Container shipping lines are planning to provide less vessel capacity on the three main ocean trade routes from the Golden Week celebrations onwards.
According to data provided by Sea Intelligence in a report 22/28% of shipments will be cancelled on the transpacific trade in the weeks following the Chinese holiday, compared to the 15/17% of blanked sailings recorded in the same period in 2019 and the average of 9/11% in the four-year period 2014/2018.
On the other hand, a reduction in capacity between Asia and Europe is expected to reach 20% at its peak, which is in line with the figures for 2019 but higher than the average for 2014-2018.
Likewise, significant capacity reductions are planned already from 1st October on the routes between Asia and the Mediterranean.
According to Sea-Int CEO Alan Murphy, over the last few months, carriers have found themselves forced to resort to the tactic of blank departures in order to cope with falling demand and progressively lower tariffs. Moreover, in Mr. Murphy’s opinion, the upcoming Golden Week offers carriers a golden opportunity to cancel more sailings than they would normally do. The objective is clear: to balance supply and demand and thereby stem the collapse in ocean freight rates.
Translation by Giles Foster