(Aug 4, 2020) - Market demand has increased in July and continues this path in the first week of August. The increase in demand is partially caused by increasing volumes across all sectors and industries as well as selective increases in PPE demand for required supply in COVID-19 impacted countries. This takes effect as airlines recently started to bring aircrafts into maintenance due to high utilization of the aircrafts in the first half of 2020. The maintenance checks for the aircrafts are leading to an overall reduction in capacity supply in the market as freighter capacity remains the key share of global capacity during COVID-19. Passenger aircraft flights are only slowly returning to the market and not expected to fully recover before 2022 / 2023 as passenger demand for international flights remains low. Trade lanes that were previously served through passenger belly capacity are further impacted due to a shift of freighter flights and capacity to support the demand on the major trade lanes.
➢ We kindly request for your support on a close collaboration to ensure we plan for a smooth and peak season and work hand in hand between your local DB Schenker team and yourself during this critical time to keep supply chains stable. It is our ambition to be your provider of choice for your airfreight transportation and to offer you a capacity situation that enables your business to be successful.
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)
(Aug 4, 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.
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 DB Schenker Account Manager on priority routes for PPE.
(Aug 4, 2020) - Australia, State of Victoria is under Stage 4 (highest level) lockdown in the city (Stage 3 restrictions for non-essential movement for rest of Victoria) w.e.f. midnight Aug 5. We have been advised that Qantas Melbourne Air Freight Terminal may experience delays with potential temporary closures possibly impacting freight movements over the coming days. In the meantime, as a counter measure, we have advised our network and stand ready to route Melbourne bound freight via other terminals in Sydney.
The Philippines authorities have reinstated Modified Enhanced Community Quarantine (MECQ) measures in the National Capital Region (NCR), as well as Bulacan, Cavite, Laguna and Rizal provinces from August 4 to 18. Similar reinstatement / extension of restrictions is also seen in Indonesia, several prefectures in Japan and some parts of Vietnam. Movement restrictions generally may cause some delays, albeit no significant impact to our operational status.
Though resurging COVID-19 infections are evident 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 the 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.
➢ On India charters, plans are in place and timed for when the market opens. Within India, DB Schenker is also able to support land transportation across borders.
➢ 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 DB Schenker Account Managers for further details.
(Aug 4, 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. For more information, get in touch with your DB Schenker Account Manager.
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.
(Aug 4, 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.
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 to BOM and Part Charter capacity from ORD – SYD are supporting these high demand destinations.
USA – Europe
➢ Market demand is moderate with sufficient capacity to avoid backlogs. Market pricing has moved downwards, but as countries begin to reopen, the possibilities of renewed demand with accompanying upward pricing pressures is possible.
➢ 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 to and from Peru and Bolivia where capacity is tight. Market pricing trending higher for North America to Brazil, Peru, Bolivia, Argentina and most Central American countries.
➢ South America exports to other regions: Sufficient capacity but market pricing trending much higher. Some passenger flights are returning, however 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.