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Operations:

International

Status: YELLOW

  • Travel restrictions implemented this past week have further reduced Air Freight Capacity, prompting another spike in rates from all Chinese airports.
  • New regulations for one route/flight per week for each carrier in and out of China has pressured rates upward.
    • South China – average rate increased 20% compared to week 13
    • Central China – average rate increased 25% compared to week 13
    • North China – average rate increased 21.5% compared to week 13
  • Maritime Strategies International (MSI) is predicting Ocean Containerized trade will shrink in 2020 with levels comparative to the Financial Crisis of 2009. Smaller carriers will be at risk of going out of business. Main trade lanes will be most affected citing,  “extraordinary downward pressure given a looming collapse in consumer spending in Europe and increasingly, North America.”
  • In the short term volumes will be normal to high, but as we get into Q2 levels will drop off.
  • We are monitoring the situation and making sure that our bookings are with the larger less at-risk carriers.
  • US Ports are functioning on reduced operating hours as the volume of Ocean Freight is reduced, so vessels are being directed to alternate terminals.
  • Transpacific Eastbound Ocean Freight – GRI expected on April 1st and again on the 15th. TPEB Ocean rate levels should remain elevated until mid-May.
  • In the US there is a container shortage at inland points which will drive rate increases on export shipments. Again, we encourage customers to give advance notice of shipments to ensure equipment is available.
  • China has implemented travel restrictions on ALL people entering the country.
  • Wuhan/Hubei Province announced that they will lift travel restrictions on April 8th, after 77 Days of lockdown.
  • India implemented a 21-day lockdown until April 14th, so the entire India CFS network has closed.
  • Italy has closed all factories in an attempt to shut down or stem the COVID outbreak.
  • South Africa has been in a military enforced total lockdown since March 27th. All citizens will have to stay in their homes for 3 weeks.
  • Below is a chart listing of all Airlines with reduced/suspended flights:
Picture1

Domestic

Status: YELLOW

  • We are starting to see domestic LTL networks reign in their drop-off cut times to accommodate reduced density.  If this persists and gets more prevalent it will impact transit times on LTL. 
  • We will be working closely with our stakeholder base throughout this pandemic to stay on top of this. We’ll always exhaust our efforts to utilize network resources to the best of our ability.  However, we must respect the safety and security of the network at the same time.
  • Below is a market by market capacity of inside deliveries:

Partner Update 3.30

IT:

Status: GREEN

  • Pegasus’ internal network continues to perform as needed.  Our operators are available by phone, email, and through our website to help with your immediate shipping needs.  We have no major or minor issues from a technology standpoint at this time.

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