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Addressing surge in inflation

Biden announces crackdown on shipping industry

In Biden’s State of the Union address on March 1, the president blamed the surge in inflation partially on companies that operate in a market with little competition, like the shipping industry.

“We see it happening with ocean carriers moving goods in and out of America,” he said. “During the pandemic, these foreign-owned companies raised prices by as much as 1,000% and made record profits. Tonight, I’m announcing a crackdown on these companies overcharging American businesses and consumers.”

It seems that the biggest issues are the three main shipping alliances, where Asia- and Europe-based rivals share vessel capacity on major trade lanes and are able to evade US antitrust laws. The World Shipping Council’s argued that “market dynamics are influencing prices — not carrier alliances.”

The US Department of Justice has been pushing Congress for decades to dispose of the antitrust immunity, saying that it undermined a free-market economy.

Source: gobankingrates.com

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