Carriers have started announcing blank sailings in an effort to manage capacity. What are blank sailings? A blank sailing is a sailing that has been canceled by the carrier. Why? When demand for space is low carriers will cancel sailings in order to ensure that vessels are full. The following are three reasons for the recent blank sailings.
It’s almost Golden Week in China—October 1-7—this means many Chinese factories will close down for the holiday and therefore, carriers are issuing blank sailings for that week and several weeks afterwards.
Peak Season Ending
Peak season is coming to an end and blank sailings can help restrict the excess capacity in the market. This can also help to stabilize spot rates, as post-peak demand begins its anticipated fall.
With the IMO regulations approaching, some carriers are pulling vessels out of rotation in order to equip them with scrubbers. These scrubbers will allow vessels to clean fuel, in order to meet the IMO’s low-sulfur requirements.
How to Prepare
We recommend that shippers book three weeks in advance, before the cargo ready date, to secure space. In the meantime, do not hesitate to reach out to your Mohawk customer service representative with any questions.