The second week of May marks more state reopening efforts as businesses look to restart typical operations after the pandemic disrupted commerce March and April.
Many states are seeing a significant increase in population mobility, which is indicative of state citizens resuming pre-outbreak activity.
This increase is a result of many states loosening or completely lifting virus guidelines for businesses.
Currently, this has not made a substantial impact on the freight market, but we are seeing signs that the industry is beginning to recover.
Volume is climbing more steadily and is down just 6-7% year-over-year, which is up from last week’s levels.
Produce shipping is showing signs of strengthening and should begin building activity for the remainder of the month before leveling off in June.
Additionally, according to Freight Waves, “outbound tender rejections have increased week-over-week for the first time since the OTRI peaked at 19.25% on March 28.”
However, capacity remains loose around the country, as many trucks remain idle. We expect cross-industry reopening, combined with produce season, to marginally tighten capacity on a regional level in pockets around the country in the coming weeks.
Regional Logistics Market Updates
Zipline operates with a unique carrier team setup, splitting our experts into four regions for optimal service. Each group oversees freight that enters their region and plans for specific market trends in their respective states. Here is what each region is seeing currently:
Northeast Logistics
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- Covering loads has been easy in the Northeast, except outbound South Texas, Southern California, and Florida as capacity out of these regions is tighter with produce heating up.
- Warehouses in New York and New Jersey are reopening in the next 30 days. We expect to see an increase in outbound volumes; however, this is still relatively flat, and carriers are hesitant to go to the area since it has been the US epicenter for the outbreak.
- Rates will likely fluctuate week to week for outbound New Jersey and New York depending on capacity and demand. We will continue to monitor progress in this market.
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Midwest Logistics
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- Outbound capacity from the Southeast and Texas into the Midwest is getting tighter as produce season shifts into high gear.
- Refrigerated outbound Midwest to California capacity is hard to find currently because of increased demand from reopened production and produce season.
- Outbound freight to New Jersey is almost non-existent.
- Carriers are holding trucks a bit longer now after a month of declines.
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Southeast Logistics
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- Outbound freight from South Texas continues to increase in volume, as a result capacity has tightened.
- Tennessee, Georgia, Texas, and Florida all still desirable locations for carriers. Shippers can find favorable rates to those markets.
- Refrigerated inbound freight from California is currently difficult to book with limited capacity.
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Westcoast Logistics
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- California refrigerated freight is showing signs of recovery. Namely, the market is seeing increased volume and limited capacity in the region.
- Pacific Northwest is also showing similar signs of recovery with outbound reefer freight volume and rate increases.
- Seattle is becoming a more favorable market for carriers and rejection rates are increasing.
- We are seeing favorable rates for shippers in Seattle, Ontario, California, and Denver, Colorado as carriers look to capitalize on outbound volumes.
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State-By-State COVID-19 Reopening Status
To help our customers understand where each of the lower 48 states stands in allowing businesses to reopen, we have compiled a list of state mandates in effect. We will update this information every week until restrictions are completely lifted.
Alabama
Status: Open
The state is allowing most businesses to reopen including gyms, salons, restaurants, bars, and breweries. It has also recently lifted the ban on non-work gatherings and will allow those as well with no size restrictions.
Shipping in or out of Alabama should be back to pre-pandemic difficulty.
Arizona
Status: Open
Most state businesses are permitted to reopen with few restrictions. Gov. Doug Ducey is allowing dine-in services at restaurants.
Shippers should expect pre-pandemic operations in Arizona.
Arkansas
Status: Open
Arkansas was one of seven states with no formal lockdown orders. There are few restrictions for businesses so shippers moving freight in or out of Arkansas should not expect to see any disruption from closures.
California
Status: Partially Open
California Governor Gavin Newsome has allowed retailers to reopen; however, some restrictions remain in place. But the state is moving toward almost total reopen in the coming weeks.
When shipping to or from California, check to ensure that facilities are online and operational.
Colorado
Status: Partially Open
Following the expiration of the stay-at-home order on April 27, Colorado has begun a “safer at home” phase of reopening.
This order allows for non-essential business to resume on May 4 and elective medical procedures to begin again.
Shipping to or from Colorado should not be restricted.
Connecticut
Status: Restricted
The East Coast has taken the brunt of the COVID-19 outbreak and continues to extend more restrictive measures to keep the pandemic in check.
Connecticut officials have issued a mandatory shutdown until May 20.
It may be a challenge to make retail deliveries in this region until that time.
Delaware
Status: Restricted
Despite its small population, Delaware has a stay-at-home order in effect until May 15 or until the public health threat is eliminated.
Freight moves in or out of Delaware could be impacted by closures for the time being. It is prudent to check with supply chain partners to ensure they are operating as normal in Delaware.
