News

Shutdown Impact on Logistics

Supply Chain 24/7

10/01/2013

Truckload Border Crossings

Customs and Border Patrol will prioritize security of all kinds over speedy freight flows, so there is potential for longer delays at truck crossings along the northern and southern border. The biggest concern is for ancillary agencies that need to sign off on clearances like USDA, Forest Service, etc. How those agencies prioritize staff is a big question. Being flexible and monitoring crossings will be crucial to gauge any impacts.

Air and ocean imports will have the same types of potential delays as truckload crossings; however, the ancillary agencies often play a bigger role at ports and airports. There is another round of sequestration cuts coming in October on top of the potential shutdown, which means we may actually see wait times rise regardless of a shutdown or not. Again, flexibility is essential here because consistency may be the biggest threat of both a shutdown and further sequestration.

U.S. Domestic Truckload and Intermodal Freight

Day-to-day operations will likely not be disrupted at all because FMCSA is funded as an agency outside of the funding that potentially would be shutting down as part of the continuing resolution being debated today. There may be some delays and disruptions delivering to federal facilities that require appointments as facilities may not be staffed to load or unload. Examples include places like military bases, prisons, and federal construction projects. In addition, programs like the EPA SmartWay program may be included in any furloughed operations.