Understanding Blank Sailings: Causes, Impacts, and Solutions for Shippers

Introduction

In the complex world of international shipping, few terms cause as much concern for shippers as "blank sailing." This industry practice, while necessary for carriers, can significantly disrupt supply chains and create challenges for businesses relying on timely ocean freight. As global trade continues to evolve, understanding blank sailings and how to mitigate their impact has become crucial for shippers and logistics professionals alike.

Recent data from maritime analytics firm Sea-Intelligence shows that blank sailings continue to be a prominent feature of the shipping landscape:

• In Q1 2023, carriers blanked 14% of sailings on major East-West trade routes
• Blank sailing rates reached as high as 30% on some Asia-North Europe services
• The Asia-North America West Coast route saw 17% of sailings blanked

These figures underscore the ongoing significance of blank sailings in global trade. In this comprehensive guide, we'll explore what blank sailings are, why they occur, their impact on shippers, and how FreightAmigo's Digital Logistics Platform can help navigate these challenges.

What is a Blank Sailing?

A blank sailing, also known as a void sailing, occurs when a carrier cancels a scheduled voyage. This can manifest in two ways:

1. Skipping a specific port in the vessel's planned route
2. Canceling the entire string (a set of ports served weekly by a carrier)

For example, a typical string might include Shanghai > Ningbo > Los Angeles > Oakland > Shanghai. This circular route operates on a fixed weekly schedule, with set departure days for each port. When a blank sailing occurs, it disrupts this carefully planned itinerary.

Why Do Blank Sailings Happen?

Carriers implement blank sailings for several reasons, primarily driven by market conditions and operational considerations:

1. Low Demand for Vessel Space

One of the primary reasons for blank sailings is to balance available container supply with projected demand. When demand for cargo space is low, carriers may choose to cancel sailings to avoid operating vessels at a loss. This often occurs following major holidays like Golden Week and Chinese New Year when factories in Asia are closed, leading to a temporary decrease in export volumes.

2. Adjustments to Weekly Sailing Frequency

Carriers may implement blank sailings when they're changing the number of strings per week on a particular route. For instance, if a carrier decides to reduce their Shenzhen to Los Angeles sailings from 10 to 5 per week, blank sailings will likely occur during the transition period.

3. Formation of New Ocean Alliances

When shipping lines form new alliances or restructure existing ones, it often leads to a reshuffling of vessel deployments and service networks. This reorganization can result in temporary blank sailings as carriers adjust their schedules and port rotations.

4. Vessel Maintenance and Repairs

Sometimes, blank sailings are necessary for unscheduled maintenance or repairs to vessels. While carriers try to minimize these disruptions, unexpected technical issues can force them to temporarily remove a ship from service.

5. Port Congestion and Operational Issues

Severe port congestion, labor strikes, or other operational issues at key ports can lead carriers to implement blank sailings. By skipping congested ports, they aim to maintain schedule reliability for the rest of their network.

The Impact of Blank Sailings on Shippers

While blank sailings help carriers optimize their operations and maintain profitability, they can have significant consequences for shippers:

1. Delays in Cargo Movement

The most immediate impact of a blank sailing is a delay in cargo movement. When a sailing is canceled, shipments booked for that vessel must be rescheduled to the next available sailing, which could be a week or more later.

2. Increased Costs

Delays caused by blank sailings can lead to increased costs for shippers. These may include:

• Storage fees at origin ports
• Penalties for late delivery to customers
• Additional inventory carrying costs
• Potential loss of sales due to stock-outs

3. Supply Chain Disruptions

For businesses operating on just-in-time inventory models or with tight production schedules, blank sailings can cause significant supply chain disruptions. These delays can ripple through the entire supply chain, affecting production, distribution, and ultimately, customer satisfaction.

4. Capacity Crunches and Rate Volatility

When carriers implement blank sailings, it reduces overall capacity in the market. This can lead to spot rate increases and make it more challenging for shippers to secure space on subsequent sailings, especially during peak seasons.

5. Planning Challenges

Blank sailings introduce an element of uncertainty into shipping schedules, making it more difficult for logistics professionals to plan their supply chains effectively. This unpredictability can complicate everything from production planning to customer delivery promises.

