Blanks For Nothing: The Real Issue Giving Shippers Sleepless Nights.

As contract season comes to a close, shippers around the globe are reflecting on a negotiation season that saw schedule reliability become as big a sticking point as rates. In a market where experts say blank sailings could increase by up to 30%, shippers were searching for stability.

Specifically, shippers wanted more assurances from carriers that the scheduled sailings they rely on would actually occur and not be cancelled without warning – like they were two years ago.

These cancellations caused significant financial hardship for shippers who contracted with and solely relied on one carrier, as those customers’ cargo was rolled over to the carriers’ next available sailing. Rolling cargo over with a carrier forced shippers to wait an extra week for cargo to arrive, with some shippers waiting two or three.  

“The best thing shippers can do to protect themselves from the practice of blank sailings is to contract with a logistics consultant who works directly with and has a significant amount of relationships with those who are canceling sailings: the carriers,” said Anthony Fullbrook, president of OEC Group’s North American region. “Including a logistics consultant in your supply chain strategy can ensure a quick rebooking of your cargo, meaning instead of waiting at least a week for your cargo to be shipped you will only have to wait, at most, a few days. This could be the difference between having your business thrive or crumble.”

Shippers also felt frustrated by the secrecy that surrounded many 2023 blank sailings, many of which were canceled without a reason being provided.

That secrecy, coupled with the cancellation of a sailing, leaves shippers in a difficult position: Their sailings have been canceled, they don’t know why, and the cancelation increases demand for vessel space.

When that demand increases, the shippers are faced with higher freight rates and sometimes cause them to incur detention and demurrage, which arise when shippers can’t return containers in a timely manner.

“The practice of blank sailings puts shippers in a very difficult position because the services they signed up for may not necessarily be delivered,” said Sam Kim, vice president global pricing for OEC Group. “It’s bad enough that geopolitical issues and tariffs continue to keep rates elevated. However, not being able to accurately predict when or if your cargo will arrive creates a lot of unnecessary angst throughout the industry.”