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20 September 2021 The on-line newspaper devoted to the world of transports 03:29 GMT+2

July 9, 2021

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Original news
Butler (WSC) replies to President Biden: there is no such thing as a the problem of market concentration to be solved because the Current supply chain distortions are the result of a historical surge in demand

In view of the measures that the Federal Will take Maritime Commission, Butler urged everyone to make decisions that are based on real facts, before creating negative results through reckless changes to the rules to manage a temporary situation

The World Shipping Council (WSC), the association that represents the world's leading containerized shipping companies, is agree with the American president in having decided to delegate to the US federal federal maritime commission (FMC) the task of strictly applying the regulations with regard to maritime carriers 'charging exorbitant fares to American exporters", while disagreeing with the thesis Joe Biden according to which the concentration of the maritime transport market containerized occurred in recent years would have determined a monopoly situation on the part of the main companies of the the sector which would then be able to impose tariffs in a the regime of little or no competition.

"We agree with the White House - explained the WSC President and Chief Executive Officer, John Butler, commenting on the content of the Executive Order issued today by the American President - on the fact that the FMC has the tools to investigate and is the appropriate authority to act on any problem when it comes to immobilization of loads and counterstallies. Shippers can report any irregularities so that they are properly investigated and undertaken actions against any improper practices.'

The WSC believes that the Federal Maritime Commission has tools and powers to sanction those shipping companies that they had to recharge unjustified costs on the goods, but rejects to the sender both the accusation made for some time by shippers and shippers to shipping companies in both North America and Europe, that is to say, to impose their will on the prices of the transport thanks to full control of the capacity of maritime transport, both to the charge moved to liner shipping by the American president, who then is the same, that is, of exercise its position of strength on the supply chain containerized thanks to the fact of having concentrated a predominant share of containerized hold capacity in the hands of a handful of maritime operators.

«The current distortions of the supply chain - he replied Butler - are the result of a historical surge in demand from part of americans of goods from abroad. Does not exist - said Butler replying directly to the arguments of Biden - a "problem" of market concentration from "resolve", and punitive measures imposed on carriers on the the basis of incorrect economic assumptions will not solve the problems of congestion. Only the normalization of demand and the end of the Covid-related operational challenges will solve bottlenecks of the supply chain'

«We are dealing with it - continued the president and CEO of the organization that represents containerized shipping global - with a market aberration caused by the pandemic and from the consequent changes in the consumption patterns of Americans. There are real and negative effects throughout the supply chain that are determined by these events and oceanic carriers, like anyone other, they are eager to return to a more predictable market.

«In the meantime - concluded Butler, perhaps worried about the decisions that may be taken by the Federal Maritime Commission - we urge everyone to make decisions on this situation that are based on real facts, before creating long-term negative results through reckless changes rules to deal with a temporary situation.'

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