Hurricane Harvey has a significant negative impact on the Texas region trucking and the entire US trucking. The strong winds and the flash floods in South Texas since the beginning of Harvey had paralyzed almost 100% of trucking in the region and close to 10% in the US according to the FTR Transport Intelligence. Hurricane Harvey resulted in halting of freight operations to and those via affected areas leading to loss of business.
Though the impact has currently reduced significantly to around 2% at national level and 25% in Texas region, it can still be felt in the trucking industry based on the scars left. It may take several years to correct the situation, and the disruptions may continue in the near future. It is as a result of the following factors that continue to lead to further disruptions on the trucking companies.
Negative Impacts of Harvey Continue to be felt
Trucking companies continue to lose revenues are a result of idle trucks that will be used when the water clears the loading docks and the roads. Moreover, after the water clears there will be additional trips that have lower productivity as well as operations slowdowns in the loading docks before things settle back to normal.
- The flash floods due to Harvey have led to damaged infrastructure that may take several months or years to reconstruct
- Even with the end of the floods, trucking companies have to wait more days before the floods clear and road infrastructure damages are repaired.
- Terminals of trucking companies in South Texas remain closed because they still stand in water. It is still not definite when some will open because repairs have to be completed first.
- The trucking companies will have to establish alternate freight routes to avoid areas in the South Texas that have been hugely affected by the Hurricane Harvey, and this will come at an extra cost
- The huge impact on the supply chains of the trucking companies due to delays
Impacts spread beyond Texas to the US at large
The impact of the storm has not only been felt in Texas but continues to affect the transportation network across the country significantly. Retailers and manufacturers form Texas and beyond have been hugely affected because the Hurricane resulted in a disruption of the scheduled truck trips. There are also higher spot prices because of the disruptions due to Hurricane Harvey. Weather disasters such as the hurricanes have previously resulted in significant changes in prices, and Hurricane Harvey will be no exception.
The trucking business has been affected by the reduced transportation and export of oil products form the US as a result of the Hurricane Harvey. The US energy Information Administration depicts that the Hurricane Harvey has significantly contributed to reduced oil refining capacity in Texas and the nation. Texas is the home for major oil refinery companies and accounts for 30% of the US refining capacity. The US refining capacity has reduced from 17.1 million to 14.8 million barrels per day that is highly contributed by the Texas situation.
What is in the future of trucking business?
Hurricane Harvey has highly affected the trucking business in South Texas and beyond making the integrated freight industry to be one of the largely hit by the tragedy. It will take time before the infrastructure repairs and business is back to normal but the Hurricane shall come to pass through its effects will always be remembered. We expect a better business prospects in the future.