- East-West Trade Lanes See Significant Sailing Cancellations.
- Freight Rates Continue Decline Amid Market Challenges.
- Israel-Hamas Ceasefire May Reopen Red Sea Routes, But Risks Remain.
Drewry’s Weekly Cancelled Sailings Tracker provides week-by-week detail of blank sailings announced by each alliance as compared to total scheduled sailings. Between weeks 5 and 9, that is, between 27 January to 2 March, a total of 113 sailings have been cancelled in major East-West trade lanes, for a cancellation rate of 15% of 759 total scheduled sailings, reports Drewry.
Cancelled Sailings by Trade Lane
The Transpacific Eastbound trade lane will likely face the highest percentage of cancellations in the next five weeks, followed by Asia-North Europe and Mediterranean routes. The Transatlantic Westbound trade lane, though less impacted, still has its challenges.
Freight Rates and Market Trends
Freight rates are trending down in the wake of the change in alliances, overcapacity, and weak demand. Little is expected for recovery in the near term. As of 23 January, Drewry’s WCI Composite Index declined by 11% week-on-week to $3,445 per 40ft unit. Transpacific, Asia-Europe/Mediterranean, and Transatlantic route rates declined by varying percentages, echoing prevailing market distress.
It remains possible that a truce between Israel and Hamas may open the Red Sea shipping lanes. Yet, the Houthis have already said they will target only Israeli or Western vessels, casting doubts on how stable these promises are. Hope for resumed traffic comes with reopening routes, but safety concerns that persist and disruptions might impact short-term freight rates.
Support for Shippers Amid Red Sea Disruptions
In light of the ongoing crisis in the Red Sea, comprehensive research and advisory services are available to assist international shippers. These include contract advice, freight rate forecasts, and surcharge insights designed to mitigate the commercial challenges posed by the current disruptions.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Drewry
