China Ocean Freight Blank Sailings

30th June, 2020

Dear Customers,

There continues to be a capacity issue for ocean freight services particularly from China, shipping lines are still rolling out blank sailings in order to keep operational costs down and maintain profitability. Last week alone shipping lines increased blank sailings by 15% and it is expected this will continue for the foreseeable future.

Covid 19 travel restrictions are also starting to have an impact as shipping lines are finding it difficult to reposition vessel crew to the ports where they might be required, with many countries not allowing crew to disembark vessels. This is causing significant issues with vessel and crew positioning. 

The result of the above is delays in vessel departures and also over booking of available space. We do not see an immediate fix to the delays as it is not isolated to any one issue with many parts playing a hand.

We are being advised that some shipping lines are starting to implement a fee for a guaranteed sailing and they range between USD300 and USD600 per container, if this is something of interest to you please ensure to discuss with one of our team.

To our SCC customers where possible please look to extend your purchase order lead times and if possible provide the overseas manufacturer’s and SCC as early notice as possible of your PO’s. This will allow us to engage with your suppliers at an earlier time and better manage your vessel options.

There is no doubt of the challenges continuing with air and sea freight, be assured our team at SCC are extending ourselves along with our overseas partners to ensure your shipments continue to move in the most efficient manner, our relationships with the shipping lines and airlines are very strong and in times like now the loyalty and support we have provided to them in the past will greatly benefit us and yourselves in this time.

Please get in touch with sales@sccargo.com.au should you require any further details.