COVID-19 Freight Market Update
U.S. Export Freight Update
- Airlines are dramatically reducing cargo capacity
- Rates are predicted to increase in the near future, and we have seen increases to certain destinations already.
- Carriers flying to the Asian markets are only taking “express” or “expedited” service level @ +$5.00/kg, in some cases.
- Carriers to European markets have stopped all flights or are taking bookings at higher costs.
- Currently, export airfreight rates are extremely volatile and subject to change at the time of booking, and rates are only being held for 24 hours. Be sure to ask for an updated rate at the time of booking
- Equipment availability is beginning to reduce in major cities
- Truckers are currently looking for loads to haul. However, once the influx of import business starts ramping up, you will start seeing a decline in trucker availability.
- Place your bookings early
- This will help carriers plan manifests accurately and timely.
- We encourage you to reach out to your local M.E. Dey operations person, to ensure that there are no restrictions at destination that will affect your freight being delivered, This is a fluid situation and should be checked often.
- We have network partners throughout the world that have implemented restrictions due to the fluid situation of COVID-19.
U.S. Import Freight Update
Currently there are no restrictions on the import of CARGO but Customs reports longer release times as their staff is challenged with other issues Related to COVID-19.
- Airfreight from Europe is limited to cargo planes only and space is very tight.
- Airfreight rates from Europe have risen to as much as $ 20 per kg. Be sure to get an updated rate at time of booking. Currently our Quotes on airfreight are only valid for immediate bookings as driven by the market.
- Airfreight rates are still inflated dues to the lack of passenger flights and likely will be until passenger flights resume. We are able to get space on cargo flights
- Ocean Freight from Europe is moving, but with the decrease in the workforce it takes longer to get inland pickups and arrange cargo bookings
- Cargo from China is picking up, but space is tight on some lanes due to cancelled sailings by the steamship lines. The workforce and factories are back to about 80% of normal and this continues to grow.
- Ocean rates from China are a bit reduced currently. Steamship lines have scheduled a GRI for April 1st of up to $ 1000 per container. They are expecting a surge of bookings in April which they believe will result in a capacity crunch.
- While China is ramping back up, other Asian countries are now affected by the health situation and have restricted workforces. We expect shipments from some other Asian countries to be reduced and this may affect the viability of the April 1st GRI.
Cargo between the United States and Canada is still moving, however it has been agreed to close the border to all non-essential travel.