- Drewry’s latest Cancelled Sailings Tracker report highlights a 7% cancellation rate across major East-West trades, with significant impacts on Transpacific, Asia-North Europe, and Transatlantic routes.
- Ocean freight rates have surged due to geopolitical uncertainties and market disruptions.
Drewry’s weekly Cancelled Sailings Tracker provides vital insights into the frequency and distribution of blank sailings announced by shipping alliances. The report also examines the impact of these cancellations on service reliability and ocean freight rates, offering a comprehensive overview for stakeholders in the shipping industry.
The report for the week of May 17, 2024, reveals that 44 sailings have been canceled between weeks 21 (20 May-26 May) and 25 (17 Jun-23 Jun) out of a total of 652 scheduled sailings, resulting in a 7% cancellation rate.
Cancellation Breakdown by Trade Route
- Transpacific Eastbound: 50% of the blank sailings.
- Asia-North Europe and Med: 27% of the cancellations.
- Transatlantic Westbound: 23% of the cancellations.
Alliance Announcements
- OCEAN Alliance: 13 cancellations.
- THE Alliance: 10 cancellations.
- 2M Alliance: 8 cancellations.
- Non-Alliance Services: 13 blank sailings.
The data indicates a modest decline in carrier service reliability, with an average of 93% of ships expected to sail as scheduled over the next five weeks.
Ocean Freight Rate Trends
Drewry’s Composite Freight Index increased by 11% week-on-week to $3,511. Notable rate hikes were observed on Asia-Europe and Med, and Transpacific routes, which saw a 12% rise, while Transatlantic rates grew by 2%.
Market Influences
- Red Sea Crisis: The crisis has led to longer transit times due to ship diversions via the Cape of Good Hope, creating a perception of tight space despite stable year-over-year capacity.
- Geopolitical Uncertainties: Early shipping and changes in ordering patterns, driven by longer lead times and uncertainties in the Middle East, have contributed to recent rate increases.
- Double-Booking Practices: Indicate market overreaction and have also impacted freight rates.
Drewry’s Cancelled Sailings Tracker provides crucial insights into the current state of global container shipping, highlighting the effects of geopolitical tensions and market disruptions on service reliability and freight rates. Stakeholders can utilize this information to better navigate the complexities of the shipping industry.
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Source: Drewry
