ITF finds regulators facilitating rise of freight rates and supply chain crisis

A report by the International Transport Forum (ITF) suggests that governments and jurisdictions have contributed to the current supply chain crisis and the rise of ocean freight rates by creating a supportive legal framework for alliances and consortia. This has allowed the largest carriers to create integrated shipping networks around the world and jointly manage fleet capacity, which has created a situation where local problems can easily become global. The ITF suggests that fleet capacity management has become the main element of coordination between shipping lines and that competition in liner shipping goes largely unchecked due to the lack of specialized government agencies in this area. The report proposes limiting the possibilities of joint capacity management to introduce more real competition between carriers.