People in the freight transportation sector sustained persistent disruption since the pandemic began, and there appears no end in sight. After the country seemed to be heading toward pre-pandemic normalcy, Covid restrictions resurfaced to combat what officials are calling the “Delta Variant.” Couple the health and safety protocols with an uneven recovery, and industry insiders are now predicting logistical hiccups into at least next year.
“Warehouses are overflowing, rail yards and carriage are maxed out, chassis and containers continue to be hard to come by. Ships are coming and waiting at anchor to get worked. Factories are behind in orders, even though output is at record levels,” Port of Los Angeles executive director Gene Seroka reportedly said.
The Port of LA official has every reason to feel optimistic from his vantage point. Neighboring Port of Long Beach recently announced a plan to operate 24-7 due to a surge of container arrivals. The LA port could also be expanding as freight increases and profits make the massive ports busier than ever. But the transportation hiccups largely stem from jammed supply chains and retail store fleet operators out-bidding general freight carriers, in some instances. Although many economists see this as a positive proposition, the idea of restoring a relatively smooth running supply chain could take years to recreate.
“We’re going to be counting it in years, not in months, and certainly not weeks and days. Some of the concerns about how you manage the new norms will require some strategic resolutions that are not quick fixes,” Association of Supply Chain Management executive Douglas Kent reportedly said.
Predictions about wide-reaching challenges have logistics experts indicating at least mild disruptions will extend deep into 2022. Examples of seemingly unanticipated shifts include the U.S. manufacturing base running a rollercoaster ride in production. Challenges ranging from computer chip shortages to workers riding out unemployment-plus benefits have truckers pulling loads from different locations week-over-week. And the glut of containers arriving from overseas are not immune to adversity. China shuttered the Port of Ningbo‑Zhoushan due to a Covid outbreak. Ranked among the world’s largest ports, its closure sent waves across the freight transportation sector.
“These disruptions are happening to an already-stressed system, with no spare capacity or spare time to make up for delays,” IHS Markit transportation economist Paul Bingham reportedly said. “If this terminal can’t be returned to full operation quickly, it will have ripples across the Pacific to U.S. port calls by vessels on Transpacific services.”
Fluctuating diesel prices, shifting product origins, as well as different pickup and delivery locations will likely result in unexpected supply chain speed bumps. Truckers may need to keep track of these hiccups to maximize their on-duty hours and salaries going forward. But the good news for men and women who deliver America’s goods and materials is there appears to be no shortage of work, and wages could rise significantly.
Sources: ttnews.com, barrons.com
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