Global Market Insights April 15th , 2021 - UPS
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Global Market Insights
April 15th , 2021
"This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market4/15/2021
is changing
rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
Global air cargo capacity declined 12% compared to the same weeks in
2019
Transpacific showed a strong increase in capacity in the last two weeks. Trade lanes affected by the Suez Canal incident have
not impacted air cargo capacity in the last weeks..
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
4/15/2021
Belly capacity remains 53% below pre-COVID-19 levels
Freighter capacity remains stable at double-digit growth rate.
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
4/15/2021
UPS Supply Chain Solutions
Customer First. People Led. Innovation Driven.
Our highest priority is to protect the health and safety of our employees, customers, and suppliers. UPS® is confident it can do so while maintaining
global operations, except where constrained by government restrictions or other circumstances beyond its control. The Novel Coronavirus
pandemic has created unprecedented complexities, which have required us to constantly reassess our operations and take mitigating actions to
minimize disruption to our customers.
Book a Shipment Online
Stay Informed
Book now at ups.com/supplychain
• Register to receive important communications from UPS
• Find the latest information on Air Freight Capacity Surcharges
• Track shipment status through UPS Flex Global View®
• International Air Transport Association (IATA) – iata.org
• World Health Organization (WHO) – who.int
Consider cost-effective multi-modal alternatives to traditional air freight
Asia to North America
Asia to Mexico
Europe to North America
North America to Europe
ISMEA to North America
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved. 4/15/2021
This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is
changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
Europe Update for April 15th
Socioeconomic Updates Air Freight Updates
• EU reaches milestone of 100 million vaccinations
• KLM deploys custom-made cargo seat bags
• The EU’s “Covid passport” – the Digital Green Certificate – to travel
• IAG Cargo has described the airfreight market as “incredibly busy” due to
freely during the pandemic should be ready for use from the end of
growing e-commerce and automotive sectors & also the rollout of Covid
June
vaccines.
• Belgium announced ‘cautious’ relaxations after Easter pause
• Coyne Airways is resuming direct freighter flights between
• Johnson & Johnson will “proactively” delay deliveries of its
Germany and Georgia after an 11 month Covid break.
coronavirus vaccine to Europe following reports of rare
blood clots after vaccination in the US..
Ocean Freight Updates
• APAC Westbound: Tight space and equipment shortage Inland Transportation
due to the Suez Canal incident • As per latest Ti report published, the European road freight
• Recommend pre-bookings to be made 3 to 4 week prior to planned market is expected to be smaller than 2019 by 1.5%.
vessel departure • Recovery in road freight volumes not expected to arrive in 2021
Capacity stays heavily constrained • High congestion at Switzerland –France/Germany border & Romania –
• Transatlantic Westbound: Equipment extremely tight across Europe as Bulgaria border
port congestion and lower vessel capacity delay empty-container
repositioning, especially at inland depots
• There are 3 upcoming blank sailings. Expected more void sailings and
change of Port rotations/Port omissions
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
4/15/2021 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020Parcel
© 2020 United United Parcelof
Service service of America,
America, Inc.the
Inc. UPS, UPS,
UPSthe UPS brandmark,
brandmark, the
and the color
color brown
dark are tone
brown trademarks of United of
are trademarks Parcel Service
United of Service
Parcel America,ofInc. All rights
America, Inc.reserved.
All rights reserved.This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is
changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
ISMEA Update for April 15th
Socioeconomic Updates Air Freight Updates
• The UAE administered nine million doses of the Covid-19 vaccine • EK to introduce additional frequencies from DXB to: IST, PAX - 18x weekly,
• An Israeli study revealed that the South African variant of coronavirus effective April 15th; LAD PAX, effective May 1st and extended LOS and
can “break through” the Pfizer-BioNTech Covid vaccine ABV cancellation to 13 April
• Oman reported a record daily Covid-19 deaths, lockdown imposed in • PIA suspended operations to EU due to safety concerns. Scheduled to
and out of Muscat city from 10th to 22nd April undergo IACO safety audit for all services to EU countries
• India's single-day Covid-19 spike went from 1 lakh to over • EK, EY, FZ announced suspension of PAX flights to Dhaka
2 lakh in just 10 days between April 14th -20th
• Wizz Air Abu Dhabi introduced new routes for AUH to BEG
Ocean Freight Updates
Inland Transportation
• CMA CGM, plans to rebuild Beirut port within in 3 years
• SkyCargo announced road feeder service to JED, RUH
period with the estimated cost of US $400mn to US $600mn.
