ID: MRFR/AM/3926-HCR | August 2022 | Region: Global | 100 pages
Impact of COVID-19 on the Semitrailers Market
The transportation industry is facing a lot of challenges with ongoing supply chain disruptions. Emergency delivery needs are creating additional pressure on the industry. Trucking and logistics support the movement of medical supplies, groceries, cleaning and sanitizing products, and other essentials through the supply chains even during the current crisis. Fleets are struggling to keep drivers and employees safe and healthy and stay compliant with regulations while continuing to operate efficiently. These factors are increasing operational expenditure. COVID-19 was declared as a global pandemic by the WHO in March 2020, resulting in the enforcement of lockdowns across several countries. It also resulted in the closing of international borders and enforcement of curfews in multiple countries, causing a decline in the demand for public transport across the globe. As a consequence, the trucking industry lost more than eighty thousand jobs in April 2020.
As per the MRF analysis, the semitrailers market is expected to start gaining traction by the end of 2020. As the current lockdown restrictions are being lifted gradually, businesses plan to restart operations, which will create new requirements. Shipping companies that are majorly focused on the oil & gas, commercial, and automotive industries have been affected significantly due to the COVID-19 business closures of around four months. The standstill in transportation and logistics activities has resulted in a sharp fall in freight volumes and rates. Also, there are more empty miles resulting from fragmented supply chains negatively impacting the carriers’ profitability. The orders of new trailers reached a record low of just 300 units being sold in April 2020, representing a drop of 98 percent as compared to April 2019. The COVID-19 crisis has thus created acute uncertainties for the semitrailers market.