IN July, there were 13 sailings, referred to as "blank" or cancelled, 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 spanning industries from apparel to electronics accumulate surplus stock, the demand for shipping products has diminished. Consequently, certain ships remain docked at ports due to "blank" sailings, where scheduled voyages are cancelled.
Mediterranean Shipping Company (MSC), recognised as the largest container company globally, recently annulled the voyage of the 14,000-TEU MSC Deila, measuring 366 metres in length, 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 cancelled 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 for better yields." he said.
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