Reimagining the Supply Chain
Tennessee could use some good old volunteer spirit. The state, struggling under the economic and manufacturing slump that has swept the globe since the COVID-19 outbreak, has seen trade plummet and unemployment soar. Although economic indicators appear to be trending upward, forecasting is uncertain if not unpredictable, and supply chain stakeholders are plotting how to adapt to fluctuating volumes.
“We felt significant double-digit reduction in volumes for multiple months during the COVID-19 peak. We’ve also felt the loss of a reduction in our labor force, due to lack of cargo volumes and high unemployment wages. Volumes and revenue lost during March through June are gone forever,” said Joel Henry, president of Memphis-based Intermodal Cartage Company. As indicators have begun to improve in the last quarter, freight volumes have increased faster than the labor market, and the company has struggled with getting drivers back to work. “We are still challenged with hiring both company drivers and owner-operators, even though we are offering the highest sign-on bonuses in our company’s history, ” he said. To read the full Tennessee Trade and Logistics article in the Journal of Commerce, click here.
Posted: November 3, 2020