The White House said it would crack down on sky-high rail and ocean freight costs

According to foreign media reports, the US government may issue an executive order in the near future to curb the current monopoly in the transportation industry. Last week, the White House responded to the current increase in freight rates. For international shipping, the order requires its Federal Maritime Commission (FMC) and the Department of Justice to cooperate in investigating antitrust behavior. For domestic railways, it urges the Land Transportation Commission to allow more shippers to challenge high costs when there is no competition between routes.

Its spokesperson said that currently American companies rely on rail transport domestically and sea transport internationally. As the two industries become increasingly concentrated, the three major shipping alliances control 80% of the market, resulting in high pricing and a monopoly in the freight transport industry. It is conceivable what kind of predicament small shipping companies that survive in 20% of the market are facing. In addition, the surge in transportation costs and fees during the epidemic has exacerbated the monopoly in the transportation industry, and the index price of a container has even increased by 8 times. This has had a huge impact on the development of the country's business.

At the same time, the increase in freight costs is also a test for merchants who cooperate with American companies. The increase in transportation costs means that the profit margins of merchants are reduced and the risks they face are increased. Solving the problem of rising freight costs is an urgent task.

According to data from international shipping news Drewry, the current freight rates for Shanghai -Los Angeles and Shanghai-New York have risen by US$617 and US$539 respectively, and the spot price of a 40-foot container from Shanghai to Los Angeles is as high as US$9,631. The freight rate for Shanghai-Rotterdam has risen by US$228 to US$12,203 per 40-foot container, a year-on-year change of 567%. Drewry said this situation will continue.

According to data released by the Shanghai Shipping Exchange, as of the 9th of this month, China's export container freight rate comprehensive index was 2698.83, up 1.7 from the previous period, and the US West Coast route was 1923.19, up 6.2 from the previous period. This high price trend is indeed a good thing for freight companies, after all, they are making a lot of money, but for sellers, it is nothing but worry.

Many domestic sellers have their orders scheduled until August and September, and some even until the end of the year. However, it is difficult to find warehouses and containers, and the freight is expensive. One seller said in an interview with the media that this year's ocean freight has almost doubled compared to last year, and some popular routes have even increased by 10 times. Therefore, some people joked online: "Where are the friendly shipowners?"

USA

Suppression

monopoly