We want to reiterate that during this challenging time, we at Viadex GPS are FULLY operational across all service areas.
Given the globally dispersed nature of our business and our support teams we tend to operate virtually 24/7 as a course of normal business. With this said, we recognise there are specific challenges and delays associated with certain countries, but it is important to distinguish between Human travel and Cargo air freight.
As many of you have experienced, Viadex GPS has a world class network of in country partners that are providing us with the most current information available, this is our business!
While we fully anticipate there to be continued delays and challenges, we are strongly encouraging our partner to not delay the placement of orders. It is our strongest recommendation to get in the freight que to be early in line, as you know there is a significant amount of clearance work to be done prior to pick up and actual shipment we are still able to do that work to be prepared for when lanes reopen.
Supply chain disruptions
How long this supply chain disruption lasts remains to be seen as according to information from DVZ (Deutsche Verkehrszeitung), the airlines of the Air France-KLM aviation group and the carriers of the International Airlines Group (IAG), which includes British Airways, Iberia, Aer Lingus and British Midland, are the next two airlines to offer their withdrawn passenger aircraft for the exclusive transport of freight. Other airlines such as Korean Air, Cathay Pacific, Etihad and Delta Air Lines have also already reacted to the drastic slump in demand in the passenger sector in the wake of the corona crisis by taking this step. Lufthansa is also considering such a measure, which is intended to maintain cargo capacity in the international airfreight business.
IATA has announced it is expecting to see a drop in cargo demand by more than 15% in 2020 as a result of the COVID-19 outbreak. Figures due to be released are to show around a 10% global reduction in freight tonne km (FTK) in February as a result of China going into lockdown.
The decline in demand comes despite air cargo shortages across the world. The shortage of cargo space is the result of global cancellations of the majority of passenger flights, which normally carry freight in their bellies. The high demand is causing a spike in pricing as passenger airlines are mothballing aircraft due to the travel restrictions and slump in demand. Some airlines have been loading passenger flights with cargo and even filling the passenger seats and overhead stowage compartments to keep up with demand. Etihad and Virgin are amongst Lufthansa, Austrian Airlines and LATAM to commence passenger cargo flights, it is expected others will follow suit as the demand for essentials is increasing.
Latest update per territory
Currently experiencing a large reduction in passenger and cargo flights which is driving rates up. Airlines have cancelled flights up until the end of May, these may be pushed out if required.
Currently experiencing a large reduction in passenger flights but cargo flights are still operating, there are significant quarantine measures in place. The majority of provinces resume work, some businesses in Wuhan are also starting to return. Many factories are resuming normal operations. CAAC announced (effective 23rd March) all international flights for Beijing need transit to a nominated first entry airports for passenger quarantine, this is causing delays.
Hong Kong government announced a ban to all non-Hong Kong residents coming from overseas countries for 14 days starting 25th March. Approx 80-90% of belly load capacity from passenger flights for EU, USA and India are cancelled, cargo flights are still operating, but with increased demand costs are surging.
Currently experiencing a large reduction in passenger flights but cargo flights are still operating. The national Disaster Management Agency (BNPB) has extended the emergency period until 29th May.
Mainly operated by freighters, space is generally available to move within a few days. Rates are surging. Government has not reported an extreme infection at the moment but are encouraging people to work remotely.
Is in a country wide lockdown extended to 14th April. Cargo flights are still operating into the country, space is at a premium meaning rates are surging. Essential products such as medicines and food are being prioritised through customs. All consignees must have a Ministry of International Trade and Industry letter of Movement control order exemption prior to shipping.
Luzon, the country\'s main island that is home to Manila, is in full lockdown until the 14th April. Cargo flights are operating but the cancellation of passenger flights means the movement of goods is possible but in a restricted capacity and rates are surging. Essential products such as medicines and food are being prioritised through customs. Imports quarantine has increased from 7 to 14 days.
Currently experiencing a large reduction in passenger flights but cargo flights are still operating. Rates are surging.
Flights are significantly reduced, making bookings difficult to secure and costs at a premium. Expect long delays due to flight restrictions and extremely inflated rates.
