As part of our continued commitment to informing you of potential impacts to your supply chain, we would like to update you on recent developments in the ocean freight sector. In order to compensate for poor performance due to a lack of bookings thus far in 2018, carriers have begun announcing “blank” or “void” sailings. A blank or void sailing is one that has been cancelled by a carrier with the intended effect being a reduction in capacity. The reduction in capacity will afford the carriers the opportunity to increase rates in an attempt to mitigate their poor performance.
The Ocean Alliance (OA), consisting of China Cosco Shipping, Evergreen Line, CMA CGM, and OOCL; The 2M Alliance, consisting of Maersk & MSC; and “THE” Alliance, consisting of Ocean Network Express, Hapag-Lloyd, and Yang Ming Line have all announced blank sailings over the next 3 months. Below is a snapshot of upcoming blank sailings.
|No. of Carriers||No. of Origins||No. of Vessel Strings||Capacity Reduction by Carrier||Capacity Reduction for Industry|
|9||11||13||8.5% – 9%||3.5%|