TIA Daily COVID-19 Update – March 26th (Morning Edition)
As TIA continues to monitor the situation surrounding COVID-19 and it’s impact on the 3PL and transportation industries, here is your Morning Update for March 26. As a reminder, you can find all the latest information, resources, guidance, and news from TIA’s COVID-19 Response Center.
During these unprecedented times, TIA continues to serve you and build toward the future. Just today, we released a contract consideration resource to guide your contracts with shippers. We reminded you of all the model contract resources available to TIA Members.
We have also created guidance on applying for an SBA loan, even before the Senate and House take action on the new loans and grants.
Our Government Affairs team is also calling members to identify Chief Financial Officers, Chief Marketing Officers, and Chief Technology/Information Officers so that we can build communities of these folks. We all know the power of interacting as TIA Members. As we come through the COVID-19 crisis, we want to be able to expand upon our interconnections.
On March 25, the U.S. Senate passed S. 3548, the Coronavirus Aid, Relief & Economic Security Act (CARES Act) in a 96-0 vote. The bill has now been transmitted to the U.S. House of Representatives, where they are expected to vote to approve the package on a voice vote on Friday, March 27.
TIA has produced a detailed overview of Phase III of the CARES Act. TIA will provide additional information and updates on the CARES Act as they become available.
We’re hearing the following from the insurance industry: Those 3PLs who specialize in freight servicing flatbed and specialized are feeling the early pinch, which could impact broker bond claims in the near future. Those who premium finance their insurance policies will start experiencing the finance company wanting to change payment terms as they are experiencing increased defaults already and the flexible terms from the past will likely change with the renewal.
Members should expect premiums to increase as underwriters have been consolidating over the past year or two for Contingent AL and since they have struggled to see any underwriting profit, the impact on the economy and stock market for investment income returns have disappeared for the time being.
With the underwriting challenges above, expect the policy forms being offered for Contingent AL and Cargo as well as E&O will tighten as well in coverage.
DAT is also putting out information regarding COVID-19 on a regular basis, which can be found here.
Today should be Opening Day, so here’s Frank Sinatra and Gene Kelly singing “Take Me Out to the Ballgame” from 1949. Soon, we’ll be back in the park watching the great American pastime. Go Nats!