Return to Lockdown and Under Investigation – What’s New in the Shipping Industry?
August 11, 2021
2 minutes read
Have you ever wondered what was going on in the shipping industry? What the major players are doing? Look no further! We’ve compiled three recent events here to satisfy your curiosity.
Freight rates soar amid new COVID-19 lockdowns in China
With the delta variant tearing through China, the country has hurriedly gone back into lockdown mode to combat a wider outbreak. The new lockdown has triggered the closure of Nanjing Airport, staff shortages, and airlines cutting down passenger and cargo flights. Docks are quickly piling up with containers that no one can pick up, and freight rates are rising in response.
Eight major global liners are being questioned by the FMC over surcharges
The U.S. Federal Maritime Commission has eight major global ocean carriers under investigation due to the recent surcharges they have implemented. Those carriers include CMA CGM, Hapag-Lloyd, HMM, Matson, MSC, OOCL, SM Line; and Zim. Each shipping carrier has been under fire for new congestion-related surcharges, and has until August 13th, 2021, to provide evidence that the surcharges were administered properly and legally.
Maersk predicts a strong Q3 with stellar Q2 results
As the world’s largest container line, the company has predicted a Q3 EBITDA of around $7 billion. At the beginning of the year, they only predicted that their 2021 earnings would be around $8.5 ~ $10 billion. The EBITDA guidance was raised to $13 ~ $15 billion in April, and just in the past week, recently hiked up again, to $18 ~ $19 billion. In Q2, ocean volumes surged by 15%, average freight rates by 59%, and Maersk is predicting an even stronger Q3.