An Industry & Informational Update

As carriers attempt to better utilize their vessel capacity, they have been holding cargo to fill the vessels leading to many delays and rolled shipments. Normally at the end of the peak season, carriers can simply make schedule reductions and schedule fewer sailings to prevent average vessel utilization from falling.

Even though slot utilization on board vessels has increased 7% since October, this trend is expected to continue to cause unscheduled delays for the exporters and importers. Although sailing cancellations achieve the same result as the withdrawal of services, sailing cancellations sometimes cause unexpected space shortages, rollovers and shut outs, as surrounding vessels quickly fill up. This will cause unscheduled delays for exports and imports.

Please be aware that these cancellations can cause unforeseeable delays and that it is possible that this trend appears likely to continue as carriers plan to better utilize their vessel capacity.

We are continuing to monitor the situation closely. Please contact your move manager if you have any questions and for the latest information.