COVID-19: impact on capacity, equipment availability and services

International line hauls for groupage shipments to and from Italy have stopped

The impact of COVID-19 (Coronavirus) has spread rapidly beyond China during the last few weeks. It is impacting supply chain operations around the world across modes and tradelanes. Air freight markets continues to see worldwide challenges. Transatlantic trade lanes, in particular are seeing significant declines, with Europe – US belly capacity falling by almost 90% according to Agility. There are increasing constraints in the Middle East and Indian subcontinent, with India’s total lockdown starting on 26 March significantly impacting airport operations. A number of new restrictions in Singapore, Thailand, Malaysia, Vietnam and Cambodia are impacting Intra-Asia tradelanes. Freighter capacity is increasing in all regions expect North America.

In ocean freight, COVID-19 (Coronavirus) continues to impact space and container availability throughout the world. Prior sailing cancellations to/from China due to very limited available export volumes saw considerably less space and fewer containers available in all countries trading with China. Currently only 20.0% to 30.0% of normal capacity is available from Europe to Asia in March. Carriers continue to impose Peak Season Surcharges and most have announced Equipment Imbalance Surcharges for areas where shortages are especially acute. There are still equipment shortages for dry and reefer containers.

In road freight, due to the ongoing closing of borders in Europe and the Middle East, delays are inevitable in international- and local deliveries. International line hauls for groupage shipments to and from Italy stopped from 26 March 2020. Imports entering Turkey from the EU and CIS countries are currently facing lengthy delays and significant capacity constraints. In the Americas, there are no current indications of substantial road freight capacity issues, though operations may be hampered by the availability of import volumes and export containers. In Asia, trucking capacity remains impacted somewhat due to lack of drivers and restrictions on inter-provincial trucking, but the situation is improving. Most Container Freight Stations (CFS) are open and operational.

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