As the World Economy Starts to Reopen, the Freight Market is Predicted to Go Up1
Trucking tenders indicate that the declines are shallowing which means there may be a bottom in sight. According to SONAR, tenders are possibly the most telling factors of what is actually happening in the freight market and provide valuable insights. Fortunately, once the bottom is reached the only place to go from there is up. How the next few weeks unfold will be crucial to the rebounding of the market. If world governments can continue to combat the spread of COVID-19, parts of the economy are expected to reopen around the world. As the manufacturers and retailers begin to reopen, the trucking freight markets will come back to life as well.
Aside from the COVID-19 pandemic itself, the resulting unemployment and consumer sentiment are putting major stress on the freight market. Governments the world over are attempting to breathe life back into the global economy with various stimulus bills. In the US alone, the president issued $2 trillion in fiscal stimulus and the Federal Reserve issued $4 trillion in stimulus, all in an effort to give our economy a much needed boost.
Since consumers are spending their money on experiences and services as they once did, they will have more money to spend on goods, which, in turn, will drive the freight market back up.
Trucking Companies Are Working with the Federal Government to Fight COVID-192
The Federal Emergency Management Agency (FEMA) has teamed up with trucking companies to create the White House Coronavirus Task Force. This task force is charged with delivering medical supplies and setting up testing sites in an effort to combat the COVID-19 pandemic. The result was the start of the federal government’s Project Airbridge with the goal of rapid distribution of life-saving medicines, medical devices, diagnostic specimens and supplies. FEMA posted on social media, “We are buying supplies directly from vendors & speeding up commercially procured supplies through #ProjectAirbridge. Supplies are sent to hospitals, nursing homes, first responders, the @DeptVetAffairs & acute care facilities.”
The U.S. Department of Transportation’s FMCSA is Expanding its National Emergency Declaration3
In an effort to provide assistance to commercial freight drivers transporting emergency COVID-19 relief, the FMCSA has expanded its national emergency declaration.
“Under Secretary Chao’s leadership, FMCSA is providing additional regulatory relief to our nation’s commercial drivers to get critically important medical supplies, food, and household goods to Americans in need. The nation’s truck drivers are on the front lines of this effort and are critical to America’s supply chain. We will continue to support them and use our authority to protect the health and safety of the American people,” said FMCSA Acting Administrator Jim Mullen.
This regulatory relief for commercial operations supporting emergency relief efforts applies to drivers transporting:
· Medical supplies and equipment for the testing, diagnosis, and treatment of COVID-19
· Supplies and equipment such as masks, gloves, hand sanitizer, soap and disinfectants
· Food, paper products and other groceries for emergency restocking
· Raw materials required for the manufacture of essential items
· Persons designated for medical, isolation, or quarantine purposes
· Persons necessary to provide other medical or emergency services
Click here to read the FMCSA’s national emergency declaration.
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