Global Market Insights May 6th, 2021 - UPS
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Global Market Insights
May 6th, 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 5/6/2021
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rapidly currently; statements in this document may quickly be superseded, despite our best efforts.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 11% compared to the same weeks in
2019
Transatlantic still struggling with -33% capacity decline compared to 2019. There is lack of massive amount of space in the market.
Until belly-space, lower-deck and passenger space comes back to the market, the market will remain capacity constrained.
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.
Belly capacity remains 54% below pre-COVID-19 levels
Total air cargo capacity has remained steady versus the two weeks prior
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.
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.
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• 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.
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 May 6th
Socioeconomic Updates Ocean Freight Updates
• Decline of 22% in new cases WOW; Current vaccination rate at 31%. ASIA-EUROPE: Both space and equipment will be very challenging in the coming
• Oxford-AstraZeneca, Pfizer-BioNTech, Moderna & Johnson & Johnson months. Recommend to pre-bookings 3 to 4 week prior to planned vessel departure.
are the vaccines being administered in Europe Transatlantic Westbound: Capacity stays heavily constrained.
• Belgium at third place in European vaccination ranking ● Equipment is extremely tight across Europe as port congestion and lower
• The European Union plan to run vaccination certificate pilot project from vessel capacity delay empty-container repositioning, especially at inland depots.
1st June, 2021 to facilitate travel within the EU ● We recommend pre-bookings to be made 5 to 6 week prior to planned
• Commission wants to ease entry restrictions for travel from vessel departure.
non-EU countries
Air Freight Updates
• According to CLIVE Data Services,
• Air cargo volumes returned to pre-covid levels in April after a drop off
in March while the overall market remains strained.
• Cargo tonnages increased by 1% in April compared with the same
month in 2019 (pre-Covid)
• Lack of capacity is exacerbated by no schedule available for
passenger demand, contributing to the high rates in the market.
• IATA: Cargo demand at “all time high” but capacity is yet to recover
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
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 May 6th
Socioeconomic Updates Ocean Freight Updates
• Oman has imposed a ban against Eid prayers, gathering at public places
and commercial activities between 7pm and 4am during the Eid Al Fitr
holidays effective May 8 for a week period • DP World, Israeli firm to bid for Haifa Port
• Abu Dhabi has announced that vaccinated travelers arriving from green • Australian maritime authorities have banned the Aswan
countries no longer need to go into quarantine, provided they take a PCR Shipping-owned bulk carrier Movers 3 from entering
test on arrival Australian ports for 18 months following outstanding
• Jordan has reported three cases of the Indian variant in people who have mechanical and survey issues.
not travelled • Fujairah has become the latest in line to ban crew change
Air Freight Updates from vessels arriving from India
• Air Arabia announced direct flight to Almaty in Kazakhstan ● India: Ease in customs clearance of medical equipment to
effective 21st May allow faster delivery
• WizzAir Abu Dhabi announced flights to Greece 2x weekly effective July
• Etihad, sold its 40% holdings of Air Seychelles back to the government
• Flight frequency reduced or cancelled between AE-PK
• FlyDubai to expand its network in Russia at 11 points.New services to
Moscow; ZIA – May 12, OVB – May 28, PEE – June 2
• Qatar Airways introduced PAX flights to Abidjan in Côte d’Ivoire eff. 16th June
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
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 May 6th
Socioeconomic Updates Air Freight Updates
• China: No local transmitted case was reported on Mainland China
last week
• Hong Kong: As of 2nd May, HK has total 11,785 cases and 210
• Taiwan: As of 2nd May, there were 26 cases related to
deaths. 2 new cases on Sunday which are both imported
CAL (China Airlines) pilot and Novotel Hotel Covid-19
• South Korea: KR Health authorities Government has decided to
infections. No impact on freighter operation service
extend existing country's social distancing measures set to expire on
currently
30th Apr for additional 3 more weeks
• Australia: Australian residents and citizens who have been in India
within 14 days of the date they plan to return home will be banned
from entering Australia as of Monday, 3rd May
• Malaysia: Malaysia imposed a ban on flights to and from India Ocean Freight Updates
effective on 28th Apr
• Philippines: Philippines received its first batch of Russia’s Sputnik • Port congestion in the whole region
V Covid-19 vaccine on Saturday. The 15,000 doses of Sputnik V,
