Navigating the Impact of Blank Sailings on Global Shipping

Introduction

As we approach the traditional off-peak season between Golden Week and Chinese New Year, the global shipping industry is experiencing a significant shift. Ocean carriers are announcing numerous blank sailings, particularly affecting the high-volume Trans-Pacific Eastbound (TPEB) and Far East Westbound (FEWB) lanes. This development is poised to create ripple effects throughout supply chains worldwide. In this article, we'll explore the implications of these blank sailings and how shippers can navigate the challenges ahead.

Recent data shows that carriers have announced over 19 blank sailings on TPEB and more than 15 on FEWB routes from October to December 2018. While many of these cancellations coincide with Golden Week factory closures in early October, their impact is expected to extend well beyond this period, potentially affecting supply chains through the end of the year.

Understanding Blank Sailings

Before delving into the implications, it's crucial to understand what blank sailings are and why carriers implement them:

• A blank sailing occurs when a carrier cancels a particular voyage for a vessel.
• Vessels typically operate in "strings," calling at specific ports on a regular schedule.
• When a blank sailing is announced, a vessel is removed from its regular loop for a week, resulting in a skipped week of service.
• Carriers may choose to roll cargo to the next available vessel or redistribute containers to other services covering the same ports.

Blank sailings are a strategic tool used by carriers to reduce supply in the short term, often leading to stronger rates and providing opportunities for vessel maintenance.

The Impact of Blank Sailings on Global Shipping

The announced blank sailings are expected to have several significant impacts on the shipping industry:

1. Tighter Vessel Space

With fewer sailings available, the remaining operational services will face higher demand. This increased pressure could result in overbooking of active vessels, potentially leading to rolled containers.

2. Port Congestion

As carriers adjust their sailing schedules and cargo loading plans to accommodate blank sailings, ports may experience increased congestion. This could lead to delays in loading and unloading operations.

3. Slower Space Release

The reshuffling of vessels and adjustments to schedules may cause delays in space release. Carriers might struggle to accurately project available space on upcoming vessels, especially when swapping between different-sized ships.

4. Market Volatility

The reduction in available capacity could introduce more uncertainty and volatility into the market, affecting both rates and service reliability.

Strategies for Mitigating Blank Sailing Challenges

To navigate the potential disruptions caused by blank sailings, shippers should consider implementing the following strategies:

1. Early Booking

Book shipments at least three weeks before the cargo ready date (CRD) to avoid space congestion associated with last-minute bookings. This proactive approach can help secure space on preferred sailings.

2. Flexible Routing

Be open to alternative routing options. If your usual route is affected by blank sailings, consider exploring different paths. For instance, if your typical route from Los Angeles to Columbus is impacted, investigate options via Canada or the US East Coast.

3. Supplier Coordination

Work closely with your suppliers to ensure they are prepared for the reduced number of sailings. Shifting CRDs could result in more significant delays than usual due to fewer overall options being available.

4. Leverage Digital Logistics Solutions

Utilize advanced Digital Logistics Platforms like FreightAmigo to gain real-time visibility into available routes, compare rates, and make informed decisions quickly. Our Digital Platform provides comprehensive tools to help you navigate these challenges effectively.

How FreightAmigo Can Help

At FreightAmigo, we understand the complexities of global shipping and the challenges posed by events like blank sailings. Our Digital Logistics Solution is designed to support shippers in navigating these uncertain times:

1. Real-time Visibility

Our Digital Platform provides up-to-date information on vessel schedules, blank sailings, and available capacity, enabling you to make informed decisions quickly.

2. Alternative Routing Options

We offer comprehensive door-to-door freight quotes for various transportation modes, including international courier, airfreight, sea freight, rail freight, and trucking solutions. This flexibility allows you to explore alternative routes when faced with blank sailings.

3. Automated Documentation

Our system automates shipment documents, reducing the risk of delays due to paperwork issues during periods of increased port congestion.

4. 24/7 Expert Support

Our logistics experts are available round-the-clock to assist you in navigating challenges related to blank sailings and other shipping disruptions.

5. Integrated Services

We offer a one-stop solution for arranging customs clearance, cargo insurance, and trade finance, streamlining your logistics processes even during challenging times.

Conclusion

As the shipping industry adapts to the current market conditions through measures like blank sailings, it's crucial for shippers to stay informed and agile. By understanding the potential impacts and implementing proactive strategies, businesses can minimize disruptions to their supply chains.

At FreightAmigo, we're committed to providing the Digital Logistics Solutions you need to navigate these challenges successfully. Our comprehensive Digital Platform, combined with our expertise in FreighTech, FinTech, InsurTech, and GreenTech, positions us uniquely to support your logistics needs during these uncertain times.

Don't let blank sailings disrupt your supply chain. Leverage FreightAmigo's Digital Logistics Platform to stay ahead of the curve and ensure a smooth, efficient shipping experience. Contact us today to learn how we can help you transform your logistics operations and thrive in today's dynamic global market.