At a time when the U.S. ports are struggling to overcome surging volumes, the grounding of the Ever Given could result in a ripple effect throughout the intermodal and truckload sectors through the summer.
According to the Coalition of American Metal Manufacturers and Users, which represents more than 30,000 companies in the manufacturing sector, unfilled orders for steel in the last quarter were at the highest level in five years, while inventories were near a 3.5-year low based on data from the Census Bureau.
Out of more than 40 vegetable crops grown in the Rio Grande Valley in the McAllen, TX, freight market, only three are hopeful to survive, according to Tom Karst from The Packer: onions, cabbages and potatoes.
At the start of the pandemic last year, supply chain expert Daniel Stanton – aka Mr. Supply Chain – spoke about the “bullwhip effect” on supply chains. Almost a year later, the bullwhip effect is rattling supply chains again, as manufacturers struggle to keep up with demand for consumer goods.