Welcome back to Part II of our special report on tucking during COVID-19. We have been taking an in-depth look at how the pandemic has impacted the transportation sector and trucking companies. Today we are going to jump back in where we left off, which was in a discussion surrounding how the virus has caused chaos in the market and disrupted rates. Let’s get right to it!
Rate Impacts Across the Board
By the end of April, spot market rates across the United States had dropped so much that some loads would cost more than what it would cost for the truck drivers to haul them. We would end up seeing truckers demonstrating in Texas and California, but what were they demonstrating against? At the time, many truckers were pointing the finger at brokers.
Yet, the story remains that the pandemic caused widescale disruption that impacted markets and operators all over the transportation spectrum. While trucking companies reeled from the drastic decline in rates, prices fell on most major lanes. As demand for truckload shipments fell, pricing fluctuations stunned the market.
Then, as April ended, states began cautiously reopening and spot load-posting volume increased by just over 6% as we moved into May. This came as Texas, Ohio, Georgia, and other states begin to ease up on their lockdown orders and reopen their economies.
Contract Carriers Get Slammed
But even with these moves, truckload volumes would remain well below their seasonal levels, whether in terms of loads offered or loads moved. As a result, spot rates would continue to fall into dangerously low territory for owner-operators and small carriers. There must be an increase in volume to see these operators succeed.
Since larger trucking companies rely on contract freight, which is far less volatile, many were still hiring truck drivers and operating with little disruption. Obviously, they had to make some changes to their hiring practices to account for a global pandemic, but activity continued apace at many large, legacy carriers.
However, some contract carriers would end up getting slammed as the number of available loads dropped precipitously. This would wind up forcing established carriers either out of business or into the chaotic spot market. As trucking companies accepted low rates just to get the truck moving, pricing pressure continued to shift downward.
Many of the fleets who serve industries such as events, food service, and some types of manufacturing have seen their contracts completely dry up, which has led to more furloughs and temporary – and in some cases – permanent shut downs. In other cases, executives at larger trucking companies have taken pay cuts or dipped into government loans.
Fortunately, as trucking companies do everything they can to navigate through this crisis, they are making big changes that could have long-lasting impacts on the industry, long after the pandemic has receded.
Human Resources Innovations
If there is one department that has had to brace itself for changes and impacts resulting from the COVID-19 pandemic, it is human resources. HR departments need to take responsible steps to prevent the spread of the virus at their companies, but how do they do that?
Before HR deals with the virus itself, they need to conduct virtual walkthroughs of the business to see how the team can make concrete steps to reduce the possible spread of the disease. Are there opportunities where HR can reduce the spread of the virus across the fleet? To ensure proper planning, trucking companies must be constantly reevaluating the guidelines.
As CDC and HHS guidelines change, trucking companies must be aware of what the new rules are. As the medical community learns more about the COVID-19 virus and how it operates, guidelines will change. For example, it used to be that the CDC defined as being within 6 feet of an infected individual for 15 minutes. Now that guidance has changed.
New CDC guidance states that someone could be infected if they are within 6 feet of an infected person for a cumulative total of 15 minutes or more over a 24-hour period starting from two days before illness onset (or, for asymptomatic patients, two days prior to test specimen collection) until the time the patient is isolated.
Knowing changes like these the moment they come out helps trucking companies keep their employees safe. It will be important to stay up to date on new government guidelines and look up latest updates in your community on a near-daily basis.
Keeping Your People Informed
There is one way to ensure you can keep your employees healthy – through consistent health questionnaire. Fleet employees should be filling out health questionnaires every day and they should be including close contacts. Employees must also follow consistent CDC guidelines. Mask guidelines must be kept up to date depending on the latest guidance.
There are some CDC guidelines that are more important than others. For instance, the temperature threshold of 100.4 degrees for sending home an employee, are flexible depending on state orders or statutes. For instance, in some states the threshold has been lowered to 99.5 degrees. In addition to temperature, you want to pay attention for chills, fever, cough, loss of smell or taste, a heavy dry cough, or ongoing shortness of breath. These symptoms put together could point to a COVID diagnosis.
Another thing that is important to not rely on rapid COVID tests, simply because they are not the most reliable testing option. Although someone might test as negative today, they could wind up positive tomorrow. Unfortunately, the lack of consistent countrywide testing regulations ensures problems in the chain. Speaking of that, what should you do if you have a positive test outcome?
If you have an employee who tests positive, you want to first respond with sympathy and compassion. Make sure you are offering them support and empathy for their situation. You also want to thank them for getting you involved and being honest with you about their diagnosis. Coming to you early allows you to conduct proper contact tracing and reduce the risk of exposure for the rest of your fleet.
When the time comes for you to conduct that contact tracing, make sure you keep the identity of the employee involved strictly confidential. And when it comes to how long an employee should quarantine if they are positive, think 14 days.
Final Thoughts on COVID-19
It is a fact that the COVID-19 pandemic has changed the way we live our lives. From home life to our social life and work lives, no part of humanity has been unaffected. The way the novel coronavirus spread around the world has demonstrated the importance of essential workers, which include our nation’s truck drivers.
For trucking companies and truck drivers, adaptations have been made. As motor carriers and other companies in the transportation sector adapts, organizations will need to be truly proactive by helping their people manage stress, stay healthy, get good sleep, and manage their diets. Keeping a strong immune system and staying healthy is more important now during the time of COVID.
Truck drivers still struggle with challenges on multiple fronts. Whether it be the lower freight demands or chaotic spot markets or the health risks to them or their families, U.S. truckers have a lot on their minds these days.
In the end, you have got to keep both your workforce and your business healthy. When you make investments into the health and well being of your workforce, you will see improvements in the bottom line, whether it be through productivity increases or otherwise.
Smart fleets will spend time creating stress management and resilience training programs. Additional communication and soft skills training for staff on things like emotional intelligence not only helps your people feel better but it has noticeable impacts on motivation. Investing in programs like these have a positive impact on staff.
While many experts believe life will never be the same, others are more optimistic. Certainly, in the trucking sector, long term changes have already been implemented. Fortunately, smart trucking companies can get ahead of it. Of course, there is still a lot of uncertainty around COVID-19, but the transportation sector is vital and resilient. We will get through this!