By Charlie Fabricant ALC Corporate
The United States has experienced an unprecedented increase in severe weather events, with 2023 accounting for the highest annual total of severe storms and one of the highest financial costs on record. Per the National Oceanic and Atmospheric Administration, regarding severe storms, i.e., storms that cost the country $1B or more, “The 1980–2024 annual average is 9.0 events (CPI-adjusted); the annual average for the most recent 5 years (2020–2024) is 23.0 events (CPI-adjusted).” It is estimated that 23% of all road delays can now be attributed to weather, directly costing the industry between $2 and $3.5 billion dollars annually, not even including rising insurance premiums and maintenance costs. The total economic loss associated with climate risk in supply chains will reach $120 billion annually by 2026. As shippers plan for uncertainty, what kind of logistics partner will they be able to trust to be as adaptable as the times demand? Let’s discuss.
The COVID-19 pandemic, and the supply chain collapse that went with it, emphasized the need for companies to add both resilience and flexibility to their business operations. The same lessons apply to the climate crisis. Traditional supply chains are already being disrupted, whether it’s due to drought conditions causing the Panama Canal to reduce shipments, more frequent and powerful hurricanes damaging both ports and roadways, or fluctuating temperatures and precipitation patterns making winter storms harder to predict. With an uncertain regulatory market and technological changes, the logistics world is looking at a significant shakeup.
Traditional wisdom has long heralded asset-based carriers for reliability and brokers for flexibility. However, as market dynamics change, so do long-held industry advantages. More and more shippers are shortening their bid timelines, acknowledging the increased market volatility over recent years. As mini bids take up a growing amount of total volume, carriers need to be able to adjust to constantly changing lanes and prices. Although brokers work with asset-based carriers to service our customers, they do not have the same large capital expenditures that make rapid operations adjustments difficult. As with everything in the transportation sector, collaboration is crucial, but as climate disruptions and regulations increase, brokers are better positioned to assist customers with sourcing resilient and flexible transportation options.
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Charlie Fabricant graduated from Vanderbilt University in 2021 with a double major in Economics and Human & Organizational Development with a minor in Environmental Sustainability. He joined the Nashville office as an undergraduate intern in 2021 and became a transportation broker along with the company’s Environmental, Social, and Governance (ESG) coordinator. In 2024, he was promoted to ESG programs manager.
charlie.fabricant@allenlund.com