Why Ground Transit Has Never Been More Important
Prior to the coronavirus outbreak, supply chains spanned the globe, interconnecting countless suppliers and customers. From air cargo to trucking, businesses relied on a variety of ways to ship goods and meet customer needs in a world where on-demand is king.
But in the wake of the pandemic, logistics is getting a shakeup. Global air cargo has dropped 35% from last year, and that double-digit dip in air cargo capacity has caused airfreight prices to skyrocket. This unprecedented situation is causing massive disruptions for supply chains across the country – forcing many of them to rely more heavily on ground transit.
Truckers are still moving
Trucking rates have increased in some markets during the pandemic, with much higher demand for “immediate freight” requests. Rates are going up in response: Between February and April 2020, we’ve seen the average price to hire a truck on the spot increase. Additionally, truckers are now seeing lower fuel prices and regulatory relief from the U.S. Department of Transportation, and are feeling the benefits of those factors.
Even before the current crisis, ground transit was gaining speed. The American Trucking Association reported that the February 2020 for-hire truck tonnage index was up 2.6% from 2019. In 2017 alone, the U.S. spent $21 billion and transported 2,326 billion ton-kilometers in domestic transportation, and truckload growth had been originally predicted to grow 2% annually through 2022.
The bottom line? Ground transit is a critical component of the supply chain, and its importance only continues to grow. While the pandemic will certainly shift these predictions, it’s clear that the U.S.’ long-term reliance on trucking will remain strong.
A strategic partner you can trust
As a shipper, having a reliable resource for ground shipping needs has never been more important. Both the current climate and pre-existing logistics trends highlight why it’s essential for businesses to form strong relationships with the right logistics partners. At Circle Logistics, we help you meet shifting needs as they arise through:
- A large, well developed coast-to-coast carrier network to ensure the best capacity and competitive rates
- Industry leading technology that allows you to check on loads in real-time, helping organizations like the Federal Emergency Management Agency deliver critical goods on time during the crisis
- Dedicated representatives standing by to help you with any questions you have along the way
The COVID-19 pandemic has seriously shifted supply chains and put ground transit squarely in the spotlight. While sectors like airfreight figure out how to overcome mounting costs and regulations, for-hire trucking is here to keep things moving. Circle is ready to help you manage your shipments during a tumultuous time and keep your operations running smoothly.