News & Publications

Coronavirus Update - March 25

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.

Although there are several “hot spots” of COVID-19 confirmed cases, many regions within China, South Korea, Europe and the United States are beginning to stabilize. The stabilization is believed to be as a result of social distancing measures that were put in place within the last month and are recommended to continue for, at a minimum, the next couple of weeks.

Conversely, outbreaks are beginning to emerge in new regions throughout the world. This is believed, in part, to be as a result of increased testing for the virus. Some countries are just now implementing major social distancing measures that include total lockdowns, border closures, stay-at-home orders and business closures while others are slower to make any
such requirements mandatory.

EMEA

  • Imports and exports continue to flow without much interference. Export levels remain lower than usual, but imports continue to remain steady.
  • Italy’s ocean ports are operational but delays in loading/unloading are expected to continue for some carriers due to quarantined employees.
  • Trucking within Italy is permitted however inspections, packing/unloading, documentation and financing for some supply chains are halted as a result of business closures.

Italy – 63,928 confirmed cases (16% increase since Monday), 9,362 recovered, 7,503 deaths

Spain – 47,610 confirmed cases (44% increase since Monday), 5,367 recovered, 3,434 deaths

Germany – 35,740 confirmed cases (24% increase since Monday), 3,540 recovered, 186 deaths

Americas

  • Customs clearances are causing a slight delay at Canadian borders.
  • US truckload capacity is dropping, and spot quote prices are rising. Early booking is advised.
  • US less-than-truckload capacity and pricing is currently stable. Over the next few weeks that is expected to change as businesses close causing delivery delays.
  • LATAM cargo-only carriers have increased their flight schedules between Europe, the US and South America. Total capacity continues to remain lower than previously available.
  • Workers at ports, warehouses and trucking companies are receiving exemptions from state “stay-at-home” mandates. They remain essential to the US supply chain.

United States

  • 60,115 confirmed cases (46% increase since Monday), 354 recovered, 827 deaths

APAC
 

  • India implemented a nation-wide 21-day lockdown. Currently there are exemptions for essential goods and customs clearances at ports, airports, land borders and GSTN however carrier functionality at each location varies greatly and it is recommended to contact the carriers directly.
  •  Australia, New Zealand and Indonesia borders, ocean ports and airports are operational but expect delays as a result of driver shortages, vehicle shortages and operational restrictions.
  • China’s (exception Hubei Province) FTL and LTL services have recovered to 80 and 75 percent respectively. The Hubei Province is currently operating at approximately 20 percent inter-Hubei and 10 percent intra-Hubei.

China

  • 81,661 confirmed cases (0.2% increase since Monday), 73,773 recovered, 3,285 deaths

Middle East

  • Passenger flights have been suspended in the UAE, effective until April 6.
  • Major reduction in air cargo capacity throughout the entire region

Iran

  • 27,017 confirmed cases (17% increase since Monday), 9,625 recovered, 2,077 deaths

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

Air Cargo Transport – Updated 03.25.2020

  • 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

* Wuhan airport has reopened. Flights will resume, at 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 03.25.2020

  • Blank sailing schedules are expected to increase over the next two-weeks, will likely result in rate volatility
  • Equipment shortages in the EU and NAM
  • Booking lead time for backhaul trade is around 4 to 5 weeks within the EMEA


* The Hubei province (including Wuhan) ocean port continues its’ suspension of all transportation Seaport Outbound Impact Inbound Impact Status

Road and Rail Transport – Updated 03.25.2020

  • 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.

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.

 

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