Understanding Blank Sailings and Their Impact

As we approach the traditional off-peak season between Golden Week and Chinese New Year, the shipping industry is witnessing a significant trend: carriers are announcing numerous blank sailings. These cancellations are set to impact services for shippers, particularly on the high-volume Trans-Pacific Eastbound (TPEB) and Far East Westbound (FEWB) lanes. But what exactly are blank sailings, and why should shippers be concerned?

Blank sailings occur when a carrier cancels a particular sailing for a vessel. Typically, vessels operate in a “string,” calling at specific ports on a regular basis. For instance, a string might involve six vessels rotating through Shanghai every Monday, then proceeding to Ningbo and Los Angeles before returning to Shanghai. This loop ensures consistency in transit times and supply on trade lanes.

When a blank sailing is announced, it means that a vessel on that string will be pulled out of the loop for a week, resulting in a skipped week of service. Carriers may choose to roll all cargo to the next vessel for that string or load containers onto other strings servicing the same ports during the week of the blank sailing. Either way, the immediate effect is a reduction in global supply on that route.

The Current Situation: A Surge in Blank Sailings

Looking ahead, carriers have announced over 19 blank sailings on TPEB and more than 15 on FEWB from October to December 2023. While the majority of these blank sailings are concentrated around the Golden Week factory and business closures in early October, their impact is expected to extend beyond this timeframe. Shippers should anticipate capacity constraints potentially lasting through the end of the year.

This surge in blank sailings is a strategic move by carriers to reduce supply in the short term, which often results in stronger rates. Additionally, it provides an opportunity for much-needed vessel maintenance. However, for shippers, this situation presents several challenges that need to be navigated carefully.

How Blank Sailings Affect Shippers

The impact of blank sailings on shipments can be significant and multifaceted. Here are the key ways in which shippers may be affected:

1. Tighter Vessel Space

With fewer sailings available, the remaining operating services will face higher demand. This could lead to overbooking of active vessels, potentially resulting in rolled containers – a situation where cargo misses its scheduled sailing.

2. Port Congestion

As carriers adjust sailing schedules and cargo loading plans around blank sailings, shippers can expect increased congestion at ports. This congestion can lead to delays in both loading and unloading of cargo.

3. Slower Space Release

Carriers may be slower in releasing space information as they revise schedules and filter vessels in and out. Projecting the amount of space available on an upcoming vessel could be delayed, especially if there are last-minute changes in vessel size or capacity.

4. Market Volatility

Blank sailings can introduce more uncertainty and volatility into the market. This unpredictability can make it challenging for shippers to plan their logistics effectively and may lead to fluctuations in shipping rates.

Strategies for Mitigating Blank Sailing Challenges

While the situation may seem daunting, there are several strategies that shippers can employ to mitigate the impact of blank sailings:

1. Early Booking

To avoid space congestion issues with last-minute bookings, aim to book your shipments at least three weeks before the cargo ready date (CRD). This proactive approach can help secure space on desired sailings.

2. Flexibility in Routing

Be open to alternative routing options. If your usual route through Los Angeles to Columbus is affected by blank sailings, consider routing via Canada or the US East Coast for a few weeks. This flexibility can help ensure your cargo moves without significant delays.

3. Supplier Coordination

Work closely with your suppliers to ensure they’re prepared for fewer sailings. Shifting CRDs could result in more delays than usual, as there might be fewer overall options available. Clear communication with suppliers can help in adjusting production and delivery schedules accordingly.

4. Utilize Digital Logistics Solutions

At FreightAmigo, we understand the complexities that blank sailings introduce to the shipping process. Our Digital Logistics Platform offers real-time tracking and updates, allowing shippers to stay informed about any changes or disruptions to their shipments. By leveraging our platform, shippers can make informed decisions quickly and adapt their strategies as needed.

How FreightAmigo Can Help Navigate Blank Sailing Challenges

As a full-service, one-stop Digital Supply Chain Finance Platform, FreightAmigo is well-equipped to help organizations, enterprises, and individuals navigate the challenges posed by blank sailings. Here’s how our Digital Logistics Solution can support shippers during these uncertain times:

1. Comprehensive Quote Comparison

With our platform, clients can compare door-to-door freight quotes for international courier, airfreight, sea freight, rail freight, and trucking solutions. This feature becomes particularly valuable when blank sailings disrupt usual shipping routes, allowing shippers to quickly find and book alternative transportation methods.

2. Real-Time Shipment Tracking

Our system connects with more than 1000 reputable airlines and shipping lines, enabling clients to track their shipment status anytime, anywhere. This real-time visibility is crucial when dealing with the potential delays and rerouting caused by blank sailings.

3. Streamlined Customs Clearance and Insurance

FreightAmigo’s one-stop service for arranging customs clearance, cargo insurance, and trade finance can help mitigate some of the risks associated with shipping during periods of high blank sailings. This integrated approach ensures that all aspects of the shipping process are covered, even when faced with unexpected changes.

4. Automated Document Management

Our platform automates shipment documents, reducing the administrative burden on shippers. This feature is particularly helpful when dealing with last-minute changes or rerouting due to blank sailings, ensuring that all necessary documentation is updated and compliant.

5. 24/7 Expert Support

With round-the-clock access to logistics experts, FreightAmigo ensures that shippers have the support they need to navigate the complexities introduced by blank sailings. Our team can provide guidance on alternative routing options, help with rebooking if necessary, and offer insights on market conditions affecting shipping lanes.

Conclusion: Staying Ahead in a Challenging Shipping Landscape

The increase in blank sailings presents a significant challenge for shippers, but with the right strategies and tools, these challenges can be effectively managed. By staying informed, being flexible, and leveraging digital logistics solutions like FreightAmigo, shippers can navigate this period of uncertainty with confidence.

Remember, the key to success in this environment is proactive planning and adaptability. Book early, consider alternative routes, and stay in close communication with your suppliers and logistics partners. With FreightAmigo’s comprehensive Digital Logistics Platform at your disposal, you’ll have the visibility, flexibility, and support needed to keep your supply chain moving smoothly, even in the face of blank sailings and other shipping disruptions.

As we continue to navigate these challenges together, FreightAmigo remains committed to providing innovative solutions that transform and redefine the logistics experience. Our unique TradeTech ecosystem, combining artificial intelligence, big data, FreighTech, FinTech, InsurTech, and GreenTech, is designed to accelerate logistics, information, and cash flow, ensuring a hassle-free and enjoyable logistics experience for all our clients.

Stay ahead of the curve and turn shipping challenges into opportunities with FreightAmigo. Together, we can create a new path for businesses and individuals to grow and ship, no matter what obstacles the shipping industry may present.