According to the latest report from project44, a renowned platform for all shippers and logistics service providers, an inflationary surge coupled with the tightening of monetary policy has curtailed the global shipping demand. Subsequently, the sea freight spot rates are plummeting, and the year-on-year demand for containers is also enduring a drop. In a bid to sustain profitability, carriers are taking actions.

The ongoing market situation prods shipping companies to adopt escalating measures to counter the dip in demand. The 2M Alliance of Maersk and MSC is taking the most aggressive strategy: more blank sailings. During the second week in May, 2M has slashed as much as 71% of its services.

Other tactics to shore up freight rates will also be taken into consideration. For example, shipping companies will opt for slow-steaming to buffer themselves against the soaring bunker costs.

Even though there is an obvious increase in the available capacity of TEUs, carriers appear to curb supply on some certain routes and shift to more profitable trade lanes so that spot rates can get underpinned.

According to the data from Drewry on last Friday, July 1, 2022, the world's three major shipping alliances, namely 2M, THE and the Ocean Alliance, have canceled 61 sailings during Week 17-31. 2M and THE have suspended 23 sailings respectively while the Ocean Alliance has suspended 15.

In the same period, 760 scheduled voyages on main shipping routes such as transpacific, transatlantic, Asia-Nordic and Asia-Mediterranean ones have been chopped by 11%.

Since a seasonal peak is expected to come, blank sailings on the main lines may be declining in the next few weeks.