Selected COVID-19 and trucking industry news that may impact your business.
As of August 4, 2020:
Trucking After the Pandemic: Lessons from Homebuilders
After an unprecedented boom, a crisis struck suddenly sparking a cascade of bankruptcies that wiped out the long-tail of small businesses that were the backbone of the industry — the same businesses that had previously been in the most agile and dynamic corner of the market, expanding quickly to meet growing demand. Read More
Freight volumes could go higher in August
The Outbound Tender Volume Index (OTVI) continued to expand last week, indicating shippers are requesting more capacity than ever. The index shows volume 30% higher than the previous year. With numerous carriers reporting much stronger-than-expected earnings, there is a noted level of cautious optimism about the rest of the third quarter. There are signs that we have yet to see the strongest freight market of the year. Read More
ATA Trends: Trucking sector showed strength pre-pandemic
While 2019 was not the watershed year for trucking that 2018 was, that doesn’t mean that 2019 wasn’t a strong year for the sector. That thesis was firmly supported in data issued last month by the American Trucking Associations (ATA) in its “ATA American Trucking Trends 2020.” Read More
Multimodal COVID analysis
In our view, COVID-related demand and capacity dislocations have touched off an upcycle in trucking markets supported by fundamentally constrained capacity. This week, a new batch of corporate earnings (UPS, WERN, USX, CHRW) helped us understand how transports experienced that volatility.
In 2020, COVID-related volatility hit parcel carriers first as consumer spending quickly migrated online: UPS saw a surge in B2C deliveries and associated margin compression and revenue per parcel declines in Domestic Package. Some of that behavior is already normalizing as B2C deliveries begin to decline relative to B2B. Read More
OOIDA calls for HVUT suspension as part of virus relief
With the American Truck Dealers group and a bevy of other industry stakeholders urging a suspension of the federal excise tax on heavy trucks to offer relief for a variety of businesses from manufacturers and dealers to trucking companies and owner-operators, a new letter to congressional leadership from the Owner-Operator Independent Drivers Association has urged lawmakers to consider what might amount to a “much more immediate and equitable” source of relief for all trucking business owners. OOIDA proposed a suspension of the Heavy Vehicle Use Tax, most commonly $550 annually for a Class 8 over-the-road truck, for one year. Read More
Frontline workers still showing up for our country
Truckload Carrier Report
In the wake of the COVID-19 outbreak, the country was quick to recognize the importance of professional truck drivers and the entire trucking industry in keeping store shelves stocked as panic ensued. Still today, these drivers risk their health and safety to bring goods and supplies to communities where the virus continues to permeate. And they are not alone – roughly 50 million frontline workers are continuing to carry out essential jobs to protect public health in the United States. Read More