Get a FREE Quote
Facebook Twitter Pinterest Bing Google Plus

Trucking Rally Imminent? Some Experts Think So, From COVID-19

October 9, 2020

Trucking Rally

Carriers are coming after concerns that the COVID-19 Pandemic has really sucked money up from the industry in almost invariable ways. A Trucking Rally among all this is possible. While third-quarter earnings have been strong for a bit, and the strength has been headstrong for a while, the second-quarter has showed lower expectations. The impact of COVID-19 has been evident in many financial reports.


And after there was a short inventory restocking rally in March, demand in trucking fell lower and lower as manufacturers locked out and muncipial shutdown ordinances became more widespread than a fire in the woods.


Analysts have seen to it that earnings estimates would keep up, but this semi-semi-truck business improvement is still reason for alarm. Here are some reasons why.


The Trucking Rally Would Only Demand More Money For More Work

Various Carrier Management Teams say that the relative demand is outperforming. There’s an incremental demand that increases with every day showing more and more progress.


Many headwinds are facing full capacity when it comes to truck size. With a super saturated market and more inflation in costs than ever before, there’s a jump in premiums that lead to way more carrier bakruptcies and less new truck orders. This was mainly evident in 2019.


They’ve been improving, that’s for sure. At first glance, some folks don’t see it that way because they aren’t keeping pace with it and banks are tightening lending requirements for other carriers. Net Class 8 truck orders have been steadily faltering. This is the third time since December that this has happened.


So with morale kind of up in the air, maybe this is exactly what we need. A coming-together of people to rally in the troops from war. What more could you ask for? World peace? Free tickets to see The Beatles resurrected? Lemonade?

Leave a Reply

*

*

*

*