Impact of Hurricane Milton on Supply Chains and Road Transport
Hurricane Milton, which hit the Florida coast as a category 3 storm, brought major challenges to the supply chain and road transport sectors in the United States. The event had a significant effect on cargo rejection rates and market dynamics, exacerbating the impacts caused by recent events such as the International Longshoremen’s Association (ILA) strike and Hurricane Helen.
According to Zach Strickland, Head of Market Intelligence at Freightonomics, rejection rates soared in markets like Harrisburg (Pennsylvania), Atlanta, Lakeland (Florida), and Dallas, reflecting the misalignment in carrier networks. “Disruptive events like strikes and consecutive hurricanes throw carrier networks out of sync, and it takes time for them to readjust,” says Strickland. He also points out that Hurricane Milton intensified market pressure, with many carriers avoiding risk areas to protect their drivers and minimize losses.
While the rise in rejection rates is evident, spot rates, which reflect the immediate price of freight, have yet to show a significant response. According to Strickland, this is due to the natural delay in market reaction. The expectation is that spot rates will start to rise in the coming days as the full impact of the hurricane becomes more apparent and transportation networks reorganize.
Another important point is the role of technology in mitigating risks in the transport sector. Cutler YMX, for example, uses two-way cameras from the Nadine system to monitor the safety of its operations, contributing to better safety scores and lower accident rates. Systems like these have helped carriers avoid claims and reduce operational costs, while also protecting profitability during times of crisis.
While recovery from the hurricane is still underway, the full impact on supply chains will take weeks or even months to be fully assessed.
Recovery and Post-Hurricane Challenges
In addition to the immediate effects on rejection rates and freight dynamics, Hurricane Milton also created a complex scenario for disaster recovery, especially in road transportation. Dr. Zack Rogers, a logistics expert, highlighted how disaster relief for trucks is a “completely different animal.” Drivers transporting goods to disaster zones face unique challenges, including the risk of being stranded in dangerous areas and delivery schedule disruptions.
The experience of carriers like Donnie Gilbert, who have worked in disaster recovery operations, confirms the importance of meticulous planning during these events. Gilbert advises carriers to document all detention hours, as the chaos following a disaster can cause trailers to disappear or become inaccessible for long periods. In this scenario, caution and organization are essential to ensure that carriers can correctly account for their operations and avoid financial losses.
The Role of Technology and AI in Safety
To mitigate these risks, many carriers have adopted AI-based monitoring and safety systems, such as the aforementioned Nadine system and the Netron video safety platform. These solutions help companies correct unsafe driving behaviors and reinforce good driving, offering a direct return on investment by reducing accidents and insurance rates.
One example cited is that of Cutler YMX, which saw a decrease in accident-related claims after implementing nrod cameras in its fleets. These technological tools continuously monitor driver performance, providing real-time feedback and adjusting behavior before accidents occur. Every improvement in driving has a direct impact on the company’s profitability, with a 14% reduction in accident rates for every 50 points earned on the safety score.
Trends in the Road Transport Market
Looking ahead, the recovery of road transport operations post-hurricane will be a gradual process. According to Strickland, events like Hurricane Milton can have a lasting impact, especially when combined with other disruptive factors, such as the ILA strike. The expectation is that the market will stabilize in the coming months, but this will depend on how carriers adjust their operations and redistribute their fleets.
In affected markets, such as the southeastern United States, rejection rates are expected to continue rising temporarily until transportation operations can be realigned. Lakeland, Florida, a region heavily impacted by the hurricane, is a clear example of this trend, as most of the cargo passing through there relies on complex, well-aligned logistical networks.
In summary, Hurricane Milton not only physically affected the impacted regions but also triggered a series of challenges for transportation and logistics in the U.S. Technology is playing a key role in mitigating damage and optimizing operations, but full recovery may take weeks or months, requiring significant adaptation efforts by carriers and logistics operators.
