Coronavirus Update - June 9

Allyn International is committed to providing you with the latest and most accurate updates during this very fluid and ever-changing 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.  

Less competition within the ocean freight market has allowed the three alliances more control of the available capacity and pricing in ways that were not possible when over 20 carriers were in operation. In years past, the competition for your business was fierce and there was almost always a carrier willing to undercut the market. Ocean Alliance, 2M and THE Alliance have announced additional blank sailings for the next 12 weeks; reducing 8% of Trans-Pacific capacity and about 15% of capacity from the Asia-Europe trade route and additional blank sailing announcements are expected over the next couple of weeks. The announced reduction in capacity has already started to impact container prices and increases as large as 14% have been seen on the eastbound Trans-Pacific route. Additional container prices figures can be found below as well as a chart displaying historical spot rates from China to the United States through June 5, 2020.  

Americas

• The US Transportation Department announced on Friday that it will allow Chinese passenger air carriers to operate two flights per week.
• Brazilian borders are closed to travelers, but cargo can enter the country without delay.
• Canadian borders remain closed to nonessential travelers until June 21.

United States – 1,961,646 confirmed cases, 518,522 (26%) recovered, 111,014 deaths.
Brazil – 707,412 confirmed cases, 378,257 (53%) recovered, 37,134 deaths.

EMEA

• Italy and France have begun to reopen their economies. Factories in Italy have resumed operation and some shops within France have opened and the restrictions on the movement of people have been lifted.
• The Deutsche Post DHL Group is charging a “crisis” surcharge on parcel shipments to the US, Australia, Brazil, Japan, Singapore, South Africa, South Korea and Thailand. The amount of the surcharge varies depending on the weight of the parcel.

Russia – 484,630 confirmed cases, 241,917 (50%) recovered, 6,133 deaths. 
United Kingdom – 288,834 confirmed cases, 1,255 (0.4%) recovered, 40,680 deaths. 
Spain – 241,717 confirmed cases, 150,376 (62%) recovered, 27,136 deaths. 
Italy – 235,278 confirmed cases, 166,584 (71%) recovered, 33,964 deaths. 

APAC
 

• All airports and ocean ports in Thailand are fully operational and domestic passenger flights have resumed. Cargo capacity remains very tight.
• 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 – 268,125 confirmed cases, 129,861 (48%) recovered, 7,487 deaths. 

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

Global Air Cargo Transport – Updated 06.09.2020 

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 06.09.2020 

Global Ocean Transport Impact – Updated 06.09.2020 

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

The chart below displays ocean container spot rates from China/East Asia to the US from July 2017 through June 5, 2020.  

Global Road and Rail Transport – Updated 06.09.2020 

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 06.09.2020 

The US trucking spot volumes dropped last week across all three segments; dry van, flatbed, and refrigerated. The dry van ended the week at 82.9% of pre-COVID levels down from 90.6 and flatbed and refrigerated dropped to 58.9% and 67.3% respectively.  

• 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, Idaho and Wyoming.

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.