Coronavirus Update - April 1

Allyn International is committed to providing you with the latest and most accurate updates during this very fluid and everchanging period. Our goal with the information provided below, is to give you, at a high-level, the current outlook of the most heavily impacted regions.

Americas

• With the Great Lakes shipping season beginning, US Customs and Border Protection and vessel crew members are taking extra precautions to prevent the spread of the virus. Slight delays are likely.
• Air Canada announced cargo-only flights with 35 to 40 tonnes capacity each. Flights can accommodate general and specialized freight. The carrier also announced trucking services are available from several major US airports.
• US FTL volume has increased, LTL shipment levels have remained stable.
• Brazilian border delays due to the customs clearance procedures.

United States – 199,092 confirmed cases (34% increase since Monday), 8,362 recovered, 4,361 deaths

EMEA

• Several airports have seen an increase of up to 10% on air cargo movements over the past few weeks, likely due to increased medical equipment needs. Capacity remains the biggest challenge.
• Italy closed most domestic transport companies, local pickups, deliveries and international line hauls will experience major delays.
• Advised to contact pick-up and delivery locations to verify operational status.
• The Prime Minister of Egypt imposed a trucking curfew. Trucks will not be allowed to travel on main highways between 7 p.m. and 6 a.m.
• Manufacturing in Spain is largely suspended.

Italy – 110,574 confirmed cases (13% increase since Monday), 16,847 recovered, 13,155 deaths

Spain – 102,136 confirmed cases (20% increase since Monday), 22,647 recovered, 9,053 deaths

Germany – 76,544 confirmed cases (20% increase since Monday), 18,700 recovered, 858 deaths

France – 52,870 confirmed cases (17% increase since Tuesday), 9,561 recovered, 3,532 deaths

APAC

• The average turnaround time at Indian ports has increased from 3 to 12 days.
• The remaining restrictions on residents heading out of Wuhan are expected to be lifted April 8.
• Tianhe International Airport in Wuhan is expected to reopen to domestic flights April 8. Other airports in Hubei resumed domestic passenger and cargo flights this past weekend.
• As a result of the government 21-day shutdown in India, production, pick-ups, deliveries, exports and imports will likely experience major delays. Although ports and airports are operational for cargo needs, the reduction in truck capacity, drivers and port staff will affect productivity. Essential supplies will take priority.

China

• • 82,361 confirmed cases (0.2% increase since Monday), 76,405 recovered, 3,316 deaths

Middle East and Africa

• South African ports will remain open and will continue to process all cargo with the priority being essential goods.
• Emirates is relocating all cargo operations to Dubai International Airport.
• Turkmenistan suspends all freight transport through its territory for the entire month of April. As of now, there are no exemptions.
• The Iranian government has banned the export of face masks and ordered factories to increase production.

Iran

• 47,593 confirmed cases (15% increase since Monday), 15,473 recovered, 3,036 deaths

The following tables and charts will provide the current cargo transport operational status for heavily affected countries.

Air Cargo Transport – Updated 4.01.2020

• Cargo-only flights are being added to carrier networks to assist with the mismatch of supply and demand
• Price increases are expected to continue until mid-April

* Atlanta and New York City airports are operational for cargo but staffing reductions are impacting efficiency. No freighters are flying in Denver as a result of state government restrictions.
** Restricted operations in India are impacting cargo flights; freighters are operating with reduced capacity.

Air Freight Capacity by Trade Lane – Updated 04.01.2020

Ocean Transport –Updated 04.01.2020

Please note: The above table displays seaport operational updates and does not include carrier capacity data
*The Hubei Province (including Wuhan) ocean port continue its’ suspension of all transportation
** Ocean freight from India to Africa has capacity available. All other trade lanes have reduced capacity.

Road and Rail Transport – Updated 04.01.2020

• Possible trucking delays to South East Asia as a result of temporary border closures. Food and medical essentials are not restricted but may be delayed due to border congestion.

Comparing Q1 2019 to Q1 2020 – the chart below shows the percent change in average $/kg. from air shipment spot quotes

The chart below displays the long-term intermodal and truck volume trends vs. US GDP.

Our operations and consulting teams are working diligently and will continue to offer alternative solutions to move your cargo in the most cost-effective and efficient way possible. All Allyn International regional offices are fully operational and will continue to support you as we navigate the current and future challenges.

If you have any questions regarding the impact of the coronavirus to your supply chain or need to develop a contingency plan, please contact your Allyn International account manager or email sales@allynintl.com.