure on rivals to follow suit, with Germany’s Hapag-Lloyd already announcing that it would limit sharp increases in premiums and other surcharges.