(Mar 26, 2020) - The overall supply in the market has decreased week by week since the outbreak of COVID-19 leading to an overall challenging situation in the air freight market. Especially now, the recent immigration embargoes as well as very low passenger demand has caused airlines to act as far as grounding their entire passenger aircrafts. This has caused an increase in demand for alternative capacity access to keep supply chains operating and to limit the overall impact. Due to this critical situation, access to freighter capacity is now key to ensure goods are being transported and supply chains are stabilized. 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 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. Please reach out to your Account Manager for further details.
(Mar 26, 2020) - All offices remain in full operation with access to terminal handling and ground transportation. All of our European hubs deliver import and receive export freight. 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 – predominantly from China - remain stable.
(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 can therefore NOT 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 23, 2020) - In response to the tightening border control measures imposed by the Singapore government, Singapore Airlines Group announced the grounding of 185 aircraft out of their 196 aircraft fleet (96% of capacity) which has effectively removed a significant capacity from Singapore.
For Korea, there are massive flight cancellations especially on the passenger services. Total Pax freight cancellation is at approximately 85% (Long haul at 75%, Intra-Asia at 85% reductions).
(Mar 26, 2020) – With an increasing number of COVID-19 cases across the region, all national airlines and leading European airlines are either reducing or stopping the passenger services from / to the MEA countries: this is impacting the current cargo capacity.
Decreasing belly capacity is seen to impact the cargo movement. While inbound / outbound freighters continue to operate, 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 26, 2020) - Inbound China - USA: Continues to be tight. Rates remain high. Schenker has charter solutions in place to support demand. Outbound USA - China: Capacity and demand continue favorable. Rates remain above pre-COVID-19 levels, however with no exceptional highs. No major backlogs.
Asia (excluding China) to USA: TH, KR, SG and VN into USA remain tight with passenger flight reductions having an impact on available capacity. OZ and IN into USA facing major issues with capacity. Severe rate escalations! New restrictions by the Indian government will now impact this market with freighter cancellations, but balanced by an expected reduction in demand.
USA to Asia (excluding China): TH, KR, SG, and JP tight. Backlogs forming. USA to IN and OZ are 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, which may be balanced by demand reductions.
Europe - USA: Demand in the market remains constant this week. Market demand scenarios are not clear for the future, but with the full reduction of PAX flights market dynamics point to tighter capacity. The situation remains volatile.
USA - Europe: Market demand is slightly down from the previous week. 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. Demand factor as noted above still needs to be clarified and remains volatile.
USA - Latin Am / Latin Am Europe & APAC: Passenger services have become significantly reduced as in the other trade lanes after governments ordered quarantines and restrictions on foreign entry were put in place. A major exception is Brazil where the government has only placed limited restrictions; but an overall drop in passenger travel has also 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.
Import market demand to Latin America is down significantly and freighter capacity is enough to maintain services at slightly elevated pricing (dependent on the lane). Export of perishables (fish, fruit, vegetables) are keeping capacity tight out of those markets.