How FreightAmigo Helps Navigate Blank Sailing Challenges

At FreightAmigo, we understand the complexities and challenges posed by blank sailings. Our Digital Logistics Platform is designed to help shippers navigate these disruptions effectively and maintain smooth supply chain operations. Here's how we support our clients:

1. Real-Time Tracking and Visibility

Our platform provides real-time tracking and visibility for shipments across more than 1000 reputable airlines and shipping lines. This comprehensive view allows shippers to quickly identify potential disruptions caused by blank sailings and take proactive measures to mitigate their impact.

2. Alternative Routing Options

When a blank sailing occurs, time is of the essence in finding alternative solutions. FreightAmigo's Digital Platform offers instant access to a wide range of routing options across multiple modes of transport, including:

• International courier services
• Air freight
• Sea freight
• Rail freight
• Trucking solutions

This flexibility allows shippers to quickly identify and book alternative transportation methods to keep their cargo moving, even in the face of blank sailings.

3. Competitive Rate Comparisons

Our platform enables shippers to compare door-to-door freight quotes from multiple carriers and modes of transport. This feature is particularly valuable when blank sailings cause capacity crunches and rate volatility, allowing businesses to find the most cost-effective solutions for their time-sensitive shipments.

4. Automated Documentation

When rerouting shipments due to blank sailings, proper documentation is crucial to avoid further delays. FreightAmigo's automated shipment document feature streamlines this process, ensuring that all necessary paperwork is accurately prepared and submitted, regardless of the chosen alternative route or mode of transport.

5. Customs Clearance Support

Rerouting shipments may sometimes involve changes in customs procedures. Our platform offers integrated customs clearance services, helping to expedite the process and minimize potential delays at borders or ports of entry.

6. Risk Mitigation through Cargo Insurance

The uncertainties introduced by blank sailings can increase the risk of cargo damage or loss. FreightAmigo's platform allows shippers to easily arrange cargo insurance, providing an additional layer of protection for their goods during these unpredictable situations.

7. 24/7 Expert Support

Our team of logistics experts is available around the clock to provide support and guidance. When blank sailings disrupt your shipments, you can count on our professionals to help you navigate the challenges and find the best solutions to keep your supply chain moving.

Strategies for Mitigating Blank Sailing Impacts

While blank sailings are a reality of modern ocean freight, there are several strategies shippers can employ to minimize their impact:

1. Diversify Carrier Relationships

Relying on a single carrier or alliance increases vulnerability to blank sailings. By diversifying relationships across multiple carriers and alliances, shippers can improve their chances of finding alternative options when blank sailings occur.

2. Consider Alternative Ports

Being flexible with port options can provide more routing alternatives when blank sailings affect primary ports. FreightAmigo's platform allows shippers to easily explore and compare options through different ports.

3. Utilize Intermodal Solutions

In some cases, combining ocean freight with other modes of transport (e.g., rail or truck) can help bypass blank sailings and maintain timely deliveries. Our Digital Logistics Platform makes it easy to explore and book these intermodal solutions.

4. Implement Buffer Time in Supply Chains

Building some flexibility into supply chain timelines can help absorb the impact of occasional blank sailings without causing major disruptions.

5. Stay Informed

Keeping abreast of market conditions, alliance announcements, and potential disruptive events can help anticipate blank sailings. FreightAmigo's platform provides up-to-date information and insights to support informed decision-making.

Conclusion

Blank sailings remain a significant challenge in the world of ocean freight, with the potential to cause substantial disruptions to global supply chains. However, with the right strategies and tools, shippers can effectively navigate these challenges and maintain smooth operations.

FreightAmigo's Digital Logistics Platform offers a comprehensive suite of solutions designed to help businesses overcome the hurdles posed by blank sailings. From real-time tracking and alternative routing options to automated documentation and expert support, we provide the tools and expertise needed to keep your cargo moving efficiently, even in the face of unexpected disruptions.

As the global shipping landscape continues to evolve, staying agile and informed is key to success. By leveraging FreightAmigo's Digital Logistics Solutions, shippers can turn the challenges of blank sailings into opportunities for optimizing their supply chains and gaining a competitive edge in the market.

Don't let blank sailings blank out your business operations. Contact FreightAmigo today to learn more about how our Digital Logistics Platform can help you navigate the complexities of global shipping with confidence and ease.