District of Columbia
Status: Restricted
The nation’s capital is on a stay-at-home order through May 15. At that point, the city’s mayor will consider extending it or lifting it depending on the pandemic.
If shipping to or from DC, ensure your supply chain partners can handle freight.
Florida
Status: Open
Florida will lift most of its restrictions on May 4 and commerce will return to a near pre-pandemic state.
Only bars, gyms, schools, and salons will remain closed. Shipping to and from Florida should be undisrupted.
Georgia
Status: Open
Georgia made headlines after being the first state to lift virus-related restrictions on businesses. The state has allowed all facilities to reopen if they follow proper social distancing guidelines.
Shipping in or out of Georgia should not be an issue for vendors.
Idaho
Status: Mostly Open
The governor’s stay-at-home order expired at the end of April. Idaho plans to gradually reopen all facilities by the end of May.
Expect shipping in or out of Idaho to be unaffected by restrictions.
Illinois
Status: Partially Open
Illinois officials have extended the state’s stay-at-home order through the end of May but has built in more flexibility for facilities to reopen where it is safe.
Transportation could be impacted in Illinois. Shippers should check facilities’ availability before delivery.
Indiana
Status: Open
The state’s shelter-in-place order expired on May 1 and was not extended.
Most businesses are open and have limited occupancy restrictions. Shipping in and out of Indiana should not be interrupted for vendors.
Iowa
Status: Mostly Open
Iowa Governor Kim Reynolds has let the state’s stay-at-home order expire on May 1. Businesses throughout the state are mostly open. Restaurants, gyms, and retailers are open at 50 percent capacity.
Vendors should not expect much transportation disruption in Iowa.
Kansas
Status: Partially Open
The state’s stay-at-home order has expired and businesses aside from bars, gyms, and casinos are permitted to open.
Shippers should not expect much logistics disruption in Kansas.
Kentucky
Status: Partially Open
Some portions of the state’s economy were reopened on May 11. Manufacturers, construction outfits, vehicle dealerships, and professional services are now operating at 50% capacity. On May 20, the state plans to reopen retailers and by mid-June, most businesses will be completely reopened.
However, when currently shipping to or from Kentucky, you should ensure your supply chain partners are operational.
Louisiana
Status: Partially Open
Louisiana has a shelter-in-place order in place through May 15. After which, businesses can start to reopen with precaution.
Currently, some vendors have reopened with limits so shippers could face some logistics difficulty in Louisiana. Ensure that supply chain partners are online before conducting business in the state.
Maine
Status: Open
Maine will begin reopened its economy on May 1. The governor’s plan permits business as long as they can maintain physical distance.
Shipping into or out of Maine should be mostly unrestricted.
Maryland
Status: Restricted
The governor of Maryland instituted a closure of all businesses in the state on March 23. Officials have yet to give specific reopening dates but have begun to reopen outdoor recreation areas.
Shippers could face some supply chain difficulty in Maryland.
Massachusetts
Status: Restricted
Governor Charlie Baker has recently extended the state’s stay-at-home order through May 18, which requires all non-essential businesses to remain closed.
Vendors with delivers picking up or dropping off in Massachusetts should check with their supply chain partners to determine their status.
Michigan
Status: Partially Open
Some of Michigan’s stay-at-home order was relaxed at the end of April and recently allowed manufacturing work to resume; however, the formal order was extended until May 28.
Shippers should check with supply chain partners when doing business in Michigan.
Minnesota
Status: Partially Open
The governor of Minnesota has extended the state’s stay-at-home order through May 18, but with that comes some relaxed guidelines. Businesses are open but must maintain proper safety precautions.
Vendors should ensure that their supply chain partners are operational when shipping to or from Minnesota.
Mississippi
Status: Open
Mississippi’s stay-at-home order expired on May 11. Currently, the state has a “Safer at Home” order in action. It suggests that Mississippians should only travel for essential reasons. Gatherings of 10 or more for non-essential reasons are banned.
Because of varying restrictions on businesses, shippers should check with supply chain partners to see if their operation is impacted.
Missouri
Status: Open
All Missouri businesses resumed normal operations on May 4 with limited public health guidelines.
Shippers should not expect any closures or difficulty in Missouri.
Montana
Status: Open
Most businesses were permitted to open on May 4; however, gyms, movie theaters, and other places of assembly where social distancing is not possible will not resume operations.
Those shippers with freight in Montana should not expect much difficulty but may want to check with supply chain partners before shipment.
Nebraska
Status: Open
All businesses, aside from bars and indoor theaters, are open with few occupancy or safety restrictions.
Nebraska has not issued a stay-at-home order since the outbreak, so vendors should not expect shipping issues.
Nevada
Status: Partially Open
The state’s stay-at-home order has been lifted and businesses, aside from bars, theaters, and casinos, are able to resume operations.
