November 26, 2024
Facing declining market rates, shipping companies are increasing the intensity of cancellations to boost rates.
Data shows that over the next five weeks, 70 out of 693 scheduled voyages on major transpacific, transatlantic, and Asia-to-North Europe/Mediterranean routes will be canceled, a 10% cancellation rate. Among these, 50% of blank sailings will occur on the transpacific eastbound route, 27% on the Asia-Europe route, and 23% on the transatlantic westbound route. Major alliances have canceled 14 voyages, while non-alliance ship companies have implemented 28 blank sailings.
Industry experts note that contract rates for the Asia-Europe route are under negotiation, pressuring shipping companies to raise spot rates in December. However, the success of these efforts is uncertain, and additional voyage cancellations may be enacted by shipping companies to maintain higher rates. Shippers should prepare for potential disruptions.
