Please find attached an overview of the current market situation.
More and more passenger aircraft is being temporarily converted for transport purposes. Lufthansa Technik is now carrying out the temporary conversion on an Airbus A380 for the first time. In practice, large aircraft is more frequently used for freight transport. Last week an A380 of Malaysia Airlines transported goods between Kuala Lumpur and London. However, only the cargo hold was used. The cabin remained empty.
European airlines are in the process of gradually extending their reduced flight schedules again. As Deutsche Lufthansa AG announced on Friday, the Group airlines Lufthansa, Eurowings and SWISS will jointly reactivate 80 aircraft for June, thus doubling the size of their operating fleets to a total of 106 destinations.
Due to reduced capacities, blank sailings, i.e. cancellations of departures, are currently occurring, especially for imports from Asia. The shipowners are trying to keep rates stable through these measures. As a result, delays are currently to be expected for imports from Asia to Europe.
There are currently short-term delays on the eastbound route to Asia. Due to ongoing conversion work on the route at the border crossing between Małaszewicze in Poland and Brest in Belarus. The work is expected to take 2 weeks.
PHARMA & HEALTHCARE
The demand for medical supplies for Europe remains high, although no longer as extreme as in mid to late April. By the end of May, numerous TUI charter flights with breathing masks and other health material will land in Hanover, among other places. SENATOR INTERNATIONAL will be responsible for handling the goods after arrival.
In Germany the opening of public life continues in progress. For example, depending on the federal state, restaurants will be allowed to reopen from May 13th, 2020, as long as they hold onto hygiene and distance regulations. Schools will also gradually move classes back into the classrooms. Since May 4th, 2020, the first attendance lessons have been held in the higher grades. The gradual opening will continue. Responsible are the individual federal states. Also digital teaching concepts and services are to be further developed.
SITUATION IN INDIVIDUAL COUNTRIES WORLDWIDE
Parallel to the growing tensions between China and the US, Beijing announces a new set of US imports eligible for trade war duty exemptions. The package includes 79 products, such as ores, chemicals and certain medical goods.
As pressure on manufacturers continues to increase, China's factory prices have reached the lowest level in four years. China's producer price index fell to minus 3.1 percent in April, the lowest level since April 2016.
In India, experts suspect a high number of unreported cases of infected people. Due to the low test- capacities and the uncontrollability in densely populated parts of the cities and conurbations. It is feared that India is still at the beginning of the corona pandemic. Nevertheless, the economy is to be gradually boosted. The guidelines of the Ministry of Home Affairs, which have been in force since May 4th, 2020, introduce a corona traffic light. Depending on how badly a district is affected - measured by the number of infections - these are classified into green, orange and red zones.
The Colombian airline Avianca has filed insolvent due to the massive sales drop resulting from the Corona crisis. As a result of travel restrictions, Avianca had to largely discontinue its regular operations in mid-March. As a result, revenues had dropped by more than 80 percent, according to the airline's announcement.
For transport on roads, the insolvency law is currently being examined. This shall enable more small forwarding companies to survive the crisis financially.
Delta Air Lines (DAL) and the LATAM Airlines Group (LTM) have come one step closer to the agreed joint venture. A contract to this effect was signed on May 7th, 2020. Delta is investing 2.25 billion dollars for a 20% stake in LATAM, the dominant airline in South America.
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