Golden Week in China
Sea-Intelligence reported that during the upcoming Golden Week in China, shipping companies are expected to withdraw more capacity from the market, and the number of cancelled sailings will be higher than the historical average level.
Sea-Intelligence said: “Blank sailing has long been the preferred way for shipping companies to balance supply and demand. So it is usually called the tactical blank sailing.
Over the past few months, demand growth has suspended, vessels have not been fully utilized, and freight rates have dropped off sharply. With the approaching of Golden Week, factories are to be closed on the holiday. It gives an opportunity for carriers to break off more sailings than ever before, under less pressure from shippers.
Last video I shared Matson’s action on cancelling CCX line ahead of the peak season. Matson, you know the shipping giant, what about others?
According to the latest data released by Drewry, in the next five weeks, the world's three major shipping alliances （THE/2M/Ocean）would cancel a total of 101 sailings.
In the face of the sluggish peak season, shipping companies are dying to break the current situation in order to stabilize shipping prices. The performance of the freight after the Golden Week will determine the future market trend.
The freight rate is related to the final cost of each seller. Sellers should pay more attention to the shipping market these days, and you can also subscribe my channel. Thank you!