Coronavirus Update - March 16

Many countries have implemented social distancing measures aimed at reducing the spread of COVID-19. The virus has caused a global disruption to the world’s economy, global supply-chains and a strain on health care systems in highly infected regions. To alleviate the strain on hospitals, mobile COVID-19 testing centers are popping up in parking lots
around the world.

Approximately 50 percent of cargo moved by air occurs in the belly of passenger aircraft. As a result of international passenger travel restrictions throughout the world, the reduction of air capacity will increase prices and the demand on cargo aircraft. At this time, charter air solutions may be more cost-effective, but availability and pricing are also changing
rapidly. It is advised that companies secure aircraft charter solutions as soon as they are needed.

As China resumes normal operations, the cargo volumes will increase out of the region and the backlogs will begin to decrease. The decrease in backlogs will free up much-needed containers which, in turn, will increase ocean transport capacity and reduce the number of blank sailings.

China

• 81,020 confirmed cases (0.9% increase since Friday), 67,843 recovered, 3,217 deaths
• Delays at Pingxiang/Langson border due to increased truck traffic. Imports to China are being delayed 1-3 days, exports are delayed 2-4 days.
• Flight cancellations have resulted in a reduction of 5,000 tons per day of capacity
• Freight operations are readjusting their capacities and slowing returning to a normal schedule.

Italy/Europe

• 24,747 confirmed cases (63.7% increase since Friday), 2,335 recovered, 1,809 deaths (Italy only)
• Lufthansa, Air France-KLM, Franco-Dutch and Ryanair have all reduced their capacities by 70 percent or more
• Pricing for cargo capacity to Europe is expected to rise for at least 30 days
• Germany’s Baden Wuerttemberg air travel is set to close. The government is planning to make exceptions for import and export cargo.

Iran

• 13,938 confirmed cases (38% increase since Friday), 4,590 recovered, 724 deaths
• Outbreak has reached all of Iran’s provinces
• Quarantined the southeastern port city of Chabahar

South Korea

• 8,162 confirmed cases (3.7% increase since Friday), 834 recovered, 75 deaths
• Airports are operating normally, however many passenger flights have been canceled.
• Raised the virus alert level to “red” – the highest level

United States

• 3,813 confirmed cases (8th most in the world), 12 recovered, 69 deaths
• Passenger travel restrictions imposed, cargo is not restricted at this time
• Driver hour limits have been lifted for emergency supply transport

Spain, Germany, and France have all seen an increase in the number of confirmed cases. Social distancing measures have been implemented and countries are closing borders to passengers resulting in a decrease of air cargo capacity.

Although air capacity appears to be most affected by the global outbreak, all transport modes continue to experience hurdles daily.

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

Air Cargo Transport – Updated 03.16.2020

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

* Wuhan airport has reopened. Flights will resume, at the earliest, the end of March.
** Hefei airport is operational however passenger flights are still suspended. No impact to import, export, or custom clearances.

Ocean Transport –Updated 03.16.2020

Please note: The above table displays seaport operational updates and does not include carrier capacity data
* The Hubei province (including Wuhan) ocean port continues its’ suspension of all transportation

Road and Rail Transport – Updated 03.16.2020

• All highways in China are toll-free until the end of June

Global Transportation Services Index:

Year over year Freightos Baltic Index:

Our operations 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.