Navigating Cancelled Sailings: Insights And Market Trends – May 3 Report

46

  • In the ever-changing landscape of global shipping, understanding the dynamics of cancelled sailings is crucial for stakeholders across the industry.
  • Our weekly Cancelled Sailings Tracker provides a comprehensive snapshot of blank sailings announced by each Alliance versus the total number of scheduled sailings, offering valuable insights into market trends and operational challenges.

Cancelled Sailings Tracker Overview

The latest report, dated May 3, 2024, reveals that across the major East-West headhaul trades – Transpacific, Transatlantic, and Asia-North Europe & Med – a total of 35 cancelled sailings have been announced between week 19 (May 6-12) and week 23 (June 3-9). This accounts for approximately 5% of the total scheduled sailings during this period.

Subscription Benefits

In addition to the Cancelled Sailings Tracker, stakeholders can benefit from an annual subscription to our Container Capacity Weekly Insight. This subscription offers detailed assessments and analysis by main trade and alliance, including insights into port waiting time events for key hubs like Los Angeles and Long Beach, along with year-on-year comparisons.

Weekly Analysis: May 3, 2024

The report delves into the distribution of blank sailings by trade routes, revealing that 57% of the cancellations will occur on the Transpacific Eastbound route, followed by 29% on the Asia-North Europe and Med route, and 14% on the Transatlantic Westbound trade.

Furthermore, over the next five weeks, the OCEAN Alliance has announced 12 cancellations, while THE Alliance and 2M have announced 9 and 5 cancellations, respectively. Additionally, non-Alliance services have implemented 9 blank sailings during the same period.

Market Trends in Ocean Freight

The report highlights trends in the ocean freight market, with Drewry’s Composite Freight Index surging 1% week-on-week to $2,725, marking the first increase since February. Rates on Asia-Europe and Med routes saw a 2% increase, while rates on Transpacific and Transatlantic routes remained steady week-on-week.

Navigating Challenges

Operational adjustments in response to the ongoing crisis in the Red Sea have caused moderate disruptions in the ocean freight market. While initial crises like backlogs and congestion have eased, ongoing adjustments are expected to keep freight rates elevated, with further increases slated for mid-May.

To mitigate commercial challenges exacerbated by the Red Sea situation, stakeholders can access a range of research and advisory services, including contract advice, freight rate forecasts, and surcharge insights.

As the global shipping industry continues to navigate challenges and uncertainties, insights from reports like the Cancelled Sailings Tracker and Container Capacity Weekly Insight play a vital role in enabling stakeholders to make informed decisions and adapt to evolving market conditions.

Did you subscribe to our daily Newsletter?

It’s Free! Click here to Subscribe

Source: Drewry