Blank Sailings and GRIs Struggling to Halt Slide in Freight Rates

Blanked sailings and general rate increases (GRIs) have not been enough to stop the decline in Asia-North Europe freight rates, with current slot utilization dropping below 95%. The Shanghai Containerised Freight Index revealed a 16% fall in rates, dropping to $1,805 per TEU.

A recent report by Linerlytica notes that blanked sailings have failed to match the cargo volume drops from most Far East origins. Although Hapag-Lloyd announced a speculative rate for 40ft containers, market resistance remains strong. Capacity utilization is still under 95%, and most post-holiday blank sailings will conclude this week.
The reduction in cargo volumes following the Chinese New Year has eased congestion at Chinese and South Korean ports, with vessel capacity at anchorages halving from the January peak of over 1.2 million TEUs. Around 30-60% of regular departures from Chinese ports have been blanked in the past two weeks, slowing vessel activity and allowing ports to recover.

In contrast, Asia-Mediterranean rates have fared better, seeing only a 5% drop, as niche carriers have shifted tonnage to serve the Red Sea. Meanwhile, Transpacific rates are under pressure. Carriers are facing resistance to rate hikes scheduled for March 1, with capacity expected to return in full force from all alliances after the February blanked sailing programs.