While demand for transportation services is intrinsically linked to volumes and demand, transloading for the industry has proven to be resilient in the past. How has the pandemic affected demand at facilities?
Industrial Products represents a large portion of transloading shipments, so transload volumes often correspond to what is happening in the industrial economy. As communities started to quarantine in March, we saw sharp declines in industrial production, manufacturing, and oil and gas drilling. At the peak, we saw transloading volumes down approximately 25%.
As state economies began to open in June and July, we saw a recovery in industrial production and manufacturing. Some industrial segments such as lumber, cement, and aggregates have recovered to prior-year levels while those tied to oil and gas drilling remain significantly down. As the economy continues to improve we expect transload volumes to increase.
The best transloaders are those with the ability to quickly adapt to a changing economy and identify which products will be in demand. Remaining versatile is key, and historically, transloaders have met that challenge.