__________________________________________________

OPERATIONS:

Domestic

 Status: GREEN

• First, middle, and final-mile Pegasus partners are continuing to take precautions, both on the road and in the office, including consistent cleaning of trucks, warehouse floors, and office desks.

  • Our partners are also required to wear masks and maintain 6 feet of separation at every interaction.
  • This, on top of promoting a touchless sign-off process, has ensured that we are doing everything we can to stop the spread of COVID-19.
• Despite the challenges associated with the pandemic, Pegasus has maintained and even established record highs of On Time Percentage.
  • The number one priority of Pegasus and all of our partners and customers is the safety of every single employee (and their families) while still staying true to our performance expectations, and we are doing all we can to ensure it.
• As the country moves closer back to normal, our partners around the country continue to do the same. While still taking every necessary precaution, inside deliveries can be handled at every location. See the updated chart below: 

International

 Status: YELLOW

• Air Freight
  • Delays to container shipping supply chains in the US, which are resulting in increased air cargo charter flights, could continue into the summer.
    • The ocean shipping services are currently facing delays of around 5-7 days departing from China and Southeast Asia and multiple day delays offloading at US west coast and east coast ports.
    • While this is a short-term view, there is the very real possibility that this situation could last through the summer unless capacity issues are addressed.
  • The US Export market remains strong to Europe, LATAM, and Asia. Demand outpaces capacity in all markets but booking backlogs of 7-10 days are reported to Asia and Europe.
    • With the continued lack of belly capacity likely to remain we expect to see these conditions into April.
  • Ground handling in several US cities continues to face severe backlogs. The worst situation is in ORD where ground handlers have yet to recover from recent snowstorms and an ongoing deluge of import freight.
• Ocean Freight
  • The 20,000 TEU Evergreen container vessel, Ever Given, that spent almost a week wedged across the Suez Canal was successfully refloated and is on the move again as of Monday, March 29.
    • The logjam of ships will have a serious effect on Global ocean freight traffic, particularly on the Asia-Europe trade.
  • All Asia base ports are reporting tight space to all North American ports due to continued delays at ports and equipment shortages.
  • All West Coast ports are still severely congested. The expectation is that this condition will remain until at least June.
  • All carriers are still implementing Blank Sailings.
    • However, this not being caused by the carriers but rather is a symptom of vessels being stuck and unable to discharge in North American ports in a timely manner.
  • Space/Equipment are currently seen more important than rate especially in PNW/USEC.
• General Global Trade
  • US prices rise, compared to 12 months before.
    • Consumer prices (CPI) were up 1.7%, while producer prices (PPI) rose 2.8%. Higher energy prices helped drive the numbers.
  • US jobless claims stay high. Despite other signs of recovery, initial claims for unemployment benefits are only decreasing very gradually.
    • The most recent initial claims were 712K, still above the pre-COVID record of 695K. Overall insured unemployment was 4.14M, compared to 1.78M just before the pandemic shock.
  • China GDP swings wildly. In year-over-year official data, the current strong recovery in January-February 2021 is compared with the sharp downturn a year ago.
    • Industrial production was up 35.1% and retail sales up 33.8%.
  • Taiwan exports grew in February, for the eighth straight month. Shipments were up 9.7% for the month, led by electronics and semiconductors.
  • UK trade plunges. Official numbers for January show imports down by 21.6% and exports down by 19.3%.
    • In each case, the drop was the largest since the current set of statistics began in 1997. The drops were also both led by decreases in trade with the EU, with imports down 28.8% and exports 40.7%.

__________________________________________________

IT :

 Status: GREEN

• The current challenges in the business environment create the perfect opportunity for learning. Pegasus strives to have a culture of continuous improvement which has led us to go through our Business Continuity Plan (BCP) and improve our plan. Click the link below to read our article on what makes the Pegasus BCP exceptional.

  • BCP Blog

__________________________________________________

STATUS KEY:

RED: Selective lanes not moving, driver/labor shortages, regulatory shut downs, geographic hotspots, border closures

YELLOW: Freight is moving with less capacity, increased expense, reduced handling, with potential risk of future unknowns

GREEN: Freight is moving with no abnormalities

__________________________________________________

For questions, please email info@pegasuslogistics.com