Here at the QuickTSI blog, we pride ourselves on providing first-class information that truckers, trucking companies, industry insiders, and industry advocates would find timely and useful. That’s why we wanted to produce a special report on trucking during COVID-19. How has the industry changed and adapted to these new times we all live in and what can it do to ensure continued progress for the industry? Let’s take a closer look.
How Did We Get Here?
We all remember it well. It seemed to come on almost in a slow creep before it hit full force in March. First, there was a container-shipping disruption in China, then the news picked up and next thing you know countries were going into lockdown. A declaration of national emergency in the U.S. followed not long after.
Those in the transportation sector knew this was going to be a big deal. The world had not seen global disruption of this scale since World War II. The hits to businesses were unprecedented. As toilet paper flew off grocery store shelves, the world contracted in several ways. Trucking companies of all sizes all over the globe would be impacted.
Fortunately for some, business picked up as people rushed the stores. Obviously, there were major supply chain problems, but by the beginning of April the big panic was tapering off. There was chaos in the markets as some fleets thrived, but many, many more dried up and went bankrupt. Business evaporated overnight for thousands of businesses.
Many companies tried to furlough their workers, took advantage of government stimulus, and parked their trucks. But as time has worn on and uneven lockdowns have disrupted local and regional markets, companies simply went out of business. Those that were able to stay in service had to make big changes as they adapted to the new reality.
Focusing on Protection
As the COVID-19 pandemic unfolded across the United States, trucking and transportation companies made big shifts into protecting their employees. Still, it wasn’t easy. The virus was not well understood in the pandemic’s outset.
Fleets had to make quick adjustments as medical advice changed almost by the day. Whether it be the best use of sanitizing wipes, face masks, or hand sanitizer, the goal posts shifted. It did not help that during the midst of the pandemic, from April through October, guidelines from the federal government and CDC shifted or were unclear.
Still, motor carriers took concrete steps to protect their people and their businesses. Some of the most common steps trucking companies have taken include:
- Consistent training and communication around pandemic best practices.
- Thorough facility sanitization programs.
- Gloves, masks, and sanitizer provided to truck drivers and staff.
- Hand sanitizer stations throughout facilities.
- Increased staff working from home.
- Facilities closures.
Many companies have reported adopting measures to decrease in-person contacts and touch points between coworkers. Others are adopting technologies and methodologies for creating better communication over the air. The fact is most trucking companies understand that truck drivers are front line workers in the pandemic.
Problems Drivers Face
Truck drivers must deal with major on-the-job adversity during COVID-19. Not only that, but many truckers also face long wait times at shipping and receiving terminals, they must get temperature checks, and in many cases fill out health questionnaires. The requirements, though necessary, can be onerous. In some cases, truck drivers have been prevented from using on-site restrooms.
Other issues include ones of comfort as well. Consider how many states and local municipalities have been shutting down restaurants, which leaves long-haul truck drivers with few options outside of prepackaged and unhealthy foods or some food locations that do curbside pickup. Others even used apps like DoorDash to have deliveries made straight to their trucks.
We have even seen some franchise restaurants with truck parking access offer deliveries to truck drivers who can’t get through a drive thru. We have also seen municipalities, local groups, associations, and law enforcement groups organize trucker meal drives.
There have also been questions surrounding what to do if a truck driver gets COVID while on the road. According to some recent industry surveys, when asked if someone at their company had tested positive for COVID-19, only 3% said yes. Another 7% said they were not sure or that tests were not available. 10% said they could not release that information and 82% said that no one at their facility tested positive.
Many trucking companies report that there simply is no one-size-fits all way to address every situation that everyone faces in their company, whether it be truck drivers, back office workers, or anyone else. While fleet managers can do their best to plan for any situation, problems arise that many are not prepared for. If a truck driver does have symptoms, many just help them get tested, find medical care, and quarantine at home or on the road.
Some fleets are even offering additional financial benefits and healthcare help for truck drivers who come down with COVID. While these efforts are not consistent across the industry, many trucking and transportation operators are stepping up their efforts to help the most vulnerable in their operation. Some fleets have even introduced hazard pay for their truck drivers.
With truck drivers being treated as heroes during the pandemic, by both news outlets and local officials, there has been an increased spotlight on these individuals. At one point, even President Trump staged a photo op on the White House Lawn with a caption “Thank God for truckers.”
Protecting Non-Driving Employees
Obviously, trucking companies must also address protecting their back office and non-driving staff. Many fleets simply sent a lot of their employees home to work remotely. In fact, many fleets have decided not to bring them back into the office. Still, not every non-driving employee can work from home.
Shop technicians, for example, must continue to work from their home base regardless of the situation. In many cases, shop managers have had to shift scheduling and ensure technicians remain in isolation so that preventative maintenance intervals don’t lapse. It certainly has been an adjustment for technicians to complete maintenance on their vehicles.
Because shops have had to change their utilization schedules, tractors and trailers simply aren’t receiving the on-schedule maintenance they are used to. For many fleets, shop efficiency has dropped considerably. And this during a time when truckers are needed more than ever. The problem is that technicians and truck drivers now need to spend more time disinfecting the vehicles, sanitizing equipment, washing hands, and changing their gloves.
There has also been an ongoing discussion regarding best practices for disinfecting trucks. A lot of trucking companies run slip-seating operations. And while many fleets suspended those operations, others have been innovating how to keep individual truck drivers safe and the trucks sanitized and clean.
But even with all the measures trucking companies have taken, there have been catastrophic consequences for trucking businesses during the pandemic. They are impacted in more ways than we can count.
Chaos in Transportation
There has been a lot of fluctuation and market chaos in the transportation sector. Freight rates have been all over the places, which is a direct result of the chaos imposed on the markets through the pandemic.
The American Transportation Research Institute (ATRI) put some numbers together using real-time GPS data to evaluate trucking activity across six states between February 9 and April 18. The study as designed to give a clear snapshot on how the initial months of the pandemic impacted the trucking industry.
The data showed that from February into March, there was a big burst in trucking activity as high demand items such as non-perishable foods and paper products flew off the shelves. Emergency medical supplies then filled the gap when grocery items were depleted. Then, in late-April, stay-at-home orders in many states resulted in a decline in trucking operations.
In fact, more than 60% of the fleets surveyed between the end of March and second week of April saw a decline in their volume of business. Only 21% of trucking companies stated they had seen an increase in volume. Even more interesting, 18% said that the pandemic had no impact on their business. Finally, 8% did not know or weren’t sure.
Obviously, the amount of available freight has plummeted, which is going to have an impact. Join us in Part II of our special report when we dig further into the decline in rates and how trucking companies are innovating in the face of this ongoing pandemic.