Blank sailings decline in May amdist fluctuating volumes, reports Green Worldwide.
Blank sailings decline
Ocean carriers began implementing a new service approach transitioning from the random service cuts and blank sailings the industry experienced in April. May saw carriers begin to offer bi-weekly services in lieu of weekly services to meet volume demands and maintain regular deliveries for customers. This structured framework minimize the disruptions caused by ad-hoc service cuts.
Fluctuating volumes
Industry experts have observed a stabilizing trend in the market since the April general rate increases (GRIs). However, attempts to implement new GRIs in May and June are expected to be ineffective due to a lack of import demand. Import volumes declined an estimated 30% across all trans-Pacific shipping sectors.
As carriers continue to reduce sailings and with an influx of new vessels expected in 2024, supply is anticipated to outpace demand. Though volume growth is expected in late June and early July, due to year-end holiday merchandise imports, US inventories continue to remain at higher levels than expected as the peak season approaches.
Striking a balance
This is a transformative time for Trans-Pacific shipping as carriers work to strike balance between service adjustments and fluctuating demand. The more structured approach to service cuts provides customers with improved shipping reliability and offers carriers flexibility to manage rapidly changing volumes.
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Source: Green Worldwide