and DMM ex MED
• Other global players such as Hamburg Port Consulting and Dubai’s DP
• India is likely to develop dedicated midnight freight corridors for
World have also been reported to bid for the project
better management of freight into ports and airports, as part of
• Market experiencing the Ripple effect of Suez canal incident:
the National Trade Facilitation Action Plan
• Space to Europe is over booked for Month of April, carriers not
• It will include construction of the Maduravoyal Elevated Corridor
accepting bookings for the month and indicating May first week as
in Chennai
possible opening of bookings,
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
4/15/2021 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020Parcel
© 2020 United United Parcelof
Service service of America,
America, Inc.the
Inc. UPS, UPS,
UPSthe UPS brandmark,
brandmark, the
and the color
color brown
dark are tone
brown trademarks of United of
are trademarks Parcel Service
United of Service
Parcel America,ofInc. All rights
America, Inc.reserved.
All rights reserved.This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is
changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
APAC Update for April 15th
Socioeconomic Updates Air Freight Updates
• China: More than 161 million doses of covid-19 vaccine had been
administrated across China as of last Friday • Hong Kong: Cathay Pacific Cargo announced that it
has shipped 15 million Covid-19 vaccines around the
• Hong Kong: As of 11 April, HK has total number of 11,581 cases
world
with 207 deaths
• South Korea: 700 new Covid-19 cases reported, the highest daily
figure since early January. Social distances rules have been re-
imposed
• Japan: Tokyo reported 537 new cases on Friday while Osaka had
883 new infections. Targeted lockdowns have been imposed
• Philippines: Effective 12 April, the National Capital Region and Ocean Freight Updates
provinces of Bulacan, Laguna, Cavite and Rizal will shift from ECQ
to MECQ (Modified Enhanced Community Quarantine)
• Port congestion in the whole region
• Singapore: US to explore ways to revive air travel amid COVID-
19, including vaccination certificates • China: Shortage of truck drivers started before CNY will
continue because of the strict Covid-19 quarantine
• Thailand : 985 new COVID-19 cases reported April 12, the biggest
measures imposed by the Chinese authorities. Booming
jump for a second day in a row as the country deals with a third
wave of infections demand out of China causing container shortages
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
4/15/2021 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020Parcel
© 2020 United United Parcelof
Service service of America,
America, Inc.the
Inc. UPS, UPS,
UPSthe UPS brandmark,
brandmark, the
and the color
color brown
dark are tone
brown trademarks of United of
are trademarks Parcel Service
United of Service
Parcel America,ofInc. All rights
America, Inc.reserved.
All rights reserved.This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is
changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
United States Update for April 15th
Socioeconomic Updates Air Freight Updates
• US DOT allots $1B in infrastructure grants which includes rail, port, • Air Cargo demand recovers to pre-COVID levels
and intermodal projects • Airfreight market saturated; businesses looking to avoid Suez
• Biden’s transportation department focuses on aviation emissions as gridlock have limited options
part of net zero emissions goal for the US • Chicago Rockford and Cologne Bonn airports collaboration hopes to
• US will suspend tariffs on UK products for four months boost air cargo traffic between US and Germany
• Federal stimulus checks expected to drive shipment • IATA predicts airline recovery to start by mid-year 2021
surge • Airlines absorb $391 billion revenue shortfall in 2020
• Amid volatile airfreight market, high rates are constant • UA sacrificed cargo capacity to replace grounded 777s
Ocean Freight Updates Inland Transportation
• Port of Charleston opened first new container terminal in
the US since 2009, increasing capacity by 30%
• Trucking interests skeptical of zone-based congestion pricing
• US ports, shippers face major fallout from Suez Canal chaos
• Severe weather in the South could cause delays for truckers from
• Los Angeles and Long Beach port congestion is the worst in its
the Plains to the Carolinas
history
• Trucking companies lost more jobs than expected in February
• Ports press Congress, Biden for emergency funds
• Crude tankers stuck in ‘rate hell’ but floating-storage pain wanes
• South Carolina Ports rides rails to robust January
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
4/15/2021 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020Parcel
© 2020 United United Parcelof
Service service of America,
America, Inc.the
Inc. UPS, UPS,
UPSthe UPS brandmark,
brandmark, the
and the color
color brown
dark are tone
brown trademarks of United of
are trademarks Parcel Service
United of Service
Parcel America,ofInc. All rights
America, Inc.reserved.
