The current market suspension of voyages and port jumps is not because of excess capacity, but because of port congestion, ships cannot return on time, and liner companies are forced to cancel some voyages.
According to the latest report, of the 544 voyages on major routes such as trans-Pacific, trans-Atlantic, Asia to Northern Europe and the Mediterranean, from week 51 of 2021 to week 2 of 2022, 44 voyages were cancelled, with a cancellation rate of 8%. Among them, 75% of the cancelled voyages came from the US West route.
44 voyages will be cancelled on the global main routes, and the US West route will account for 75%
US West Sailing FCL DDP
44 voyages will be cancelled on the global main routes, and the US West route will account for 75%
US West Sailing FCL DDP
The report also shows that of the world's three major shipping alliances, the most cancelled voyage is the THE alliance, which has cancelled 23 voyages. Followed by the 2M Alliance, which cancelled 8 voyages. Ocean Alliance cancelled 2 voyages.
With the increase in the number of infected cases of Omi Keron mutant strains worldwide, some countries are reintroducing restrictions on transport workers, which may increase ship delays and further aggravate the supply chain crisis. The global supply chain crisis will not resolve itself in a short period of time. Port congestion is one of the phenomena of the supply chain crisis, which causes large-scale delays in shipping schedules, forcing shipping companies to skip ports or suspend voyages.
Maritime consulting agency Sea-Intelligence also analyzed that the current market suspension and port jumps are not due to excess capacity, but because of port congestion, ships cannot return on time, and liner companies are forced to cancel some voyages.
44 voyages will be cancelled on the global main routes, and the US West route will account for 75%
US West Sailing FCL DDP
According to the latest report by Sea-Intelligence, the most affected is the West US route.
Sea-Intelligence stated that the initial impact of the epidemic on the shipping industry can be seen from the peak suspension of sailing in early 2020. Since then, as transportation demand rebounded and capacity increased, the number of suspended voyages dropped sharply, followed by suspensions due to congestion.
According to Sea-Intelligence's analysis, since the second half of 2020, with the surge in demand, shipping companies have difficulty deploying sufficient capacity. Due to the overwhelming burden of the port and the congestion that followed, the shipping company was unable to maintain the weekly sailing schedule and was forced to suspend shipping.
This trend has been rising since November 2021. For example, on the West Coast route, 28.4% of capacity was cancelled in week 44.
US West Sailing FCL DDP
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