- Cancelled sailings (7%) are announced across major routes for the next five weeks due to port congestion and the Red Sea crisis.
- Despite cancellations, most ships (93%) are still expected to sail.
- However, freight rates are rising (up to 3% on some routes) with more hikes expected soon. Drewry offers solutions to help shippers navigate these challenges.
Cancelled Sailings
A total of 46 blank sailings have been announced across major East-West routes (Transpacific, Transatlantic, Asia-North Europe & Med) for the next five weeks (between June 17th and July 21st). This represents a 7% cancellation rate compared to the 661 scheduled sailings.
Breakdown by Route
- Transpacific Eastbound: 57% of cancelled sailings
- Asia-North Europe & Med: 30% of cancelled sailings
- Transatlantic Westbound: 13% of cancelled sailings
Alliance Cancellations
- OCEAN Alliance: 14 cancellations
- 2M Alliance: 8 cancellations
- THE Alliance: 7 cancellations
- Non-Alliance Services: 17 cancellations
Despite cancellations, 93% of ships are still expected to sail as scheduled during the next five weeks.
Freight Rate Increases
- Drewry’s WCI Composite Index rose 2% to $4,801 per container.
- Rates increased on Asia-Europe and Med routes (3%) and Transpacific lanes (1%).
- Transatlantic routes saw a decline in rates (-1%).
Reasons for Disruptions
- The shipping industry is facing challenges similar to the pandemic, including:
- Supply-demand imbalances
- Port congestion
- Container shortages
- The ongoing crisis in the Red Sea is a significant contributor to these disruptions.
Future Outlook
- Further rate increases are anticipated as major carriers implement Peak Season Surcharge hikes in mid-June and early July.
- The market’s ability to absorb these hikes and potential mitigation strategies remain to be seen.
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Source: Drewry
