How Will Freight Embargoes, High-Risk Delivery Zones and Restricted Docks Impact Your Freight Costs and Supply Chains?
Mar 25, 2020
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
Folks, make no mistake about it, the COVID-19 crisis has exposed fault lines in corporate supply chains and resulted in a supply chain earthquake for some organizations. As the supply chain struggles to keep up with the demand for certain types of products, we're also hearing about the challenges that carriers are experiencing in serving their customers.
Whether its freight embargoes, restricted access in high risk delivery zones, or the impact of companies shutting off access to their dock facilities to truck drivers, shippers are having to adjust to an environment that is fraught with challenges.
With respect to freight embargoes, every trucking company is concerned about the health and well being of their drivers. If they conclude that there is risk in sending their drivers to certain areas, they are in effect declaring an embargo which is what FedEx did when they notified shippers that they would not be sending their drivers in to the San Francisco area.
While there can be exceptions for critical goods such as groceries, medical supplies, and other essential businesses, it underscores why shippers need to know where their customers and your suppliers are located before they tender freight.
LTL carriers are reporting issues with shipments that are being sent to businesses that are temporarily closed due to COVID-19. Normally, they would return this freight to their facility and reattempt delivery. However, right now some large LTL carriers are reporting that their terminals are full so they are having to return freight to their customers facilities.
We’ve also been hearing reports that companies are closing their driver facilities in response to the coronavirus. While it’s understandable for a company to take extra precautions to protect their employees, drivers need access to rest room facilities and a place to take care of their paperwork. For companies who deny access to these facilities, a word of caution is in order: There are websites where drivers can review your docks. If their review is negative and your company gets tagged as being unfriendly to drivers, it could mean less capacity/ higher rates in the future. If you're looking for alternatives or suggestions on how to address this, let us know. We have a wealth of information that can help you get through this critical time.
You can count on TranzAct to continue providing updates as we learn more. Stay safe and keep freight moving.