project44: blank sailings rise as new threat to global container transport

The global container market continues to experience a drop in demand influenced by increasing retailers’ stocks. Such a scenario discloses a change in strategy in the supply chain from “just in time,” a reactive approach, to “just in case,” in which the build-up of inventories offers a safeguard against eventual logistical disruptions.

The dissipation of the congestion in several ports is also a symptom of the current scenario. However, blank sailings are becoming increasingly frequent, and the tendency is for them to become even more pronounced by the end of the year as carriers seek to regulate supply and demand to stop the sharp decline in freight prices.

The maritime transport of containers remains a tricky endeavor, even with lessening bottlenecks. Some of the challenges faced by players in this market have been detailed in project44’s most recent “Situation of the global container transport market” report, which highlights the following challenges on top of increased blank sailings:

• Port congestion on the US East Coast is falling but remains high compared to the same period in 2021.
• Canadian ports have been particularly hit by congestion.
• Geopolitical friction and disruptions caused by the struggle against COVID-19 in China have encouraged shippers to diversify production centers and bring cargo from Southeast Asia.
• Brazil highlights: shipment delays to the US and China are getting more frequent.

“We are seeing the normalization of the global supply chain. Despite some remaining pockets of congestion, increased wait times, and delays, it is clear that carriers are now shuffling the decks as the market returns to being favorable for shippers,” comments Josh Brazil, Vice President of Supply Chain Insights from project44.

Source: Comex do Brasil

To read the full original article, please go to: https://www.comexdobrasil.com/aumento-de-blank-sailings-pode-ofuscar-melhora-no-transporte-mundial-de-conteineres-aponta-project44/

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