(Oct 13, 2020) - Airfreight capacity remains critical heading into a strong peak season from Asia Pacific. Even though some passenger flights have returned to the market the overall capacity situation relies on freighter capacity supply due to COVID-19. Especially international long-haul flights are impacted by quarantine regulations and governmental travel and immigration regulations. The freighter utilization has increased significantly year-on-year during COVID-19 in the air cargo market. While charter flights did resolve some of the capacity shortage during peak throughout the last years, the overall availability is limited during this year. Therefore, we do expect an even stronger capacity limitation and shortage this year.
As we see the overall demand increase week-by-week from Asia Pacific we also experience continuous rate increases in the air cargo market. Multiple companies announced their product innovations and launches recently. This additional demand is leading to further pressure in the market to get access to capacity. Especially the strong industries that have already performed well in 2020 are expected to increase their production output in Q4 2020. This additional demand is expected to further increase the imbalance of supply vs. demand. Please reach out to your DB Schenker local teams and Account Managers to align on your demand and forecast for the next 2 1/2 months to mitigate possible delays due to capacity shortage.
(Sep 29, 2020) - DB Schenker has launched an extensive global charter flight operations program to mitigate the capacity impact for our customers and provide secured capacity on key trade lanes. The charter program has been extended in preparation for the upcoming peak season and required freighter capacity. It is the priority to provide stable connections during the current volatile airfreight market situation and airline flight schedule changes. The charter flights are connecting the key world’s leading economies in the world covering trades between China, USA, Middle East and India. Freighter capacity has been a key supply due to the flight cancellations caused by COVID-19. DB Schenker has setup approximately 10 connections per week between Shanghai, Beijing, Zhengzhou, Hong, Chicago, Atlanta, Dubai, Bombay and Frankfurt. In addition, some part charter flights have been contracted on other trades such as Hongkong to USA as well as Hongkong to Europe.
The peak season in 2020 is expected to lead to a capacity shortage due to the global capacity situation, extensive passenger flight cancellations and airline fleet groundings. Please reach out to your DB Schenker Account Managers to prepare a joint reviewing of your forecast and provide solutions to ensure capacity access on your impacted trades. We are confident to be your supplier of choice during this volatile market situation providing the best possible solutions!
Our console charter flight schedule now includes the following flight operations:
➢ Europe – China – Europe: 4 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)
(Oct 13, 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 towards the weekend. Operationally, our linehauls to and from the hubs are running as scheduled. In some areas, our cross-border trucks might experience some minor delays.
(Oct 13, 2020) - Indonesia authorities have extended large scale restrictions until Oct 26. Increased infections in the community of several APAC countries were also seen in the past weeks, such as in Malaysia, Korea, Philippines, though operationally, status remains unchanged.
Logistics and Transport remain classified as essential services and hence are NOT affected particularly. Though resurging COVID-19 infections are evident and tight controls remain in some countries across APAC, our air freight operations remain stable and available to support customer needs. Delays are expected in customs clearance and transportation as lockdowns in some countries affect availability of workforce, including ports, airports, etc. Alternatives to move / transport cargo via other gateways / routes are established. Customers may contact the respective DB Schenker representatives for support or solutions if required.
As APAC countries are opening with the majority allowing manufacturing activities, capacity is expected to remain volatile. We remain vigilant in monitoring the situation, to mitigate events with potential impact to operations.
➢ We also have put additional charter programs (such as for Intra-Asia SG – IN and others) in place. Do get in touch with your DB Schenker Account Managers for further details.
(Oct 13, 2020) - Overall, the air freight operations in the countries remain uninterrupted even as Oman, Kenya, and South Africa slip into partial curfew. We continue to serve our customers. Our regional and global preferred carriers are seen to gradually increase the frequency of passenger cargo flights.
No operational restrictions for air cargo business
Qatar, Kenya, Oman, South Africa, Bahrain, Saudi Arabia, UAE, Egypt
Restrictions for operational air cargo business
➢ Please contact your DB Schenker Account Manager for more information on additional routes.
(Oct 13, 2020) - USA – China
➢ Sufficient capacity for USA exports to key destinations in China. Large number inbound scheduled freighter flights and charters continue supporting USA exports providing capacity to meet demands on the return leg.
➢ Rate levels are relatively low but remain above pre-COVID-19 levels.
➢ Inbound volumes particularly from China remain high. Market demand ex China is strong and expected to be even stronger with more capacity constraints after Golden Week (1 - 9 Oct).
USA – Asia (excluding China)
➢ Destinations with tight capacity continue to be Australia and India from all USA origins. Korea and Singapore with tight capacity and some backlogs from the USA eastern gateway cities of JFK, ATL and MIA. Market pricing moderating from prior highs, but still well above pre-COVID-19 levels.
➢ Flight operations via the DB Schenker Euro Hub in FRA – BOM and Part Charter capacity from ORD – SYD are supporting these high demand destinations.
➢ Outbound USA to OZ in particular is tight.
USA – Europe
➢ Further charter flights have been launched with the Global Flight Operations Program to provide additional air cargo capacity to Europe. These flights are connecting Atlanta and Chicago with Frankfurt, Germany and other surrounding Central European markets. Please contact your DB Schenker sales representative for more details.
➢ Market demand is moderate but growing. Market pricing has stabilized after some downward movement during the summer. As countries continue with ‘reopening’ renewed demand with its upward pricing pressures is anticipated, becoming more acute in the 4th quarter.
➢ DB Schenker maintaining round trip freighter Flight Operations: 3 x week ex ORD & ATL to FRA and back.
USA – Latin Am / Latin Am to Europe and APAC
➢ Intra-Americas: Market demand is moderate with sufficient freighter capacity to most destinations from the USA to Latin Am. Exceptions being USA to Peru, Chile and Bolivia where capacity is tight and hampered by freighter services changing scheduled movements. Market pricing is trending higher North America to Brazil, Peru, Bolivia and Argentina and most Central American countries.
➢ South America exports to other regions: Sufficient capacity but market pricing much higher. Some passenger flights returning, but far from previous frequencies and not providing much additional capacity. The principle carriers for the region have declared chapter 11 bankruptcy (re-organizing). Services continue but with some minor flight scheduling disruptions / delays, which are more pronounced into Peru, Chile and Bolivia as noted.