With initial estimates of economic losses due to Sandy reaching into the $30-$50 billion range, it’s strange to think that there could actually be a silver-lining to such a detrimental cloud. And in fact, the trucking industry alone suffered around a whopping $140 million per day loss. This number is based on 20% of the industry not moving freight because of Sandy’s aftermath. However, with these dismal numbers at the forefront of everyone’s mind, it’s wise to note that some trucking companies do actually benefit from natural disasters.
The clean-up and rebuilding phase following the super storm is what gives the transportation industry its light at the end of the tunnel. Fleets are expected to see an increase in activity in the coming months with demand on the rise. Construction companies and the flatbed carriers that haul their materials will experience quite the surge.
Flatbed carriers aren’t the only ones to have a boost in freight, however. Dry van carriers will also see a boom in business with retailers needing to replenish depleted goods on store shelves. Though many will experience a loss initially, the storm’s resulting damage will create new demand later. The immediate need for restocking, for example, is one that only the time-sensitive characteristic of trucking can provide. Not only is it excess work because everything is rushed, it’s also out of normal route, and people are willing to pay more. All of this in turn, leads to a faster recovery for the industry. FTR (Freight Transportation Research Association) Senior Consultant Noel Perry predicts that the losses caused by the storm, will ultimately be recovered due to resupply and rebuilding truck freight needs. Perry predicts the storm will generate $15 billion in additional revenue for trucking over the next three or four quarters.
Sandy’s disruption to replenishing food, gas and other goods serves as a glaring reminder that freight transportation is the backbone that supports our everyday life. Whether a storm for you causes a loss or a sudden boom in business, you still need to have a plan for whatever comes next. Though you cannot predict, you can prepare. Check out the checklist we developed to help prepare your supply chain for natural disasters!
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