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Liner reliability slips with increased blank voyages: Drewry
FOURTH quarter liner reliability declined in nearly all trades, falling 5.3 per cent to 63.8 per cent, the lowest on-time rate since the third quarter of 2011 when it plunged to 61.1 per cent, according to Drewry's Carrier Performance Insight report.
Nor does Drewry Maritime Research expect performance to improve as it sees sailing cancellations as the chief cause while also serving as key tactic liners deploy to counter overcapacity and help bolster general rate increases.
Current weak reliability performance contrasts to that of the fourth quarter of 2012, when the all trades averaged 75.2 per cent.
In peak season November, 33,000 TEU taken from the Asia Europe market using blank sailings and again 76,000 TEU was removed from the transpacific during the fourth quarter.
At the same time the average on-time reliability for both trades deteriorated, said the Drewry Maritime Research report. The timeliness of Asia/Europe/Med voyages fell from 68.8 per cent to 62.1 per cent in the third to fourth quarters last year.
"Transpacific reliability fell to 66.9 per cent from 76.5 per cent previously. The clear implication is that blank voyages are detrimental to schedule reliability. Worryingly for shippers, it is becoming a standard tool to adjust capacity, much the same as slow steaming," said the Carrier Performance Insight report.
"Carriers will revisit the practice in February to counter weaker demand, post-Chinese New Year. Some 43,000 TEU of monthly capacity is being pulled from Asia-North Europe and a whopping 92,000 TEU from Asia-west coast North America, according to Drewry estimates."
Nor does Drewry Maritime Research expect performance to improve as it sees sailing cancellations as the chief cause while also serving as key tactic liners deploy to counter overcapacity and help bolster general rate increases.
Current weak reliability performance contrasts to that of the fourth quarter of 2012, when the all trades averaged 75.2 per cent.
In peak season November, 33,000 TEU taken from the Asia Europe market using blank sailings and again 76,000 TEU was removed from the transpacific during the fourth quarter.
At the same time the average on-time reliability for both trades deteriorated, said the Drewry Maritime Research report. The timeliness of Asia/Europe/Med voyages fell from 68.8 per cent to 62.1 per cent in the third to fourth quarters last year.
"Transpacific reliability fell to 66.9 per cent from 76.5 per cent previously. The clear implication is that blank voyages are detrimental to schedule reliability. Worryingly for shippers, it is becoming a standard tool to adjust capacity, much the same as slow steaming," said the Carrier Performance Insight report.
"Carriers will revisit the practice in February to counter weaker demand, post-Chinese New Year. Some 43,000 TEU of monthly capacity is being pulled from Asia-North Europe and a whopping 92,000 TEU from Asia-west coast North America, according to Drewry estimates."
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