Global Market Update – May 20, 2020

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Country-Specific Updates:

India: Lockdown was extended until May 31st

Pakistan: Lockdown was extended until May 31st

Airfreight highlights:

In China, the situation has not improved. Tight space and backlogs are still an issue. Some airlines are staring to resume service to more destinations as more countries ease their lockdown policies. Due to strong market demand, especially for e-commerce and medical supply cargo, costs are staying flat.

Global air cargo capacity is 28% lower compared to last year. Most trade lanes show strong double digit decreases in cargo capacity this week. Capacity on the Transpacific is mostly flat, while capacity between Asia and Europe declined by roughly 10% vs. 2019.

North America – Latin America air cargo capacity is almost back to 2019 levels.

Global widebody belly capacity increased 10% since last week. Freighter capacity is 13% to 19% higher than last year but remains stable since last week. Widebody belly capacity continues to recover due to passenger freighters, but is still down 75% compared to last year.

Latin America to North America freighter capacity has partly compensated for belly loss. Outbound freighter capacity has been boosted as a result of (inbound) freighters providing healthcare equipment to various countries. Widebody belly capacity is still down around 80% compared to 2019.

Avianca, the second-largest airline in Latin America, filed for bankruptcy protection in the United States to reorganize its debt "due to the unpredictable impact" of the coronavirus pandemic. The company is still running cargo and passenger operations.

Ocean freight highlights:

Carriers are keeping pricing levels through capacity cancellations in the coming weeks (around a 20% drop in capacity in the key trade lanes).

Due to blank sailings, we see poor schedule reliability, moving from 65% in February to 70.2% and with an average delay of 5 days (one of the highest ever recorded according to Seaintel).

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