News summary
First it was a lack of drivers, now it is a lack of vehicles. Both have caused disruption to global supply chain. In the US alone, truck drivers move 71% of the economy’s products, highlighting the importance of this service.
Increased wages have been a key factor in persuading workers back on the roads. Before this, the draught in truck drivers meant shipping containers were left stranded at ports, causing an extreme supply chain delay.
However, the problem has continued in another area of the industry. Instead of a lack of truck drivers, there is a lack of parts to manufacture the trucks. This issue started from global restrictions due to coronavirus and has since worsened since the conflict between Russia and Ukraine . These disruptions in supply chain have become more severe than initially thought. The impact of this global delay in supply chain has been substantial with thousands of industries being affected by reduced stock. Lafayette, Ind.-based equipment maker Wabash National Corp. expects to produce about 25% fewer trailers this year than it did before the pandemic because of shortages of everything from foam insulation to suspension components and taillight wiring.
Not only has the lack of manufacturing equipment and truck parts impacted the supply chain, but this issue has caused prices of second-hand trucks and trailers to drastically increase. Trucks that are 1 to 3 years old are being valued close to brand new vehicles, showing how scarce they have become. The lack of trucks has forced transportation companies to turn down orders due to the lack of vehicles available and the uncertainty of when this problem may be resolved.
