CMA CGM Halts Spot Rate Increases Until 2022
In a move to provide more stability for clients, CMA CGM said Thursday that it would stop all spot rate increases immediately. The spot rate freeze is scheduled to stay in effect until February 1, 2022.
In a statement, the container carrier pointed to record rate increases as its motivation to pause spot rates. Maritime shipping saw a significant cost growth spurt in 2021 as congestion worsened and consumer demand soared. According to CMA CGM, its rate freeze intends to help long-term customers.
“Since the beginning of 2021, container shipping spot freight rates have continued to rise due to port congestion and the major imbalance between demand and maritime container transport effective capacity,” the statement said. “Through (the rate freeze), CMA CGM aims at strengthening its valuable customer relationships and providing support as they navigate today’s difficult supply chain challenges.”
CMA CGM is the first maritime carrier to announce a spot rate increase moratorium. While it may be welcome news, shippers are still set to contend with historic rates and limited capacity through the duration of the 2021 peak season and most of 2022.
Scarbrough International is monitoring for further news and will share updates accordingly. Contact our freight forwarding specialists for insights and assistance regarding maritime shipping. We are ready to help you navigate peak season.