Why Shipping Companies Are Legally Allowed to Fix Prices

The global shipping industry runs on a legal cartel, and almost no one outside the trade knows it exists. This video breaks down "blank sailing," the practice of canceling scheduled voyages to control supply and prop up freight rates, and explains why it's legal when the same coordination would put airline executives in prison. We trace the antitrust exemption back to its 1916 origins, show how three shipping alliances now control 85% of global capacity, and walk through what happened to freight rates during the pandemic when that system collided with a demand shock. We'll also look at the cracks now forming in that structure, from MSCI's 2025 exit from its alliance with Maersk to the geopolitical tension now sitting inside the Ocean Alliance. What's covered in this video: The Shipping Act exemption dating to 1916 lets ocean carriers coordinate schedules and capacity without facing the antitrust scrutiny that governs nearly every other industry. The Gemini Cooperation, Premier Alliance, and Ocean Alliance together control roughly 85% of global container shipping capacity. Blank sailings let alliances cancel scheduled voyages to withdraw capacity and stabilize falling rates, a mechanism regulators call capacity management. Container rates from Shanghai to Los Angeles jumped from roughly $1,500 to over $13,500 between 2020 and 2022 as carriers held capacity tight through the demand surge. The Federal Maritime Commission estimated major carriers collected over $150 billion in freight premiums above pre-pandemic levels during that period. The Ocean Shipping Reform Act of 2022 added oversight and disclosure requirements but left the underlying antitrust exemption untouched. Hanjin Shipping's 2016 collapse is cited as evidence the industry's boom-bust cycles are real, supporting the case for some capacity coordination. MSCI's 2025 exit from its alliance with Maersk, and 2025 US actions targeting Chinese-built and Chinese-operated vessels, are reshaping the alliance structure in real time. Mentioned in this video: Shipping Act of 1916, Shipping Act of 1984, Ocean Shipping Reform Act of 2022, Federal Maritime Commission, Gemini Cooperation, Premier Alliance, Ocean Alliance, Maersk, Hapag-Lloyd, MSCI, CMA CGM, COSCO, Evergreen, Hanjin Shipping The next time a package takes longer than expected, some part of that delay was a sailing that never happened, on purpose. If you enjoy deep dives into the hidden economics of the global economy, make sure to Like, Comment, and Subscribe. 0:00 The Cartel Hiding in Plain Sight 4:55 $150 Billion Extracted From Customers 7:55 MSCI Breaks From Maersk 9:12 Who Actually Pays the Premium #shippingcartel #blanksailing #containership