- Carriers have now started announcing blank sailings for Q3.
- For Q3 already 10-15% of capacity has been removed on the Asia-Europe tradelane.
- 5 to 10% capacity has been cut so far on the transpacific to both the west and east coasts of North America.
- Blanked sailing numbers for May and June stood at approximately 20%, keeping freight rates high.
- Cargo rolling does not indicate demand reversal to normal.
Carriers have now started announcing blank sailings for Q3, reports Splash 247.
Blank sailings and freight rates
Lines in two of the three main alliances have now started announcing blank sailings for Q3.
Asia-Europe tradelane
Copenhagen-based Sea-Intelligence reporting 10-15% of capacity has already been removed on the Asia-Europe tradelane for the third quarter.
Transpacific
5 to 10% has been axed so far on the transpacific to both the west and east coasts of North America.
High freight rates
Blanked sailing numbers for May and June on these two main tradelanes stood at approximately 20%, keeping freight rates high.
Capacity not a sign of demand
The Ocean Alliance, which features CMA CGM, Cosco, and Evergreen, has yet to start blanking sailings in earnest for Q3.
The data from Sea-Intelligence shows that the recent reinstatement of some capacity cannot in any way be interpreted as a sign of strong demand.
Zero blank sailings
According to Sea-Intelligence, full ships on some trades and cargo rolling in ports in Asia, is a clear indication that:
- too much capacity had been removed and
- not an indication of a reversal to normal.
If demand were normal blank sailings should be reduced to zero, which is obviously not the case.
Sea-Intelligence reckons there is an approximate 85% correlation between blanked capacity and actual demand declines.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Splash 247
