- Golden Week drives the majority of blank sailings.
- Drewry index drops for 14th straight week.
- US port fees to hit COSCO hardest from October.
Carriers are really relying on blank sailings and skipping ports to navigate a tough market. Between weeks 39 (September 22–28) and 43 (October 20–26), a notable 11% of scheduled sailings, 81 out of 720, have been cancelled. The majority of these cuts are happening on the Transpacific route (53%), followed by Asia–Europe/Med (31%) and Transatlantic westbound (16%), reports Drewry.
Golden Week and Ongoing Congestion
A significant 68% of the cancellations are happening around China’s Golden Week, while congestion at major ports in China and Europe continues to throw schedules off track. Still, 89% of weekly departures are expected to go ahead as planned.
Freight Rates Extend Decline
Drewry’s World Container Index took another dip, falling 6% to $1,913 for a 40ft container on September 18, marking its 14th consecutive weekly decline. The Asia–Europe/Med trade experienced a 10% decline, Transpacific rates dropped by 5%, and Transatlantic rates decreased by 1%.
US Port Fees to Hit Chinese Carriers
Starting October 14, new US port fees will be imposed on vessels that are either built in China or operated by Chinese companies. COSCO is likely to feel the biggest impact, while most of its competitors will experience only limited effects.
Holiday Demand vs. Headwinds
As we enter the fourth quarter, holiday demand may provide a slight boost. However, tariffs, economic challenges, and geopolitical issues could hinder restocking efforts. Maintaining capacity discipline and ensuring shipper agility will be crucial for managing the ongoing volatility.
Shipper Strategies Going Forward
To navigate the months ahead, shippers should remain flexible by opting for shorter contracts, keeping a close eye on tariff changes, and securing capacity early to reduce risks.
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Source: Drewry
