Drewry: Service Cuts Amid Market Disruptions

Drewry’s market report points out that, in response to market disruptions and freight rate fluctuations, global container shipping companies are adjusting the number of blank sailings on major east-west trade routes.
The number of blank sailings will be reduced by 24% in June and will see a significant decrease of 55% in July.

It is reported that, from June 9th to July 23rd, a total of 58 sailings on major east-west trade routes—including the Trans-Pacific, Trans-Atlantic, and Asia-North Europe & Mediterranean routes—have been cancelled.
The total number of cancellations accounts for 8% of the 709 scheduled sailings. Of these, approximately 47% are on the eastbound Trans-Pacific route, 29% on Asia-North Europe & Mediterranean routes,
and 24% on the westbound Trans-Atlantic route.

According to Drewry, global port congestion continues to impact supply chains. Last week in Europe, the waiting time to berth at the Port of Rotterdam reached up to 23 hours, while at the Port of Antwerp,
it was as high as 41 hours. Delays are also worsening in Shanghai, Singapore, and Port Klang, with transshipment congestion in Singapore particularly prominent.
Major U.S. gateway ports such as Los Angeles and New York remain congested, resulting in longer vessel transit times and delays in inland transport networks.

Analysis indicates that there has been a surge in early shipments on the China-US trade routes, as shippers rush to move cargo ahead of possible policy changes on August 14.
This spike in demand is putting additional pressure on Trans-Pacific routes and accelerating freight rate increases. In response, carriers have significantly reduced the number of blank sailings.
Between May and June, blank sailings on the US East Coast decreased by 52% (from 23 to 11 sailings), while those on the West Coast decreased by 28% (from 33 to 24 sailings).

As for sea freight rates, the General Rate Increases (GRIs) implemented on the first of this month have further fueled rate hikes. Drewry’s World Container Index (WCI) composite index has soared by 41% from the previous period,
reaching $3,527 per FEU. Rates on the Trans-Pacific route have increased by 46%, rates on Asia-Europe/Mediterranean routes have risen by 36%,
and Trans-Atlantic rates have seen a slight rise of 2%. Further rate increases are expected in mid-June.

Information source:中華日報航運版20250612