Oct 1st Golden Week is approaching! Shipping company will vigorously cut capacity, cancel more voyages! Involving Shanghai, Ningbo and other ports

With the arrival of the National Day Golden Week, the liner company's suspension plan also followed.

Shipping companies are expected to withdraw more capacity from the market during China's upcoming National Day Golden Week holiday and into October, with the number of canceled voyages higher than the historical average, Sea-Intelligence, a shipping data analysis company, reported.

Sea-intelligence said: "For a long time, blank navigation has been the preferred way for shipping companies to balance supply and demand, what we call tactical air navigation. With Golden Week coming up (starting October 1), shipping companies have the opportunity to cancel more sailings than before to support rates by cutting capacity."

It noted that shipping companies have struggled to maintain capacity to match demand for much of 2020 and 2021. Cargo volumes have surged, ports are clogged and ships are stuck outside, leaving carriers unable to meet their weekly services on time and forcing empty voyages.

Over the past few months, however, demand growth has stalled, ships are underutilised and freight rates have continued to fall sharply. With Golden Week coming up, it offers carriers an opportunity to cancel more sailings than ever before, and possibly with less pressure from shippers.

Three major alliances canceled 100 voyages

Over the next five weeks (weeks 39-43), the world's three major shipping alliances cancelled a total of 101 sailings, according to the latest figures released by Drewry.

Among them, THE alliance cancels THE most flights, with 36 flights; The 2M alliance had 33 voyages, and the least canceled ocean alliance had 32.

Out of a total of 744 scheduled sailings on major routes such as Trans-Pacific, Trans-Atlantic, Asian-Nordic and Asian-Mediterranean routes, 117 sailings were cancelled between week 39 (9.26-10.2) and week 43 (10.24-30), a cancellation rate of 16%.

According to Drewry's current issue, 68% of all air traffic during this period will take place on east-bound trans-Pacific trade routes. Twenty-five percent occurred in the Asia-Northern Europe and Mediterranean, and seven percent occurred on the westbound transatlantic trade routes.

Mr Delury said weaker demand for Asian exports on key East-West trade routes as the Golden Week approached, leading shipping companies to run air traffic to offset the drop in volumes and spot prices, especially during the Golden Week when Chinese factories will be closed for holidays.

In fact, some shipping companies have terminated some trans-Pacific services to USWC.

A collapse in spot prices for eastbound trade across the Pacific, for example, forced operator Matson to cancel its CCX service on the China-California Express line from mid-September ahead of the peak season.

While spot prices have fallen for 30 consecutive weeks, contract prices have remained stable so far, mainly because shippers still face difficulties with supply chain congestion, especially in Northern Europe, the Far East to the Eastern United States (ECNA).

Recently, MSC, Maersk, CMA CMA and other shipping companies issued a number of notice of schedule adjustment and voyage cancellation.

MSC issues notice of ship schedule adjustment and voyage cancellation:

On September 21, MSC issued a notice saying that due to the expected slowdown in demand during and after the Golden Week holiday, it planned to cancel the following Asia-Europe routes during this period:

On September 19, MSC notified the following adjustment to the Asia to the East Coast and Gulf Coast of the United States:

MSC issues shipping schedule update for Asia to Europe routes. In anticipation of slower demand during and after the Golden Week holiday, MSC plans to cancel the following voyages:

Maersk issued notice of shipment schedule adjustment and voyage cancellation:

On 22 September, Maersk issued a notice of blank voyages from Asia to West America. Details of the cancelled voyages are as follows:

Regarding the cancelled voyage, Maersk said the Shanghai/Ningbo/Yantian cargoes will be shipped by TP6 MSC DITTE/MSC ARIANE, TPX RIO CADIZ, and the Nansha/Shekou cargoes will be shipped by the next TP2 voyage.

On September 20, Maersk announced the change of shipping schedule from Asia to North America. Affected voyages and adjustments are as follows:

In connection with the upcoming Golden Week holiday in China, Maersk has announced plans to cancel two sailings from Asia to East Africa in order to balance the network and cope with the expected drop in demand:

According to CMA's schedule, the Ocean Union Asia-Europe Route FAL 7 service will operate blank voyages in weeks 40 and 42:

Source:Wai hang yun