Schneider acquired Wisconsin-based carrier deBoer Transportation

Image of DeBoer truck.

What's going on in the market?

In this report, you will see a continued softness in transportation market volumes and market tender rejects. 2021 was an unprecedented year in demand, and current volumes are still significantly higher than 2020 and 2019.

In addition to what has been going on in China, we’ve noticed that Morgan Stanley has been providing interesting analysis. Read on for more information.

In the news: COVID-19 restrictions begin to loosen in China

Restrictions have recently begun to loosen after about two months for Shanghai, and about a month for Beijing city.

After the latest Covid outbreak, both Shanghai and Beijing require a valid negative virus test in order to enter public areas. In Beijing, test results are only valid for 48 hours, while Shanghai said beginning Wednesday, test results will be valid for 72 hours. 

Graph of new reported COVID-19 cases.

It remains unclear how quickly most businesses will be able to resume normal production as implementation of Covid measures can vary at a neighborhood level. Any new confirmed Covid cases or contacts with one can result in renewed tightening. 

Yard full of port containers.

In the news: Shanghai Supply Chain Gradually Eases, But Hurdles Remain

The situation in Shanghai — the site of the world’s largest port — is being followed closely after a two-month lockdown impacted supply chains both within China and globally as it shut down factories and caused a massive drop in truck traffic. The city is now officially out of lockdown, yet it will take a long time for production and trade to recover completely.

Recent Morgan Stanley Analysis of what’s going on in the market: 5/26/22 and 6/8/22

The TLFI from the week of 5/11/22 may have benefited from CVSA Roadcheck last month, which historically has created additional tightness in the market as widespread inspections remove out-of-service vehicles from the road.

We continue to believe that exogenous factors such as the China COVID lockdowns may have created a transitory "air pocket“ and that the TL market could see some relief as these factors resolve. We will continue to monitor the index closely in the coming weeks.

Morgan Stanley Dry Van Only Truckload Freight Index

Reminder from Schneider: Though we see a softening in the data, don’t forget that typical Peak and Hurricane Seasons are soon coming, and still need to be planned for.

Schneider highlights progress on key environmental and social initiatives in second annual Corporate Responsibility Report

Picture of a female truck driver in front of a truck.

Update for Port Shippers: West coast port labor union contracts to expire July 1, 2022

The current contract, which covers the International Longshore and Warehouse Union’s more than 22,000 workers at the 29 ports dotting the Pacific coast of the U.S., is set to expire July 1. 

Elevated view of the Louisiana port.

Past contract talks have run beyond the expiration date and led to major disruptions to port operations, as workers and shipping companies, represented at the table and the West Coast docks by the Pacific Maritime Association, agitated for a better deal.

Schneider's advice for Port shippers: Now is the time to put contingency and port diversification plans in place.

How?

  • Shifting/multi-port and distribution strategies to reduce your risk.
  • Maintain strategic business relationships with providers who can help your supply chain stay nimble through the utilization of new strategies and ideas -- “don’t fear failure.”
  • Be willing to try new strategies and take calculated risks.  shifting/multi-port and distribution strategies to reduce your risk.
  • Are you looking at ways to optimize your port strategy? Utilizing pop up DC’s? Bypassing DC/s? Utilizing Schneider Capacity Stacking℠?

In the news: Trucking jobs climb to ‘an incredibly strong number’ in May

The most recent employment report data from the Bureau of Statistics shows that the industry continues to add jobs in both truck transportation and warehousing.  

For May, the number of jobs added was 13,300, bringing the total up to 1,581,300 jobs. That continues the run of record-high levels of employment in the truck transportation sector. 

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Have sustainability goals?

You need to attend this upcoming event. Transportation Sustainability Summit: July 26 – 27, 2022

Truck icon with photo of Long Beach.

In the news: Congress keeps supply chain, FY23 bills on summer agenda

Enhancing connectivity along freight supply chains and considering fiscal 2023 funding legislation will dominate transportation policy debates with Congress this summer. 

Library of Congress.

The chief negotiators of legislation meant to alleviate bottlenecks at commercial ports, as well as boost domestic manufacturing of semiconductors, plan to resume talks this month. Policymakers are aiming to arrive at a final version of a comprehensive package, which proponents refer to as the bipartisan innovation bill. 

Provisions expected for approval would dedicate more than $50 billion for the domestic semiconductor chips sector, as well as update certain operations at the Federal Maritime Commission. 

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Federal Motor Carrier Safety Administration National Emergency Declaration

The Emergency Declaration was issued following the declaration of a national emergency by the President in response to the Coronavirus Disease 2019 (COVID-19). Regulatory relief is provided for commercial motor vehicle operations providing direct assistance in support of emergency relief efforts related to COVID-19.

The Emergency Declaration has been extended multiple times. The June 1, 2022 update shall remain in effect until August 31, 2022, unless modified or terminated sooner by FMCSA.

The Emergency Declaration is limited to transportation of:

  1. Livestock and livestock feed.
  2. Medical supplies and equipment related to the testing, diagnosis and treatment of COVID-19.
  3. Vaccines, constituent products, and medical supplies and equipment including ancillary supplies/kits for the administration of vaccines, related to the prevention of COVID-19.
  4. Supplies and equipment necessary for community safety, sanitation, and prevention of community transmission of COVID-19 such as masks, gloves, hand sanitizer, soap and disinfectants.
  5. Food, paper products and other groceries for emergency restocking of distribution centers or stores.

Direct assistance does not include routine commercial deliveries, including mixed loads with a nominal quantity of qualifying emergency relief added to obtain the benefits of this emergency declaration.

See the full Emergency Declaration, Restrictions, and Limitations on the FMCSA website.

Schneider is committed to following the FMCSA Emergency Declaration while maintaining our #1 Core Value of safety among our drivers and associates.

COVID-19 – Actions to maintain safety among drivers and customers

We continue to closely monitor information related to the COVID-19 outbreak and – as always – our priority is to protect the health and safety of our associates, our drivers, our customers, and the general public. Our crisis management team is continually monitoring the situation and is taking steps to ensure the wellness and safety of our associates.

Recognizing that our drivers are the backbone of our business, we are in regular communication through our driver support teams to ensure that they are well informed as to the environment they are operating in. Their safety and wellness are a top priority.

Your business is very important to us and we are happy to answer more questions related to specific worksites or regions should you have them.

For the latest information on COVID-19, please visit the Centers for Disease Control and Prevention’s website.

Our associates and transportation experts are available to help with supply chain strategy and shipping needs to respond to the pandemic. You can count on Schneider to provide your business with the same exceptional service and timely support we’ve provided shippers for 85+ years.

More valuable supply chain and logistics news

Published May 2022

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