4 Ways the Drought Affects the Trucking Industry

Our economy is an ecosystem, and like any ecosystem, changes to one part affect another. Just as climate changes can impact flora and fauna — changes to any part of our economic ecosystem affect all. This summer, we’ve expe­ri­enced a record heat wave and drought in most of the United States. The trucking industry is one of the largest and most inter­con­nected parts of our economic eco system; when it’s affected we’re all affected as outlined below —

1. Agri­cul­tural carriers will have fewer products to haul. According to Cargo News, “Global grain trade could report­edly drop 4.9 percent for the 2012–2013 amid a historic U.S. drought…” This sentiment is echoed by various sources. The American trucking industry is a 255.5 billion dollar per year industry. Trucking moves nearly 70% of all tonnage trans­ported in this country. A 4.9 % drop in agri­cul­ture trans­ported by truck rep­re­sents a possible $876 million loss of revenue, which ulti­mately could affect consumer prices.

2. Ethanol pro­duc­tion may be affected. CNBC reports, “Corn, which is used for food and feed, as well as ethanol, has been hit hard because the heat and dryness occurred just as the crop was pol­li­nat­ing. The EPA has not granted a waiver to the Renewable Fuels Standard (RFS), since it was enacted in 2007.” This could affect the transport of ethanol and the trucks fueled by it.

3. Increased main­te­nance costs due to heat. From Transport Topics, “This summer’s relent­less heat wave through­out much of the United States is taking a toll on motor carriers, including a spike in tire blowouts. Carl Brune, vice president at fuel hauler McKinley Trucking Inc., Carson City, Mich., said tire failures have doubled this year.” The heat has affected cooling and other systems as well. With 15.5 million trucks on the road in the U.S.A., this is no small problem.

4. HOS (Hours of Service) reg­u­la­tions have been waived. In another Transport Topics post, “The Depart­ment of Trans­porta­tion has waived hours-of-service reg­u­la­tions for areas affected by drought, to help put more needed trucks and drivers on the road to help (sic) affected farmers and ranchers.” This could impact drivers, as well as carriers.

How might we all be affected? Fuel, food, and other commodity prices could rise – not only due to shortages, but also because of added trucking industry costs. Only time will tell, but private and public assis­tance aimed at keeping the trucking industry strong are paramount to our way of life in hard times.

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