Blank Sailing

What is blank sailing?

Blank sailing is when a shipping company or carrier cancels a scheduled voyage or skips a specific port. This usually happens when there is insufficient demand for cargo, port congestion, bad weather, or other operational challenges. The aim is to respond to changes in cargo demand, optimize the global shipping network, or reduce unnecessary costs. While air sailing helps shipping companies better manage resources, its impact on shippers and supply chains is often negative. It can result in delayed cargo, increased costs, and supply chain uncertainty.

Main reasons for Blank Sailing

1. Demand fluctuations: When demand for freight decreases, shipping companies may cancel certain sailings to avoid operating underutilized vessels. This usually occurs during economic downturns, seasonal demand fluctuations, or when trade volumes decline.
2. Port congestion: Port congestion is one of the common reasons for empty sailings. To avoid delays, shipping companies may skip congested ports to maintain the overall schedule punctuality.
3. Weather factors: Severe weather conditions like hurricanes and storms can cause port closures or delays. In these cases, shipping companies may cancel specific port calls to ensure the ship’s safety and the voyage’s smooth progress.
4. Operational efficiency: To optimize operating costs, shipping companies may consolidate cargo onto fewer ships, canceling certain sailings. This strategy helps to improve ship utilization and reduce unnecessary costs.
5. External disruptions: External factors such as natural disasters, geopolitical tensions, strikes, or health crises such as the COVID-19 pandemic can also lead to empty sailings. These events can suddenly disrupt port operations or cause demand to drop sharply.

The impact of Blank Sailing on the supply chain

Blank Sailing has several impacts on the supply chain. First, it can lead to delays in goods, affecting inventory management and production planning. Second, shippers may need to find alternative transport options, which usually increase transport costs. In addition, Blank Sailing can also lead to increased demurrage and detention charges, as containers may exceed the free time in ports.

How can you meet the challenges of Blank Sailing?

1. Diversify shipping options: By working with multiple shipping companies, shippers can reduce reliance on a single shipping route, reducing the risk of Blank Sailing.
2. Real-time monitoring: Using supply chain visibility tools, shippers can track the status of goods in real-time, keep abreast of the impact of Blank Sailing, and make corresponding adjustments.
3. Contingency plans: Develop contingency transport plans to ensure that alternative solutions can be quickly found when Blank Sailing occurs, reducing the impact on the supply chain.
4. Cooperation with freight forwarders: Freight forwarders usually communicate closely with shipping companies, obtain information about Blank Sailing routes in advance, and provide alternative transportation plans.

The impact of blank sailing on global trade

The increase in blank sailing may increase uncertainty in the global trade supply chain, especially during special periods such as pandemics and economic downturns. Unstable shipping can significantly impact a company’s import and export plans. For example, during the peak of the pandemic in 2020, many shipping companies implemented blank sailing on a large scale, causing chaos in the global supply chain and a significant increase in cargo detention times.

Conclusion

Blank sailing is an inevitable part of the shipping industry, often caused by fluctuating demand, port congestion, and bad weather. Although it can help shipping companies optimize operations, its impact on shippers and supply chains is often negative. By diversifying shipping options, monitoring in real-time, and working with freight forwarders, shippers can effectively address the challenges posed by blank sailing and ensure the stability and reliability of the supply chain.

Related FAQs

What are the impacts of Blank Sailing on shippers?

Blank Sailing may result in cargo delays, increased transportation costs, and supply chain disruptions. Shippers may need to find alternative transportation options and bear additional demurrage and detention charges.

Why do shipping companies cancel sailings?

Shipping companies cancel sailings due to fluctuations in demand, port congestion, inclement weather, operational efficiency optimization, and external disruptions.

How can the impacts of Blank Sailing be avoided?

Shippers can reduce the impact of Blank Sailing by diversifying shipping options, monitoring the status of goods in real-time, developing contingency plans, and collaborating with freight forwarders.

Will Blank Sailing result in increased demurrage and detention charges?

Yes, Blank Sailing may result in demurrage and detention charges as the container may exceed the free time in the port.

How can freight forwarders help with Blank Sailing?

Freight forwarders can help shippers deal with the challenges of Blank Sailing by providing alternative transportation options, real-time market intelligence, and contingency plans.

Will Blank Sailing affect the shipment of my goods?

Yes, it may cause delays in the shipment of your goods and may affect the overall logistics cost and delivery time.