Selected COVID-19 and trucking industry news that may impact your business.
As of August 12, 2020:
FMCSA Extends Emergency Declaration
Late yesterday, FMCSA again extended its emergency declaration that was set to expire August 14, 2020. The notice extends the emergency declaration to September 14, 2020 and returns food, paper products and other groceries for emergency restocking of distribution centers or stores to the short list of covered commodities. Currently the following four commodity classes are covered by the declaration.
- Livestock and livestock feed;
- Medical supplies and equipment related to the testing, diagnosis and treatment of COVID-19;
- Supplies and equipment necessary for community safety, sanitation, and prevention of community transmission of COVID-19 such as masks, gloves, hand sanitizer, soap and disinfectants, and;
- Food, paper products and other groceries for emergency restocking of distribution centers or stores.
The declaration only covers “direct assistance in support of emergency relief efforts” and does not cover routine commercial deliveries, including mixed loads with a nominal quantity of qualifying emergency relief. The terms and conditions of the exemption remain unchanged.
Class 8 net orders show gains in July
FTR reported that preliminary North American Class 8 orders—at 20,000 units—was up 28% compared to June’s 14,400, and doubled its output compared to July 2019. And over the last 12 months, FTR said Class 8 orders came in at 168,000 units. And ACT Research reported that preliminary July North American Class 8 net orders—at 20,300 units—were up 27% compared to June and up 98% annually, against what it called “a very easy year-ago comparison.” Read More
Trucking markets: Falling off, giving back
Life is hard for 3PLs right now: purchased transportation costs are way up, there are ‘difficult conversations’ to be had with customers, and the load board that truck brokers are increasingly forced to book are not the most reliable.
Truckload tender rejections moderated over the past few days to 21.26%, a very high number, but spot volumes and rates continue to rise. We view the 98% week-over-week (w/w) increase in Truckstop.com spot volume from Los Angeles to Dallas as signaling the difficulty that freight brokerages are encountering trying to move volume with their established carrier networks. Read More
Unsurprisingly, virus and freight downturn ate into largest carriers’ revenues and profits in 2020’s first half
Several of the country’s largest for-hire motor carriers saw their revenues and profits tumble in the first half of 2020 compared to the same time period a year ago, as the COVID-19 pandemic and corresponding shutdown orders ate into freight volumes and trucking rates. Read More