Only when there is a dispute are we compelled to act in a consultative role. There has been no mandate of a 'reasonable' rate level. That is fixed by supply and demand, shipping lines and shippers. However, an entirely hands-off approach is unlikely to be forthcoming. Filing must be closely monitored.
Some carriers try to increase market share by cutting rates.
That should not be allowed as it is not beneficial to the market. We are well aware that individual lines have different cost structures but, if low cost carriers are compelled to drop rates to gain market share, then this is unfair. It is also the SSE's role to monitor whether or not the capacity a line utilises in Shanghai is compatible with market demand, Xu said, adding that, if it is not, the proper authorities will be notified. There must be a way found to consult rather confront. When there is a dispute, we are here to effect a compromise.