ECONOMY RE-OPENS BUT FOOD SUPPLY CHAIN TIGHT
A recent Wall Street Journal Logistics Report suggests the supply chain of the food industry will remain scarce for at least the next several months. While the re-start of the economy continues, production of beef and pork remains down, with rice and pasta just a few of the food staples still in high demand because of consumer hoarding.
This supply and demand imbalance increases the monetary value of loads, increases the risk of theft and can hit a shipper’s balance sheet harder this year compared to past years. For example, a load of beef which may have been valued at $75,000 last year might be worth considerably more today.
For more details on the food supply chain, see below excerpt from The Wall Street Journal Logistics Report.
In the meantime, shippers can request a freight quote or call 800.580.3101 and connect with a Logistics Account Executive today. Carriers can download TQL Carrier Dashboard to simplify load management.
Credit: WSJ Logistics Report/Paul Page
A meat-supply crunch is beginning to ease but grocers and suppliers expect strains across U.S. food sectors to persist for several months. The U.S. food industry heads into the summer months with beef and pork production last week about 7% lower than the same time last year, while items like rice, flour and pasta remain scarce following heavy consumer stockpiling. That panic-buying has tailed off but disconnects in supply chains are lingering as suppliers and distributors cope with rapid shifts in production and demand. Restaurants that had scaled down to pickup and delivery operations have resumed food purchasing as they begin to reopen, for instance, keeping supplies of meat products and other items tight. Meat processors have reopened plants but many sites are running well below their usual capacity, with some workers out sick and others adjusting to new safety rules.