DALLAS (April 29, 2020) —Transplace, the premier provider of logistics technology and services, today announced the release of its Logistics Market Quarterly Update, Second Quarter 2020. The report spotlights the impact of the COVID-19 pandemic on the global supply chain. Using proprietary analytics from Transplace’s over $9 billion in freight-under-management, the quarterly report provides shippers and carriers with unprecedented access to the transportation market, including the United States, Canada, Mexico, and international ocean logistics. Supply chain, transportation, and logistics professionals can use the report to streamline their operations and prepare for what’s ahead in the second half of 2020.
Key findings from the Second Quarter 2020 Logistics Market Update include:
U.S. – Full Truckload
- Pre-March conditions softening
- Mid-March hoarding created temporary capacity shortages in essential markets
- April over-capacity situation takes over across all industries and geographies
U.S. – Less than Truckload
- Volumes down
- Shipment densities in flux due to recalibration of customer and business strategies
- Carriers with high operating ratios should be monitored closely as the situation develops
U.S. – Intermodal
- West Coast container imbalances stabilizing
- Abundant dray capacity
- Competition with soft truckload market becoming more fierce
- Opportunities for cost savings and higher service levels are abundant
U.S. – Flatbed
- Continued significant rate volatility
- Some airlines requesting forwarders to pre-pay for blocked space
- Reports of passenger space being used for critical cargo as PPE and other mission-critical products are increasing tonnage
U.S. – Bulk
- Capacity remains strong
- Partnerships are more critical given scarcity of specialized equipment and soft conditions
- Tale of two markets – essential and non-essential product flows creating uncertainty in Tier 1 Supply Chains
Mexico – Truckload
- Significant influence of government policy with restrictions on labor and wages
- Automotive to ramp up in coming weeks
- Oil and travel sectors, which are key economic drivers in Mexico, are under pressure
- Foreign exchange rate holding at ~24 Pesos/USD
Canada – Truckload/LTL
- A reduction in southbound moves into U.S. is straining backhauls into U.S.
- Drivers becoming more reticent to accept layovers; concerns about U.S. are affecting load acceptance
- Some LTL carriers are beginning to limit rural activities
- Blank sailings continue as a means to balance supply-demand
- 11 Carriers currently at High Risk in Altman Z-Scores bankruptcy index
- Warehousing constraints exist for key non-essential supply chains
The Logistics Market Quarterly Update includes comprehensive data analytics and KPIs from the Transplace Transportation Management System. The quarterly report also contains logistics intelligence from the Transplace Control Tower. The control tower proactively tracks shipments and manages exception issues from freight visibility solutions, carrier check calls, and predictive analytics with relevant information from the web, including weather alerts.
Connect with a Transplace expert to receive the full report of the Second Quarter 2020 Logistics Market Quarterly Update and sign up to receive future reports. Learn more about the benefits of Transplace’s Transportation Management Services by visiting transplace.com/transplace-contact.
Transplace partners with global shippers to run their logistics business more intelligently through its advanced logistics technology platform, proprietary transportation management software, data insights, expert engineering, and execution services. As a result, Transplace has become the premier provider of logistics technology and services. The Company also excels at strategic over-the-road capacity services, with intermodal and truck brokerage capability, and border management services, including cross-border customs and logistics services. With over 1,000 customers and $9 billion of Freight Under Management (FUM) in North America alone, and a growing client base in Europe, Transplace continues to deliver the intelligent solutions that grow and differentiate its customers’ businesses through more intelligent and efficient supply chains. To learn more visit www.transplace.com or follow us on Twitter and LinkedIn.
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Karen Sage, Chief Marketing Officer, Transplace