Spot rates rebound to 2019 levels
As we wrap up the month of May and roll into June, it becomes much more evident that the freight markets are soundly in recovery mode. Most of our key indicators are tracking towards 2019 levels and testing where they sat before COVID-19 hit the U.S. If you’re searching for a silver lining in all of this, we would offer up the seasonal timing as good example. Had the country exited the aggressive social distancing measures earlier in the winter or later in the summer, the seasonal boost we are seeing now wouldn’t exist and many carriers may not have been able to weather the one-two punch of COVID-19 and the seasonal slowdown.
Even though we are seeing more optimism in the data, there is still a fair bit of reality to keep the market grounded. Simply clawing back to 2019 levels shouldn’t come as a thunderous victory. Last year was by no means a great year for the freight markets, and a lot of hopes and financial forecasts were predicated on 2020 being a rally year for rates and volumes. At DAT, we are beginning to turn our focus to the longer-term impacts of COVID-19 and what the markets will experience after the seasonal shipping boom and beyond.
Last Update: May 28, 2020