After experiencing significant disruptions due to COVID-19-related shutdowns in March and April, Less-than-Truckload LTL carriers are beginning to see signs of recovery. The month of May brought an uptick in freight volumes, offering hope that the U.S. economy is starting to regain momentum as more businesses reopen and resume operations.
With the shutdowns mid-March through April, the LTL carriers are starting to see an improved demand in May. The month of April showed volumes for some trucking companies down by nearly 20 percent. The reported improved May numbers are showing signs that the US is starting to take positive steps toward economic recovery as some businesses are coming back online and operational.
April’s Steep Decline in Freight Volumes
According to the Journal of Commerce, discussions with investment analysts during April and May highlighted that the greatest drop in LTL freight volumes came from manufacturing-related cargo, which plummeted by 10% to 25% depending on the carrier and region.
Many manufacturers, particularly in industries like automotive, machinery, and construction, were forced to halt operations due to stay-at-home orders and supply chain disruptions. As a result, the industrial sector’s temporary pause significantly impacted freight movement across the country.
Per the Journal of Commerce’s discussions with investment analysts in April and May, the LTL trucking carriers advised the biggest drop in freight volumes came from manufacturing related cargo which ranged from 10 to 25 percent as the business closures and stay at home orders interrupted the industrial industry.
May Brings Modest Rebound and Optimism
The slight improvement in May volumes, while not a full recovery, is a positive sign. As phased reopening efforts expand across states and regions, freight demand is expected to continue climbing slowly. Many carriers are adjusting routes, streamlining operations, and managing resources to meet demand while adhering to safety protocols.
Some of the growth has been fueled by the recovery of regional distribution activity and increased movement of consumer goods, which has helped balance the ongoing softness in industrial freight.
Toward a Broader Logistics Recovery
The rebound in LTL is part of a larger, multi-modal recovery across the logistics industry. As the economy enters the next phases of reopening, we anticipate gradual improvement across all transportation modes—LTL, ocean freight, air cargo, and full truckload (FTL). Each plays a critical role in rebuilding supply chains that were stretched or stalled in the early weeks of the pandemic.
As we begin to move to the next phase of the re-opening process as outlined by our Pennsylvania governor, we hope these positive trends continue not only for the LTL carriers, but for the ocean and airline carriers as businesses begin to resume operations.
Jade International: Your Logistics Partner During Recovery
At Jade International, we are actively working with LTL carriers and other transportation providers to ensure that our clients’ supply chains remain flexible, informed, and resilient. Whether you’re adjusting shipment timelines, rerouting freight, or planning for new production launches, our team is here to support you.
