Shipbroker Clarkson rejects cartel claims after prices soar

THE boss of one of Britain’s biggest shipbrokers has batted away suggestions that freight companies are artificially pushing up prices amid surging container costs.

Andi Case, the chief executive of the FTSE 250 company Clarkson, dismissed claims of collusion despite a jump in cargo fees for key routes from Asia.

However, he warned that a shortage of shipbuilding means delays and disruption are likely to drag on for years.

Over the past year the cost of transporting a standard shipping container has hit record highs on some routes, rising as much as tenfold to almost $14,000 (£10,000) to send goods from China to Europe and North America.

There has since been speculation shipping firms are trying to keep prices inflated as demand surges in the wake easing of Covid restrictions. No firms have been accused of wrongdoing.

Mr Case said the suggestion some companies are running a cartel is “incorrect and invalid”. He said: “The data does not suggest that. Shipping companies are keen to move as boxes as they can as they are paid by the box.”

Mr Case said ships are sailing faster – generating higher fuel bills – to move more cargo in a concerted effort to meet demand. He added: “There is not point in running to port and then having to wait because of the issues with boxes and not being able to unload.”

Surging costs have been caused by a combination of disruption to timetables after the pandemic threw crew changes out of sync; closures at ports; containers in the wrong place; and intense competition for spots on ships as the global economy gets back into gear.

When the Ever Given container ship blocked the Suez Canal for almost a week, it highlighted the fragility of the transport system which moves more than 90pc of global trade.

Mr Case said problems will continue because orders for new ships are equivalent to just 4pc of the current global fleet, down from 20pc a decade ago.

Revenue at Clarkson rose to £190m in the first half of 2021, up 5.4pc on a year earlier, and underlying pre-tax profits climbed by a quarter to a record £27.5m.