Hurricane Helene Strains Truck Capacity as Rebuilding Begins

The devastation caused by Hurricane Helene is expected to create ripples throughout US supply chains, tightening truck capacity, as efforts to restore and rebuild severely damaged infrastructure in the affected states are currently overshadowed by ongoing rescue operations. Demand for freight to support reconstruction efforts from Florida to Tennessee and North Carolina will tap into spot market truckload capacity for weeks, if not months.

The Category 4 hurricane, which struck Florida on September 26, has killed at least 128 people across several states and caused billions of dollars in damages, including the collapse of a portion of I-40 near the North Carolina-Tennessee border. As with Hurricane Harvey in 2017, a storm of this magnitude is likely to have widespread implications for supply chains far from the Central South region. Trucks will be critical for relief and reconstruction, disrupting regular supply operations and causing delays.

The most immediate and substantial impact will be felt in the flatbed sector. As road and bridge repairs commence, earthmoving equipment and other heavy construction materials that are typically transported via flatbed trucks will be prioritized, squeezing capacity in the sector.

In the short term, road closures, power outages, and fuel shortages are making it difficult for freight to move across the Southeast. According to one industry source, these challenges should start to ease next week, although disruptions are expected to continue for some time.

Reconstruction efforts could be further complicated by the closure of container ports up and down the East and Gulf coasts due to an ongoing strike by the International Longshoremen’s Association (ILA). Logistics experts have highlighted that goods critical to reconstruction are currently stranded at ports like Savannah, delaying essential shipments.

Spot market load posts have already surged in the wake of the hurricane as shippers moved goods ahead of the storm. Flatbed load posts in Tallahassee, Florida, spiked by 81% week over week, according to one freight platform. Dry-van loads rose by 10% across the Southeast region, 16% in Florida’s “Big Bend” area, and 18% in Tallahassee. Refrigerated load posts saw a 16% increase in the Southeast and jumped 52% in Tallahassee.

With highway and bridge damage extensive, many relief and rescue supplies are still being delivered by helicopter, rather than by truck. It remains unclear when normal traffic through the region, including truck movements along I-40, will resume. This will lead to continued delays for shippers operating through the area, as well as increased transit times for shipments that were previously next-day deliveries.

Supply chain disruptions will extend beyond the region as long-haul freight is rerouted, and capacity is absorbed by alternative carriers. This will tighten the truckload market and put upward pressure on rates, which have struggled to recover over the past two years.

The full extent of the storm’s impact on truckload pricing, in combination with the ILA strike and rising retail sales, is yet to be determined. As industry leaders noted during the Inland24 conference, the industry remains in a “recovery phase” with major interstates closed and capacity restricted, making long-term forecasts difficult at this stage.

Throughout these challenging times, PNG Worldwide is here to support our customers in their transportation needs. With our expertise and flexible solutions, we are ready to assist our partners in navigating this period of uncertainty, ensuring their goods are moved safely and efficiently, wherever required.