To Our Valued Customers:
As COVID-19 continues to spread globally, airlines are scrambling to support global trade while adhering to government-issued restrictions and almost obsolete passenger demand. The situation is changing frequently and we are expecting unstable conditions to continue through the month of April.
So here is a shortlist of what we are seeing so far today:
U.S. Government Contracts 100+ Charter Flights: In support of medical supplies, the U.S. Gov’t has ordered over 100 charter flights from Shanghai into LAX. ORD, and JFK for the month of April. The removal of this capacity from the market is expected to increase rates to +$12/kg west coast & +$15 east coast within the coming days. General market rates from PVG have already increased by almost $3.00 per kilogram since last week. It is very possible that there may be a no space situation if demand continues to grow.
Flight Cancelations are Extended Further: American Airlines has announced that they will cancel all flights to/from China until October, this being the most drastic measures taken by an airline we have seen thus far. Meanwhile, Delta announced they will continue their suspension through May and UA would continue suspensions just until the end of this month. TAP Portugal has suspended North American services from 04/01 – 05/04. This is only the shortlist of carrier cancelations and service changes.
CAAC Restricts Movement of Chinese Airline Carriers: In an effort to prevent a second wave of COVID-19 infections, the Chinese Government has placed strict restrictions on native carriers. These carriers are only allowed to maintain one route to any specific country and with no more than one flight per week. This became effective on 03/29.
Nippon Cargo Airlines Cancels ORD Service: A warehouse worker at the NCA terminal in Chicago has tested positive for COVID-19, therefore the airline has suspended all service to this destination until further notice.
March Airfreight Volume Shows Sharp Decline: Volume reports have recorded a sharp decline in Year-over-Year volume, finishing the month at 23% below March 2019. Our experts are stating that the falloff was related entirely to available capacity and that volumes will improve once there is space available to accommodate the demand for air transportation.