French shipping company CMA CGM has capped freight rates amid market turmoil, as the decision of the world's third largest container shipping group will affect the entire industry.
The world's third largest container carrier said that spot freight rates for customers shipping cargo will remain at current levels for five months, even though the group expects prices to rise in the coming months.
Hapag-Lloyd is also one of the world's biggest shipping lines and it has decided to stop increasing spot freight rates on routes out of Asia to Europe and the U.S. as it sees an end to the rally that has put prices at record highs.
Despite the fact that market fundamentals remain strong, the world's two largest container liner companies announced that they would suspend their spot rate hikes for the next few months.
Hapag-Lloyd AG said spot rates have peaked and further increases are "not necessary," according to Nils Haupt, the Hamburg Germany-based company's head of corporate communications. Haupt also added that Hapag-Lloyd's decision "was not requested by governments or regulators".