{"id":30266,"date":"2020-11-11T00:00:00","date_gmt":"2020-11-11T00:00:00","guid":{"rendered":"http:\/\/test.tranistics.com\/nvision\/2020\/11\/11\/reopening-businesses-drive-historic-demand-for-freight-2\/"},"modified":"2026-01-29T08:45:20","modified_gmt":"2026-01-29T08:45:20","slug":"reopening-businesses-drive-historic-demand-for-freight-2","status":"publish","type":"post","link":"http:\/\/test.tranistics.com\/nvision\/2020\/11\/11\/reopening-businesses-drive-historic-demand-for-freight-2\/","title":{"rendered":"Reopening Businesses Drive \u2018Historic Demand\u2019 for Freight"},"content":{"rendered":"

2020 has been a volatile year for freight. March and April saw historic drop-offs in freight volume and demand. Now, we\u2019re seeing the opposite as the freight industry rebounds in a major way. Data from Uber Freight is showing \u2018historic demand\u2019 as businesses reopen and demand for goods kicks up at the end of the third quarter. It\u2019s a trend that\u2019s likely to continue into a traditionally busy time of the year. The question is, can we truly anticipate the fourth quarter in a year that\u2019s proven unpredictable so far?<\/p>\n

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A Big-Time Bounce Back<\/h2>\n

According to Uber Freight\u2019s COVID-19 analysis<\/a>, \u201cvolume surged in essential goods while demand for nonessential freight drove down, disrupting supply chains and creating a rare imbalance in the marketplace<\/em>.\u201d Correlating to this, spot opportunities surged 250% in March before finally settling back to pre-COVID-19 levels in May, June, and July.<\/p>\n

But now, those figures are on the rise again. As the U.S. battles the third wave (or third ebb of the first wave), freight demands are surging again. Essential goods, ecommerce, and the inevitability of the holiday retail season are pushing spot prices and demand way up. And while trend charts show a brief recovery for freight, the reality could be promising long-term demand for freight growth.<\/p>\n

Better than Expected or Actually Good?<\/h2>\n

There\u2019s no discounting the snap-back of a freight industry brought to a near standstill by COVID-19 earlier in the year. The question is, is freight actually surging or just outperforming nihilist predictions? According to the data, it may be a case of both.<\/p>\n

The International Road Transport Union forecasted an 18% annual decline in road freight transport<\/a> in early June. As numbers come in better than expected, there\u2019s talk of finishing the year positive. This is further fueled by Uber Freight\u2019s own data, which shows rates climbing again, this time up 5% from August to September. The reason has much to do with and increasing shift to spot freight. Moreover, consumer spending actually increased<\/em> during the pandemic, aimed at online ordering \u2014 driving even more demand for freight. Against projected declines, these numbers continue to fan the hopes of a rapid recovery.<\/p>\n

Momentum to Surge into 2021<\/h2>\n

There\u2019s no getting around it: demand right now is historic. With more than one in four contracted loads rejected by carriers, spot prices are up a staggering 33% this year. Will this continue into 2021? Short of a crystal ball, it\u2019s hard to tell. Here\u2019s what analysts are predicting:<\/p>\n