Uptick in blank sailings as US and China trade tariff blows

As tensions rise between the United States and China, global supply chain managers are grappling with an increase in blanked sailings. In response to President Donald Trump’s significant tariffs, China has retaliated with its own steep tariffs on U.S. goods, signaling a deepening trade conflict. Chinese President Xi Jinping has urged the European Union to unite against what he describes as U.S. “bullying,” emphasizing that tariff wars yield no winners.

Impact on Shipping and Global Trade

The ongoing trade war is causing significant disruptions in global shipping. Shippers are now racing to secure goods from alternative manufacturing hubs, particularly in Southeast Asia, as the Trump administration has set a deadline of July 9 for potential further tariff increases. This uncertainty has led to a notable rise in blank sailings, where shipping lines cancel voyages to adjust to fluctuating demand.

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Simon Sundboell, CEO of the Danish liner analysis platform eeSea, reported an increase in blank sailings announced over the past few weeks, with more expected in the coming months. He attributes this trend to overall market uncertainty and weakening demand. Peter Sand, chief analyst at the Norwegian container rates platform Xeneta, echoed these sentiments, noting a sharp decline in bookings from China. He stated, “There is a straightforward effect of the trade war: lower demand. Carriers will act on this by blanking more sailings in the coming weeks and months.”

As the situation evolves, liner shipping companies are closely monitoring the developments. The combination of reduced demand and the looming threat of additional tariffs is prompting carriers to adjust their strategies, which could have lasting implications for global trade dynamics.