World News
FMC: No Indication of Price Fixing from Container Alliances
Mario Cordero, chairman of the U.S. Federal Maritime Commission (FMC) says global maritime regulators have found no evidence of price fixing in freight rates among the biggest players in container shipping, the Wall Street Journal reports.
The comments come after the FMC met with counterparts from the European Union and China in Brussels last week.
The meeting was held to discuss concerns that new alliances among the largest players in container shipping would eventually control freight rates by forcing out smaller players unable to compete with price and capacity.
"All three regulators definitely have concerns over the impact of the alliances to competition, but there is no indication that price fixing is occurring." said Cordero.
Analysts and shipping executives said the industry's 16 biggest players work together to move over 80 percent of all container cargo.
Ship & Bunker reported Tuesday that the top 3 carriers now have about a 38 percent share of the market.
Cordero also said the three regulators agreed to closely cooperate in monitoring the alliances and their pricing practices but did not elaborate on a plan of action to do so.
The meeting comes alongside news that container-freight rates on the Asia-to-Europe trade route have dropped below shipping companies' fuel costs for the first time in two years.
On Thursday, it was reported that Cordero suggested that there could be a link between the four major global alliances that exist in the container shipping industry today and the problems with congested ports.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 565.50 | 6.00 | 661.50 | 4.00 |
| Rotterdam | 510.00 | 2.00 | 661.00 | 2.00 |
| Houston | 548.00 | 2.50 | 666.50 | 0.50 |
| Fujairah | 555.50 | 5.00 | 746.00 | 2.50 |
| Global 20 Ports Average | 582.50 | 1.50 | 753.00 | 1.50 |
| Global 4 Ports Average | 544.50 | 3.00 | 683.50 | 1.00 |
| Global Average Bunker Price | 631.00 | 2.50 | 803.50 | 2.00 |
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