To Our Valued Customers:
With China returning to work from their Labor Day holiday week, not much has immediately changed in regards to rates and lack of capacity. However, there seems to be a light at the end of the tunnel with a slowdown expected within the coming weeks and Hong Kong already experiencing such. The FDA has also blacklisted certain face mask manufacturers from exporting to the USA.
So here is a shortlist of what we are seeing so far this week:
FDA Withdraws Approval from Some Mask Makers: As of last Thursday, the FDA has removed certain N95 face mask manufacturers in China claiming that the products were not adequate for protection action against the Coronavirus. When tested, the masks failed to filter the minimum requirement of 95% of all airborne particles.
Please see the following page for a list of approved vendors.
Much of the Same from Shanghai, but Not Without a Glimmer of Hope: Most of the regularly scheduled flights were canceled this week in order to reposition aircrafts for contracted charter services. Rates are expected to hover around the $20.00/kg mark on average. Long wait times at the airport, up to 72 hrs, have also been reported and shipments are missing its intended flight. With all that said – the backlog is expected to ease by mid-May and, with that, rates will slowly do the same.
Cathay Pacific Cancels Freighters from HKG but Rates Take Steep Dive Regardless: The airline has canceled twenty (20) freighter aircrafts from HKG. The cancelations will affect their regular schedule through May 16th and is the equivalent of 1,200 cubic meters of space being removed from the market. However, there may still be the beginning of a downward trend for rate levels from Hong Kong, the market has softened and rates have dropped by nearly 30%.
Airport Terminals Suffer Further Delays: In our May 30th update we had advised that, due to U.S. airport terminals being short-staffed, cargo availability was delayed up to 1-2 days. Most recently we have been experiencing, and hearing reports, where delays of 2-3 days is not uncommon.
Avianca is the Most Recent Airline to File Bankruptcy: Colombia based airline, Avianca, has filed Chapter 11 this past Sunday. Their 189 passenger aircrafts have been grounded since the middle of March. Part of their restructuring plan is to eliminate operations in Peru.
China Cargo Airlines cancels direct flights from PVG to ATL until further notice.
Kalitta Air announces new freighter flight from NGB to LAX and MIA that will be leaving on Mondays, Wednesdays, and Fridays.
Atlas Air announces new freighter flight from CGO to LAX that will have regularly scheduled departures on Tuesdays, Fridays, and Sundays.
Authorized Non-NIOSH Respirator Manufacturers in China: