Help us by filling out this quick price survey

Take Survey
Carrier-blanked sailings failed to increase the freight rates, demands permanent capacity cuts

Carrier-blanked sailings failed to increase the freight rates, demands permanent capacity cuts

Posted on October 17, 2022   |  

  • Carriers are reluctant to take out capacity in any serious way, while easing port congestion dropped by 10.5%, the lowest in 10 months,  negating the initial capacity reductions. 
  • The US west coast accounts for less than 7% of total trade capacity, and on US east coast accounts for less than 2%, which is already running at less than full strength.
  • However, the opportunity cost of withdrawing capacity is very high for the carriers today, unlike in 2016 or 2020 when charter rates were low.
  • The smaller carriers are maintaining transpacific services through October, including CU Lines, Transfar, BAL, and Sea-Lead, and Wan Hai will soon place its 13,200 TEU ships on the US west coast lane by October end, negating any impact of the withdrawal of 2 irregular transpacific services.