In a special report and survey on small business from the U.S. Chamber of Commerce, nearly one in four small businesses (24%) say they are at risk of permanently closing if the shutdown continues for two more months. More than one in 10 (11%) small businesses note that they will not be able to last one more month. And finally, 43% say they have less than six months before they will have to permanently close. Twenty-four percent of small businesses are already temporarily shut down due to COVID-19, while another 40% report it is likely that they will do so in the next two weeks. This means that a total of 54% of small businesses will be temporarily closed and not moving freight within two weeks.
I work in the transportation industry - this is no joke and real statistics UNLIKE the number infected or killed in this pandemic.
Right now the amount of freight in the system is LESS then 2018 which was a good year for freight. Think about how much our population and economy has grown in 2 years. We're back below that inside of 3 weeks. At this time in 2018, 24-26% of all offers to a carrier were flat rejected on a contract basis because the spot market paid so much better. Looking at 8% right now - mostly because Brokers have added a 15% "CV19 uncertainty surcharge" to their quotes and will ride that to the end. Transportation companies laying off double digit percentages of their people, rest taking hair cuts - because the freight isn't there. No freight - no economy. No Jobs.
40% of all freight in this country is CV19 resilient - consumer products, medical supplies and the like. 60% is what would be considered "non-essential" and that my friends is a HUGE chunk of our consumer economy and it really does affect those people with jobs that depend on it. Which is more than just a few.
I bring up transportation because we see a recovery before everyone else - same with a recession. Right now - freight levels and rates are scary.
On average - it costs almost 1.40 a mile to run a truck. (varies from niche to niche/region and size) There's so many trucks right now fighting over little freight - .80 cents a mile rates are being offered and taken by carriers to keep revenue moving and get guys some sort of paycheck. Same lanes 2 weeks ago were over 2.60 a mile and you were lucky to find a truck - so much freight moving.
