Port congestion causes container lines to void up to 25% of teu capacity

Date Added: 29 December 2021

Port congestion causes container lines to void up to 25% of teu capacity

A new phenomenon is emerging in container shipping as the major carriers struggle to manage their schedules in light of the persistent backlogs to enter major ports around the world, and it is a concern for companies such as Davies Turner, as it affects the performance of our global ocean freight forwarding and logistics services.

The latest Maritime Executive newsletter reports that research and advisory services company Sea-Intelligence is calling the phenomenon “congestion-induced blank sailings,” where the carriers have been forced to blank sailings from their schedule not because of overcapacity but because the ships are not returning in time due to port congestion.

According to the report, the largest impact is currently on the Asia-North America West Coast trade routes where Sea-Intelligence reports as much as a quarter of weekly capacity is blanked due to the delays throughout the system.  Historically, carriers resorted to blank sailing as a means of controlling overcapacity on a route. Early in the pandemic, this was common with two weeks at over 40 percent of capacity on the Asian routes to the US West Coast. Through the spring of 2020, carriers averaged nearly a 25 percent cancellation rate according to the data from Sea-Intelligence before they restored capacity.

The full report can be seen here https://www.maritime-executive.com/article/port-congestion-causes-carriers-to-blank-up-to-quarter-of-teu-capacity

You can find more information about Davies Turner's ocean freight services by contacting [email protected] - visiting https://www.daviesturner.com/ocean or speaking to your usual contact in our company.

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