Florida braces for Hurricane Milton: storm threatens supply chains

In addition to the severe impact expected across the state, Milton is already causing serious disruptions in Florida’s freight transportation markets.

The state of Florida is preparing for the arrival of Hurricane Milton, a storm that has reached Category 4, with sustained winds of 127 mph and gusts of up to 155 mph. In addition to the severe impact expected across the state, Milton is already causing serious disruptions in Florida’s freight transportation markets. According to experts, Lakeland will be one of the most affected areas. This region, which includes the metropolitan areas of Tampa and Orlando, is crucial for freight transportation in the state, accounting for 1.693% of the outbound freight volume in the U.S.

A report published by FreightWaves reveals that the inbound tender volume index in Lakeland has reached levels not seen in over a year, suggesting that shippers are trying to position goods before or immediately after the storm’s impact. However, Florida’s freight markets are typically backhaul markets, meaning inbound volumes exceed outbound volumes.

Hurricane Milton: the dangers of a category 4 storm

President Joe Biden has warned that Hurricane Milton could become one of the worst storms to hit Florida in the past 100 years. As the country prepares for Milton’s impact, the government continues to allocate resources to areas affected by the recent Hurricane Helene. Cities like Miami, Orlando, and Tampa are expected to receive between 2 and 8 inches of rain through Thursday, with some areas potentially seeing over 15 inches, according to the National Hurricane Center.

Governor Ron DeSantis has declared a state of emergency for 51 of Florida’s 67 counties. The state’s Division of Emergency Management is organizing the largest evacuation since 2017, according to its director, Kevin Guthrie, who urged Floridians to finalize their preparations and evacuate if necessary.

Supply chain challenges amid Hurricane Milton’s threat

One of the main challenges will be the imbalance in transportation networks after the storm. As carriers pull out of the region to avoid Milton’s impact, the Lakeland market could experience a capacity shortage when shippers attempt to move inventory already in their facilities. While this imbalance may not be as critical as in other markets, it will add pressure to supply chains that depend on the region.

Data shared by FreightWaves shows that carriers are already beginning to avoid the Lakeland market, as there is nearly a 10% increase in the inbound tender rejection rate. This means that 1 in 10 load requests directed to Lakeland is being rejected, a clear indicator that transportation companies prefer to keep their drivers out of the hurricane-affected area. This rejection could worsen delays during the recovery process.

Although Florida is not a major container volume market, intermodal outbound container volumes are expected to drop significantly during the storm. While the ports of Manatee and Tampa will be the most affected, their overall impact on supply chains will be limited as they are relatively small compared to larger ports like Miami.

In summary, Hurricane Milton could cause significant disruptions to supply chains, and businesses must prepare for delays in freight transportation and potential infrastructure damage. As the storm approaches, shippers and carriers will need to act quickly and coordinate efforts to minimize the impact on the region.