US East Coast Imports Surge by 23%, Prompting Transpacific Capacity Boost as Rates Double, On-Time Performance Slips
US East Coast Imports Surge by 23%, Prompting Transpacific Capacity Boost as Rates Double, On-Time Performance Slips
US East Coast Imports Surge by 23%, Prompting Transpacific Capacity Boost as Rates Double, On-Time Performance Slips
US East Coast Imports Surge by 23%, Prompting Transpacific Capacity Boost as Rates Double, On-Time Performance Slips
Apr 4, 2024
5-7 min read
US East Coast Imports Surge by 23%, Prompting Transpacific Capacity Boost as Rates Double, On-Time Performance Slips
In the face of the prolonged Red Sea crisis, container carriers are steering towards a surge in capacity deployment within the trans-Pacific trades, a departure from previous years marked by frequent blank sailings. As voyages around the southern tip of Africa persist, shippers witness a surge in demand, prompting carriers to bolster capacity to its highest level in 17 months by May.
Capacity Surge Amidst Crisis:
The specter of the Red Sea crisis looms large, prompting container carriers to reassess their strategies in the trans-Pacific trades. Blank sailings, a customary tactic in previous years, are dwindling as carriers redirect capacity to meet heightened demand fueled by extended voyage routes.
Alan Murphy's Insights:
Industry expert Alan Murphy underscores the significant reduction in blank sailings, attributing the trend to the absorbing effect of the Red Sea crisis on excess capacity. March witnessed a notable decrease in blank sailings, with carriers pulling back sailings equal to only 11.7% of total vessel capacity, a stark contrast to previous years.
Caution Amidst Growth:
Despite projections of fewer blank sailings in April and May, Murphy urges caution, warning against placing undue faith in long-term forecasts. The evolving nature of the crisis prompts carriers to make short-term adjustments, challenging the reliability of future scheduling.
According to Sea-Intelligence’s Global Liner Performance Report, schedule reliability from Asia to the US West Coast fell to 44.2% from 48.5% in January, while Asia-US East Coast on-time performance slipped to 33.4% from 33.9%. Globally, schedule reliability improved marginally, rising to 53.3% from 51.6%.
US East Coast Imports Surge by 23%, Prompting Transpacific Capacity Boost as Rates Double, On-Time Performance Slips
In the face of the prolonged Red Sea crisis, container carriers are steering towards a surge in capacity deployment within the trans-Pacific trades, a departure from previous years marked by frequent blank sailings. As voyages around the southern tip of Africa persist, shippers witness a surge in demand, prompting carriers to bolster capacity to its highest level in 17 months by May.
Capacity Surge Amidst Crisis:
The specter of the Red Sea crisis looms large, prompting container carriers to reassess their strategies in the trans-Pacific trades. Blank sailings, a customary tactic in previous years, are dwindling as carriers redirect capacity to meet heightened demand fueled by extended voyage routes.
Alan Murphy's Insights:
Industry expert Alan Murphy underscores the significant reduction in blank sailings, attributing the trend to the absorbing effect of the Red Sea crisis on excess capacity. March witnessed a notable decrease in blank sailings, with carriers pulling back sailings equal to only 11.7% of total vessel capacity, a stark contrast to previous years.
Caution Amidst Growth:
Despite projections of fewer blank sailings in April and May, Murphy urges caution, warning against placing undue faith in long-term forecasts. The evolving nature of the crisis prompts carriers to make short-term adjustments, challenging the reliability of future scheduling.
According to Sea-Intelligence’s Global Liner Performance Report, schedule reliability from Asia to the US West Coast fell to 44.2% from 48.5% in January, while Asia-US East Coast on-time performance slipped to 33.4% from 33.9%. Globally, schedule reliability improved marginally, rising to 53.3% from 51.6%.
US East Coast Imports Surge by 23%, Prompting Transpacific Capacity Boost as Rates Double, On-Time Performance Slips
In the face of the prolonged Red Sea crisis, container carriers are steering towards a surge in capacity deployment within the trans-Pacific trades, a departure from previous years marked by frequent blank sailings. As voyages around the southern tip of Africa persist, shippers witness a surge in demand, prompting carriers to bolster capacity to its highest level in 17 months by May.
Capacity Surge Amidst Crisis:
The specter of the Red Sea crisis looms large, prompting container carriers to reassess their strategies in the trans-Pacific trades. Blank sailings, a customary tactic in previous years, are dwindling as carriers redirect capacity to meet heightened demand fueled by extended voyage routes.
Alan Murphy's Insights:
Industry expert Alan Murphy underscores the significant reduction in blank sailings, attributing the trend to the absorbing effect of the Red Sea crisis on excess capacity. March witnessed a notable decrease in blank sailings, with carriers pulling back sailings equal to only 11.7% of total vessel capacity, a stark contrast to previous years.
Caution Amidst Growth:
Despite projections of fewer blank sailings in April and May, Murphy urges caution, warning against placing undue faith in long-term forecasts. The evolving nature of the crisis prompts carriers to make short-term adjustments, challenging the reliability of future scheduling.
According to Sea-Intelligence’s Global Liner Performance Report, schedule reliability from Asia to the US West Coast fell to 44.2% from 48.5% in January, while Asia-US East Coast on-time performance slipped to 33.4% from 33.9%. Globally, schedule reliability improved marginally, rising to 53.3% from 51.6%.