More blanked sailings have been confirmed recently on Asia-European routes, indicating that carriers are set to continue their capacity management programmes after implementing a successful GRI in August.
The plan to use blanked sailings to create an artificial demand level seems to have enabled steamship lines to push through their rate increases, following what was previously described as a bleak outlook for carriers.
We understand that reducing demand for global container movements had left many worldwide tradelanes operating at unsustainable levels with rates below cost.
Prior to the August GRI on Asia-European container movements, a few attempts to uplift rate levels had already failed this year. Therefore, we could be continuing to witness stringent capacity management for the foreseeable future, or at least until demand returns.
Transpacific rates have also been on the increase, although this can be partly attributed to the congestion building up at the Panama Canal.
As ever, your Westbound team are monitoring developments closely.
If you have any questions regarding the above, then Westbound are here to help. So, please do not hesitate to contact us.
