The trucking and freight industry appears to do better than the entire economy of the United States. The reason behind this is their ability to adjust with changes in the supply chain caused by the coronavirus pandemic. Business was really good for flatbed trucking in July and the spot market is also doing well.
According to the results of DAT Solutions latest survey, the trucking and freight industry is holding its own during the pandemic-induced recession. The national average rates for vans, flatbed trucks and refrigerated trucks for August are at the high marks for 2020. Disruptions in the supply chain caused by the coronavirus resulted to more freight in the spot market. Previously, demand for truckload capacity declines during this time.
The DAT survey also revealed that fleets were able to shift the types of loads they carry based on the demand of consumers. Load volumes out of the top 10 fulfilment warehouse markets rose by 25% in July. There was a surge of imported home improvement materials and stay-at-home goods throughout the supply chain. The surge was particularly noticeable at the Midwest distribution hubs including Joliet, Illinois and Indianapolis. Spot van prices increased by 10% to an average $3.11 per mile in dedicated routes like Memphis to Atlanta.
A change happened at spot market dynamics last week because of the hurricane season. After hurricane Isaias, more loads moved out of Florida which was unusual. Van volume out of Lakeland increased by 20% if compared to the week before the hurricane.
At the beginning of the pandemic, the freight market sustained traumatic decrease in volume because of less consumer demand. Unemployment rates were high and Congress failed to deliver a bipartisan solution that can stimulate demand. While there will be long term improvement for the economy to return to pre-Covid19 level of activity, the trucking economy is moving to the right direction.
For many types of equipment and materials, flatbed trucking is the right shipment option. You can choose from a variety of flatbed options according to your specifications. Traditional flatbed or expanded flatbed can be used to transport building materials, heavy construction equipment and manufacturing components.