French shipping giant CMA CGM to halt freight rate hikes until February

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French shipping giant CMA CGM to halt freight rate hikes until February

CMA CGM, the Marseille-based French multinational container transportation and shipping company that uses over 257 shipping routes between 420 ports in six continents, said on Thursday that the shipping industry megalith would delay a planned hike of its spot freight rates until at least February next year in a gesture to customers as a pandemic-led upsurge in shipping costs had already plagued a substantial scale of profits.

In factuality, following a sharp rebound in economic activity this year following a lachrymose 2020, global logistics operations held back largely due to in-port sanitary restrictions alongside a long-queue in most major docks.

Besides, global freight carriers including CMA CGM met with sheer headwinds last year, when a number of ports had denied access to new carriers over frets of potential spread of the pandemic pathogen. Meanwhile, addressing its latest decision not to hike freight costs at least until February 2022, CMA CGM said in a statement, “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.

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

CMA CGM to stall freight rate hikes until February

Aside from that, CMA CGM, one of the world’s largest shipping industry giants that transports freights across 160 countries, had added in the statement that it had to step up operational capacity by 11 per cent compared to end-2019 amid a sharp shoot-up in global economic activities.

Since the first quarter of 2021, a robust vaccination drive across a raft of G20 economies had scaled their pace of economic growth to records, while the US economy had roared back to a pre-pandemic level following a 6.6 per cent GDP (Gross Domestic Product) growth in second quarter of 2021.