Coronavirus Update - March 27

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.

The United States now holds the highest number of COVID-19 confirmed cases worldwide and has become the new epicenter of the virus. A distinction no nation wants to hold. Local, State and the Federal governments along with the private sector are working together to increase production in life saving equipment and supplies. New York City is the hardest hit area and accounts for one-third of all US cases.

As a result of the global outbreak, many major international carriers have declared a Force Majeure on rate contracts. Doing so removes the carrier from certain contractual obligations and requires a spot quote for each transportation request.

Americas

• Increased air freight capacity between the North and South America and South America and Europe to aid in food and medical supply transportation between the regions.
• TL and LTL capacity tight in some markets but overall capacity is available in the US, Canada and Mexico.
• Brazil, Chile, Argentina, Peru and Colombia have all closed their borders with the exception of cargo.
• Canada is closing its borders to non-citizens and only four Canadian airports will accept international flights.

United States
• 86,012 confirmed cases (110% increase since Monday), 753 recovered, 1,301 deaths

EMEA

• Trucks crossing into Turkey via Balkan are delayed due to 14-day driver quarantine.
• Local pick-up and deliveries are experiencing disruptions due to business closures.
• France is beginning to see an increase in confirmed cases and is experiencing a shortage of warehouse space, truck capacity, drivers and equipment.
• The German government, logistics industry and the transport ministers of the federal states have created “Freight Transport Agreement” to keep essential goods such as food and medical supplies flowing throughout the country.

Italy – 80,589 confirmed cases (26% increase since Monday), 10,361 recovered, 8,215 deaths

Spain – 64,059 confirmed cases (94% increase since Monday), 9,357 recovered, 4,858 deaths

Germany – 47,373 confirmed cases (65% increase since Monday), 5,673 recovered, 285 deaths

APAC

• Terminal closures are causing major freight delays and cancellations at India’s airports.
• To avoid additional outbreaks, China has implemented additional travel restrictions into the country as all new cases of the virus are linked to international travelers
• Beginning Saturday, China will restrict entry into the country. Exemptions include diplomatic workers. Foreign citizens going to China for “necessary economic, trade, scientific or technological activities or out of emergency humanitarian needs” can still apply for visas.
• Hong Kong implemented a new 14-day guideline limiting the gathering size of people to 4. Exceptions include weddings and funerals.
• To help ease outbound backlogs, freighter flights have increased, and freighter capacity is 1,300 tonnes higher than the same period last year.

China
• 81,897 confirmed cases (0.4% increase since Monday), 74,720 recovered, 3,296 deaths

Middle East and Africa

• African seaports remain operational, but passengers and crew members are not allowed to disembark.
• The Iranian government will enforce social distancing measures including an inter-city travel ban.

Iran

• 32,332 confirmed cases (40% increase since Monday), 11,133 recovered, 2,378 deaths

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

Air Cargo Transport – Updated 03.27.2020

• 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.
*** India’s major airports are experiencing delays and cancellations

Ocean Transport –Updated 03.27.2020

• 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

Road and Rail Transport – Updated 03.27.2020

• 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.

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.