Coronavirus Update - May 28

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.  
Eastbound Transpacific air cargo capacity saw an increase of 4% last week over 2019 levels while Asia-Europe and Asia-Latin America capacity is down 10% and 13%, respectively. Prices remain higher than 2019 levels across almost all trade lanes but as indicated by the increase in demand, prices are sky high for shipments from Asia to the US. Although charter options may provide a cheaper fare, it is important to confirm your charter and lock in pricing as soon as possible.  

Americas 

• All 50 US states have begun reopening in some form or another. Restrictions vary greatly by state, county and city. In some areas, full reopening has occurred while in others only a small number of public places are open.
• One daily non-stop flight from San Francisco International airport to Vancouver, Canada has resumed. Passenger travel remains restricted until June 21. Currently, the flight is hauling essential cargo only.

United States – 1,699,933 confirmed cases, 391,508 (23%) recovered, 100,442 deaths

Brazil – 411,821 confirmed cases, 166,647 (40%) recovered, 25,598 deaths 

EMEA 

• Serbia announced it plans to open its’ land borders to the four bordering countries beginning June 1. The border will be fully operational and will allow people to travel to and from the country.
• The International GCC land border connecting Saudi Arabia to other countries is now open for truck freight transport; delays are likely due to limited operations.

​​​​​​Russia – 379,051 confirmed cases, 150,993 (40%) recovered, 4,142 deaths 
United Kingdom – 268,620 confirmed cases, 1,166 (0.4%) recovered, 37,542 deaths
Spain – 236,259 confirmed cases, 150,376 (64%) recovered, 27,117 deaths 
Italy – 231,139 confirmed cases, 147,101 (64%) recovered, 33,072 deaths 
France – 183,038 confirmed cases, 66,702 (36%) recovered, 28,599 deaths
Germany – 181,918 confirmed cases, 163,047 (90%) recovered, 8,449 deaths
Turkey – 159,797 confirmed cases, 122,793 (77%) recovered, 4,431 deaths 

APAC

• Shanghai and Hefei airports are experiencing terminal congestion due to the increased number of essential goods charters. Delays and possible flight cancellations are possible.
• Air transit/transfer services will resume at the Hong Kong International airport beginning June 1. Non-Hong Kong resident restrictions will remain in effect.

India – 159,054 confirmed cases, 67,929 (43%) recovered, 4,541 deaths
China – 84,106 confirmed cases, 79,371 (94%) recovered, 4,638 deaths 

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

Global Air Cargo Transport – Updated 05.28.2020 

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

* Terminal congestion at the Shanghai Pudong airport is causing delays and flight cancellations. Warehouse operations are affected and there are minor pick-up and delivery delays. There are also minor customs delays due to increased cargo checks.
** Chicago, Denver, 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 and San Diego 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 05.28.2020 

Global Ocean Transport Impact – Updated 05.28.2020 

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

Global Ocean Container Average Weekly Price by Trade Lane – Baltic Index – Updated 05.22.2020 

Global Road and Rail Transport – Updated 05.28.2020 

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 05.28.2020 
 

The US spot market volumes have increased for five consecutive weeks averaging 10-13% increases week-over-week. As a result of the increased volumes, prices also increased by their largest margin in four weeks. Dry van rates were up about 9 cents and flatbed rates were up 10 cents. The segment with the steepest price jump was refrigerated trucking which saw an increase of almost 12 cents per mile.  

While prices and volumes are on the rise, it is important to note that both are lower than pre-COVID levels. 

• Rates within most US markets are currently at normal or below normal levels however areas that may see an increase are:
  • Loads with an origin of Rhode Island
  • Loads with a destination of Utah and Arizona

The chart below displays the US spot market truck loads and rate level percentage year-over-year from week 1 to week 20.   

 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. Cor