# 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
Shipping companies need to implement good information mechanisms by adjusting them to different types of information they plan on receiving [46]. Reactions to previous crises on the maritime container market show that each had different consequences. The COVID-19 pandemic is not limited only to individual regions and its duration is uncertain. This pandemic has spread all over the world and caused different components of production, distribution centers, logistics and markets to disrupt the stability of the supply chains [47]. The COVID-19 pandemic has affected global supply chains and ports and the entire container industry like nothing before. Previous experience shows that each sudden drop in demand has an indirect impact on various activities on the maritime market and the activities at ports [24]. On the other hand, the Russian invasion of Ukraine has affected all segments of Ukrainian economy, and, regarding the numerous sanctions many countries have placed on Russia, the disruptions from that market have spilled over to the rest of the world. The predictions for future economic development for most countries are not optimistic. A huge problem lies in the fact that many containers need to be shipped through the Southern and the Middle Corridors, but, because of their limited capacities, it is impossible to expect this will be realized sometime soon; rather, this will be a long lasting process [46]. Strategies that companies on this market should consider during the times of crisis are [43]:  
1. Capacity consolidation (for example, by reducing the navigation speed). 2. Optimization and operating expenses reduction--OPEX. Main operating expenses that should be reduced are fuel and lubricants, crew, maintenance, spare parts and consumable supplies. 3. Economies of scale. This is nothing new on the maritime container market, but it is very difficult to realize due to high financial investments necessary for achieving economies of scale. 4. Integration. Earlier, liner conferences were responsible for controlling the tariffs for specific routes. However, over the last decade, there are more and more strategic trading alliances that share information, resources and control to expand their businesses. [PERSON] et al. [48] recommend the following guidelines as tools for overcoming the pandemic more quickly:  
1. Increase the number of the vaccinated employees for their own protection;
2. Implement a horizontal cooperation and provide coordination and facilitation of the change of the vessels crew members;
3. Increase investments in crewless vessels;
4. Energy sources diversification;
5. Increase the use of automatization and digitalization. Unlike earlier crises, it is now evident that the decision makers have been forced to make tough calls during the pandemic and to operate in unprecedented conditions [48; 49]. Disruptions caused by the pandemic have reflected in both supply and demand, and they suggest the need for developing great flexibility to soften the risks from the pandemic and to balance the demand [23]. In order to remain competitive, maritime traffic in the European Union needs to focus on reducing the pollution and continuously invest in sustainable new technologies and adopt digital solutions and develop automatization [50]. The Russian-Ukrainian conflict has brought additional disruptions on the financial markets. It is expected that, due to this, companies in this market will be facing short and long-term uncertainties and risks.