COVID-19 Impact on Global Airfreight Capacity and Pricing

Dear Valued Customer,

 
As you no doubt are aware, the spread of the COVID-19 globally and its containment measures continue to result in actions from airlines and shipping lines as they daily update changes to scheduling, pricing.

AIRFREIGHT

Airlines are scrambling to significantly reduce their capacity in the market in reaction to down turns in their passenger business. In the past two days alone we have witnessed Air New Zealand drastically reducing its International and Domestic capacity, and earlier today Qantas has announced its suspension of International flights from the end of this month until at least the end of May.

With factories in China resuming production after extended closures, Airfreight demand has soared, as shippers attempt to catch up on their delivery schedules, whilst at the same time capacity is being dramatically reduced.

This sees current demand significantly overtaking supply - Resulting in dramatic rate increases from airlines across all sectors, and trade lanes on a Global basis as they manage their diminishing capacities.
 
Please be advised that the airlines are implementing rate adjustments and we intended to seek your written approval to these adjustments before accepting bookings.

To reduce possible exposure to delays, we’re recommending that bookings are placed 5 - 10 days in advance to secure the best opportunity to secure the space your business requires. Please also be aware origins are advising it is imperative to know cargo availability when requesting bookings and pricing to ensure appropriate pricing is secured as we are seeing extremely short-term rate validities down to a day’s validity.

OCEANFREIGHT

China went to unprecedented measures to contain the virus, effectively stopping movement in and out of effected areas throughout the Hubei province Flights and public transport was suspended, and roads were blocked, with their citizens sent into quarantine. As China returns to work post quarantine, we are seeing a return to normality as they come back on-line. Currently vessels are at full capacity and we recommend pre-booking space and equipment over the coming months to minimise delays to your supply chains.

BRi’s focus along with the safety of our staff, client and partners is for your supply chains to be handled proactively with as minimum disruption as possible.

We thank you for you continued support and time, and if you’ve any queries please feel free to contact your account manager in the first instance

Keep yourselves safe, look out for each other and keep in touch.

Keeping You Informed!

BR International