will be used in four cities in the capital region • China: Shortage of truck drivers started before CNY will
• Singapore: Singapore has tighten its Covid-19 measures to curb continue because of the strict Covid-19 quarantine
the spread measures imposed by the Chinese authorities. Booming
• Thailand: A mass vaccination program is to kick off in June with demand out of China causing container shortages
locally manufactured Astra Zeneca doses
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
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 May 6th
Socioeconomic Updates Air Freight Updates
• Airlines write joint letter, push for US-UK travel deal before G-7 meeting • Ground handling challenges in LAX, ORD, and ATL causing some
U.S. Postal Service will leave Universal Postal Union in October unless carriers to cancel inbound flights to mitigate delays
UPU aggress to revision of rates; exit would increase air parcel rates • Air Cargo demand recovers to pre-COVID levels
• Fauci predicts US turning point in the pandemic “within a few weeks” • Airfreight market saturated; businesses looking to avoid Suez
• Starting June 2, Federal Maritime Commission will allow ocean carriers gridlock have limited options
to file contracts up to 30 days after they go into effect • Chicago Rockford and Cologne Bonn airports collaboration hopes to
• State Department to increase Do Not Travel list to 80% of countries b boost air cargo traffic between US and Germany
worldwide because of coronavirus risks • IATA predicts airline recovery to start by mid-year 2021
Ocean Freight Updates Inland Transportation
● Congestion caused by Suez Canal subsiding
• Labor lawsuit over Port of Charleston’s new Hugh K. Leatherman
• NY-NJ port rail project expected to debut at the end of 2021
Terminal causing some carriers to avoid it
• March trucking jobs were down year-over-year while many
• Port Houston sets monthly record in March, container
companies announced pay increases for drivers
moves climbed 20% year-over-year
• Trucking interests skeptical of zone-based congestion pricing
• Port of Charleston opened first new container terminal in
• Crude tankers stuck in ‘rate hell’ but floating-storage pain wanes
the US since 2009, increasing capacity by 30%
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
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 May 6th
Socioeconomic Updates Air Freight Updates
• New COVID-19 boarding rules for airlines will be tighter than
• Provinces across Canada implementing COVID-19 vaccination
expected
paid leave policies
• Air Canada finalizes decision to convert aircraft to freighters
• Federal court refuses to end quarantine hotel rules for travelers
• Air Canada eyes converted freighters to capitalize on cargo
• Canadian federal government extends $5B in aid to Air Canada
boom
• Canadian Prime Minister hinted that reopening of U.S.-Canadian
• Air Canada is resuming many of its international
border won’t be anytime soon
flights, heading to the U.S., the Caribbean, South
America, Europe and the Pacific
Ocean Freight Updates Inland Transportation
• Port of Montreal workers back to work after Back to Work
legislation passed through House of Commons and Senate • Kansas City Southern says it will entertain talk with rival
• Port of Toronto moved over 2 million metric tonnes of cargo for bidder CN
fourth consecutive year • Some Canadian trucking companies shut down amid financial
• Ports are operational. Cargo transportation is still allowed struggles
• 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.
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 May 6th
Socioeconomic Updates Air Freight Updates
• Public demonstration in Colombia in response to proposed tax • Mother’s Day season to impact export capacity in Latin America
reform; demonstrations impacting service in some areas • MasAir will lease two converted A330 aircrafts to help with expansion
• Colombia authorities to maintain COVID-19 travel restrictions; into new international markets
local governments continue to impose curfews • Air Mexico reaches deal with Boeing to slash order book as part of
• White House working to send $20M in COVID-related bankruptcy agreement
medications to Brazil • Canadian airlines have extended their suspension of
• Argentina cases hit 3M, hospital beds are full flights to Mexico
• Latin America’s airline network will be slow to return
Ocean Freight Updates Inland Transportation
• Capacity is constrained out of Brazil due to increase in
• Demand for cargo truck access to the port of Manzanillo,
export commodities like sugar and wood
causing traffic and making road travel dangerous
• Blank sailings from East Cost South America to Asia
• Despite some successes, Mexico still struggles with fuel theft
seek to shore up freight rates
• Mexican rail blockade continues to affect freight flows
• Italian firm building $150M shipyard in Mexico
• US-Mexico truck crossings decline 22% at Port Laredo
• Ocean Port Restrictions (3 countries: DO, HN, PR)
• Customs operation impacted (9 Countries: AR, CR, DO, EC, GT, PA,
PE, SR, VE)
Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly by UPS.
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.
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.
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