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Hurricane Harvey Disrupts Freight Flow Nationwide

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Hurricane Harvey and the damage it is inflicting in southeast Texas will crimp trucking industry capacity, alter the country’s freight flow and likely push rates upward in the coming weeks and months, said pricing and supply chain experts Mark Montague and Eileen Hart of load-board and data firm DAT Solutions (overdriveonline.com – 8/29/17)

Houston is one of the country’s most prominent freight hubs, says Montague, ranking as one of the top inbound and outbound freight hubs, particularly for van and reefer segments. It’s also a key transfer point for freight incoming from Mexico and houses a large and active deep-water port.

Given the damage wrought by Harvey and its historic rainfall and flooding, the supply chain will need to compensate, and freight flow patterns nationwide will be altered, says Montague. Such changes in freight patterns would alone tighten trucking industry capacity, he adds, but there will also be an influx of inbound relief loads from FEMA and others, which will pull trucks out of circulation and thus tighten capacity further, he says.

As industry capacity tightens, rates will likely climb.

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Trucks at the site of the Randolph Air Force Base Auxiliary Airport Universal City, TX  (west of Houston).

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