Please find attached an overview of the current market situation.
Overall, air freight rates worldwide are very volatile due to the corona crisis. Because of the high demand, prices can change within a very short time. According to the analysis of the service provider “World ACD”, this market mechanism is influenced by the volume of cargo offered. In April 2020 it had fallen by a third.
Depending on the week and capacity utilization, price fluctuations will therefore continue to occur. On the "SAB", the frequency of flights is currently back to five connections per week.
From the end of June 2020, Chicago Rockford International Airport (RFD) in Illinois will be included in the "SAB" as a new destination. Initially in the westbound sector, so for export at first.
Blank sailings continue to be observed on the routes to and from Asia. The recent worse development of the corona crisis in India could lead to delays on all routes crossing the subcontinent.
The shipment alliance THEA will merge its FE4 and FE2 services by the end of September 2020 to further reduce capacity. The FE2 will continue its eastward route across the Cape of Good Hope, while the FE3 will extend its direct approach to China from July to September.
The Corona crisis has brought the New Silk Road a noticeable increase in traffic. The volume of rail freight between China and Europe via Russia has increased by 35% since the beginning of the year compared to the same period last year. From January to May 2020 the total transport volume on this route amounted to around 167,000 TEU. In May, the figure was 47,700 TEU, almost double the May figure for the previous year.
In the course of the Corona crisis, the pharma logistics market is experiencing a lot of movement. At the auditing company Dekra, the demand for GDP certifications is increasing, which is interpreted as an indication of a generally growing demand.
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SITUATION IN INDIVIDUAL COUNTRIES WORLDWIDE
In Beijing, there have been numerous new infections with COVID-19 since the weekend, and in response, some districts and residential areas have been sealed off. International experts consider the information that this new wave goes back to salmon on a wholesale market in Beijing to be unlikely.
In Hongkong, on the other hand, social distancing measures will be officially relaxed from Thursday, June 18th. Meetings of larger groups of people, weddings and restaurant visits are allowed again. The distance rule of 1.5 metres must still be observed.
Hongkong is thus reacting to the significant drop in the number of new infections in the past few days.
After the temporary end of the lockdown, India is facing increasing numbers of infections. Since last week, more than 10,000 new infections have been reported daily. The city areas of Mumbai, Delhi, Chennai and Ahmedabad are showing a particularly strong increase. At present, politicians are trying to strengthen the health system and medical facilities.
It is feared that this development could lead to further delays on the transport routes via India. Ocean freight could be particularly affected by this.
In FTL/LTL, financially the corona crisis has hit many freight forwarders hard. Government bonds have given some companies breathing space, but industry experts believe that the market will change significantly in terms of prices.
In air freight, rates on routes to/from Europe have normalized somewhat. Demand peaked in mid-May 2020 and is currently declining slightly. At certain freight hubs - including Chicago and Los Angeles - freight terminals are currently heavily congested due to congestion.