Blank sailings are a significant challenge for global supply chains. This article explores the intricacies of blank sailings, offering insights and strategies to help maintain operational efficiency.
Blank sailing generally refers to the cancellation of a scheduled voyage on a shipping vessel. This can include situations where the entire voyage is canceled or where the vessel skips one or more ports along its planned route.
These cancellations can occur across various designated routes and be a significant inconvenience for those relying on timely shipments. Blank sailings are driven by factors such as market fluctuations, decreased demand for shipping capacity, a carrier’s desire to gain operational efficiencies, and involuntary events such as weather, labor unrest, and geopolitical instability.
Distinguishing Blank Sailing from Skip Ports
Blank sailing can refer to the cancellation of an entire scheduled voyage on a shipping vessel. Skipping a port, where a vessel bypasses a specific port during its planned route, is considered a type of blank sailing. This may occur due to temporary disruptions such as port congestion or bad weather at a single location. For example, a ship scheduled to stop at Oakland, Seattle, and Vancouver may decide to skip the Seattle stop due to unexpected delays at that port.
Reasons for Blank Sailings
Shipping lines may utilize blank sailings for various strategic reasons, including:
Cost Efficiency: Reducing sailings during periods of low demand can help minimize operational costs such as fuel consumption and port fees.
Vessel Maintenance: Blank sailings are often scheduled to accommodate necessary mechanical repairs and maintenance, ensuring that they remain in optimal working condition.
Holidays: Significant holidays, like Japan’s Golden Week, often see reduced production and manufacturing activity. This can lead to a decrease in shipping volumes, impacting overall demand for shipping capacity.
Service Adjustments: Blank sailings may be implemented to adjust service loops, rectify schedule deviations, or accommodate unforeseen circumstances. For example, if a vessel encounters unexpected delays or needs to be diverted to a different port for repairs, a subsequent scheduled voyage may be canceled to maintain overall service reliability and ensure on-time delivery for the majority of cargo.
Maintaining Schedule Integrity: Blank sailings may be necessary to maintain overall service reliability and schedule integrity, particularly when significant schedule adjustments are required.This allows carriers to prioritize the on-time delivery of cargo to its intended destinations, even if it means skipping a scheduled port call.
External Factors: Events such as natural disasters, geopolitical tensions, labor disputes, or sudden regulatory changes can necessitate last-minute alterations to shipping schedules. Carriers may resort to blank sailings to align with these changing conditions effectively.
Must Carriers Inform Shippers of Blank Sailings?
Carriers are generally obligated to notify shippers of blank sailings. The specific timeframe for these notifications can vary depending on factors such as the carrier’s contractual obligations, industry best practices, and applicable regulations.
While there is no single, universally mandated notification period, carriers typically try to provide shippers with as much advance notice as possible, allowing them to make necessary adjustments to their supply chains. However, in some cases, particularly when driven by factors like low demand or the need to adjust capacity, notification of a blank sailing may be issued with shorter lead times, potentially within a week of the scheduled departure.
What to Expect When a Blank Sailing Occurs
If you find out that your shipment has been affected by a blank sailing, here’s what you may experience:
Delay in Shipment: Your cargo will most likely be booked onto the next available vessel. However, this can pose risks of overbooking. With multiple shipments rerouted to the next sailing, your cargo may get pushed to an even later date (this is called rolled cargo) due to a lack of available space.
Production Disruptions: For manufacturers, delayed deliveries can disrupt production schedules and potentially halt production lines if critical materials are delayed.
Retail Stockouts: For retailers, delayed shipments can lead to empty shelves and lost sales.
Potential Additional Costs: Delays in shipments can lead to expedited freight charges if you must arrange alternative transport options to meet deadlines. Additionally, any unforeseen surcharges from carriers might affect your bottom line.
What Can You Do to Mitigate the Impact of Blank Sailings?
To minimize the disruptions caused by blank sailings, consider employing the following strategies:
Maintain a safety stock of inventory as a buffer against disruptions. Also, evaluate your lead times regularly, considering the potential for blank sailings.
Don’t rely on just one shipping lane. By diversifying your shipping routes and partnering with multiple carriers, you’re better positioned to handle blank sailings and any associated complications.
Leverage the expertise of freight forwarders who can offer alternative solutions and have access to multiple carriers. They can help find space on other vessels quickly, reducing delays.
Stay in contact with your suppliers, the shipping lines, and your logistics partners to ensure everyone is aware of potential delays and can make necessary adjustments to their plans.
Stay informed about seasonal trends and industry news that might signal the likelihood of blank sailings, such as upcoming holidays. Plan your shipments around these factors to minimize last-minute disruptions.
The Role of Freight Forwarders in Managing Blank Sailings
A proactive freight forwarding partner, like Dimerco, plays a crucial role in navigating the challenges of “blank sailings” by providing information about potential cancellations of shipping schedules, identifying alternative transportation options when a ship skips a port, and actively managing the rescheduling of cargo to minimize disruption to the supply chain when a blank sailing occurs. A good forwarder essentially acts as a middleman to find solutions when a scheduled vessel doesn’t sail as planned.
Key points about freight forwarders and blank sailings:
Alerting shippers
Freight forwarders maintain close relationships with shipping lines and are often the first to be notified about potential blank sailings, allowing them to inform their clients and plan accordingly.
Finding alternative options
When faced with a blank sailing, freight forwarders can explore different carriers, routes, or shipping modes to ensure the cargo reaches its destination with minimal delay.
Negotiating with carriers
Due to their established networks, freight forwarders can advocate for clients’ interests and negotiate with carriers to secure space on alternative vessels or potentially get better rates when dealing with blank sailings.
Risk management
By monitoring market trends and industry updates, freight forwarders can help businesses anticipate and mitigate the risks associated with blank sailings by developing contingency plans.
Communication and coordination
Freight forwarders act as a communication bridge between shippers and carriers, ensuring smooth coordination when dealing with a blank sailing, including updating shipment details and managing expectations.
A Path Forward: Preparing for Blank Sailings
Blank sailings are an unavoidable aspect of maritime logistics but, while challenging, they are manageable.
One key approach is to align with a proactive global forwarder like Dimerco. Our team actively monitors carrier schedules for any blank sailings, enabling us to swiftly develop alternative solutions that uphold the integrity of your shipping schedule. By leveraging our strong relationships with reliable carriers, we ensure you have access to flexible options when disruptions occur.
Don’t let blank sailings derail your shipping schedule. Contact us today to learn how Dimerco can help you navigate these challenges effectively.