As the COVID-19 pandemic continues, many companies are faced with looming uncertainties such as whether to stay open, how to keep their employees safe, and how will they keep their supply chain intact. While companies face these hurdles, trucking companies are facing the same and as more companies’ business slows, or halts, trucking companies are among the first to be impacted.
When COVID-19 was just starting to make an appearance back in March freight rates surged fueled by fears of the virus and the closure of truck stops would discourage long trips. However, as many businesses started to close the increase in rates did not last long. Many of the rates in the spot market have plummeted to the lowest in years because of the close downs that have left many truckers who rely on longer-term contracts searching for new cargo. With such a surge in available trucks rates are dropping below operating costs in many cases causing even bigger problems, especially for smaller trucking companies. Many are worried that if things do not turn around soon these smaller carriers will be forced to close their doors pushing skilled drivers out of work and contributing to the long-term shortage of drivers. While many may see this surge of drivers as an asset to the companies that are still trying to maintain their supply chains it seems to have the opposite effect as many drivers are “sitting out” on loads due to high costs.
Now that businesses are starting to reopen again COVID-19 still poses a threat. Drivers have a higher than average age and many are riddled with pre-existing conditions. These factors put them at a higher risk to contract COVID-19. In order to help combat the higher risk that drivers face there have been extra safety precautions put into place by many fleets, as well as the businesses drivers are delivering to. While these safety precautions are meant to help, they have only been adding additional issues. Wait times at pick up and delivery points have been increased due to the new safety procedures and confusion that comes along with these, as well as due to a lack of on-site personnel. If there is a case of exposure the drivers are many times expected to self-quarantine in their trucks, putting not only themselves out of commission but also their machinery. There have been reports of drivers not wanting to pick up or deliver into COVID-19 hot spots causing back up and congestion in terminals. Business closures are also causing a problem as their material doesn’t have any place to go creating even more confusion and congestion in terminals.
ChemCeed has been experiencing many of these problems ourselves with freight. The operations department has seen long transit times, missed pick ups and deliveries, and shipments that are being pushed to the side because of driver shortages. In order to help alleviate some of these problems, customers are being urged to place their orders as much in advance as possible and other freight options are being explored. The pandemic may not be coming to an end soon, but many truckers are doing their best to keep things moving and it is up to us to do our best to assist in any way possible.