Maersk restricting access to freight forwarders draw FIATA ire; Maersk says difficult to meet demand
Maersk restricting access to freight forwarders draw FIATA ire; Maersk says difficult to meet demand
January 5, 2022: The recent notices to users of freight services of A.P. Moller–Maersk Group and its integrated services restricting access in many economies through shifts from contracted arrangement to spot rates raises serious concerns.
The freight forwarding industry, as a key organiser of service delivery across all modes of transport in door-to-door operations, are expected to be significantly disadvantaged, with shippers and consumers being ultimately worst hit, says International Federation of Freight Forwarders Associations (FIATA).
Such practices are considered to amount to market domination and competitive distortions, which have been made possible by way of governmental tax reliefs and subsidies to shipping lines in a variety of jurisdictions. "Dramatic changes have already taken place in the number of shipping lines providing service offerings for the international movement of goods by sea with mergers and acquisitions over the past two decades seeing consolidation into a handful of dominant shipping lines who have furthered that dominance by forming key alliances. These lines, and alliances, have also set out to vertically integrate services through the acquisition of terminal handling operations, national and international freight forwarding entities."
