Inventory replenishment boosts truckload demand
The surge in volume from replenishment activities continues to drive up demand, as reflected in load-to-truck ratios (LTRs) and rates. It will be important to study the impact this trend has when combined with an increase in imports, drayage, and inland movements, when backlogged freight begins to arrive in large volume from Southeast Asia. For now, however, this assessment has not changed materially from last week's report.
The current situation is extremely dynamic, with a global impact. Typically, such volatile conditions are disruptive within a defined geographic area, as in extreme weather events such as blizzards or hurricanes. The COVID-19 response and economic effects have upended entire populations and industries across the planet, with many reciprocal connections. The unprecedented nature of this situation makes it difficult to provide guidance beyond the very short term. Shippers, carriers, and brokers are strongly advised to refer to current, actionable data in support of transportation pricing decisions now, and to keep a close eye on broader market conditions for additional insight into trends that will emerge over the next 7 to 14 days.
What happens next? Due to the tremendous uncertainty, both in our own industry experience and in our predictive models, it's too early to make a confident prediction beyond the next 14 days. We will continue to monitor the situation and model the potential outcomes, issuing updates when new information becomes available.
Questions? Contact the DAT iQ data analytics team by email: email@example.com