All rights reserved.This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is
changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
Canada Update for April 15th
Socioeconomic Updates Air Freight Updates
• New COVID-19 boarding rules for airlines will be tighter than
• Canada passes US in COVID cases per capita for first time
expected
• Canadian federal government extends $5B in aid to Air
• Air Canada finalizes decision to convert aircraft to freighters
Canada
• Air Canada eyes converted freighters to capitalize on cargo
• Canadian Prime Minister hinted that reopening of U.S.-
boom
Canadian border won’t be anytime soon
• Air Canada is resuming many of its international
• Health Canada approves use of Johnson & Johnson’s
flights, heading to the U.S., the Caribbean, South
COVID-19 vaccine, the fourth vaccine approved
America, Europe and the Pacific
Ocean Freight Updates Inland Transportation
• Port of Montreal go on partial strike refusing to work
weekends and overtime • Some Canadian trucking companies shut down amid
• Port of Toronto moved over 2 million metric tonnes of financial struggles
cargo for fourth consecutive year • Daily pickups and deliveries except where restrained by
• Ports are operational. Cargo transportation is still allowed government
• Slow in/out processing and delays in customs clearance
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
4/15/2021 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020Parcel
© 2020 United United Parcelof
Service service of America,
America, Inc.the
Inc. UPS, UPS,
UPSthe UPS brandmark,
brandmark, the
and the color
color brown
dark are tone
brown trademarks of United of
are trademarks Parcel Service
United of Service
Parcel America,ofInc. All rights
America, Inc.reserved.
All rights reserved.This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is
changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
LATAM Update for April 15th
Socioeconomic Updates Air Freight Updates
• Mexico once again No. 1 US trade partner • Canadian airlines have extended their suspension of flights to Mexico
• COVID-19 cases are surging in many Latin American countries • Latin America’s airline network recovery impeded by COVID-19
including Brazil quarantines and restrictions, will be slow to return
• Latin America turns to China and Russia for COVID-19 vaccines • Dubai airline launches new freighter service to Mexico
• Pfizer applies for full COVID-19 vaccine approval in Brazil • LATAM Common Carriage flights were reduced or
• Oil prices shake off COVID blues as Brent hits $60 forbidden to/from US, Europe & Asia (19 countries: AR, BO,
• Mexico, Chile and Costa Rica become first countries in BR, CL, CO, CR, DO, EC, GT, HN, NI, PA, PE, PR, PY, SR,
Latin America to begin vaccination campaign SV, UY, VE)
Ocean Freight Updates Inland Transportation
• Blank sailings from East Cost South America to Asia
• Despite some successes, Mexico still struggles with fuel
seek to shore up freight rates
theft
• Italian firm building $150M shipyard in Mexico
• Mexican rail blockade continues to affect freight flows
• Ocean Port Restrictions (3 countries: DO, HN, PR)
• US-Mexico truck crossings decline 22% at Port Laredo
• DO: Operations had been restricted up to 6pm
• Customs operation impacted (9 Countries: AR, CR, DO, EC, GT,
• HN: Limited service to Puerto Cortez Port
PA, PE, SR, VE)
• PR: No passenger vessel allowed
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
4/15/2021 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020Parcel
© 2020 United United Parcelof
Service service of America,
America, Inc.the
Inc. UPS, UPS,
UPSthe UPS brandmark,
brandmark, the
and the color
color brown
dark are tone
brown trademarks of United of
are trademarks Parcel Service
United of Service
Parcel America,ofInc. All rights
America, Inc.reserved.
All rights reserved.Thank You
Sources
• Official sources (WHO, Governments, etc.),
** UPS Internal Sources
Seabury
• Carriers
• Sky cargo
• Emirates
• Lufthansa
• News Media
Brussels times
New York Times
BBC News
Times of India
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
4/15/2021 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
©©2017
2020United
UnitedParcel
ParcelService
service of
of America,
America, Inc.
Inc. UPS,
UPS, the
theUPS
UPSbrandmark,
brandmark,the
thecolor
colorbrown
brownare
aretrademarks of of
trademarks United Parcel
United Service
Parcel of America,
Service Inc.Inc.
of America, All rights reserved.
All rights reserved.You can also read
