Attention! Shipping Suspension! Global shipping services will be reduced by 15% after the Spring Festival.

The Lunar New Year holiday typically marks the end of the shipping off-season, and a drop in freight rates is normal. However, due to vessel shortages caused by the Red Sea crisis, the rate decline has been smaller than in previous years. Nevertheless, vessel availability remains tight, and major shipping companies are maintaining capacity during the off-season to address the market shortage. Global shipping's strategy of reducing sailings continues; statistics show that in the five weeks from February 26th to March 3rd, 99 out of 650 scheduled voyages were cancelled, a cancellation rate of 15%.

Yang Ming Marine Transport Corporation points out that the frequent attacks on merchant ships in the Red Sea, leading to disrupted shipping schedules, may force supply chain adjustments, resulting in port congestion and shipping delays. This will continue to disrupt the supply and demand dynamics of the shipping market this year.

According to statistics from the international maritime professional organization DELETE, voyage cancellations have occurred on major global routes, including trans-Pacific, trans-Atlantic, and Asia-to-Northern Europe and Mediterranean routes. Between weeks 5 and 9, 99 out of 650 scheduled voyages were cancelled, representing a cancellation rate of 15%.

During this period, 56% of the blank voyages will occur on the trans-Pacific eastbound route, 34% on the Asia-Northern Europe and Mediterranean routes, and 10% on the trans-Atlantic westbound route.

Over the next five weeks, Ocean Alliance announced the cancellation of 33 sailings, followed by THE and 2M Alliances, each canceling 22 sailings. Meanwhile, non-alliance services implemented 22 blank sailings.

Statistics show that 85% of ships are expected to sail as scheduled within the next five weeks. However, the Red Sea crisis remains the biggest challenge to global flight operations. The issue of empty sailings also evolves rapidly with market changes.

Ahead of the Lunar New Year, shipping companies implemented a series of adjustments, including shortening voyages and increasing speeds, to mitigate disruptions caused by Red Sea diversions. With demand gradually easing after the Lunar New Year and new vessels entering service, adding additional capacity, the disruptions and cost increases in shipping may have peaked.

However, the shortage of empty containers in Asian export hubs presents new challenges, prompting carriers to potentially increase the number of vessels to alleviate the shortage.