(Mar 30, 2020) - The COVID-19 situation has led to a lot of uncertainty in the airfreight market throughout the last couple of weeks due to a highly dynamic situation with many changes. With a decrease in supply due to passenger aircraft groundings of airlines we now see an increase in demand in major markets to ensure supply chain disruptions are being mitigated. Especially outbound China demand is increasing, leading to increasing upward pressure on airfreight rates as it faces limited capacity supply. In general, the situation varies largely by country due to the local COVID-19 impacts and respective governmental regulations and restrictions on exports and imports. DB Schenker has therefore setup a flight operations schedule to support you during this time through alternative solutions.
What we have done to support you:
Our consol charter flight schedule now includes the following flight operations:
➢ Europe – China – Europe: 3 flights per week (B747-400F)
➢ Hongkong – Europe: 2 flights per week (B747-400F)
➢ China – USA: 3 flights per week (B747-400F)
➢ Europe – USA – Europe: 3 flights per week (MD11F and B747-400F)
➢ USA – Australia: 1 flight per week (B777F)
➢ Europe – India – Europe: 1 flight per week (B747-400F)
The flight from Europe – India – Europe will especially focus to supply healthcare and pharmaceutical goods to India as well as critical shipments for key industries. Please reach out to your Account Manager for further details and support.
(Mar 30, 2020) - All offices remain in full operation with access to terminal handling and ground transportation. All our European hubs deliver import and receive export freight with no backlogs recorded over the weekend. Operationally, our linehauls to and from the hubs remain on time. In some areas, our cross-border trucks experience delays.
We do record a further decrease in export volumes, whereas import volumes remain stable. China imports are at all-time highs - also due to very strong demands in medical supplies, protective gears, and face masks which DB Schenker supports with utmost priority.
(Mar 30, 2020) - There are no significant updates in status from the previous advisory. Market capacity remains severely constrained or critical for major SEA countries, India, Japan, and New Zealand, ranging from approx. 10% to less than 50%. We continue to collaborate with our other products to provide work-around inter-modal solutions for customers. A quick and early recovery is not expected in April.
(Mar 26, 2020) - The government of India has imposed a 21-day lockdown until April 14, which has critically impacted all activities. Passenger flights and almost all freighter services are cancelled as terminals are not functioning with cargo congestion at airports intensifying. Inbound cargo therefore cannot be accepted unless a green light process is adhered: Shipper confirms in writing that consignee is able to receive cargo; and origin confirms with destination that cargo can be handled, customs cleared, and delivered to consignee.
(Mar 30, 2020) – Even though belly capacity continues to reduce as passenger services remain suspended to many MEA countries, DB Schenker in the region is able to manage the current demand with available cargo capacity. However, airlines have withdrawn the contract rates until the situation resumes back to normal.
(Mar 26, 2020) – In addition to inbound / outbound freighters, airlines are now introducing passenger-cargo flights to support the current market demand. Please get in touch with your Account Manager for more details.
Overall, our air freight operations in the countries remain uninterrupted as we continue to serve customers. In many countries, logistics and supply chains are considered business critical. Therefore, our services do not cease during lockdowns.
(Mar 30, 2020) - USA - China: Market capacity and demand continue favorable. New China restrictions on PAX carriers will not impact USA due to use of freighter aircraft that provides sufficient capacity. Rates remain above pre-COVID-19 levels, however no exceptional highs. No major backlogs.
USA to Asia (excluding China): TH, KR, SG, and JP tight. Backlogs. USA to IN and OZ now critical. 90% of the passenger services into these markets have been suspended. As with the imports the new governmental restrictions will impact freighter operations.
USA - Europe: Demand is moderate. We are making full use of our alternative capacity on the freighter flight operations to offset the reduced space from the passenger flight cancellations. Next week and into April, the capacity situation is expected to become more critical when all planned passenger reductions are in place. Market demand, as noted above, remains volatile and difficult to predict.
USA - Latin Am / Latin Am Europe & APAC: Passenger services have become significantly reduced as in the other tradelanes after governmental ordered quarantines and restrictions on foreign entry have been put in place. Major exception is with Brazil where the government has only placed limited restrictions, but overall drop in passenger travel has as well led to many PAX flight cancellations. Freighter operations are being maintained and provide services to all the countries either via the FRA / LUX or MIA hub operations, where cargo can be transited. Market import demand to Latin Am, is down significantly and freighter capacity is enough to maintain services at slight elevated pricing (dependent on the lane). Export of perishables (fish, fruit, vegetables) are keeping capacity tight out of those markets.
Airline Terminals Cargo handling: Concerns regarding effects on terminal operations as personnel are affected by the illness: Currently JFK terminal affected and creating transit delays / delayed releases / receipt of cargo.