“We appear to have reached the bottom of the demand downturn in container shipping”

LinkedIn/Lars Jensen

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“We appear to have reached the bottom of the demand downturn in container shipping”

According to Lars Jensen from SeaIntelligence, THE Alliance is now re-inserting 2 sailings on the Transpacific which has previously been cancelled. This follows last week where THE Alliance also re-inserted four previously cancelled sailings on Asia-Mediterranean.

It should be noted that they still have a substantial amount of blank sailings; this development merely reduces the level slightly.

This tells us, at least for now, that the demand downturn has bottomed out and carriers – at least in THE Alliance – are now seeing sufficient demand for their remaining services to even up the capacity a bit.
Furthermore, it also serves to demonstrate the carriers’ approach to capacity management in the current crisis.

They would rather pro-actively cancel too much capacity and then later re-insert in case there is more demand, instead of hoping for demand to materialize and then have to either cancel at the last minute or sail with underutilized vessels.

 

 

Source Lars Jensen/LinkedIn

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