Blank Sailings Persist!

In recent weeks, congestion issues in Chinese ports have been steadily worsening, posing challenges for maritime operations. Delays in vessel arrivals are attributed to adverse weather conditions, substantial backlogs in key ports like Ningbo and Shanghai, as well as disruptions caused by holidays and port closures. Notably, Ningbo experienced a significant closure period of 66 hours at the end of April, while a surge in cargo activity preceding the 5-day labor holiday exacerbated the situation further.

Capacity constraints persist as vessels opt for longer routes via South Africa to circumvent the Red Sea, where ongoing tensions continue to prompt diversions. It's projected that total absorbed capacity will surpass five million twenty-foot equivalent units (TEU) by the end of this month, constituting a notable 17% reduction in global capacity. This situation empowers carriers to manage capacity strategically, thereby exerting upward pressure on costs.

The reduction in capacity is compounded by an uptick in blank sailing programs scheduled for May and June. According to Drewry, a total of 17 sailings were cancelled on Trans-Pacific trade routes during weeks 20 to 24. Additionally, MSC has suspended its Santana service effective this week, while the THEA-EC4 service remains suspended until further notice. These developments underscore the challenges faced by stakeholders in the maritime industry amidst ongoing disruptions and capacity fluctuations.