As volumes continue to decrease due to facility closures caused by COVID-19, many were speculating when we would see the light a the end of the freight tunnel. But good news is on the horizon! Although freight volumes are at an all time low, it is being projected that this is in fact the lowest freight volumes should reach. Recovery is expected to rebound throughout the month of May. With the being said, capacity may be tight if buyers are restocking and port activity increases while many carriers have left the market place.
According to CASS Freight Index, “There has been a clear divide between winners and losers of these shut-in orders with demand for groceries, home improvement, e-commerce, and consumer staples increasing, while restaurant, auto, and (mall) retail falling to practically zero volume.” They continued, “while shipment volumes should trough in April due to the coronavirus crisis, we expect a rebound in weekly volumes later in 2Q20 to signal a climb back toward more normal economic activity. We expect transport pricing growth to stay soft this month and next, but we’re watching capacity exits and a potential re-stocking event to drive rates higher again later this year.”
Now more than ever, Axle encourages our client and carrier partners to have open dialog with their Logistics Consultants about what they are seeing as well as what additional resources they feel would be helpful to them as the market continues to change. As dedicated partners, Axle Logistics is committed to providing proactive and transparent solutions while navigating these new and unique market conditions.