A rained-out picnic, a ski trip with no snow, an unexpected hurricane during a tropical vacation — weather can be life’s great disruptor, and that’s certainly no less true when it comes to logistics. Unpredictable weather patterns and surprise storms can snarl traffic and create delays for freight that ripple across a supply chain.
At Shaker Logistics, we’ve had over 30 years to refine how we handle unsavory weather conditions. We work with our shippers to mitigate the impact of weather events on their business and help them create contingency plans. Here are some of the key things we’ve learned about the impact of weather on transportation and logistics.
Carrier Capacity Shrinks When Weather Acts Up
If the weather forecast makes you think twice about taking a trip to the store, you can assume that carriers are feeling the same way. Truckers are some of the most experienced drivers on the road and are trained to safely navigate sub-optimal conditions, but driving in extreme weather is still risky.
The average semi-truck hauling a full trailer weighs around 38 tons, nearly eight times the weight of an average commuter vehicle. With a rig that heavy, driving in inclement weather can turn the most mundane route into a risky one, imperiling the driver, the equipment, and the freight. Because of these risks, tender rejections go up in the days surrounding weather events and shippers often find their routing guides falling apart as carriers begin to avoid going into high-risk markets. Shippers find themselves scrambling for coverage, often ending up paying last-minute premium rates to a carrier they’ve never worked with before.
Severe events like hurricanes, tornadoes, and lake-effect weather can cause nationwide delays in the supply chain that can last for weeks. Disaster areas dealing with damaged infrastructure will have road closures that can extend for months. Rates rise when carriers demand increased compensation for traveling in risky conditions or taking higher-mileage alternate routes, and shippers may end up paying double what they paid a month prior for the same load.
Weather impacts production as well. “Panic buying” ahead of predicted storms causes a spike in shipment volume, which in turn drives up carrier rates. Additionally, factory and port closures in affected areas can disrupt supply and demand as production halts. Warehouses in these areas have the potential to flood and stored inventories are at risk for flood damage.
Everything from a tight carrier market to increased rates to infrastructure failures puts shippers in a tough spot. Weather can be a costly challenge for logistics, one that is beyond anyone’s control. However, at Shaker, we focus on what is within our control to help our customers handle anything the weather throws at them.
Ways to Prepare for Weather Disruptions
At Shaker, our team of experts is equipped with industry knowledge and a nationwide network to help shippers prepare for the most extreme weather. Here are four tips for customers so they can be prepared for when weather disruptions happen.
- Lean on your logistics partner. While shippers are the experts in their products, we are the experts in logistics. We’ve helped our customers navigate some nasty conditions over the years and have proven methods for freight recovery and rerouting. Our experience and industry knowledge allow us to provide the best options to shippers, and our extensive carrier network gives shippers access to alternative modal options and last-minute coverage.
- Look ahead to move ahead. Many major weather events that disrupt the supply chain are seasonal or forecasted, which means shippers can work with their logistics partners to make a plan. For example, during hurricane season consider avoiding coastal routes to prevent major disruptions to your supply chain.
- Have a backup plan. The occasional nor’easter or flash flood can catch anyone off guard, and carrier rejections can leave you without coverage. Work with your logistics provider to plan for the worst. Outlining alternate routes and modes to use in case of a disaster will help you avoid late fees and last-minute premiums.
- Be flexible. Have an open discussion with your logistics partner about your priorities for each shipment and be aware that you will likely have to make compromises when weather causes delays. If the shipment is time-sensitive, you may have to pay a premium to get your freight through/into a high-risk area or pay for more expensive modes, like air freight, to bypass failed infrastructure. Conversely, for shipments that are price-sensitive, the delivery date may have to be delayed until conditions are safe and rates return to normal.
Weather is a common challenge the entire logistics industry faces. Shippers who work with their logistics partner to plan ahead and be flexible will find themselves spending less time panicking and more time acting when a weather event occurs.