On April 21st, the leadership team at U.S. Xpress released a forecast exploring the potential impact of COVID-19 on freight markets, truckload capacity, and the overall economy. Our initial forecast took the position that the pandemic had the potential to cull truckload capacity unlike any event in recent memory. Over the past several weeks, additional data points have been brought to light which reinforce our earlier viewpoint regarding the impact of COVID-19 on the freight market as well as the economy in the broad. Consequently, U.S. Xpress released a June 10th forecast update discussing those trends.
We agree with those who predict a slow-but-potent recovery for the remainder of the year – something that lays the foundation for unbridled growth in 2021. However, we also believe even the steadiest recovery will have stark ripple effects for shippers and carriers alike. Just as in our prior forecast, we expect to see a fair amount of capacity come out over the next couple of quarters. Moreover, we do believe that notwithstanding any flare-ups of cases and hospitalizations, Q3 of 2020 will usher in a sense of relief and resolve as the country focuses on recovery – confident the worst very well may have passed.