Insights

China Airlines’ 14-day mandatory quarantine for pilots is in place, however the situation is not as dire as expected. There will be about a 20% reduction in flight schedules resulting in a 10% drop in overall capacity. Last week we had reported that all flights to/from JFK and ORD would be grounded but that is no longer the case. Despite the cheerful news, rates out of Taiwan, the airline’s base country, are still some of the highest in the world.

Most ocean carriers are reporting that capacity through mid-June is already approaching maximum levels due to the latest additional blank sailings announced in the market. The Transpacific import market will continue to face ongoing capacity challenges until terminal berthing delays ease, allowing additional weekly capacity to return on the Transpacific.

Conditions in India continue to worsen as the country faces a second wave of the COVID-19 pandemic. Reimposition and extension of lockdowns across the country are impacting the availability of labor at ports and inland locations. This is further exacerbating congestion and equipment issues. The number of Covid cases is increasing day by day there is a slowdown in cargo movements and in turnaround times to and from airports, seaports, CFS stations and ICD’s. With the increase of Covid cases in India, many carries, steamship lines, forwarders have announced WFH (Work from Home) conditions, and the government has asked factories to work at 50% staffing. This is creating further constraints to the operational activity required for shipment execution.