Americas News
US President Biden Announces 'Crackdown' on Container Lines
US President Joe Biden used a section of his state of the union speech on Tuesday night to attack container lines for surging freight rates over the past two years.
Biden plans to put an end to the container lines 'overcharging' their customers, he said in the speech.
"See what's happening with ocean carriers moving goods in and out of America," he said.
"During the pandemic, about half a dozen or less foreign-owned companies raised prices by as much as 1,000 percent and made record profits.
"Tonight, I'm announcing a crackdown on those companies overcharging American businesses and consumers."
Container industry body the World Shipping Council had received advance warning of the criticism from Biden, and published a press release on Tuesday defending the industry.
"It is unfortunate that the President is demonizing ocean carriers, the industry that is the backbone of the US and global economy and that has been working around the clock through the pandemic to move more cargo than at any time in history," the organisation said in the statement.
"Allegations that the container shipping industry is highly concentrated and uncompetitive are factually incorrect.
"Ocean carriers actively compete against one another in the global marketplace, including on the shipping lanes most relevant for US trade, while concentration levels in many other US industries are markedly higher than those in container shipping.
"In a clear sign of a competitive market responding to increased demand, competition increased in 2021, with more ships operated by a larger pool of carriers serving the trans-Pacific trade.
"The bottom line is that container shipping is a very competitive industry -- this is what the numbers show."
