How Government Shutdown Affects Transportation Operations

Government Shutdown

As we enter day 34 of the government shutdown, it was reported in The Wall Street Journal that agencies that oversee the flow of goods are starting to cut back services and working hours at some sites, raising concerns that delays can spread.

The New York Times says, “While some essential work, such as mail delivery and law enforcement, is still being performed, the shutdown has affected operations at nine departments, including Homeland Security, Justice, State and Treasury, and several agencies, including the Environmental Protection Agency and NASA.”

Some TSA and Customs & Border Protection agents are beginning to call in sick as they are working without pay; this has caused hours-long lines in airports and slower paperwork processing.

At borders, with less personnel reporting to work, delays at truck crossings can occur.

If you are carrying products that require cold storage, make sure your trucks are in tip-top working order to keep products cold during longer wait times.

For products with expiration dates, shippers should try to incorporate delays into overall shipping times to keep items within acceptance dates.

Some other noteworthy challenges from the government shutdown include:

FDA stopped its routine inspections of seafood, fruits, vegetables and other foods at high risk of contamination, but is still inspecting meats, eggs, grain, poultry, etc.
Social security checks will still come, and the US Postal Service will still deliver them.
Law enforcement personnel are working without pay and delays in Federal court proceedings have slowed, adding to the already large backlog of cases.
National parks and museums, even the National Zoo, have been closed during the shutdown.

The US Department of Transportation has not been funded for 2019 because of the shutdown, which may delay rulemaking around new Hours of Service proposals.

Most shippers will not see any disruption due to the shutdown except for border delays.

However, the longer the shutdown, experts are saying, the better chance for a disruption which could translate into thousands of dollars in demurrage and detention penalties.

If the shutdown drags on, back-ups at ports, borders and terminals could occur because of piles of delayed paperwork.

The longer the government shutdown continues, the greater the potential for a disruption to occur somewhere along the supply chain.

There is concern that less visibility into what is going on can lead to challenges that are hard to overcome. Without visibility, demand signals can be missed and there can be interruptions in transport modes.

Other potential issues include a loss of suppliers of raw materials, extra high inventory levels (or extra low), hold-ups in customs and more – leading to a sudden rise of prices that can eat into bottom lines and create unhappy customers.

Companies can create strategic supply chain plans to help overcome any disruptions caused by the shutdown.

Technology, planning ahead, and extra due diligence will help companies meet customer demands and keep operations moving forward.

Source: Kuebix | Freight Intelligence | TMS

Related White Papers & eBooks

The Art of the Inbound: 11 Ways to Improve Your Inbound Shipping Operations
This ebook provides a guide to benchmark your company against best practices in the transportation and shipping industry and helps to put together a strategic approach to capitalizing on the opportunities to manage the “art of the inbound.” Download Now!

Driving Supplier, Carrier and Customer Collaboration
This ebook describes how through the use of collaboration portals with various stakeholders, you will be able to effectively manage your cost of goods and consistently meet the expectations of your internal and external customers. Download Now!

The Complete Buyer’s Guide to Transportation Management Systems
There is almost no limit to how a Transportation Management System can benefit your unique supply chain, but the key to success is finding the right one for your goals, so, before selecting a TMS, use the 12 questions in this buyer’s guide to find the best solution for your company. Download Now!

Effectively Managing Big Data in Your Supply Chain
In this white paper, we’ll explain what the term “big data” means to the typical supply chain, introduce effective strategies for managing and leveraging that data, show how one grocer is using predictive analytics to harness its own big data, and explain the “first steps” that companies need to take down the path to effective management of their big data. Download Now!

More Resources from Kuebix