Hurricane Milton and Its Impact on the Freight Market

According to FreightWaves, the North American freight market faces its third major disruption in two weeks. Hurricane Milton, with winds reaching 120 mph, made landfall in Siesta Key, Florida. Despite weakening, the storm has caused significant flash floods and tornadoes across eastern Florida, impacting supply chains and putting pressure on freight capacity.

1. Impact of the ILA Strike

Before Hurricane Milton, the International Longshoremen’s Association (ILA) strike caused major disruptions at key East Coast ports, including New York/New Jersey, Houston, and Savannah. The transportation network is still recovering from the three-day shutdown.

2. Effects of Hurricane Helene

Hurricane Helene, while primarily impacting rural areas with low freight demand, added pressure on FEMA as it prepared for Milton’s impact.

3. Supply Shortages

Reports show shortages of essential supplies like toilet paper and bottled water in the Southeast U.S. due to panic buying and disaster relief operations. The recent port strike has further contributed to minor disruptions in trucking capacity.

4. Rising Tender Rejection Rates

Tender rejection rates, which measure the percentage of shipments declined by carriers, have risen in East Coast port markets. This indicates an imbalance between supply and demand in the freight sector.

5. Slight Increase in Spot Rates

Spot rates have slightly increased, reflecting minimal but noticeable disruptions. Most affected shipments are regional, keeping the impact on the national freight network limited.

6. Additional Pressure from Milton

Milton is further straining the system. FEMA is mobilizing relief efforts across multiple areas, and past events like Hurricane Harvey demonstrate that flooding recovery can take months or even years.

Commentary from Real Logistics: With Hurricane Milton heavily impacting supply chains, Real Logistics focuses on supporting customers by rerouting and optimizing freight capacity. We are committed to ensuring safety and efficiency during this challenging period.

Real Logistics Co., Ltd

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