As of 26th March Thailand, has announced a state of emergency, cargo movements are not restricted domestically or internally, and customs continues as normal. Currently experiencing a large reduction in cargo space, spot pricing only and rates are surging. Essential products such as medicines and food are being prioritised through customs.
Currently experiencing a large reduction in passenger flights but cargo flights are still operating space is at a premium and rates surging.
A state of emergency has been declared, all non-essential businesses are to close. Most flights are operating but over-booked due to carrying more US related cargo.
JFK Airport is starting to see serious handling issues as the city has been significantly impacted by COVID-19, there are reports that it is taking up to 10 days for cargo to be released after arrival. Many freight providers are now restricting this route. Cargo flights are operating, passenger flights are significantly reduced resulting in limited capacity. Spot rates only and highly inflated costs due to limited space.
Passenger flights are reduced, expect clearance delays.
Passenger flights are reduced, expect clearance delays.
TERRITORY: MIDDLE EAST AND AFRICA
Passenger air services into India have been suspended until further notice, there are a few cargo aircraft still operating, no final mile deliveries are taking place, other than an exception for commodities considered essential and approved by local government, consignee must provide a copy of approval provided by the government, however it is not totally clear which cargo is moving. India Central Government has announced a complete lockdown from 25th March to 14th April. Indian Parliament has also closed until further notice.
Significant reduction in flights causing delays.
Oman suspends all domestic and international flights starting 29th March. Our staff remains safe.
Significant reduction in flights causing delays. The City of Al-Qatif is in lockdown, no deliveries are taking place.
Cargo is still flying but at higher costs and limited availability. Government announced a 21-day lockdown starting March 26. Emergency personnel, health workers, the army, police and essential businesses are exempt. Ports, customs and relevant government authorities remain operational. Current advice is that unless it is provable that cargo is for an essential service, delivery is not guaranteed to happen until after lockdown, current end date is 17th April.
Has suspended passenger flights as of 17th March. Cargo still available.
UAE has banned all passenger flights, cargo flights still available. Limited COVID-19 cases reported in UAE, no significant impact to clearance.
There are delays at borders which affect EU Countries. Arlberg region and parts of Nenzing are under quarantine, only food and medicines may be transported in these regions. Other regions are under quarantine which could affect last mile deliveries. Airports have almost fully suspended passenger flights but are operational for cargo services.
Belgium in a soft lock down, delays expected, there are constraints on cargo flights due to demand and road deliveries are becoming more difficult.
Delays of 24 to 48 hours minimum. Air cargo is in constraint due to demand, road haulage is reducing capacity to international cargo. Some B2C deliveries have been cancelled.
Airlines keep cancelling flights, cargo flights are available but spot rates only. There are delays at borders which affect EU Countries. Delays of 24 to 48 hours minimum. Routes remain stable.
Airports, ports and customs are open, with limited staff.
Some areas are undeliverable due to quarantine restrictions, otherwise lockdown is affecting delivery timescales. Italian government added a list of \"essential activities\", which can continue to operate as normal. Transportation and logistics are included on that list. Logistics businesses are operating with no significant disruptions thus far. Road services are beginning to be restricted for essential goods only.
Delays due to low staff numbers, staffing gaps being filled so delays should be reduced over next few days.
Cargo trade is not suspended; however freight capacity has decreased significantly. Road boarders have been closed to all foreign travellers, if Polish drivers are free from COVID-19 symptoms they can bypass the 14-day quarantine that is in place.
Border controls on the land border with Spain implemented. Distribution network is still operational but delayed. Cargo flights are operational, space is at a premium.
Spain has resumed normal import and export processes following pressure locally, all goods are now able to be imported or exported, it is likely priority will be given to essentials. Ensure the consignee is open and accepting deliveries.
All ocean ports, airports, truck terminals and customs terminal are operating. Significant delays at road borders as every second driver must quarantine for 14 days.
Nationwide lockdown for a minimum of 3 weeks, reduced staffing, primary focus on Pharmaceuticals, food and then other.