Industry Update - June 2, 2020
DOT to Distribute 2.1 Million Masks to Truckers
The U.S. Department of Transportation will distribute around 2.1 million face masks to truck drivers. This is part of a larger initiative to distribute masks to transportation workers across the country. “Transportation workers are on the frontlines of keeping our transportation systems operational during this public health emergency and their wellbeing and safety is paramount,” said Transportation Secretary Elaine Chao. DOT announced that the masks will be sent out over the coming weeks through the U.S. Postal Service. The breakdown of masks by transportation sector is as follows:- Mass transit and passenger rail – 4.8 million
- Aviation – 3.8 million
- Maritime – 2.4 million
- Freight rail – 2.2 million
- Highway and motor carrier – 2.1 million
- Pipeline systems – 258,000
Volumes Now Up 10% vs Last Year
Outbound tender volumes are benefiting greatly from the reopening of the economy and a release of pent-up consumer demand. Supply dynamics are taking longer to adjust and capacity remains loose. While rates are coming off a depressed base, spot rates have surged to $1.47 per mile and have increased in the vast majority of lanes. Volumes should continue to be supported by most of the states reopening, continued plugging of the income gap by generous unemployment benefits and stimulus, auto plants reopening, and produce seasons kicking into gear.
