Coronavirus Update - June 11

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, a current overview of the most heavily impacted regions.

Air cargo capacity is slowing being returned to the market. Both passenger airlines and cargo airlines that had suspended their flights due to the COVID-19 pandemic are beginning to add flights back into their schedules. In addition to others, Air France KLM Martinair Cargo has resumed flights from its hubs in Amsterdam and Paris and ANA Cargo has started
operating flights between Tokyo and Frankfurt.

IATA recently released their market update and it shows that although rates are decreasing since mid-May, rates are expected to be 30% higher in 2020 than they were in 2019. The TAC Index shows rates from Shanghai to Europe down 19% since last week and rates from Shanghai to North America decreased 24% week-over-week. The decrease in rates is believed to be due to the decrease in demand for PPE equipment as consumes have been able to build their inventories and cargo-only passenger planes continue to add capacity to the market. According to IATA, 130 airlines have converted passenger aircraft into cargo-only configurations.

Americas

• The US Department of Transportation has authorized Kalitta Air and FedEx Express to operate weekly flights between Hong Kong and Singapore.
• Colombia extended their stay at home orders until June 30 and only essential activities including the movement of cargo imports and exports will remain operational.
• Canadian borders remain closed to nonessential travelers until June 21.

United States – 2,000,600 confirmed cases, 533,504 (27%) recovered, 112,925 deaths
Brazil – 772,416 confirmed cases, 413,916 (54%) recovered, 39,680 deaths

EMEA

• London Gatwick Airport (LGW) announced that it is reopening its North Terminal on June 15.
• Land border controls between Germany and France, Austria and Switzerland will continue until June 15.

Russia – 501,800 confirmed cases, 260,649 (52%) recovered, 6,522 deaths
United Kingdom – 292,854 confirmed cases, 1,269 (0.4%) recovered, 41,364 deaths
Spain – 242,280 confirmed cases, 150,376 (62%) recovered, 27,136 deaths
Italy – 235,763 confirmed cases, 169,939 (72%) recovered, 34,114 deaths

APAC

• The Airports Council International (ACI) Asia-Pacific announced that airports across Asia-Pacific are ready to fully reopen with additional public health measures.
• The phased reopening of non-containment zones in India began this week and the country is allowing places of worship, hotels, restaurants and shopping malls to open first followed by schools and then will allow international travel, metro rail, cinemas and other social gathering locations to reopen. Areas that remain containment zones continue to allow only essential activities.

India – 286,576 confirmed cases, 141,017 (49%) recovered, 8,102 deaths

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

Global Air Cargo Transport - Updated 06.11.2020

Please note: the above table displays airport operational updates and does not include carrier capacity data

* Chicago, Denver, 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. Los Angeles and San Diego operating with restricted operations, cargo movement impacted.

** Restricted operations in India are impacting cargo flights; freighters are operating with reduced capacity. Customs of non-essential goods have resumed subject to availability of Custom’s officers.

Global Air Freight Capacity by Trade Lane - Updated 06.11.2020

Global Ocean Transport Impact - Updated 06.11.2020

Please note: The above table displays seaport operational updates and does not include individual carrier capacity data

Global Ocean Container Average Weekly Price by Trade Lane – Baltic Index – Updated 06.05.2020

*Source: Freightos Baltic Index

Global Road and Rail Transport – Updated 06.11.2020

Please note: The table above displays road and rail operational updates and does not include carrier capacity data

United States of America Domestic Trucking Overview – Updated 06.11.2020

The US trucking market continues to indicate a recovery as the US economy emerges from COVID-19 lockdowns. Dry van, flatbed and refrigerated spot load volumes all show an increase when compared to the previous week. The flatbed segment had the largest increase at more than 31% from the week before and is currently 11% higher than the five-year average.

• Rates within most US markets are currently at normal or below normal levels however areas that may see an increase are:
  • Loads with the origin of Oregon, Montana and Wyoming.
  • Loads with a destination of Utah.

The chart below shows the spot truck loads versus rates in 2020 through Week 22 including the dry van, flatbed and refrigerated trucking segments.

The map below shows each US state’s current operational status.

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.

For your convenience, our COVID-19 updates along with additional information from our tax, trade and logistics teams are available on our website www.allynintl.com.

If you have any questions regarding the impact of the coronavirus to your supply chain or would like additional research and market intelligence, please contact our Americas Consulting and Sourcing manager Mitchell Turiel at Turiel.m@allynintl.com or (239) 219-7179.