Coronavirus Update - May 5

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.  

Although much of the attention has been on international air cargo transportation costs and capacity shortages, ocean liners are also experiencing negative effects stemming from the global pandemic. According to the Intermodal Association of North America, international container intermodal shipments in North America have declined 11.3% in Q1 2020. Experts believe that in order for the top 10 liners to survive, recovery will need to begin in the third quarter.  

Americas 

• 22 US states remain shut down while the other 28 have either reopened partially, fully or have plans in place to lift restrictions soon.
• US domestic trucking market is beginning to show signs of recovery as economies reopen.

United States – 1,181,885 confirmed cases, 187,180 (16%) recovered, 69,079 deaths.

EMEA

• Italy began reopening factories and lifting stay-at-home orders after an eight-week lockdown.
• Germany, Spain, Greece, Belgium, Lithuania, France, Nigeria and Lebanon are among the countries who are beginning to lift restrictions while continuing to observe some social distancing guidelines.

Spain – 218,011 confirmed cases, 121,343 (56%) recovered, 25,428 deaths.

Italy – 211,938 confirmed cases, 82,879 (39%) recovered, 29,079 deaths.

United Kingdom – 191,832 confirmed cases, 910 (.5%) recovered, 28,809 deaths.

France – 169,583 confirmed cases, 51,476 (30%) recovered, 25,204 deaths.

Germany – 166,199 confirmed cases, 135,100 (81%) recovered, 6,993 deaths.

Iran – 99,970 confirmed cases, 80,475 (80%) recovered, 6,340 deaths 

APAC

• The New Zealand government is adding 56 cargo flights per week in an effort to maintain major trade lanes. The first round of contracts have been awarded to Air New Zealand.
• India has created a zoning classification aimed at reopening low to no infection areas first. Each zone contains new permissions and will be reviewed each week.
• Lockdown measures in Singapore will continue until June 1.

China – 83,966 confirmed cases, 78,847 (94%) recovered, 4,637 deaths. 

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

Global Air Cargo Transport – Updated 05.05.2020 

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

*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 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 05.05.2020

• Air Canada plans to operate 150 all-cargo flights per week during the second quarter.
• Emirates Sky Cargo network is expanding to serve 67 cities.
• Capacity remains low, especially for long haul and India destinations.

Global Ocean Transport Impact – Updated 05.05.2020

Some carriers have announced a “Equipment Imbalance” surcharge for areas where shortages are acute.

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

Global Ocean Container Average Price by Trade Lane – Baltic Index – Updated 05.01.2020. 

*Source: Freightos Baltic Index. 

Global Road and Rail Transport – Updated 05.05.2020. 

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 05.05.2020 

Spot freight volumes rebounded in week 17 and rose almost 22% week-over-week. The data suggests that a recovery has begun as several states begin to reopen their economies. Refrigerated spot volumes increased 38% and rates increased by 20 cents per mile. Dry van volumes were up 20% and rates were 2 cents per mile higher than the prior week. Flat bed volumes followed suit and rose 30% while rates remained almost even with the week before.  

• Restrictions exist on cargo movement between cities and regions in California. It is important to verify with pick-up and delivery locations regarding possible regional restrictions.
• Rates within most US markets are declining to normal or below normal levels however areas that may see an increase are:
  • Loads with an origin of Montana and South Dakota.

The chart below displays the COVID-19 Truck Freight Recovery Index as of April 29. 

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 is 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.