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Supply Chain Shortages: Hurricane Weather Disrupts Important Production

Published on
October 30, 2024
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By
VCPB

Just as extreme weather can devastate those in its immediate path, damage done can have long-standing effects afterward on the global supply chain. Hurricane Helene, a Category 4 storm, had just dissipated at the end of September before another storm collided with the

southeastern U.S. region, one poised to bring further logistics disruptions as Helene has.

Yet the serious events coincided with the Port of Los Angeles witnessing a record-high volume of units on the other side of the country and businesses in between rolling out new production and distribution initiatives. To stay abreast of a fast-moving landscape, read these top five articles covering today’s most pertinent shipping news.

Hurricane Helene Leaves Severe Shortage of IV Fluids in Its Wake

A recent survey recorded that a significant majority of U.S healthcare providers are grappling with a shortage of crucial IV fluids after Hurricane Helene flooded one of the country’s main manufacturing facilities in North Carolina last month, Freight Waves reported.

Baxter International — which supplies 60 percent of the market share of intravenous liquids — announced it plans to reopen its damaged North Cove facility in North Carolina in phases. In the meantime, the company will increase manufacturing at its six other North American sites and the quantities of its highest-demand IV fluids Baxter allocates to its U.S. customers and distributors.

The survey from Premier Inc., a healthcare improvement company, found that 88 percent of healthcare respondents were receiving less than half of their orders for IV liquids, leaving approximately half with 10 days or less of supply. Baxter CEO Joe Almeida said the company “will spare no resource – human or financial” to restart its operations and serve patients.

Kroger Launches Autonomous Trucks Through New Partnership

A fleet of self-driving box trucks began making deliveries this year to Kroger retail stores around the chain’s Dallas network, according to a Produce News report. The roll-out was the result of a partnership between Kroger and Gatik, a California-based autonomous trucking company.

The medium-duty, 20-foot box trucks in question are apparently capable of making multiple delivery runs each day of the week, transporting all kinds of ambient, refrigerated, and frozen goods. Ultimately, the operation stands to increase the speed at which customer orders are filled and reduce the cost of moving items from Kroger’s Dallas Customer Fulfillment Center to its customers.

“These autonomous box trucks will help us continue our commitment to creating a seamless shopping experience — where customers can access their favorite fresh foods, with zero compromise on value or convenience,” said Raúl Bujalil, Kroger’s VP of Supply Chain Strategy.

Retail Spending, Deflation Brings September Surge to LA Port

A number of factors reportedly contributed to the Port of Los Angeles overseeing a record volume of TEUs last month that fed an all-time third-quarter high. The U.S.’s largest port saw more than 954,000 units in September; according to FreightWaves, that’s a 35 percent increase from September 2023 and five percent ahead of the previous five-year average.

The port’s executive director, Gene Seroka, reportedly attributed the surge to a sustained increase in post-pandemic holiday retail sales from consumers seeking normalcy and recent deflation. Census data shows that retail sales continue to grow and are up 3.5 percent compared to a year ago.

Seroka noted that dwell time has also increased, with rail boxes sitting for an average of eight days on the dock before being loaded – about twice as long as they should be. But that shouldn’t have an outsized impact on the major LA port, which is in discussions with railroads to resolve the issue. The director expected the port’s October volume to remain above 2023 and 2022 levels.

Fast-Growing Lettuce-Producer to Expand Pennsylvania Facility

A controlled-environment agriculture company specializing in packaged lettuce announced this month it opened a new 20-acre greenhouse space on its production site in McAdoo, Pennsylvania, with plans to open yet another next year, Produce News reported.

The coming greenhouse, expected to open in the fall of 2025, will be Little Leaf Farms’ seventh across its Pennsylvania and Devens, Massachusetts, campuses. The brand now serves over 7,000 grocery stores while exploring further building its presence in the Midwest and Southeast regions.

“Our continued expansion in Pennsylvania will advance our progress against our goals to grow our capacity and bring our lettuce to more and more consumers throughout the country,” Paul Sellew, Little Leaf Farms’ founder, said, as the company reportedly reached 66 percent more U.S households this year than in 2023.

Truck Spot Rates Remain Below Pandemic Highs

Continuing their weekly coverage of average trucking spot rate trends, Truck Dive reported that dry van and reefer rates have improved recently, particularly in the southeastern U.S., where the region continues to recover from Hurricanes Helene and Milton.

According to analysis from DAT Freight & Analytics, the dry van rate was $1.65 on Oct. 24, the reefer was $1.99, and the flatbed was $1.98, excluding fuel surcharges.

Spot rates were reportedly unmoved by the three-day port strike that ended on Oct. 3, though national benchmark averages “tended to decrease” in the first week of October. Overall linehaul rates rose year over year across transportation modes in September, marking the arrival of the next freight cycle after approximately two years of “rather extreme expansion” and contraction.

Navigate Disruptions, a Changing Landscape With VCPB Transportation

When extreme weather disruptions create serious consequences for those in the supply chain, a trusted logistics partner will ensure that even the greatest challenges are resolved smoothly. VCPB Transportation helps shippers remain equipped for any situation with a wide-ranging store of solutions:

  • Proven relationships with national, regional, and local transload experts
  • Access to more than 100,000 53’ intermodal with customized pricing programs
  • Latest technology in temp control and real-time tracking for produce and perishables

Start shipping with VCPB Transportation today to move loads on time, at the right price, and without a worry.

Logistics
Intermodal Trucking
Expedited Freight
Cross-Border
Refrigerated Trucking
Drayage
Alcohol Transport
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