The Trucking Industry Shows Signs of Quick Recovery

aerial view of colorful freight trucks in a parking lot

Early in 2020, the global pandemic put many carriers out of business or delayed supply chain network processes to reduce the spread of the illness. While many transportation companies and carriers suffered at the sudden shift of protocols, the trucking industry has managed to stay afloat. It is also anticipated to make a quick recovery.

Discover the impact that COVID-19 has on the trucking industry and the signs that are showing a positive and swift recovery.

Pandemic Aftermath

During the second quarter of this year, the number of carriers fell due to the pandemic. The safety regulations put a restriction on transportation and made the industry stagnant. This affected carriers at the beginning of the pandemic forcing many businesses to shut down, thus eliminating jobs. At the time, the unemployment rate skyrocketed in the United States for industries all over. However, over several months the unemployment rate has gone down. As of August 2020, approximately 1,386,000 people in the trucking industry reported that they were still unemployed.

Driver Demand

Despite the decrease in turnover, the trucking industry is recovering quicker than the rest of the economy, causing the demand for drivers to increase. To meet this demand, companies have resorted to adding more benefits to their pay packages. Additionally, companies have increased incentives like signup bonuses to attract more drivers. With more jobs opening up and better benefits, driver demand is showing to be a good sign that the industry is improving.

Industry Recovery

The trucking industry suffered immensely at the height of the pandemic but was able to stabilize towards the end of the second quarter. The ease of restrictions made it possible for carriers to begin moving again, which has helped the industry bounce back. This is helped in part by the goods-producing sector, which continues to distribute goods in the enduring pandemic. However, the service sector continues to suffer as the demand for services remains low. The trucking industry shows positive growth with a quick and progressive recovery overall. 

 

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