Focus on Logistics
By Cain Adams Trinity Logistics, Inc / Longboard Logistics Boise Idaho Office
Hurricane season always brings the risk of massive disruptions—not just to supply chains, but to people’s lives and well-being. It is in these moments that the transportation industry becomes a lifeline, helping to rebuild, resupply, and assist communities in returning to normalcy.
The Impact of Hurricanes on Freight
Here are the three key phases of how hurricanes disrupt freight:
- Before the Storm: If FEMA knows the location: This urgency causes truckload rates to rise sharply with inbound freight.
- During the Storm: As the storm hits, freight movement halts completely within the storm zone for safety reasons.
- After the Storm: Once the storm passes, emergency supplies are brought in, leading to an increase in inbound freight rates. Van and refrigerated (reefer) trucks are the first to enter the region. Flatbeds transporting construction equipment and materials then come in later.
A “Perfect Storm” of Disruptions on the Horizon?
As we look ahead, the potential for long-term disruption in freight is growing, especially if a “perfect storm” of events converges. Three key factors are at play over the next month.
- Hurricane Helene: Recently, Hurricane Helene made landfall as a fast-moving Category 4 storm. Though it didn’t stall, it devastated Georgia, causing severe flooding that led to dam failures and the collapse of Interstate 40 along the Tennessee-North Carolina border. The damage is expected to take months to repair, with Vidalia, Georgia, reportedly seeing widespread destruction. Such infrastructure damage will inevitably lead to long-term freight disruptions in the Southeast.
- East Coast Longshoremen Strike: Adding to the uncertainty, the looming strike by the International Longshoremen’s Association (ILA) is a critical concern. If negotiations with the U.S. Maritime Alliance (USMX) fail, 45,000 port workers may walk off the job on October 1, marking the first strike since 1977. A strike would paralyze 36 East Coast ports, impacting the flow of goods crucial for the holiday season. Items like fake Christmas trees, ornaments, car parts, bananas, wine, and spirits could face severe delays, forcing West Coast ports to shoulder the burden of increased demand.
Such a disruption would cause chaos for industries reliant on timely freight, such as the onion market, which depends on a steady flow of trucks between the coasts. Without backhauls from the East Coast, trucking routes across the country could face severe imbalances.
- Extended Hurricane Season: As warmer-than-usual weather patterns persist across the U.S., the possibility of an extended hurricane season becomes more likely. Typically, September is the most active month for hurricanes, but warmer oceans could fuel more storms in the coming months.
Freight Rate Stability and the Role of Flatbeds
For now, freight rates have remained relatively stable over the past few weeks, with flatbeds performing particularly well. As winter approaches, key regions like Rawlins, Wyoming, will provide signals for when it’s time to adjust flatbed routes. When temperatures in that area start dipping into the 20s, it may be time to reconsider routing strategies.
Conclusion
The next month could bring significant changes to freight patterns, particularly in the Southeast. With the combined impact of hurricane-related damage, potential labor strikes, and an extended hurricane season, we could see rate fluctuations and ripple effects across the country. As the situation evolves, the transportation industry will need to remain agile to navigate these challenges and minimize disruptions to supply chains.
This cycle is a sobering reminder of our vulnerability to nature’s forces. Our hearts go out to those who have lost family, friends, and livelihoods during these difficult times. We work with a lot of people in Georgia. Their homes have 20 trees down in their front yards but all their friends and family are safe. Please keep them in your prayers.
Thank you kindly, Cain Adams Trinity Logistics, Inc / Longboard Logistics Boise Idaho Office
