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SAFETY4SEA

Deployed capacity drops sharply during Chinese New Year

by The Editorial Team
January 25, 2023
in Shipping
deployed capacity drops

Credit: Shutterstock

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According to Sea-Intelligence, carriers were able to bring scheduled capacity down by -18% during the Chinese New Year (CNY) period.

Five weeks ago Sea-Intelligence analyzed the scheduled East/West capacity for the 4-week 2023 period and found the 2023 CNY capacity to be higher than in past years, despite the slowdown in demand.

With CNY now upon us, Sea-Intelligence did a follow-up to see whether carriers were able to bring capacity back in line with the historical levels.

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The short answer: yes! Carriers were able to bring scheduled capacity down by -18%, meaning that if the actual deployment stays like this, supply on Asia-North America West Coast across CNY 2023 would be in line with the pre-pandemic baseline

This was brought about by an increase in blank sailings from 7.6% to 35.8%. There was a similar trend on Asia-North America East Coast and Asia-North Europe, with the scheduled 4-week CNY capacity deployment decreasing by -11% and -6%, respectively, bringing both closer to the pre-pandemic baseline. The increase in blank sailings was also substantial in both cases.

Deployed capacity drops sharply during Chinese New Year
Credit: Sea-Intelligence

“Even more interesting was how this increase in blank sailings was achieved,” Sea-Intelligence said. As explained, on both Asia-North America East Coast and Asia-North Europe, this new, higher level was more or less reached by Week 1.

For Asia-North America West Coast, however, this level was reached in increments. This is an indication that perhaps the carriers are not as decisive in the Asia-North America trade lane as in the other two.

That said, a window of 2-3 weeks before CNY for the brunt of the blank sailing is still very late

Sea-Intelligence concluded.

Deployed capacity drops sharply during Chinese New YearDeployed capacity drops sharply during Chinese New Year
Deployed capacity drops sharply during Chinese New YearDeployed capacity drops sharply during Chinese New Year
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