High Demand On The Horizon For Shippers

Members Corner

Source: RPM Vehicle Systems, 2020-04-22

The global impact of COVID-19 has been devastating. RPM, like most every business around the world, has been doing our part to abide by the guidelines and regulations outlined by both the WHO and the CDC—practicing social distancing, proper hygiene, and working remotely. But as an essential business, we are working tirelessly to ensure that our OEM customers are receiving the best customer service and shipping options available to them.

In an article published by Automotive Logistics, “OEMs have announced the temporary shutdowns of the vast majority of vehicle assembly and component plants in the European Union and the UK, including for Volkswagen Group, PSA, FCA, the Renault Nissan Mitsubishi Alliance, Hyundai-Kia, Ford, BMW, Daimler, Jaguar Land Rover and Volvo Cars. Whilst most shutdowns have been officially set for around 2-4 weeks, many will likely last at least as long as government-imposed lockdowns and quarantines – and may indeed last longer as OEMs align their supply chains to lower demand.”

However, while demand is incredibly low at this time and movement at a virtual standstill, once the global curve begins to flatten and the markets start their steady climb upward, one thing is certain… high demand is on the horizon for shippers.

As a tech-enabled transportation provider with a large network of vetted and monitored carrier partners, RPM is poised to respond to quick market swings. Our robust network allows us to rapidly offer capacity based on an OEM’s specific timing, location, and cost needs. Regardless of how chaotic or volatile the market may be, we equally excel in the spot load and long-term contract business because of our unique and valuable ability to be flexible and find capacity quickly. We continuously develop relationships with quality small and mid-sized carriers, effectively bringing consolidation and new capacity into the market. This “additional capacity” mitigates the shipper’s need to buy individual spot loads at higher costs and with lesser quality drivers. 

In this current pandemic, we are working with the extensive, well developed network of carriers throughout the EU. Our vetted carriers are ready to take loads at a moment’s notice and we have the ability to get them on the road and keep them in motion. For our customers we offer full visibility and transparency through our transportation management system (TMS). We can help identify current gaps in the supply chain and assist our shippers to fill those gaps or work around them. These real-time visibility tools give shippers an up-to-the-minute holistic view of their finished vehicle supply-chain.

There is no clear indicator as to when this high demand will come for shippers. No data to suggest when volume will surge or when the markets will pop. But if the world continues to listen to the experts and remains united in an effort to do our individual part, that demand should come sooner rather than later.

If you have current needs or foresee shipping needs that may not be addressed when the demand comes back, we are here today, ready to provide support, planning, strategy, or to answer questions you may have about how we can support your supply chain. Please visit https://www.rpmmoves.eu. We look forward to working with you now and when we come out of these unprecedented times.

 

older
back to ECG news