Hapag-Lloyd AG, Germany's largest shipping line and the world's fifth-largest, said that the spot freight prices have peaked and that further increases are "unnecessary." This information was announced by Nils Haupt, who head of corporate communications of the company.
This decision comes after the rival, French shipping line CMA CGM SA, suspended price increases last week. The French shipping line says they prioritize long-term relationships after spot freight rates more than sixfold in the past year.
The price increase comes as the economy recovers while declining shipping capacity is causing inflation pressures on Asia's producers, which are struggling with higher prices for electricity and materials. Meanwhile, the historic price increase prompted maritime regulators in the U.S., China, and Europe to meet almost simultaneously last week to discuss its impact on global supply chains, which is struggling.
"Hapag-Lloyd AG's decision was entirely our own, not at the request of the government or any other regulator," Haupt said.