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Operations: |
International
Status: YELLOW
- Asia-Pacific airlines saw demand fall by 24.2% in May, compared with the same period a year earlier. Shipments of personal protective equipment (PPE) are helping support airlines in the region. Seasonally adjusted freight volumes also rebounded slightly in May and have now reached 75% of their pre-Covid-19 crisis levels. North America-based carriers performed the best of the regions, with a 3.6% year-on-year decline in May. IATA said: “The resilient performance is due to shorter and less stringent lockdowns in certain regions, the large freighter fleets of a few regional airlines as well as robust US-China trade volumes.”
- Airfreight is “slowly getting back up on its feet” after reporting that volumes in June this year were 6% higher than in May. As personal protective equipment (PPE) volumes faded, global air cargo volumes in June provided the first real indicators of structural recovery. The analysis also showed that airfreight volumes in the last week of June were 12% higher than in the final week of May.
- Additionally, the year-on-year performance gap closed. Global airfreight volumes in May 2020 were 31% lower than in May last year, while June 2020 volumes were 25% lower than June 2019. Available capacity in June “remained flat” but in the last two weeks of the month, capacity crept up by around 1.5% per week. Meanwhile, at 71% in June, dynamic load factor was the highest it had ever been since it was first calculated in 2018. The data should help to address industry concerns over the distorted state of the air cargo market.
- Mexican airline, Aeromexico, said that it had begun a voluntary chapter 11 bankruptcy reorganization.
- Hainan Airlines plans to start flying between Beijing and Boston and Beijing and Seattle from August 1, with one flight every day. Chongqing - JFK, New York, 2 flights per week; Chongqing - Shanghai Pudong - Boston, 4 flights per week; Chongqing - Shanghai Pudong - Seattle, flights per week.
- Given the tightness in the ocean market, a few shippers are beginning to convert some ocean bookings to airfreight in order to meet inventory constraints. We expect sporadic conversions to continue for the next several weeks until the backlog on the ocean alleviates.
- This year’s Transpacific Ocean Peak season is happening 4 months early because the pandemic has torn up the most basic law of economics. First Covid-19 hit supply chains during Chinese lockdowns. Now it’s making demand hard to predict, forcing shipping companies to throttle back capacity next quarter and sending freight rates soaring. We are in an artificial Peak season created by the carriers with no end in sight.
- As always, we are monitoring the situation daily and will update our customers as market conditions change.
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Domestic
Status: YELLOW
- A new statewide face mask mandate went into effect in Texas for anyone going out in most public spaces. To see all the states that are currently requiring face masked you can follow the link here.
- Texas Gov. Greg Abbott issued the order on Thursday (July 2nd) requiring all people residing in counties with more than 20 COVID-19 cases to wear a face mask while in public buildings or when in an outdoor setting that does not allow for six feet of physical distancing.
- Members of the trucking, transportation and logistics industries say that although wearing a mask all day at work can be unpleasant (especially since Texas summers are hot and humid), it is part of the new reality created by the coronavirus epidemic.
- Below is a market by market capacity of inside deliveries:
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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 below 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 |
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For questions, please email C19TaskForce@pegasuslogistics.com |
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