Hurricane Laura’s impact on the freight market will place greater strains on the spot market. The demand for trucks in the disaster areas will continue to have long lasting impact as infrastructure damage becomes clearer and historically truck capacity gets pushed into these areas for the relief efforts.
Trucks and trailers, whether temperature control for food runs or dry vans for quick shuttle runs for supplies and replenishment, historically these disaster areas absorb a lot of capacity for a very long time.
Residents in the disaster areas face the prospect of weeks without power or water as the clean-up begins following the devastating impact of Hurricane Laura. Things like bottled water, reserve food supplies for those in distress and the capacity to mange this is done while drivers, and their trailers wait for the authorities to begin organizing and executing the relief efforts.
As the transportation logistics industry steps up to help those in need with most truckers wanting to help and contribute where they are needed, we are facing greater and new natural disasters in 2020.
While mid September is normally the Hurricane and storm season, this year has become the battle the disaster year.
We are now having a major hurricane land fall among a market that is already extremely tight, we are also already in this natural disaster called COVID-19 pandemic that has created an environment with extremely high volume growth and spot rates at extremely high levels.
We will continue to monitor spot rates to know where the greatest impacts will be for both freight volumes and truck capacity.
Within the freight market freight volume continued to climb another week, positing a string of consecutive all-time highs for many weeks now. The breadth of the strength across the US, lanes and spot rates are all confirming the robust backdrop of the current market.
We continue to monitor consumer spending.
Among those previously who received unemployment insurance of an additional $600 per week that expired July 31 continues to signal warning signs and while the government seems to still be deciding on the extension of these benefits will mean spending among the lowest income groups not receiving extra benefits will fall.
However spend amongst the employed seems to be sufficient in offsetting the drag from the lower income households and so far seems to not have impacted the demand for products over services within the market continuing to boost freight volumes and place a heavy strain on truck capacity.
We continue to see high demand for trucks until the end of this year and we see this trend continuing even after going into mid 2021. Historically the freight market cycles are often short and violent in trucking, but for now the strength continues.
We thank you for your time and hope you found our text interesting and useful. Please note all of the above is based on our experience, research and opinions and should at no time be used or given as any form of business consulting.
We are here to help, Contact Us to tell us what freight we can help you move this week. As always we are here to help you move your freight.
If you have any further needs or requirements please contact us and we will do all what we can to serve you.
Have a great week, stay safe and thank you.
For more information contact Ash Ameri [email protected]