Businesses large and small have felt the symptoms of COVID-19. While many industries braced for the economic impact of the pandemic, the freight industry witnessed firsthand what a full or partial lockdown can do to a volatile economy. From customers to suppliers, the shock waves were felt just about in every business.

Gagandeep Baidwan of Plano, Texas, is the owner of a freight company. He has been self-employed for a number of years. He feels the industry has changed a lot due to the Department of Transportation’s regulations, the use of electronic logs, and the higher costs of doing business. This includes the cost of diesel, insurance, the taxes to drive in different states, in addition to the maintenance and repair costs to keep the trucks running. It’s no wonder then that when the pandemic hit, the freight industry had to undergo various operational changes to weather the storm.

Challenges Facing the Freight Industry

Even before COVID-19, the freight industry was already struggling both locally and across the world. Trucking companies were the first to feel the effects of the lockdown implemented in March 2020. Recent statistics analyzing transportation data from the first three months after the lockdown show a drop in transportation activity across the United States. Some federal regions were operating at 66% of their normal activity at the peak of the health crisis.

The decline in economic activities hit many industries as the GDP shrank by 1.2% in the first quarter of the year, and unemployment hit the 14.7% mark for the first time in decades. While many industries benefited from the economic-policy countermeasures introduced by the federal government, the freight industry was for the most part left to fend for itself, says Gagandeep Baidwan. It’s true the trucking industry saw an uptick in volume due to the panic purchasing. However, that volume dropped sharply in the third quarter of the year.

Changes in Freight Operations Under COVID-19

In these turbulent times, with customer demand in disarray and prices plummeting, the freight industry also has to grapple with unstable supply chains. Truck drivers, explains Gagandeep Baidwan, are on the front lines and while they’re considered essential workers, the disruptions in the trucking industry have been numerous in the time of COVID-19. With many businesses operating at low capacity, the lack of personnel at pickup and delivery points led to long lines, more waiting periods, and slow turnaround time. The schedules went haywire and at some point, it was hard to imagine any freight getting delivered on time.

Health concerns in epicenters of the pandemic also added more confusion to an already chaotic situation. Some drivers understandably refused freight bookings in these hot spot areas and that led to price spikes. With some states implementing health-related regulations, many truck drivers had to deal with rest areas being shut down and limited space at terminals which added more fees to the already increasing freight costs. Add to that the lost revenue of undelivered cargo when the freight had to be returned because the facilities were closed.

COVID-19 and National Regulations in the Freight Industry

OSHA standards have regulated the freight industry for years, but these regulations acquired new importance under the shadow of the coronavirus pandemic. Most of these regulations are related to health concerns and how to protect truck drivers in person-to-person contact as they perform their jobs. Some of these regulations cover the following issues:

• Potential Health Problems: Many states have made it mandatory for trucking companies to report any potential health issues that might put the drivers or staff at risk. Managers also have to regularly test employees and enforce quarantines on anyone who tests positive.
• Less Contact is Better: The nature of their job puts truck drivers at high risk. They always come in contact with the customers. Companies are advised to limit such contact and protect the drivers with regular testing. From using texts to alert customers of the coming shipment to enforcing social distancing, the regulations ensure minimum face-to-face interactions.
• Flexible Schedules: The way Gagandeep Baidwan sees it, working in the freight industry is stressful enough with the deadlines and tough competition. So, it’s important for trucking companies to be ready to shuffle their schedules at the drop of a hat. Since the novel coronavirus is highly contagious, drivers might fall ill on the job which would require rerouting to speed up the delivery and help them quarantine as soon as possible.
• Taking Health Precautions: The CDC has recommended that all vehicles, packages, and equipment used in the trucking industry need to be disinfected. The same guidelines also make it imperative for workers sharing the same workspace or handling packages to adhere to the health regulations of disinfecting any surfaces they touch and wear the necessary protective gear.

Gagandeep Baidwan on the Way Forward

As the COVID-19 pandemic rages on and is expected to continue well into 2021, trucking companies are putting plans into effect that aim to protect the staff and ensure that the business runs as smoothly as possible. According to Gagandeep Baidwan, the different regulations of the states and the CDC are not enough in themselves. “We are looking,” he says, “at using in-house hotlines where our drivers can reach a team of qualified health experts at any time to ensure their safety and seek guidance.” The trucking industry is an important part of the economy and no efforts should be spared to protect it.