# Volatile Freight Rates in Maritime Container Industry in Times of Crises
## 3 Maritime Container Market and the Freight Rates in Times of Crises
### Impact of the Crises on the Maritime Container Market  
Maritime container industry is the key component of the process of globalization [42] and also an important factor in sustainable economic development [43]. The ability of the maritime container industry to transfer large quantities of goods from the point of production to the point of final consumption is the ability that supports the contemporary way of living. The importance of this type of transport is also evident in the fact that, in the European Union, maritime transport makes for 80% of total import and export (observed in volume), i.e., 50% if observed in the value of goods [9]. Maritime container industry represents the capitally intense industry where assets are either owned or rented. Therefore, adequate management of the maritime container fleet is crucial for the operational and commercial success of the maritime container ship lines [25]. Experience teaches us that maritime traffic is extremely sensitive to external factors, such as international trade, political situations, financial trends, technology development and changes of regulatory frameworks, that can directly or indirectly affect the demand on this market. Following to that, it is expected that the companies operating in this market will direct their attention towards the development of crisis management to increase the resilience to external pressures and respond more adequately to new crises [44]. In the recent years, global supply chains in maritime ports are characterized by increased uncertainties caused by a series of elements, such as the socio-economic factors, but also the change of the strategies by the supply chain management, all as a response to the changes in the environment. Although these factors had influenced the supply chains before, the COVID-19 pandemic has made their impact literally explode [33]. Earlier crises and the pandemic caused by the coronavirus have confirmed the resilience of demand for basic goods, especially food and medical products [45]. The comparison of the currently recorded effects of the COVID-19 pandemic with those from the crisis of 2008 and 2009 point to idiosyncratic implications of each crisis on the supply chains on the maritime market. However, during all of the time of the pandemic, the shipping companies, operators at the terminals and ports show greater resilience than during the earlier crisis. This is probably the result of the measures implemented within the companies and better risk management [24]. The global economic crisis of 2008 resulted in the collapse of production and international trade. The recession that spread globally reflected in a huge drop of demand for transport in general, and thus the maritime market was engulfed in the crisis as well. Earlier crises on the maritime container market have shown how companies faced [43]:  
1. Overcapacity of the cargo area;
2. Drop of freight rates;
3. Freight rated grow;
4. Job loss;
5. Debt, financial losses, bankruptcy or complete shut-down. The recovery from the crisis of 2008 was additionally obstructed by the delivery made by the ships ordered before the beginning of the crisis. Those deliveries considerably increased the supply that was already bigger than demand. The consequences of the over-capacity and the drop in production and trade on a global scale were reflected in the dramatic fall of freight rates on the maritime container market. What arose as a serious problem during the crisis of 2008 and 2009 is the drop of prices below the limits of liquidity, a strategy implemented by big players. The main goal of this policy was to survive on the market and to put the competitors in danger. In the long run, this policy can only create additional losses and, eventually, result in company's demise [43]. The financial crisis of 2008 showed how vulnerable this market is, and how important it is to develop adequate information-communication channels to overcome future crises more easily.