AJOT | September 15, 2020 | Maritime | Liner Shipping
Key insights:
1 With a mid-month GRI expected to increase rates that are already 158% higher than last year, reports have China’s Ministry of Transport considering banning rate increases (COSCO already is likely to cancel its GRI) and prohibiting cancelled sailings on China-US lanes to let rates drop along with (an eventual drop in) demand.
2 Carrier capacity management allowed them to stem losses and keep rates even year-on-year in the first five months of the pandemic, before June’s demand surge sent rates spiking.
3 Questions remain about what (if any) interventions will be made, and whether other carriers will follow COSCO’s lead. But whatever the outcome, the threat of intervention will likely serve as a warning to carriers to use their controls wisely.
