The United Nations Conference on Trade and Development (UNCTAD) has urged regulators to push for greater transparency in container shipping amid a prolonged period of record rates and dismal time performance by the world’s major carriers.
UNCTAD released Policy Brief 84 on Monday, which examines the reasons for rising freight rates and makes recommendations to governments to try to curb any attempts by shipping lines to coerce market conditions.
UNCTAD expects the current increase in freight rates to last well into 2021. It also noted that, in the longer term, policymakers should focus on further reforms in trade facilitation and ports, improved monitoring and forecasting, and strengthening national competition authorities.
“Policymakers should promote transparency and encourage collaboration along the maritime supply chain, while ensuring that potential abuse of market power is kept in check or prevented,” the UN body stated.
Shippers have repeatedly stressed that they lack access to empty containers for exports and face blank departures as well as high freight rates, and many competition authorities are investigating potentially abusive behavior.
“While there are a number of reasons that may explain the shortage of containers and vessel supply capacity, including the disruptive nature of the pandemic and associated restrictions, it is also important to ensure that national competition authorities are able to monitor freight rates and market behavior,” UNCTAD suggested.
