Global Market Update – June 1, 2020

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Country-Specific Updates: 

India and Pakistan: Lockdown is still confirmed until May 31.

Airfreight highlights

Global air cargo capacity was 26% below levels for the same week in 2019, according to Seabury. Eastbound Transpacific cargo capacity was 4% ahead of 2019 levels; Asia-Europe down 10%; Asia-Latin America down 13%. But capacity along Transatlantic lanes was significantly below 2019 levels, Seabury reports.

Transatlantic belly capacity is off 81% since February and shows no sign of recovery, Transatlantic freighter capacity, now stable, has increased only 8% since early February.

Intra-Asia belly capacity increases have been strongest at Shanghai (PVG), Incheon (ICN) and Tokyo-Narita (NRT), and mostly flat at other Asian airports, such as Taipei (TPE), Hong Kong (HKG) and Singapore (SIN).

Airport congestion is slowing the growth of China outbound freighter capacity. Among those airports most affected by congestion are Shanghai Pudong International Airport (PVG) and Chongqing Jiangbei International Airport (CKG). Other Asian airports are not as severely affected.

Ocean freight highlights:

Carriers are starting to “un-blank” services. During the past week, we have seen a number of cases where carriers are announcing the reinstitution of some previously blanked sailings. It seems that the demand drop was not fully as catastrophic as initially expected.

Q1 2020 Carrier Results: COSCO, Evergreen, and HMM recorded a Y/Y decline in Q1 revenues, while ONE and HMM recorded a negative result. Only Hapag-Lloyd recorded a Y/Y growth in transported volumes. Unlike Hapag-Lloyd and OOCL, COSCO and ONE did not grow volumes on Transpacific and Asia-Europe.

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