We must pay for lines’ overcapacity problems

Asian shippers call for more regulatory protection against liner conferences. Shippers in Asia believe container shipping’s cycle of boom and bust is exacerbated by “cartel” arrangements which encourage over-investment in new vessels.

John Lu, chairman of the Asian Shippers’ Council, told IFW the global system of agreements, alliances and conferences – which lines use to manage capacity and, on some trades, to set fees – was as much to blame for the freight rate collapse as economic recession.