Please find attached an overview of the current market situation.
As the corona-crisis weakens across Europe, the demand for respiratory masks and medical supplies from China has fallen. On the other hand, the export of these goods from China to Latin and South America is rising. Freight rates on the China - Europe route currently return to normal levels and available capacities are slowly returning as well.
Currently a charter flight (Boeing 767-300F) from Tianjin (TSN) in China lands in Munich twice a week. More than 40 charter flights have been handled here since the end of March. In addition to the flights from Tianjin, another 7 flights from Shanghai to Munich are scheduled until the end of June.
The equipment situation in the German hinterland-depots is beginning to ease. In Hamburg, the availability of refrigeration equipment continues to be critical, as well as the availability of refrigerated transports on ships bound for Asia.
There are still several empty shipments from Europe to Asia, which are associated with a capacity reduction of approx. 17-25%. In addition, some ships bypass the Cape of Good Hope instead of the Suez Canal on this route. Consequently, rates remain high. Momentarily the ships are fully booked four weeks in advance. Single-spot containers can still be covered with an appropriate advance notice.
Data from the eeSea show that on the route from Europe to North America about 10% of the total westbound capacity was withdrawn between April and June 2020.
In Germany, the Rhine is currently affected by low water. Therefor the respective low water surcharge applies to inland waterway transport. The applicable surcharges depend on the water level at the time of transport.
According to the lobby organization ERFA, the long-term consequences of the corona pandemic are visible in rail transport. Because European passenger traffic has fallen drastically, the freed-up capacity on the network has benefited freight traffic. This was accompanied by improved punctuality. Currently it lays at 80-90%.
With immediate effect, the new SENATOR Asia Truck Bridge service offers an overland alternative from China to Europe, in both directions. The transport runs via the New Silk Road and is particularly suitable for hazardous goods, such as lithium-ion batteries.
Here you can find further information about this service:
SITUATION IN INDIVIDUAL COUNTRIES WORLDWIDE
Besides Brazil, Chile has become the hotspot of the pandemic in South America over the past two weeks. Because of the continuing rise in coronavirus infections, the Chilean government has extended the strict exit restrictions in the capital area of Santiago de Chile until June 12th, 2020.
The economic consequences led to looting and unrest in the Chilean capital. Especially families who are dependent on a daily income in the neo-liberal economic system are forced into acute existential needs by the imposed restrictions.
Individual regions in southern and eastern China are currently affected by severe floods. This was caused by heavy rainfall, which started at the beginning of June. More than 113,500 hectares of arable land were flooded. The concrete consequences for transport flows from the affected regions cannot be foreseen yet.
According to the industry association, Chinese car sales rose in May 2020 for the first time in almost a year. Retail sales of vehicles rose by 1.9% compared to the previous year. The government added stimulus measures such as tax breaks to create incentives to buy.
In order to support the airline Cathay Pacific, which was severely affected by the Corona-crisis, the Hong Kong government presented a five billion dollar rescue package on June 9th, 2020. According to the plan, Hong Kong will receive a good 6% of the airline after the rescue via preferred shares.
More movement is coming into US air traffic again. The IATA (International Air Transport Association) reports that the number of flights increased again by 30% between April and May 2020 compared to the low point. Mostly this still concerns domestic flights. American Airlines announced its intention to increase the domestic flight schedule in July to 55% of the previous year's level.
In ocean freight, many empty runs are also expected in June. The 2M partners Maersk and MSC have announced to further suspend the TA4/NEUTAL4 service. The service, on which five vessels with an average capacity of 5,300 TEU are deployed, operates on the route Antwerpen-Rotterdam-Bremerhaven-Liverpool-New York-Savannah-Port Everglades-Charleston.
In May 2020 the USA created 2.5 million new jobs. The unemployment rate has thus fallen to the current stage of 13.3%, according to the Department of Labor.
With SENATOR INTERNATIONAL you stay up to date