Some lines have already announced blanked sailings during the traditionally quiet period just after new year when carriers like to take advantage of slack conditions to drydock vessels or carry out repairs.
Others are slowing their ships even further, while nearly all global players are caught up in the dispute that has severely disrupted cargo operations in Los Angeles and Long Beach.
Within 48 hours of clerical workers going on strike at the two ports over the lack of employment contracts, the majority of the 14 terminals were at a standstill.
That hit the transpacific services of Maersk, MSC, CMA CGM, Evergreen, Cosco, OOCL, NYK Line, Hanjin Shipping and others.
By the end of the week, the mayor of Los Angeles was calling for the two sides to meet with a mediator as longshore workers refused to cross picket lines mounted by members of the Office Clerical Unit (OCU).That left ships stuck on the berth or waiting at anchor, with the numbers building up as the week wore on.
The two neighbouring southern California ports handle more than 40% of the country’s imports and support an estimated 4.7 million jobs across the US.
“The OCU’s strike puts all of this in jeopardy in an effort to pressure employers to accept its unreasonable demands,” the Los Angeles/Long Beach Harbour Employers Association said in statement as the strike entered its third day.
The terminals caught up in the dispute with clerks are all owned by, or are sister companies of, major container lines
But although ships have been forced into involuntary inactivity off the Californian coast, others are preparing to remain idle at ports in Asia early next year as lines adjust capacity to match weaker volumes between Christmas and the end of the Chinese lunar holidays.
The Grand Alliance of Hapag-Lloyd, NYK, OOCL, APL, MOL and Hyundai Merchant Marine intends to void seven sailings from Asia to Europe, starting from 9 January, when the 8,100teu MOL Courage, which had been due to depart Tokyo on 9 January, will not now sail.
The skipped sailings will continue through to 15 February, with the 5,700teu OOCL Chicago missing its planned departure.
Maersk Line, meanwhile, has advised customers that ships in its AE1 service will slow down further on the return leg in order to reduce bunker costs.
The total transit time from north Europe to Japan will be unchanged, said Maersk, but the speed will be evened out, lengthening the transit time to Singapore and Colombo. The change will be effective from the end of the year when the 8,400 teu Maersk Stepnica leaves Bremerhaven.
On the Pacific, the Grand Alliance has cancelled a couple of sailings of the 6,300 teu NYK Apollo within the Central China Express.
Services are being adjusted as freight rates continue to lose ground on the two major trade lanes, although shippers will be presented with general rate increases within a couple of weeks. In the Asia-Europe trades, for example, most carriers are preparing to impose rate rises of up to $600 per teu.
On the Pacific, members of the Transpacific Stabilisation Agreement plan to lift rates by $400 per 40ft container for US west coast destinations, with effect from 15 December.
For now, though, rates on most trades are in retreat. The Shanghai Containerised Freight Index showed a 4.7%, or $51, decline in its China-north Europe component to $1,028 per teu today.
That compares with a high back in May of more than $1,900. The Mediterranean trades are in much worse shape, though, with average spot rates now down to less than $750 per teu from more than $2,00o for a brief time seven months ago.
The slide has been far less severe on the Pacific, but the SCFI’s spot rate from Shanghai to the US west coast lost 2.1% last week to $2,046 per feu.
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