IN July, there were 13 sailings, referred to as "blank" or canceled, between Asia and Europe for containerships. Analysts predict that this pattern will persist in the upcoming months, reports MSNBC News.
This situation can be partly attributed to retailers stockpiling significant quantities of excess inventory, particularly in sectors such as apparel and electronics.
Supply chains have become more intricate, with retailers now diversifying their sourcing from many locations across Asia compared to their previous practices.
The shipping routes from Asia to Europe and beyond have experienced a sluggish summer, and the prospect of a traditional peak season characterised by elevated holiday-related orders is dwindling.
As companies from apparel to electronics accumulate surplus stock, the demand for shipping has diminished. Thus, ships remain docked at ports as sailings are cancelled.
Mediterranean Shipping Company (MSC), the top container shipping company, recently cancelled the voyage of the 14,000-TEU MSC Deila, a vessel on the route from Asia to northern Europe.
The cancellation was attributed to "slowing demand," as communicated on MSC's official website. The MSC Deila also encountered a canceled sailing the previous week.
MSC intends to establish contingency plans involving alternative services.
"Carriers will be doing ¡ 'capacity management,' which means laying up ships," said Flexport air freight broker Sanne Manders.
"If you fly to Singapore, you'll see all these ships outside the port ¡ A lot of ships are parked there waiting till better yields," he added.
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