The world’s third-largest container carrier said it’s capping spot rates for ocean freight for the next five months, yielding to pressure from some customers and regulators concerned that global trade disruptions have pushed the cost of shipping too high.
“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,” CMA CGM SA said in a statement on its website.
The decision, which will resonate throughout the industry, took effect Thursday and runs through Feb. 1. Based in Marseille, France, the company said it’s “prioritizing its long-term relationship with customers in the face of an unprecedented situation in the shipping industry.”