D isruption from Hurricane Beryl, which ravaged parts of Texas in mid-July 2024, was one of the latest events forcing shippers and carriers to consider alternative routes for getting products to their final destinations. The storm knocked out power for more than 2.5 million homes in Texas and flooded roadways caused major transportation delays for regional shippers. The supply chain has been hammered by recent weather events like this—plus everything from geopolitical issues to port shutdowns to congestion pricing— all compelling shippers to look at different ways of moving freight. Supply chain resiliency is the common buzzword for being prepared to react to disruptions, but how do companies put that into practice? One way is to develop alternative routes or a backup to standard transportation plans. While an alternative route includes basic steps like steering a load to a different highway or port, there’s more to it. Seeking an alternative route may also encourage a different way of operating that can transform supply chain strategies. Diversify and Be Flexible During and after the pandemic, freight shifted from West Coast ports to East Coast ports as carriers and shippers searched for a way to bypass congestion. While that trend has reversed to some extent, it’s still a common tactic for those seeking alternative routes. More recently, with ocean lane disruptions in the Suez Canal and the Port of Baltimore, flexibility in routing has been critical. “Diversification of routes helps build resiliency,” says Larry Mason, vice president of operations for Averitt, a large regional carrier. “You can’t change your plan the day something happens with nothing to fall back on.” Complacency can be a barrier to rethinking your strategy. For instance, despite chronic problems at West Coast ports, many shippers are still reluctant to consider alternative destinations, notes Bryn Heimbeck, co-founder and president of
Hurricane Beryl flooded highways in Texas, forcing shippers to consider alternative routes. These types of disruptions compel shippers to examine new strategies for moving freight.
for example, Averitt uses tools that implement a network plan to revise operations not only in Florida but also in adjacent affected states. “That way, the terminals in Atlanta or Nashville don’t become overloaded,” Mason says. rerouting with automation The company can make similar adjustments and find alternative routes in the case of road closures. Previously, if a portion of a major highway were to shut down, Averitt employees would respond by making a variety of phone calls and coordinating manual route adjustments. Today, thanks to technology, managers can indicate that the highway is closed at a particular mile marker, and the system works through the network to make adjustments, reroute trucks, and alert terminals along the impacted path. The ability to make such rapid network-wide adjustments helps Averitt respond to customers hit by last-minute disruptions, too. When their regular carrier went on strike, one shipper called to see if Averitt could handle 400 extra loads to Chicago. “We rely on the technology to sift through all the data in the system and tell us how to handle each situation,” Mason says. “The technology won’t give us the resources to move those loads, but it does give us the planning ability to adjust to that particular network or area of the country.”
Trade Tech, a global logistics platform. “I ask companies why they don’t consider sending shipments through Seattle or straight into Chicago, and they come up with 1,000 reasons,” he says. “Transportation managers have to be open to reasonably viable alternative routes.” As trans-Pacific container volumes continue to recover to the point where congestion at West Coast ports may return, it’s a signal to consider alternative routing once again. “It’s time for shippers to ask, ‘How can we transport loads to Chicago without going through Los Angeles?’” Heimbeck says. “They have to be ready to push the Seattle button instead of the L.A. button.”
Technology Offers Alternatives
Technology is becoming a reliable tool to uncover alternative routes and practices. Tactical solutions such as load and route optimization help carriers operate more efficiently, while AI-enhanced decision-making can speed up reaction time to external events like weather and economic disruptions. “In the past, it would take 24 to 48 hours to make adjustments in response to a disruptive event. Now, we can do it on the fly,” says Mason. “We use these technological resources to react immediately and change plans in a split second.” If a hurricane hits South Florida,
38 Inbound Logistics • August 2024
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