August 2020 is a unique time for us all and the same can be said for the logistics field! Check out these industry updates brought to you by Rockfarm Supply Chain Solutions here.
July headlines brought us a number of carrier earning reports showcasing overall positive news as publicly held carriers weathered the shutdowns during the pandemic. The overall consensus was lower profits on lower revenues posted by publicly held carriers. The clear winner during the pandemic was Amazon which exceeded analyst forecasts. Online shopping became the norm for many consumers during the pandemic, which also ignited capacity challenges for Amazon as well as other delivery services.
The largest trucking bankruptcies were Falcon Transport and the recent Comcar Industries Chapter 7 filing. Falcon’s shutdown at the end of April put an end to 117 years of freight hauling when 585 drivers and 723
trucks were taken off the road. As the pandemic took hold throughout May and into June, midsize to smaller carrier bankruptcy filings have increased. Fairfield Trucking, Ease In On Trucking, Deluxe Express, Alec Transport and Park Transportation to name the latest bankruptcy filings.
Looking ahead, smaller carriers will remain the challenge. The $7.6 billion in PPP loans to trucking companies has a timetable and if the economy and rates are not enough to keep carriers driving forward, we will see smaller carriers challenged to stay in business. The sense is that the PPP Loans kept carrier capacity available in June, however it did not lead to midsize and larger carriers adding capacity. Carriers in solid financial standing will be riding out the next year or two as we get settled into whatever the “new normal” may be like with or without restrictions. The challenge for shippers has begun.
To learn more about current trends in the world of logistics, download the full August 2020 edition of the Supply Chain Digest below.
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