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SeaIntel sees blanked A-E sailings as peak season begins

SDI Logistics Co.,Ltd | Updated: May 17, 2018

FOUR Asia-Europe sailings may well be cancelled to keep slot demand in line with supply as the peak season gathers steam this year, according SeaIntel's Sunday Spotlight analysis.

Asia-North Europe will see a significant capacity increase of 9.2 per cent year on year in June and July, offset by 1.7 per cent growth in the Asia-Med trade, said the newsletter. 

"If a more modest capacity growth of five per cent should be targeted, this can be achieved through the blanking of four average-sized sailings over the nine-week period, which is well within the capability of carriers, without too much disruption," said the Copenhagen-based research house. 

It said the two Asia-Europe trade lanes work to balance each other out, as years with contraction in one trade lane is often matched with growth in the other. 

Said SeaIntel CEO Alan Murphy: "The Asia-Europe trade is seeing a vast amount of newbuildings being delivered in 2018, but the carriers have managed to balance Asia-Europe supply to a reasonable degree. 

"The carriers should be able to blank sailings to match a weak demand environment on Asia-Europe over the peak season, while also having enough capacity buffer if demand growth is stronger than expected." he said.