China: Capacity Measures & Covid
Carriers are currently reducing capacity through blank sailings from Asia as the overall demand, from China in particular, continues to dip.
Amongst others, the 2M Alliance is reducing capacity on its Asia-European services, starting initially with the ‘MSC Hamburg’ sailing from Ningbo this month, and a hint that more reductions will follow.
Last month 2M dropped two loops on its Asia-North American services as volumes from China continue to diminish due to the global cost of living increases, alternative sourcing and the country’s fight with Covid.
The coronavirus seems to be gathering momentum again with regional lockdowns affecting ports and production.
Ningbo has had lockdown measures enforced this week and over a million people have just been asked to stay at home in Zhengzhou. Meanwhile partial restrictions continue to hinder operations through Shanghai and Shenzhen.
The lack of a strong peak season this year seems to indicate that there could be more drops in demand, which will likely lead to the introduction of further blank sailings and scheduling issues.
As ever, Atlantic Pacific are monitoring the situation and will advise of any major developments.