There were many new transportation updates in the shipping industry last month. Check out some of the top stories and transportation updates in April 2020!
Trending Transportation Updates: April 2020
Economy to reopen due to President Trump state-issued guidelines
On April 16, President Trump announced that lockdown measures will be loosening for businesses. The reopening of the U.S. economy will take place on a patchwork basis, meaning that each state governor will define the pace and timeline to take off restrictions. Governors can start getting the state’s economy back to normal on May 1, or earlier. Read more about the reopening plan here.
Oil prices go negative for the first time in history
Monday, April 21, was probably the worst day the oil market has ever seen. For the first time in history, oil prices went below $0 for barrel and kept falling negative. Such a crash is explained by a huge discrepancy between supply and demand. Due to reduced flights and road traffic, the demand for fuel and other oil products had drastically lowered, causing the market to collapse. Read more about oil prices fall-off here.
Truckload linehaul rates fall 9.2% last month
According to the Cass Freight Index, shipment volumes went down 9.2% since March, becoming the most substantial drop since the financial crisis in 2008. “This ends any chance of 2020 seeing year over year growth in domestic U.S. shipments and freight costs. This has quickly gone from a China production concern to a U.S. (and global) consumer spending problem. No business, no jobs, and no income for many leads to much less freight moving around,” David Ross, Stifel Financial equity research analyst, says. Read more about truckload rates here.
FMCSA expands emergency response further
As a response to the COVID-19 situation, FMCSA has issued an emergency declaration for all states, temporary relieving motor carriers, and drivers from Parts 390 through 399 of the Federal Motor Carrier Safety Regulations (FMCSR). The declaration was first released on March 13 and now was extended till May 15. According to an update that went into effect on April 8, drivers are not allowed to operate while fatigued or impaired and must continue to comply with state regulations regarding traffic violations and speeding. Read more about emergency response extension here.