OCEAN FREIGHT CAPACITY TIGHTENS
Carriers have recently declared that 21.5% of the available capacity on the Asia-North Europe trade route will be canceled in October, resulting in the removal of 320,476 TEUs from the market during that month. This represents a significant increase from the 8.7% capacity reduction observed in September. As of the current data, November’s planned cancellations are relatively lower, standing at just 6.6.
In the Trans-Pacific trade, carriers have also made announcements about blank sailings for October, accounting for 20% of the total capacity destined for the US West and East coasts. Eastbound trade carriers suggest that the capacity reductions they’ve initiated are likely to persist for the next five months. This expectation is based on the anticipation of subdued US imports from Asia continuing through the Lunar New Year in February. These abrupt changes in capacity availability sends ripples through the logistics industry, impacting supply chains in ways that require shippers to adapt swiftly and strategically.
A Blank Sailing, sometimes referred to as Void Sailing, happens when an ocean line service operator decides to cancel a call or skip a particular port, region, or possibly an entire leg on the scheduled route.
BLANK SAILINGS SUPPLY CHAIN IMPACT
Blank sailing, a common practice in the maritime industry, can exert a significant influence on the global supply chain. When ocean carriers cancel voyages or omit certain ports from their schedules, the predictability of cargo space availability tightens and shipping schedules may become inconsistent. Importers and shippers should take a proactive approach to prepare for the anticipated surge in blank sailings to avoid potential freight delays and reduced shipping capacity availability.
RESILIENCE PLANNING
Partnering with an experienced freight forwarder will greatly increase your ability to mitigate potential supply chain disruptions caused by the increased blank sailings. Your freight forwarder will be able to help you develop a resilience plan to avoid shipping delays and inventory depletion. Your freight forwarding partner may recommend alternate routings and modes, contingency planning, and flexible inventory solutions for your supply chain management. Companies that lean into their freight forwarder’s expertise will better position themselves to cope with blank sailings and other unforeseen disruptions, ensuring the resilience of their operations.
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