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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.

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.

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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.

Tags: containershipsshipping trade

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