Suppliers should check with partners in Nevada to ensure their operations are not affected but should not expect much difficulty.
New Hampshire
Status: Partially Open
New Hampshire Gov. Chris Sununu has issued a “Stay at Home 2.0” order. It restricts but allows, businesses to reopen in the middle of May.
Retailers have reopened, but with limited capacity. Shippers should check with New Hampshire supply chain partners before confirming orders in the state.
New Jersey
Status: Restricted
New Jersey has an open-ended stay-at-home order on the books. The Northeast state has been hit hard by the pandemic and shippers should check with New Jersey logistics partners regarding their capabilities.
New Mexico
Status: Partially Open
The governor of New Mexico extended the stay-at-home order through May 15. However, some businesses, including retailers, were partially reopened at the end of April.
Vendors need to ensure whether their partners in New Mexico are operational.
New York
Status: Restricted
Governor Andrew Cuomo issued an executive order that closes non-essential businesses through May 15. But recently said the state is making progress and can begin lifting restrictions soon.
The epicenter for the US outbreak has restricted business so vendors should determine whether New York supply chain partners are operational before shipping.
North Carolina
Status: Partially Open
The state reopened many businesses on May 8 including childcare facilities.
Most businesses are gradually reopening, and retailers have upped their capacity restrictions.
Shippers should not expect difficulty in North Carolina.
North Dakota
Status: Open
North Dakota has lifted public health restrictions on businesses.
Vendors should not expect much friction when shipping in or out of the state.
Ohio
Status: Mostly Open
Ohio Governor Mike DeWine extended the state’s stay-at-home order through the end of May. However, retailers and other services are open. The state will also begin to allow dine-in restaurant services as early as next week.
Vendors should expect commerce to resume at pre-pandemic norms in Ohio.
Oklahoma
Status: Open
All Oklahoma businesses, except bars, are open with some social distancing restrictions.
Vendors should not except many issues when shipping to or from Oklahoma.
Oregon
Status: Restricted
Oregon will allow non-urgent procedures to resume on May 1, which means some restrictions are easing. However, many businesses’ operations are limited.
Shippers should ensure their supply chain partners are online in Oregon.
Pennsylvania
Status: Partially Open
The Pennsylvania Governor Tom Wolf has announced a graduated reopening plan that will allow less affected areas to open first. However, in hot spots, business will not likely resume until June.
Vendors need to check with partners to see their operations are currently impacted.
Rhode Island
Status: Partially Open
Rhode Island has begun reopening the state in stages according to Governor Gina Raimondo. This resume in operations includes most businesses aside from gyms and entertainment venues.
Those shipping in or out of Rhode Island should ensure their supply chain partners are online but should not expect much disruption in the state.
South Carolina
Status: Open
Most businesses were permitted to resume on April 20, which includes retailers and department stores.
Shippers should not anticipate many supply chain issues in South Carolina.
South Dakota
Status: Open
South Dakota has not issued any stay-at-home guidance nor has restricted any business in the state.
Tennessee
Status: Open
Despite a stay-at-home order, which is in effect until May 30, most businesses in the state are reopen including retailers, gyms, and restaurants.
Suppliers should not expect any operational restrictions in Tennessee.
Texas
Status: Open
Texas businesses, aside from workout facilities and non-essential offices, are open with few restrictions.
Some stores and businesses have occupancy limits, but those should not affect shippers in the state.
Utah
Status: Open
The state has not issued a formal stay-at-home order since the pandemic’s arrival in the US. Commerce should not be impacted.
Vermont
Status: Open
The state has a “Stay Home, Stay Safe” order in effect until May 15. This mandate allows many businesses to reopen while maintaining health guidelines.
Shippers should check with supply chain partners to check their operational capabilities before completing orders in Vermont but should not face many issues.
Virginia
Status: Restricted
Governor Ralph Northam has issued a stay-at-home order through June 10, which bans crowds of more than 10 people and limits businesses.
Vendors need to ensure their logistics operations will not be disrupted when doing business in Virginia.
Washington
Status: Restricted
Most state parks and recreational areas will be reopened on May 5. But Washington’s stay-at-home order was extended to May 31.
Suppliers should check with partners in the state before shipping in or out of Washington.
West Virginia
Status: Open
The state’s stay-at-home order expired on May 4 and business resumed without many restrictions.
Shippers should not expect to deal with logistics interruptions in West Virginia.
Wisconsin
Status: Partially Open
Wisconsin Governor Tony Evers has extended the state’s stay-at-home order through May 26. However, most nonessential businesses were permitted to reopen on May 1.
Vendors should ensure their partners are operational before shipping to or from Wisconsin.
Wyoming
Status: Open
The state has not issued a stay-at-home order and all businesses have reopened with few health restrictions.
Shippers should not expect many issues when shipping to or from Wyoming.
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