- Carriers Withdraw 7% of Scheduled Sailings Through Mid-December.
- Freight Rates Rise 8% as GRIs Take Effect.
- Fewer Blank Sailings Signal Mild Capacity Recovery.
The recent trade truce between the US and China has brought some short-term relief to global shipping by lowering tariffs and port fees. However, the bigger issues, such as weak demand and excess capacity, are still hanging around, reports Drewry.
Capacity Adjustments Across Major Routes
From weeks 46 (November 10–16) to 50 (December 8–14), shipping companies have pulled back 7% of their scheduled sailings, 52 out of 721 voyages. Most of these cancellations are happening on the Transpacific eastbound route (48%), followed by Asia–Europe/Med (35%) and Transatlantic westbound (17%). Even with these changes, 93% of departures are still on track to go ahead as planned.
Freight Rates Edge Higher in Early November
In early November, container rates saw some modest increases, thanks to general rate hikes (GRIs) that took effect on November 1. Drewry’s World Container Index climbed 8% week-on-week, reaching $1,959 per 40ft on November 6. The Transpacific and Asia–Europe/Med trades experienced increases of 8% and 9%, respectively, while Transatlantic routes saw a slight dip of 1%.
Fewer Blank Sailings and Slight Capacity Growth
In November, carriers reported 64 cancelled sailings, a drop from 96 in October, which effectively adds 7% more capacity compared to the previous month. Projections for December indicate a 4% increase in capacity and fewer cancellations (48 blank sailings), suggesting that carriers are feeling a bit more confident.
Persistent Oversupply Challenges
The oversupply issue continues to be a burden on the market, with weak demand likely keeping freight rates under pressure throughout the slower season.
Shippers Urged to Stay Flexible
For shippers, the upcoming months will demand more flexibility through early bookings, adaptable scheduling, and proactive planning. While there are signs of temporary improvement in the market, true stability is still a bit uncertain.
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Source: Drewry
