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US blank sailings signal a substantial drop in shipping operations
Posted on April 29, 2024 |
The spot rates have shown a consistent decline over several months.
Shipping companies are presented with two options: increase blank sailings to stabilize spot pricing or capitalize on current rates despite the decline.
Despite the decrease, spot prices remain significantly higher than levels before the Red Sea crisis and the pandemic, potentially prompting increased cargo bookings.
Choosing not to blank sailings may yield short-term profits but could lead to further rate erosion in the long run.
Recent weeks have witnessed a notable decrease in blanked capacity on major trading routes such as Asia-North Europe and Asia-North America East Coasts.
A similar trend is observed on the Asia-Mediterranean route; however, Sea Intelligence suggests it is premature to determine if this signals a new trend or is part of regular volatility.