31 Jan More Blank Sailings on the Horizon
The outlook for container shipping post-Lunar New Year is looking increasingly bleak, as more lines are caving to the mounting pressure and announcing an increasing number of blank sailings.
The industry was already feeling the strain prior to Lunar New Year, with container imports into North America and Europe slowing from their peak. This slowdown has been exacerbated by the current situation, with factories in China being closed and demand for transportation of goods stalling.
The result of this is that container lines are having to take increasing numbers of blank sailings as they grapple to balance capacity and demand. This is a costly move for the lines, but essential in order to prevent any oversupply that would further drive down rates.This is likely to have an effect on the rest of the industry, with traders and shippers facing higher transport costs and longer transit times.
It is likely that the current situation will continue for some time and, as such, container lines may be forced to adopt further contingency measures. This could mean more blank sailings, which will further reduce container imports and add to the current industry woes.
In the short term, the container shipping market will remain volatile and unpredictable. In the meantime, shippers must remain alert to the possibility of yet more blank sailings, and plan their container imports accordingly. In doing so, they can minimize disruption to their business and ensure smooth operations, even in the face of an increasingly challenging industry.
With disruption and delay on the horizon, you need a trusted partner familiar with navigating these waters. At Future Forwarding, our years of experience and expertise can help you plan around these snarls and keep your cargo moving. Reach out today to see how your future could look with Future Forwarding.