OMG! BLANK SAILINGS ! Blank sailings explained and what you need to do?

As we head into a traditional off-peak season, carriers are announcing blank sailings that will impact services for shippers,

According to the loadstar, a number of blank sailings are being introduced by carriers over the next few weeks, as early indications suggest that post Chinese New Year volumes will be lower than originally expected.

The 2M Alliance have announced that the Feb/Mar loops of the MSC Eloane and Estelle Maersk will be withdrawn, while other carriers are expected to follow suit.

Blank sailings are scheduled journeys that are cancelled for one loop, or that skip one or more ports, due to low volume or to enable a vessel that is running late to catch up. Blank sailings are not uncommon around Chinese New Year as export production comes to a standstill during the period.

While volumes are expected to be slow in the next couple of weeks, there is more capacity being introduced between Asia and Europe shortly.  The Ocean Alliance, The Alliance and HMM are collectively adding around 28,000 TEU through upsizing to new vessels during April.

What is a blank sailing?

A blank sailing is when a carrier cancels a particular sailing for a vessel. Vessels call a specific set of ports in a “string” on a regular basis. For example, a string may have 6 vessels that rotate through calling Shanghai every Monday and then heading on to Ningbo and Los Angeles before returning back to Shanghai. These vessels run regularly in this loop to ensure consistency in transit time and supply on trade lanes.

When carriers announce blank sailings, this means that a vessel on that string will be pulled out of the loop for a week, resulting in a skipped week of service. Carriers can either plan to roll all cargo to the next vessel for that string or load containers onto other strings servicing the same ports during the week of the blank sailing. Either way, in the short-term, global supply has been reduced on that route.

Impact of Blank sailing

• Blank sailings may impact shipments in the following ways:
• Blank sailings will lead to tighter space on vessels. There will be higher demand for the remaining operating services, which could result in overbooking of active vessels. Overbookings can lead to rolled containers.
• As carriers adjust sailing schedules and cargo loading plans around blank sailings, shippers can expect there to be congestion at the ports.
• As carriers revise schedules and filter-in/out vessels, space release may be slower than usual as projecting the amount of space available on an upcoming vessel could be delayed (as a 12,000 TEU vessel could be coming online in lieu of a 15,000 TEU vessel).
• Blank sailings could lead to more uncertainty and volatility in the market

To mitigate issues and help with planning, shippers should:

• Book in advance & try to avoid last minute bookings:  Book three weeks before cargo ready date (CRD) to avoid space congestion with last minute bookings.
• Be flexible on routing. There might be blank sailings impacting your usual routing through LA to Columbus, consider routing via Canada or the USEC for a few weeks.
• Work proactively with your supplier to make sure they’re also prepared for fewer sailings–shifting CRDs could result in more delays than normal as there could be fewer overall options 

Maersk to start using Ganga National Waterway-1

Maersk to start using Ganga National Waterway-1

 For the first time in Independent India, container vessel movement has begun on the Ganga river. PepsiCo is moving 16 containers from Kolkata to Varanasi on vessel MV RN Tagore, over river Ganga. The development has been hailed as a huge potential for inland waterways.

The world's largest container shipping company Maersk Line will on Tuesday move 16 containers on the Ganga river from Varanasi to Kolkata, the Shipping Ministry said on 12/02/2019 "

Maersk Line will move 16 containers on river Ganga (National Waterway-1) from Varanasi to Kolkata tomorrow. The firm is onboard India's inland waterways for the first time," the ministry said in a statement.

On November 12, 2018, Prime Minister Narendra Modi dedicated India's first riverine multimodal terminal on river Ganga (National Waterway-1) at Varanasi to the nation.

The government is developing NW-1 under from Haldia to Varanasi with the technical and financial assistance of the World Bank at an estimated cost of Rs 5,369 crore. Earlier firms like PepsiCo, Emami Agrotech, IFFCO Fertilizers, DaburNSE -0.03 % India, had moved their containers on river Ganga.

More info: 

 India’s first inland voyage by a container ship since it gained independence from Britain 70 years ago ended when the vessel docked in the holy city of Varanasi on 12th November 2o18. Officials hope that these developments will help shift cargo from the country’s congested road and rail networks.

The 1,390km (863 miles) Ganga watercourse is one of the 111 waterways spanning 20,276km that India is reviving or planning to build. The World Bank-assisted Ganga waterways project—costing Rs5,370 crore ($738 million)—will enable the commercial navigation of vessels and is set to be completed by 2023.

Transforming country’s waterways could be a game changer for India as it will reduce the cost of transportation—50% less than highways—as well as easing congestion on roads. The move is designed to encourage companies such as NTPC Ltd, India’s biggest power producer, Maruti Suzuki India Ltd, the nation’s largest carmaker, Fertilizer Corp. of India Ltd and Tata Chemicals Ltd to use waterways to move cargo from cement to cars.

Shifting to water-based cargo transport should have happened at least 15 years ago, said K. Murali, professor at the National Technology Centre for Ports, Waterways and Coasts in the Indian Institute of Technology, Madras. “Over time it will pick up steam to become more economical and more sought after mode for shifting cargo—there will be certain cargo which will have preference to move in waterways."

The vessel that sailed from Kolkata on 30 October was carrying food and snacks of PepsiCo Inc. in 16 containers, which is the equivalent of 16 truckloads. The Inland Waterways Authority of India vessel will make its return journey with fertilizers from Indian Farmers Fertilizer Cooperative Ltd.

To promote inland waterways, Prime Minister Narendra Modi’s administration has started dredging channels, building terminals and adding barges and has now set about convincing companies to use them. Modi was in Varanasi—which is also his parliamentary constituency—to receive the vessel and inaugurate the new terminal.

Still, India need to overcome challenges including night-time navigation, maintaining consistent water levels and creating more infrastructure, said Murali. India’s first container cargo movement “will provide some momentum to the industry to boost commercial activities, social development and curb carbon footprints, among others", he said.

Modi’s administration also has plans to integrate coastal and inland waterways. His government has unveiled a $34 billion plan that aims to develop ports along India’s 7,500km coastline.

 The share of goods transported via India’s inland waterways is less than 1%, compared with 42% in the Netherlands, 8.7% in China and more than 8% in the US.

“Inland water navigation is an underutilized infrastructure in India," said D. Dhanuraj, chairman, Centre for Public Policy Research, Kochi. While the government is trying to change this situation, the development of inland waterways and port projects has been slow, because “challenges are very high".