While the overall effect a national railroad strike might have on the supply chain could mirror that of a natural disaster or another pandemic depending on how long it lasts, its influence on road freight is likely to be swift and variable by lane and commodity type.
Companies from food suppliers in the Midwest to retail importers across the U.S. are bracing for a potential national rail strike by seeking alternative transport to keep their supply chains running.
Economic forces, consumer demand, seasonality, natural disasters and myriad other factors contribute to transport’s cyclical market.
A railroad strike or lockout that could take effect Friday has put on deck the potential for historically significant supply chain upheaval that would affect every trucking mode to some degree.
Shippers are in a wait-and-see mode as the obstacle to a deal with the country’s two largest rail unions is about lifestyle concerns rather than compensation, a source close to the negotiations told JOC.com.
Spot market also is continuing its summer slump as van, reefer, and flatbed all fall for the month. DAT also reported spot-load postings down 26% for July and a 34% decrease for all of 2022.
Truckload freight volumes tumbled from their June peak, and pricing for dry van and refrigerated capacity on the spot market continued to shift downward, according to DAT Freight & Analytics.
The conditions that led to soaring trucking conditions, rates, and profits last year are largely history at this point.
The number of loads posted to the DAT MembersEdge load board fell for all three equipment types during the week of Aug. 7-13, following a seasonal pattern and generally lower activity on the spot market.
After a wild post-pandemic ride, the spot market is rebalancing, which has shippers looking for lower contract rates while lower spot rates and high fuel prices is likely driving many owner-operators out of business.