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April 27 2020

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Spotlight 6 The Journal of Commerce | April 27 2020 Blank slate Trans-Pacific carriers are doubling down on blanking sailings through mid-June, reflecting expectations North American demand wracked by the coronavirus disease 2019 (COVID-19) will not rebound significantly before summer at the earliest. The implication of this deep slashing of capacity is that carriers — now engaged in annual negotiations with retailers and manufacturers for service contracts set to begin May 1 — see unusu- ally low consumer demand that could extend to back-to-school shipments that would normally begin next month. Unless demand picks up by early summer, imports during the peak holiday shipping season beginning in July will suffer as well. Furthermore, additional blank sailings could be announced because the Ocean Alliance has been lagging behind the 2M and THE alliances in reducing capacity, according to Sea-Intelligence Maritime Consulting. "It is clear that Ocean Alli- ance has blanked substantially less capacity than the other two alliances, on all main trades," Alan Murphy, CEO of Sea-Intelligence, said in the firm's latest Sunday Spotlight newsletter. "Given they are faced with the same market dynamics, we would expect them to blank further sailings in the weeks ahead, to reach approximately the same level." US imports from Asia declined 17.5 percent in March from the same month last year, according to PIERS, sister company of The Journal of Commerce within IHS Markit. US imports from China plunged 39.2 percent from March 2019. Global Port Tracker, published monthly by the National Retail Federa- tion and Hackett Associates, forecasts continued double-digit monthly declines in US imports, with imports in the first half of 2020 projected to be down 15.1 percent year over year. The Journal of Commerce Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, Executive Editor, The Journal of Commerce and Mark Szakonyi 202 872 1234, Managing Editor: Benjamin Meyer 916 716 6272, Associate Managing Editor: Kevin Saville, 212 488 4282, Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202 872 1228, Bill Mongelluzzo, West Coast 562 428 5999, Hugh Morley, Northeast, Mexico 646 679 3475, Eric Johnson, Technology 213 444 9326, Janet Nodar, Breakbulk and Heavy Li 251 473 2742, Greg Knowler, Europe +44 7976798770, Turloch Mooney, Global Ports +852 9011 9109, Ari Ashe, Southeast Ports, Intermodal Rail 202 548 7895, Data Analyst: Marcin Lejk +44 587416270, Shipper Engagement Manager: Dustin Braden 646 679 3450, Senior Editor, Special Projects: Alessandra Gregory Barrett, 860 248 5238 Associate Editor, Special Projects: Emily DeVoti, Senior Designer: Sue Abt, Associate Production Manager: Kate Binder 603 346 4680, Designer: Bryan Boyd, 908 910 7849, Sales: Cindy Cronin, Associate Director Southeast sales, 954 260 6061 Jean Gibbons, Senior Sales Executive West Coast sales, 706 469 7160 John Knowles, Senior Sales Executive EMEA sales, +44 7779974677 Allyson Marek, Senior Sales Executive Northeast sales, 862 754 8012 Alex Remstein, Associate Sales Specialist Reprints/Classifieds/Copyrights, 646 679 3418 Mehdi Smaili, Senior Sales Executive APAC sales, +44 7581406491 Judy Welp, Senior Sales Executive Midwest sales, +1 512 284 2878 For Magazine Subscription Customer Service: 450 West 33rd St., 5th Floor, New York, N.Y. 10001 800 952 3839 Vice President, Maritime & Trade, IHS Markit, Peter Tirschwell Executive Director, Media & Events, Maritime & Trade, IHS Markit, Amy Middlebrook Manager, Production, Carmen Verenna Product Manager, JOC, Jesse Case ©2020 The Journal of Commerce — All Rights Reserved For more information, visit our website, - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 Weekly capacity (TEU) Blanked sailings Container lines double down on capacity cuts through June Source: Sea-Intelligence © 2020 IHS Markit Announced blanked capacity on the Asia-Europe and trans-Pacific trade lanes Level of capacity removed during Chinese New Year lull 2.4x { Sheila Fitzgerald /

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