The global crisis’s effects on trucking is a less commonly discussed topic amongst shippers. A situation like a war directly impacts cargo movement when carriers move goods internationally. However, it can also affect domestic shipping in numerous ways. Over the last few years, dilemmas like the Israel-Hamas conflict and the Panama Canal drought have impacted trade. Shipping is still also recovering from the effects of the coronavirus pandemic, which significantly disrupted the industry. Despite the events happening in other countries, they can, directly and indirectly, affect trucking in the U.S. One reason is the many global supply chains that rely on trucks to transport cargo using services like drayage.
What Are Global Crisis’s Effect On Trucking?
A primary impact of crises in domestic shipping is that it can lead to an increase in costs. For example, the Israel-Hamas conflict raised the price of shipping cargo internationally, which the trucking industry felt. Along with equipment and labor prices rising, oil costs also surged from the war. Domestic shipping relies on diesel fuel, which substantially impacts the overall costs of moving freight by truck. Crises can also affect where they negatively impact profit margins for truckers. At the beginning of the coronavirus pandemic, various sectors of the economy shut down. As a result, truckers had less freight to haul, and a loss of revenue led to countless layoffs.
Another effect is the urgency of trucking can increase during pandemics. During both the Israel-Hamas conflict and the Panama Canal drought, shippers rerouted containers through longer distances. Along with rising shipping costs, rerouting disrupted supply chains, and the disturbances affected domestic shipping. Redirecting shipments at longer distances led to delays and put additional stress on truckers delivering on time. Many shipments moving to a specific port can also cause congestion. Congestion increases the likelihood of delays in trucking with growing loading and unloading times. Crises can also result in higher security measures, including more stringent regulations or excellent seaport inspections with drayage services.
Can Crises Have A Positive Impact on Domestic Shipping?
Despite the adverse effects of wars and other crises on domestic shipping, there can also be positive outcomes. A common benefit for shippers is the increased demand for moving goods internationally and domestically. As the demand for import into the U.S. grew, so did the need for trucking to move the cargo to their final destination. Around the middle of the coronavirus pandemic, there was a surge in e-commerce since buyers couldn’t go to brick-and-mortar shops. The low necessity for trucking that was present at the start of the pandemic disappeared as importers required last-mile delivery. Domestic transport soon rose again as shippers began importing at an alarming rate, growing business for truckers.
While you can’t control a global crisis, you can take steps to protect your cargo. Using the assistance of a freight broker can be critical in moving your goods domestically during a pandemic. They coordinate the cargo’s movement on behalf of the shipper while educating them on the best choices. A1 Freight Solutions has brokers that can connect you to a carrier to transport your cargo anywhere in the U.S. Speak to our freight brokers at 786-375-9420 or info@a1fsinc.com to find out how we ensure the success of your shipment.