Transplace, a provider of logistics technology and services, examines the impact of the COVID-19 pandemic on the global supply chain in its recently released Logistics Market Quarterly Update for the second quarter of 2020.
Using proprietary analytics from Transplace’s more than $9 billion in freight-under-management, the quarterly report provides shippers and carriers with what the company calls “unprecedented access” to the transportation market, including the United States, Canada, Mexico, and international ocean logistics.
The report includes key findings in multiple sectors, including US truckload, LTL, intermodal, flatbed and bulk, Mexico truckload, Canada truckload and LTL, and international ocean.
Capacity remains strong in the bulk tank truck market, according to the Transplace report, but partnerships are more critical, given the scarcity of specialized equipment and soft conditions, and a tale of two markets reigns—with essential vs. non-essential product flows creating uncertainty in Tier 1 supply chains.
Key factors impacting bulk supply include:
- Carriers continue to invest in retaining programs, coupled with pay increases
- Adding new drivers, overall, still very much a challenge
- Carriers are focused on balancing lanes, resulting in opportunities for lower line-haul rates
- Core asset-based carriers need a steady flow of orders to balance their lanes
“The first quarter of 2020, coupled with the last two quarters, experienced little change within the bulk tank truck mode except for the increased demand by customers producing products needed for high-demand coronavirus end products,” Transplace said.
The report also touches on year-over-year improvements in the bulk market, various regional impacts, and the current market update and outlook, which includes an expectation of ramped-up volumes from mid-May moving forward.
“Bulk tank truck conditions should experience an uptick as a result of the virus impact,” Transplace said.
The executive summary of the report is available here.
The Quarterly Update includes comprehensive data analytics and key performance indicators from the Transplace Transportation Management System. The quarterly report also contains logistics intelligence from the Transplace Control Tower, which 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. Learn more about Transplace’s services by visiting transplace.com/transplace-contact.