Port Omission in International Shipping
In international shipping, there is a phenomenon called "Port Omission," which occurs due to schedule changes of vessels. Port omission refers to the situation where a vessel passes by a scheduled port without stopping. As a result, cargo planned to be loaded or unloaded at the omitted port cannot be transported, or alternative arrangements must be made for delivery.
Port omissions can happen for various reasons, including port congestion, adverse weather conditions, equipment malfunctions, fluctuations in cargo volume, rising fuel costs, or strategic decisions made by shipping companies. In recent years, the frequency of port omissions has increased due to global supply chain disruptions.
Difference Between Port Omission and Blank Sailing: A term that is often confused with port omission is "Blank Sailing." Blank sailing refers to the cancellation of a specific route or schedule altogether. While port omission involves skipping certain ports but continuing the journey, blank sailing involves suspending the entire route itself.
For example:
- If a ship scheduled to call at ports A → B → C skips port B and proceeds directly from port A to port C, it is considered a "Port Omission."
- On the other hand, if the route A → B → C itself is temporarily suspended, it falls under "Blank Sailing."
Main Causes of Port Omission: Port omission can occur due to various reasons, especially the following key factors:
Port Congestion: Recently, severe port congestion has been caused by the surge in cargo volume at major ports worldwide. When the concentration of cargo exceeds the handling capacity of port facilities, delays in cargo handling and a shortage of berths can make scheduled port calls difficult. To avoid delays, shipping companies may decide to omit certain ports.
Adverse Weather: Weather events such as typhoons, hurricanes, strong winds, and heavy fog can make safe cargo handling at ports difficult, leading vessels to skip planned port calls. Seasonal weather conditions often result in port omissions, particularly in Southeast Asia and the U.S. West Coast.
Fuel Cost Reduction and Economic Factors: Rising fuel costs or the optimization of operational efficiency can lead shipping companies to decide on port omission. Similarly, if calling at a port with low cargo volume lacks economic benefits, port omission may be determined.
Equipment Malfunctions and Strikes: Faults in port equipment, such as cranes, or strikes by port workers can render cargo handling at specific ports impossible. In such cases, shipping companies may opt for port omissions and handle cargo at alternative ports.
Impacts of Port Omission: When port omission occurs, it significantly affects stakeholders, including shippers. The key problems that arise from port omission include...
Trans-Pacific blank sailings soar as ocean shipments plunge
Ocean carriers are withdrawing capacity in the Transpacific Eastbound trade at faster rates than COVID in anticipation of reduced demand following new tariffs on shipments from China to the US.
Carriers are reducing capacity by deploying smaller vessels, blanking (cancellation) scheduled sailings, and even the suspension of entire service loops. For context, a service loop is like a bus route. It’s a set schedule that ships follow every week, stopping at the same ports in the same order.
Ocean Alliance (CMA CGM, COSCO, Evergreen, and Orient Overseas Container Liner), Premier Alliance (ONE, HMM, YML) and ZIM/MSC have completely suspended seven of their weekly service loops. Additionally, more services are blanked for several weeks across alliances/carriers, with further blank sailing announcements expected. In late April and early May (Weeks 17-19), more than 25% of weekly service-loops are already cancelled. In comparison, Week 19 of 2020, during the early stages of COVID, had a 24% cancellation rate. Limited information is available for Week 20 and after, as carriers are closely monitoring market developments and may announce additional blank sailings depending on changes to demand.