Understand How ‘Blank Sailings’ Due to Corona Virus are Increasing Port Congestion

Containers Stuck in Transshipment Across Major Ports in the World

Trade restrictions across major ports of the world, to prevent the Corona Virus outbreak have lead to containers being stuck in Transshipment. This is affecting the profitability of shippers on a large scale, as it has lead to delay in delivery of necessary goods across the globe.

‘Blank Sailing’ leading to unavailability of Empty Containers and rising costs for Shippers

With container exports from China reduced drastically, Shipping lines are losing millions of dollars sailing as per committed schedule but with ships partially filled. To sail with good volume and ensure profitability, shipping lines are reducing the total sailings between a pair of ports.

Neutralizing the benefits of falling Crude Oil Prices

Despite crude oil prices having crashed, the benefits have been wiped off and as an example, spot rates from JNPT and Mundra to the US East Coast (New York) have increased by around 20%. Prices to other ports have also increased between 15% to 100%.
Liners are also charging anywhere from $100 – $400 as emergency “Equipment Handling Charges”