The Weekly Freight Report for April 8, 2020
The Top 7 Stories in Freight
Supply chain life post COVID-19… the panic purchasing bell curve… and a gloomy forecast for trucking futures. Get caught up with the Weekly Freight Report:
1. Supply Chain Pros Struggle to Meet Public Demand
It’s known as the bullwhip effect. It happens when retailers are rapidly met with increased demand and it ripples to suppliers. And due to panic purchasing it’s happening right now… except experts are calling it “the bullwhip on crack.” Supply chain pros are under tremendous pressure to restock shelves and reinstall confidence in the market. And if they do it right… demand will collapse. If not… shortages will prevail and the panic will continue. Get the details here.
2. Outbreak Pushes Supply Chain to Source Domestically
New studies show that supply chain pros are pivoting in the face of COVID-19. How? By sourcing more of their product regionally instead of abroad. And with the new shift proving positive results… experts predict this new trend is here to stay. Check it out.
3. Panic-Buying Peak is Behind Us
Outbound tenders are down nearly 13% and consumer spending has decreased by 30%. It’s safe to say panic-buying volumes are dying off as fast as they came. Overall grocery demand should remain high… but overall volumes are expected to plummet in April. But capacity is still tight… for now. It isn’t expected to last much longer. Get the full update here.
4. Trucker Appreciation Takes on a New Form Due to COVID-19
Because of the pandemic, the masses are recognizing the significance of drivers for the first time. But will they be recognized during the next disaster… when there is a flood…or tornado? Carriers say… yes. The outpour of support has meant the world to them. And they anticipate this crisis will bring new light to their industry for good. Check it out.
5. Global Supply Chains Will Pivot to Survive
The global supply chain will survive the outbreak… but not without answering the main question- where do we go from here? From dual sourcing, risk assessment and scenario planning… experts anticipate strategy changes are coming fast. Here’s how some shippers plan to mitigate future disruption… check it out.
6. Driver Efficiency Plummets in March
March volumes were up, but driving time was down. The question is, why? Volumes jumped dramatically due to panic-buying. Unprepared infrastructures led to labor shortages… causing increased wait for drivers. It was the perfect storm. Get the full story here.
7. ATA Says Q2 for Trucking is Looking Ugly
The ATA’s Chief Economist Bob Costello warns of the ugly road ahead for truckers and shippers. He predicts many trucking companies won’t recover from the recession caused by the pandemic. And once it’s over, capacity will be back to 2014 tightness. Get Costello’s full analysis here.
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