(Jul 7, 2020) - Supply in the airfreight market remains limited. Overall capacity is still trending at approximately -26% compared to previous year and is not expected to recover during the second half of the year. Considering the current unknown development of the overall consumer behaviour, economic outlook as well as related passenger demand, a strong increase in passenger flights is not expected.
Additionally airlines will have to take freighter aircrafts out of their schedules to conduct required maintenance checks which will further impact the already short supply and congested capacity situation. Access to capacity remains critical especially considering the peak season in the upcoming months. Therefore forecasting is becoming even more important to ensure a smooth supply chain planning and demand planning can be implemented in a joint effort.
➢ Please reach out to your Account Manager or local DB Schenker team to align on your forecast for the second half of the year and especially peak season to prepare accordingly.
In addition, our console charter flight schedule remains in place to support your demand and critical shipments ensuring we provide you with alternative solutions:
Our console 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)
(Jul 7, 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 remain on time. In some areas, our cross-border trucks might experience some minor delays.
Airfreight export market volumes are slightly lower, but import is still very stable on a high level. China imports go very strong at continuously all-time highs due to an ongoing strong demand in medical supplies, protective gears, and face masks which DB Schenker continues to support with utmost priority.
➢ Contact your local Account Manager on priority routes for PPE.
(Jul 7, 2020) - While risk of resurging COVID-19 infections remain high 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 should it be required.
APAC countries are opening with majority allowing manufacturing activities. Congestion in Greater China remains, albeit improving gradually. Capacity is expected to remain volatile.
More countries are easing up their restrictions allowing for restarting certain industries which will increase export demand for these countries.
➢ On India charters, plans are in place and timed for when the market opens. DB Schenker is now also able to support cross border trucking within India.
➢ Demand for ex China is stabilizing. The backlog at all China airports is requiring minimum 48 hours advance notice for tendering in of cargo.
We have put additional charter programs (such as for Intra-Asia SG to IN and others) in place. Do get in touch with your Account Managers for further details.
(Jul 7, 2020) - Overall, our air freight operations in the countries remain uninterrupted as we continue to serve customers and manage the current demand with available cargo capacity. In many countries, logistics and supply chains are considered business critical. Therefore, our services do not cease during lockdowns.
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 Account Manager for more information on additional routes.
(Jul 7, 2020) - USA – China
➢ Capacity remains ample for USA exports to key destinations in China. Large number inbound scheduled freighter flights and charters continue supporting USA exports providing sufficient capacity to meet demands.
➢ Rate levels are relatively low but remain above pre-COVID-19 levels.
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 above pre-COVID-19 levels.
USA – Europe
➢ Demand is moderate with sufficient capacity to avoid backlogs. Pricing has moved downwards, but as countries begin to reopen the possibilities of renewed demand with accompanying upward pricing pressures are possible.
➢ Schenker to maintain round trip freighter flight operations: 3 x week ex ORD and ATL to FRA.
USA – Latin Am / Latin Am to Europe and APAC
➢ Demand for available freighter capacity remains strong with space tight to Peru and Bolivia with backlogs. Pricing trending higher to Central American Markets, Brazil, Peru, Bolivia and Argentina. Some passenger flights returning, but far from previous frequencies and providing much additional capacity.
➢ Services continue but with some flight scheduling disruptions / delays.