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REGIONAL LOGISTICS UPDATES – NORTH AMERICA

Last update: 31 March 2020 at 09:00pm GMT+1

DOMESTIC TRUCKING

 The market is currently presenting a moderate shortage of van/enclosed trailers and we paying a small premium of approximately 10-12% above pre-COVID-19 market prices. In some cases, it is taking Bertling an extra day to arrange van transports. The flatbed and specialized market is slower than normal with equipment and drivers readily available with competitive pricing. LTL prices remain fixed and service has been predictable and consistent.

BERTLING USA AIRFREIGHT UPDATE

 IL-76 and AN-124 charter aircraft availability is running very tight as expected and the aircraft are being booked through April. There will be limited emergency charter availability at least through April.

 Emirates has implemented initiatives to transport essential cargo such as pharma products, medical supplies and perishables around the globe. The carrier is operating its fleet of 11 freighter aircraft on an increased number of scheduled flights, as well as on additional ad hoc and charter flights, in order to meet increased demand for airfreight capacity on a global scale.

 Qatar Airways Cargo will resume scheduled belly hold cargo operations to China with the utilization of its passenger aircraft to six cities. The additional cargo capacity is being added to the carrier’s existing freighter service. The belly hold cargo flights will be operated without any cabin crew members or passengers on-board. The six cities are Beijing, Shanghai, Guangzhou, Chengdu, Chongqing and Hangzhou. This brings Qatar’s combined weekly capacity out of the country to more than 1,300 tons.

 Avianca Cargo has become another carrier to operate cargo-only flights using passenger aircraft to support supply chains which have been disrupted by the coronavirus pandemic. They used a Boeing 787-800 passenger aircraft to transport nearly 20 tons of essential cargo in the belly hold, from Colombia to John F Kennedy International. There were no passengers onboard the aircraft. Avianca Cargo currently has six A330-200F freighters, as well as five aircraft from its affiliated company AeroUnion: three A300-600s, and two B767- 200s. The carrier’s fleet serves airports in Dallas, Los Angeles, Chicago, New York, Miami, Madrid, Brussels and other major Latin American cities.

 Lufthansa, Austrian Airlines and LATAM have all started utilizing passenger aircraft for cargo flights. An A330-200F production line freighter can carry up to 65 tons. A Boeing 777F freighter has a standard load capacity of 103 tons. LATAM said that it used “seat containers” on an Airbus A320 Peru flight (Lima-Iquitos).

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The flight mainly transported perishable products, medicines and general cargo. A spokesperson said that the A320 can carry around 12 tons of cargo, although it depends on the cargo. This includes eight tons in the belly and around three tons in the passenger deck.

 Turkish Airlines, Aeromexico and Air Canada have also started utilizing passenger aircraft as freighters. Turkish Cargo will operate cargo flights to Bucharest (OTP), Tel Aviv (TLV), Amsterdam (AMS), London (LHR), Paris (CDG), Amman (AMM), Beirut (BEY), and Dubai (DWC/DXB), adding an 5,000 tons of additional capacity. The first charter flight by Aeromexico Cargo took off from Mexico City to Frankfurt, operated with a Boeing 787-9 aircraft shipping 15 tons of cargo. The service is operated as a charter for shipping perishable products, live animals, high-value goods, technology and pharma, among others. Air Canada has announced cargo-only flights on Boeing 777s with 40 tons capacity, and Boeing 787-9s, with 35 tons capacity.

 Air France KLM Martinair Cargo have announced a reduced summer schedule. This schedule consists of a ‘skeleton network’, operated by passenger aircraft in combination with their regular full freighter network and trucking stations. They have full freighter aircraft, passenger aircraft and trucks available for charter operations. They therefore have the possibility for charter operations now not only using full freighters, but also using belly holds of passenger aircraft.

 American Airlines and United continue to offer cargo only transport via passenger aircraft.

 Some freighter services continue to be suspended due to ground handling/country specific issues on a case by case basis.

 Air freight rates continue to be volatile and need to be checked on a case by case basis. In many cases, contract rates are being suspended with only priority service tariff pricing available.

 Intra-Americas trade lanes with freighter services are still running on schedule, but subject to space availability with reduced belly space on passenger aircraft.

OCEAN FREIGHT – PORT OF HOUSTON

 The port of Houston (public and private terminals) are operating normally.

 The Houston Pilots moved 25 arrivals, 25 departures, and 6 shifts yesterday. This is near average.

 For today, they have already completed 4 arrivals and 6 departures. They have boarded 4 arrivals and 12 departures, and there are 10 arrivals, 10 departures, and 2 shifts in the queue.

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OCEAN FREIGHT – OTHER PORTS IN TEXAS

 There are no known closures due to COVID-19.

 Galveston Wharves at the Port of Galveston remains open and continues to move cargo at its terminals. Currently, all terminals are open and operating with the exception of the two cruise terminals. Four of the five cruise ships that homeport in Galveston are docked at the two cruise terminals and sailing periodically with only crew members onboard while daily maintenance is being performed.

 Port of Corpus Christi continues normal operations and does not anticipate significant impacts by the “stay at home” order issued March 25 by Nueces County.

 Port of Brownsville is currently operating under the existing communications protocol dealing with its overall comprehensive emergency plan. On March 27, Brownsville Navigation District (BND) unanimously approved the deferral of the previously scheduled May 2nd commission elections until November 3rd.

 Port Freeport is maintaining regular services levels and normal terminal operations. All terminals along the Freeport Harbor Channel are operational and conducting vessel operations. Information regarding any changes to operations at Port Freeport will be distributed via the Port’s website (www.portfreeport.com/about/covid19), the Port’s emergency notification system and other means as needed.

OCEAN FREIGHT – OTHER PORTS

 Panama Canal, per Panama Ministry of Health protocols, does not permit vessels with individuals who have test positive for COVID-19 to conduct port operations (transit the canal). However, the Ministry of Health is granting two cruise ships a humanitarian exemption to transit from Chile to Florida.

 Georgia Ports Authority reports that Georgia’s ports continue steady operation with normal, 24-hour vessel operations and terminal services, as well as Monday-Friday truck gate hours from 6 a.m. to 6 p.m. in Savannah.

 Port of New Orleans (Port NOLA) cargo operations and New Orleans Public Belt Railroad (NOPB) operations continue to function as normal. Cruises are suspended until at least April 14. (https://www.portnola.com/info/coronavirus-covid-19-information).

 Port of South Louisiana cargo operations continue as normal. (http://portsl.com/port-status/)

 Sector New Orleans is requesting all vessel Masters complete an attestation letter regarding the health of their crew.

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DISCLAIMER

This information, associated files and links shall provide general guidance and information compiled from different sources that to our knowledge are correct. Neither does Bertling warrant or assume any legal liability or responsibility for the accuracy and completeness of the information provided, nor does Bertling accept liability for any loss arising from the use of the information stated in this document.

© The Bertling Group 2020. All rights reserved.

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