Asia: Carriers Blanking May Sailings
Carriers from the shipping line alliances are currently introducing further blanked sailings for May, in what looks to be an attempt to align with falling demand.
Export volumes from China are plummeting, due to Chinese Coronavirus lockdowns and a reduction in demand since Chinese New Year, skipping voyages will reduce capacity in the market.
It is reported that export bookings have fallen by up to a third for the coming weeks, which would traditionally lead to over capacity and a reduction in rates. Reducing that capacity may well be a means of carriers protecting higher rate levels.
The Asian ocean freight market has long been driven by supply and demand and lower demand often follows the Chinese New Year period, before picking up again by peak season. However, for two years since the pandemic, demand has continued to remain consistently high.
At least one carrier has described the reduction in sailings as reacting to the “ongoing market situation”.
Atlantic Pacific continue to monitor the situation closely. Should you require any further information, then please do not hesitate to contact a member of the team.