Coronavirus Update - May 8

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, a current overview of the most heavily impacted regions.
Air freight rates remain elevated this week due to continued capacity shortages and high demand for PPE equipment. The price of air cargo is so inflated that the Australian government is subsidizing air exports and the United States Parcel Service has taken the unprecedented step of shipping mail to Europe by ocean. Rates are expected to continue to remain
high until passenger flights resume to a normal level.
Maintaining operational success is pivotal and planning ahead remains a critical component to avoiding some of the common pitfalls being experienced today. International transport can be challenging but continuing to compare carriers’ rates for each individual shipment, planning in advance, shipping ocean when possible and adding buffer transit time will
all assist in making the right decision for your shipments.

Americas

• 20 US states remain shut down while the other 28 have either reopened partially, fully or have plans in place to lift restrictions soon.
• There is a significant reduction to inter-LATAM and domestic flights.

United States – 1,229,089 confirmed cases, 189,910 (15%) recovered, 73,431 deaths

EMEA

• The cross-border between Germany and Poland is experiencing a wait time of up to 24 hours causing some delays in transport.

Spain – 220,325 confirmed cases, 126,002 (57%) recovered, 25,857 deaths
Italy – 214,457 confirmed cases, 93,245 (43%) recovered, 29,684 deaths
United Kingdom – 202,359 confirmed cases, 957 (0.5%) recovered, 30,150 deaths
Russia – 177,160 confirmed cases, 23,803 (13%) recovered, 1,625 deaths
France – 174,224 confirmed cases, 54,081 (31%) recovered, 25,812 deaths
Germany – 168,276 confirmed cases, 139,900 (83%) recovered, 7,277 deaths
Turkey – 131,744 confirmed cases, 82,744 (63%) recovered, 6,486 deaths

APAC

• India’s ports have become very congested as a result of unclaimed or uncleared import containers.
• 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 – 83,974 confirmed cases, 78,944 (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 05.07.2020

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 05.07.2020

• 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 05.07.2020

• CMA CGM is the only ocean carrier that has reduced their fuel surcharge as a result of the lower fuel prices.

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 05.07.2020

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 05.07.2020
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.
• Possible delays within inter-city movements in New York. Verify pick-up and delivery locations to verify operational status.
• 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 total market demand index including a 5-year average.

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.