Severe winter storms pose a major threat to U.S. supply chains

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For The past few weeks, The central U.S. has been facing winter storms and cold weather, impacting shipping across the country. The winter storms that devastated Texas and many other areas not accustomed to the regular occurrence of snow and ice had a much bigger impact. The volumes dropped over 6% while capacity tightened. Declining compliance with the carrier is generally caused by rising shipping costs.

Normally, declining demand has the reverse impact on capacity in which pressure loosens with lower volumes, but it is uncommon for the capacities to tighten and volumes decline simultaneously. The reason is simple: Supply (capacity) falls faster than demand.

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Source: Freightwaves