By now we are all aware there are significant issues that risk disruption to our transportation supply chains across the country. These issues are complex and given the recent publicity of what is looking to be an impasse that may last some time, we want to ensure our customers and partners are aware of these risks.
While the most obvious pressing disruption is the rail transportation restrictions, the downstream effect over the coming days and weeks is what we all need to be talking about and planning for. At best another week of restriction will cause bottlenecks that will take weeks to solve resulting in supply and delivery delays across all networks. At worst a prolonged impasse will halt the movement of non-critical supplies and goods, forcing the movement of same over the road. And if the conflict continues, we could see the blockades and restrictions moving to our highway systems as well.
Critical volumes that can be moved to the road will be and that will take up any available capacity for non-critical goods. The disruption will be felt in capacity constraints of the current volume of road carriers, as well as in the pricing of the services to transport these volumes.
We are aware that our customers that use FMi for the movement of their valued goods, or the inventory management and distribution of goods, have already begun to feel the pinch.
Our first advice to all is to ensure your own immediate supply chain partners are equally aware of these risks, that the supply of products may be delayed due to these issues. We are just now beginning to feel the pinch of both customer inventory supply into our Distribution facilities, as well as carrier capacity pressures as we shift some volumes from rail service to road.
We are in touch daily with all stakeholders to keep open dialogue to best manage the priorities of movement.
However, we like the rest of the country are unable to overcome the more complex issues without government involvement. We ask that you stay in close communication with your FMi representative to share your needs, and to keep appraised of the marketplace pressures so that we may continue to navigate through this as a team.
We are hopeful that dialogue over the coming days can put in place a resolution to the crisis, and that the supply chains can get moving again.
President, FMi Logistics