Why Shares of Transport Companies Are Up Today

Shares of transportation and logistics companies are surging on hopes that scientists are making progress in developing a COVID-19 vaccine, which could speed the process of reopening the economy and getting shipping volumes back to normal levels.

Echo Global Logistics (NASDAQ: ECHO) shares were up 11% on Monday afternoon, while shares of FedEx (NYSE: FDX), United Parcel Service (NYSE: UPS), and XPO Logistics (NYSE: XPO) were all up more than 5%.

The COVID-19 pandemic has disrupted global supply chains and slowed business-to-business activity, crimping some of the most profitable businesses for shipping companies. Business-to-consumer shipping is up thanks to stay-at-home orders that have forced consumers to shop online instead of in stores, but even that has caused havoc.