Transpacific Blank Sailings Soar as Shipments plunge

Container shipping lines have  increased blank sailings on Transpacific routes in response to escalating trade tensions between the USA and China.

The total blanked capacity for weeks 16-19 has surged to 367,800 TEU, representing a significant increase from just 60,000 TEU three weeks prior. The Asia-North America West Coast trade lane has seen scheduled capacity drop by 12% compared to six weeks ago, while the Asia-North America East Coast route experienced an even steeper decline of 14%.

The situation has been complicated by the USA increasing tariffs on Chinese goods to 145%, with China retaliating through 125% tariffs on U.S. imports and restrictions on critical mineral exports.

A VOLATILE POLITICAL CLIMATE

The current political climate is extremely volatile and given that tariffs are being imposed and suspended on an almost daily basis, we assume that both the shipping lines and cargo owners are only adjusting their short-term supply chains for now and waiting for things to settle down before making longer-term network adjustments.

Blank sailings are expected to continue rising in the coming weeks, particularly in the Transpacific eastbound trade. Some vessels may depart China with significant empty space through May as cargo owners cancel shipments or halt cargo at origin to offset rising costs.

BLANK SAILINGS DURUNG COVID

Data released in April 2020 reveals that when Covid-19 had begun to spread across the world, approximately 150 blank sailings were declared on major shipping routes. Out of these, over 100 were announced between the Chinese New Year and mid-March as the COVID-19 outbreak spread-out in China.

Pioneering Green Trade Facilitation

In today’s global landscape, with the climate crisis continuing to worsen, the need to balance economic growth with environmental stewardship is more crucial than ever. Green – or climate-smart – trade facilitation is playing an increasingly important role as countries strive to transition towards low-carbon and sustainable economies. This workshop will introduce the concept of green trade facilitation, and examine its developments and opportunities, including strategies, initiatives and good practices that help enable trade to be more efficient and environmentally friendly, and contribute to climate goals. Following the opening remarks and overview presentation, each thematic session is expected to feature a moderator and 3-4 speakers with a question & answer segment at the end.

Green trade facilitation refers to measures that make it easier to trade in goods and services that contribute to environmental protection, climate goals, and sustainable economies. This includes simplifying trade procedures for environmental goods like solar panels and recycled materials, as well as supporting the growth of green industries. 

Key Aspects of Green Trade Facilitation:

Focus on Environmental Goods:

Green trade facilitation aims to streamline the movement of goods that are beneficial to the environment, such as clean energy technologies, waste management solutions, and sustainable materials. 

Reducing Trade Barriers:

It involves removing obstacles that hinder the flow of green products, including simplifying customs procedures, harmonizing standards, and promoting fair trade practices. 

Promoting Sustainable Supply Chains:

Green trade facilitation also encourages the development of more sustainable supply chains, which are less environmentally damaging and more efficient. 

Digitalization and Innovation:

Using digital tools and technologies to streamline trade processes can lead to greater efficiency and reduced resource use, contributing to a greener trade. 

Supporting Green Businesses:

Green trade facilitation helps businesses in the green sector by providing access to markets, reducing costs, and fostering innovation. 

Green Trade Financing:

Specific programs like the EBRD's Green Trade Facilitation Programme (Green TFP) offer financing to support green trade transactions, further incentivizing green initiatives. 

Benefits of Green Trade Facilitation:

Environmental Protection:

By promoting the trade of green goods and services, green trade facilitation can help reduce carbon emissions, protect biodiversity, and improve environmental quality. 

Economic Growth:

The green economy creates new jobs and business opportunities, contributing to sustainable economic development. 

Innovation and Efficiency:

Green trade facilitation encourages innovation in green technologies and sustainable practices, leading to more efficient and environmentally friendly trade processes. 

