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- September 12, 2017 /
- by Andrew /
- transportation industry news, trucking news, trucking safety /
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Freight research teams released their predictions regarding how Hurricane Harvey will affect the trucking industry, and the numbers are looking grim. Ten percent of the industry across the nation will experience strong reverberations from Hurricane Harvey in its first week. This number jumps to one hundred percent for Gulf Coast regional trucking companies west of the Mississippi. These numbers decrease to 2% nationally and 25% regionally after the first month, but those figures are still significant.
Major Trucking Disruptions to Expect
The reason there is such a large national impact is that a significant amount of freight goes in and out of the Houston area. The storm will affect shipping patterns, duration of haul, and cause supply chain shortages. Additional far-reaching effects include:
- Trucks sitting idle as they wait for water levels to recede
- Additional shipments to distribute relief and construction supplies
- Reduced operations as a result of overcrowded loading docks
In the week prior to Hurricane Harvey, spot prices soared. Based on data following the aftermath of Hurricane Katrina in 2005, spot rates and contract rates are likely to continue to increase in affected areas. Texas also provides almost a third of the country’s petroleum refinery capability. As a result, diesel supplies will suffer driving up fuel costs.
When the waters recede and travel into Texas is safe once more, recovery efforts will likely continue to drive up prices as well. Factor in the looming electronic logging device (ELD) mandate and contract rates may spiral. Trucking disruptions and costs concerns remain high within the trucking industry. Even so, transportation safety continues to be a top priority. To learn more about managing transportation safety during significant weather events, contact the experts at Envirun.