International
Status: YELLOW
Airfreight:
- More Airlines are resuming flights to China and it is expected that the international aviation industry will recover further in July. Chinese Airlines capacity will increase by 40% in July.
- The US Department of Transportation (DOT) rejected a request by Chinese airlines to increase weekly flights between the two countries and maintain the four flights a week each. The decision was made to "maintain" the equality of scheduled passenger services between the two countries, adding that the CAAC was willing to reconsider the decision if it adjusted its policy affecting US airlines.
- Delta Airlines announced that it will resume its Seattle-Shanghai Pudong service on June 25th, operating twice a week via a stop at Seoul's Incheon Airport. From then on in July, Delta will operate Seattle-Shanghai Pudong and Detroit-Shanghai Pudong, also via Incheon Airport, once a week.
- Airfreight demand for the transportation of personal protective equipment (PPE) continues to slow. The Transpacific Airfreight market is returning to normal supply/demand levels.
Ocean Freight:
- The Transpacific Eastbound Ocean market continues to be in turmoil as carriers are declining to load cargo with the fixed rates negotiated a short while ago . It has become commonplace for even the largest BCOs to pay a premium to have their cargo loaded. Also the carriers are informing BCOs (Beneficial Contract Owner) and NVOCCs (Non-Vessel Operating Common Carrier) alike that a PSS will be implemented in July – regardless of what was negotiated earlier. We are beginning to see a softening on this approach but it is hard to know what will happen until July 1st.
- Ocean Carriers are manipulating the market in their favor by limiting capacity through “Blank Sailings” while increasing rates.
- June was the first month in over 10 years where 2 GRIs were successfully implemented back to back.
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Domestic
Status: YELLOW
- Following the urgent orders, or restocking of retail goods, due to the ongoing coronavirus pandemic in early March, there has been a return to normal seasonal patterns and trends for load posts, which are now more in line with 2019 levels. The Current loads per truck ratio—at 3.6—is ahead of June 2019’s average.
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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 to read our article on what makes the Pegasus BCP exceptional.
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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 C19TaskForce@pegasuslogistics.com |
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