Hurricanes causing supply chain chaos across U.S.

The aftermath of Hurricane Harvey, combined with the looming threat of Hurricane Irma, which is likely to reach South Florida this weekend, is causing trucking costs to surge, according to a report from the Wall Street Journal.    The aftermath of Hurricane Harvey coupled with Hurricane Irma slowly approaching the U.S. East Coast is wreaking havoc on supply chains, sending trucking costs through the roof.
   Harvey made landfall near Rockport, Texas as a Category 4 hurricane on Aug. 25, before making a final landfall near Cameron, La. on Aug. 30 as a tropical storm.
   Meanwhile, Irma, which is currently a Category 5 hurricane in the Caribbean, could reach South Florida this weekend.
   In the wake of Harvey’s destruction, big rigs are getting diverted to the Texas recovery effort, and businesses and aid groups are hustling to restock store shelves and bring in supplies, according to a report from the Wall Street Journal. This makes it challenging for trucks to find loads in Houston for the return trip because so many businesses that export to other parts of the country remain closed.
   In addition, many shippers are paying much higher rates to bring goods into the region. “Trucking companies are charging more because making deliveries in Houston is slow going and potentially costly as the city rebounds from the storm,” the WSJ said.
   The cost of hiring a tractor-trailer to transport freight from Dallas to Houston rose 66 percent for the week ending Sept. 2, compared to the week prior, according to online load board DAT Solutions LLC, the WSJ said.
   Overall, Harvey has impacted freight markets beyond Texas, explained Mark Montague, a senior industry analyst with DAT. Cargo has been rerouted to other distribution hubs, while relief efforts have diverted trucking capacity from other regions.
   Nationally, the average rate for dry vans for the week ending Sept. 2 stood at $1.90 per mile, including fuel surcharges, a 6 percent increase from the previous week.
   While the Port of Houston is up and running, and many of the rail tracks in the Houston area have been reopened, the U.S. is now turning its head towards Irma as it approaches South Florida.
   As of 2:00 p.m. eastern standard time Thursday, Irma’s center was just north of the Dominican Republic, according to the National Hurricane Center. The massive hurricane was moving WNW at 16 mph with maximum sustained winds of 175 mph.
   Trucking capacity is tightening up because some truckers are hesitant on accepting loads that could leave them stranded, said Dave Menzel, chief operating officer at Echo Global Logistics Inc., according to the WSJ.
   “Companies are kind of hunkering down,” he said. “It is disrupting the supply chain already.”
   Meanwhile, Hurricane Jose continues to remain a potential threat in the Atlantic, jumping up to a Category 2 hurricane Thursday afternoon. As of 2:00 p.m. eastern standard time Thursday, Jose was 660 miles east of the Lesser Antilles. It was moving WNW at 18 mph with maximum sustained winds of 105 mph, according to the National Hurricane Center. It’s still uncertain as to what impact, if any, it could have on the U.S.