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Carriers are using blanked sailings again to try and stop rates from falling lower on the trans-Pacific trade lane and avoid full route cancellations. Recent decreases in demand alongside an increase in capacity have overcorrected from the pandemic’s soaring rates and lack of space. It’s an expected occurrence that many shippers saw coming and prepared for ahead of time.

 Part of the pandemic shipping troubles came from a lack of sufficient inventory when consumers ramped up their online shopping in the face of lockdowns. With fewer places to go and fewer in-person services available, discretionary funds flowed like a river to online shopping platforms upending the supply chain. As cargo ground to a halt in logjams at the Ports of LA and Long Beach, shippers got wise and began the difficult process of stocking up in case of another run on supplies. 

As we moved away from the pandemic and ports cleared the queue of ships waiting for unloading, the world slowly reopened. People who spent a year, or more, waiting for the chance to rejoin the public again diverted their funds to experiences and services, curtailing the shopping and leaving retailers full enough that the thick flow of inventory tapered back to a trickle. 

Interestingly, blanked sailings were the instigator to the initial disruption as carriers expected people to stay home without shopping, minimizing their trips to stores and grinding commerce to a halt. Sailings were blanked, mistakenly it turned out, and that little capacity removal set off a domino effect of disruption. 

This time, it’s merely a timing issue. As the pendulum swings from boom to bust, eventually the inventory on shelves will move out retailer’s doors and new cargo will need to be ordered. Finally, there should be a balance, and carriers will, more than likely, return to schedules drafted to fit the natural ebb and flow of cargo, whatever that might be. 

Coppersmith should be your trusted partner in navigating the swings in the logistics market. Our expert advice and solutions mitigate the impact of fluctuations in the shipping industry. By focusing on the evolving concerns, Coppersmith can help its customers prepare for disruption during these calmer times. If you want to begin the cargo process ahead of the competition, contact us today. 

Bobby Shaida

Bobby Shaida

Author Bobby Shaida

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