Ocean Shipping
Sailing Cancellations
Regarding ocean container shipping, an important indicator regarding worldwide trade, Drewry reports that in the key East–West trade lanes—Transpacific, Transatlantic, and Asia-North Europe & Med—68 sailings have been cancelled between weeks 19 (5 May–11 May) and 23 (2 Jun–8 Jun), out of a total 698 scheduled sailings, representing a 10% cancellation rate.
The imposition of tariffs on Chinese imports has led many US buyers to delay or cancel shipments, in the hope that future negotiations might ease trade tensions—although formal talks have yet to begin. As a result, China–US freight volumes have declined, with some vessels departing partially loaded.
Drewry predicts that for the next 5 weeks, most East–West cancellations will hit the Transpacific Eastbound (47%) trade, followed by Asia–North Europe & Med (37%) and Transatlantic Westbound (16%).
Carriers are actively managing capacity by blanking sailings and adjusting services, while maintaining flexibility on the remaining routes amid hopes of a potential rebound. Rising Southeast Asian exports ahead of a July tariff exemption deadline are prompting some capacity shifts, although this may strain space and scheduling in the near term.
Meanwhile, spot rates continue to trend downwards, with Drewry’s WCI Composite Index falling 3% WoW to $2,091 per 40ft container as of 1 May. Transpacific rates dropped 2%, Asia–Europe/Med rates 4% and Transatlantic rates 3%.
Supply Chain Disruptions and Trucking Stress
More on the upcoming supply chain disruption here: CNN Article
In the meanwhile, carriers and logistics firms from Florida to Illinois declare bankruptcy in struggling freight market: Freightwaves Article
It is also interesting to see UPS plans to shed about 20,000 front-line positions in 2025 as it manages the decline in unprofitable business from Amazon and a huge restructuring of its delivery network. (Article here)