Supply Chain Industry Suffers From Wrong Attention Of Small Shippers

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When you look at what the world has been having to deal with now for almost two years, it’s really quite scary. A pandemic, racial tension, a political divide, the death of Kobe Bryant? The list goes on. But what appears to be most currently calamitous is the very fact that our supply chain isn’t doing so hot. The current situation affects the trucking and logistics’ industry very underbelly. As it turns out, there is a lot of support lacking from the federal government in all the areas that there actually needs to be more support.

What Can We Supply The Supply Chain?

Homebuilder John Fowke, speaking for the National Association of Home Builders, brings up these good points to the U.S. House Small Business Committee. “Having UPS and FedEx ramp up their delivery process doesn’t do a lot for the challenges we have with lumber and labor shortages that are handicapping our industry and creating a shortage of new houses.”

Big Businesses like Walmart and Amazon have been taking in the higher shipping costs while also using their girth to transport huger volumes. Therefore, this lets them get their goods across the ocean way eaier. Meanwhile, smaller companies are stuck up a river without a paddle. Let alone a boat.

Chris O’Brien, the CCO of C.H. Robinson, the third-party logistics group, has first-hand experience with this type of stuff. According to him, it’s pretty tough for the little guys of the supply chain mania. “We represent them with the ocean carriers and give them LTL pricing at the rates and size and scale of the larger shipper.”

O’Brien believes that the trucking section of the supply chain is the “weakest link.” Likely due to the dropoff of so many drivers from their former positions.

Currently, options like a potential law for truckers below 21 to take on cargo shipping gigs are being pursued. Isn’t that neat?

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