Shifting dynamics in the liner shipping industry have led to the adoption of blanked sailings as a strategic response to capacity management and evolving trade patterns. The container-news source-
- Liner operators adopt blanked sailings amid record newbuildings to manage capacity, with THE Alliance leading in skipped schedules.
- Blank sailings shift from demand-driven to capacity control strategy, while impacts on freight rates and routes unfold.
- Industry adapts to evolving dynamics through strategic capacity management, reflecting the changing landscape of global trade.
Adapting to Industry Shifts
In a report by Alphaliner released on August 16, a new normal has emerged in the liner shipping industry, as blanked Asia-Europe sailings have become an expected part of operators’ routines. This practice of skipping scheduled sailings has taken on new significance due to evolving dynamics in the industry.
Record Newbuildings
Record numbers of newbuilding deliveries have prompted liner operators to take measures to manage capacity effectively. Notably, THE Alliance, a major consortium in the industry, has stood out with the highest percentage of skipped schedules. Over 10% of its sailings, translating to nearly 20% of its voyages, have been blanked. Comparatively, the OCEAN Alliance’s suspension rate stands at 10%, with 10 out of its 90-odd voyages being skipped.
Evolution of Blanked Sailings
Blanking sailings initially emerged as a strategy to counter low cargo demand. During the Covid-19 pandemic, missed sailings were often a consequence of port congestion and logistical challenges. However, the landscape has shifted with an influx of new tonnage and an ample supply of available ships. Now, blanked sailings have become a common practice, driven by the need for efficient capacity management. Even as ONE receives new vessels, THE Alliance maintained the highest percentage of skipped sailings in the recent months of June and July.
Future Projections
The impact of blanked sailings is felt across freight rates. The 2M agreement involving MSC and Maersk has seen a relatively lower rate of blanked sailings, yet there are challenges to be met. While Transpacific rates have edged up for certain routes, it’s notable that cargo volumes remain lower compared to the previous year. The Panama Canal draught restrictions, though limited in impact due to priority passage for liner services, may play a role in future rate developments.
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