Fair Trade:

Green trade facilitation can help ensure that trade practices are fair and equitable, benefiting both developed and developing countries. 

how can indian companies benefit from FTA in 2025

Indian companies can significantly benefit from Free Trade Agreements (FTAs) by gaining easier access to foreign markets, reducing trade costs through lower tariffs, and fostering greater competition and innovation. This leads to increased exports, enhanced foreign investment, and opportunities for growth and diversification. 

Here's a more detailed look at the benefits:

1. Expanded Market Access:

FTAs reduce or eliminate tariffs and other trade barriers, making it easier for Indian companies to export their goods and services to partner countries. 

This opens up new markets, allowing Indian businesses to tap into a wider customer base and potentially achieve higher sales and profitability. 

2. Reduced Trade Costs:

Lower tariffs on imports mean Indian companies can purchase raw materials and components at lower costs, leading to lower production costs and increased competitiveness.

This allows them to offer their products and services at more competitive prices in both domestic and foreign markets. 

3. Enhanced Foreign Investment:

FTAs can encourage foreign investment in India, as they create a more stable and predictable environment for businesses.

This can lead to increased capital inflows, technology transfer, and job creation, contributing to overall economic growth. 

4. Increased Competition and Innovation:

Exposure to foreign competition can stimulate innovation and efficiency improvements within Indian companies.

They are encouraged to develop higher-quality products and services, adapt to changing market demands, and find ways to reduce costs. 

5. Diversification of Trade Relations:

FTAs can help diversify India's trade relationships, reducing its reliance on specific markets or trading partners.

This provides greater stability and resilience to the Indian economy in the face of potential trade disruptions or economic downturns. 

6. Other Benefits:

FTAs can also lead to increased access to government contracts, improved intellectual property protection, and greater flexibility in how companies can operate in different markets.

They can also promote better cooperation on trade-related issues, such as standards and regulations.

Specific Examples of FTAs:

India-ASEAN FTA:

This FTA has been instrumental in boosting trade between India and the ASEAN region. 

India-Mauritius CECPA:

This agreement is India's first trade agreement with an African nation, expanding trade relations with the African continent. 

India-UAE CEPA:

This agreement has significantly boosted bilateral trade between India and the UAE. 

In addition to these specific agreements, India is also actively negotiating FTAs with other countries, including the European Union, Australia, and the United States. These FTAs have the potential to further expand market access and boost the Indian economy in 2025. 

Why are Ocean Freight Containers or Shipping Containers 20 feet and 40 feet long?

Ever wondered why shipping containers are 20 feet and 40 feet long, exactly? Why not 18, 36, or 50? The solution does not reside in port design or international control — but in one potent innovation that shook the world’s supply chains.

In the 1950s, American trucker Malcolm McLean had a problem: cargo loading was slow, inefficient and costly. Merchandise was being processed piece by piece. His groundbreaking idea? A standard metal box that could be loaded once, moved from truck to train to ship without unloading. And so the intermodal shipping container was born — along with the modern global supply chain.

But why was the original standard set at 20 feet?

It was a conscious, pragmatic choice. McLean wanted a size that would:

• Easily fit on a truck chassis, for easy highway transport

• Have no height, length or weight above accordingly through conventional rail cars

• Integrate into the cranes and forklifts of the 1950s, particularly at ports where infrastructure was light

• Find the right balance between volume and weight — neither so large as to be unwieldy, nor so small as to be inefficient

That 20-foot length was a happy medium for efficiency, safety, and versatility. Eventually the 40-foot container was brought on board to maximize volume per crane lift—it was twice the length of a 20-foot container, so scaling up was simple. Both lengths were officially standardized in 1968 by the International Organization for Standardization (ISO). Ports and infrastructure around the world adapted to this new system rather than defining it.

The result? So resilient that today, more than 90% of international trade is carried in containers—typically either 20 or 40 feet long. These containers are the foundation for just-in-time inventory, cross-border e-commerce, multi-modal logistics and every modern supply chain you can think of.

So the next time you encounter a shipping container, keep in mind — it’s more than just a steel box. This is the DNA of global trade, cast in a daring, pragmatic vision.