The auto transport industry is making waves as one of the biggest growing industries in the world. In fact, it is set to reach a multi-million USD market size by 2029, with regions like North America and Europe leading the revolution.
However, as the auto transport industry continues to grow, the challenges that it faces also multiply. One of the biggest being extreme weather conditions. As it learns to adapt to the changing climate conditions, it has significantly embraced Artificial Intelligence as its companion to make the shipping process more efficient. But is that enough to sustain the auto transport supply chain in 2024?
Weather Disruptions That Impact Auto Transport Supply Chain
With rapid climate changes looming about in 2024, the weather and seasons around the world have become increasingly unpredictable. While steps are being taken to curb the situation, the truth is that a lot of processes, especially in the Automotive Transportation Industry have been hit by it, especially the auto transport supply chain.
Extreme weather conditions such as heavy downpours like that in California, with floods in areas of Utah and Nevada in 2023 are a prime example of weather extremities. They caused not only a major environmental risk but also posed a threat to the auto transport supply chain, especially with the high density of earthquakes that keep impacting Nevada, especially the Carson City, which has had multiple incidents in the last 50 years.
Other environmental factors such as the Wildfires, like those in Canada, tropical cyclones, drought, hurricanes, snow storms, and tornadoes are equally to blame for a disrupted supply chain throughout the world.
Impact Of Extreme Weather Disruptions On Auto Transport Supply Chain
Road Closures
The auto transport industry relies heavily on a seamless network of roads to efficiently ship vehicles across the country. Every day, countless motorcycles and passenger cars, including those shipped via enclosed auto transport, traverse the nation’s highways, forming a vital supply chain. However, when extreme weather conditions strike, this critical infrastructure can be severely disrupted. Floods, hurricanes, and other natural disasters can render roads impassable, causing significant delays or even cancellations of shipments.
Suspension Of Operations
Rough weather can bring automobile manufacturing processes to a halt. Whether it’s a factory that makes parts for various heavy equipment, or exotic cars, storms and floods can lead to shutting down of these factories, leading to a disruption in the supply chain, impacting not only the process but also the workers involved in the process of manufacturing.
Lack Of Raw Materials
All the parts of an automobile, be it any heavy equipment or a simple screw, are derived from metals, and minerals, found naturally in nature. When natural calamities hit a region, it results in depletion of raw materials, shortage of supplies, or even huge price increase, all of which contribute to halting or in the very least, slowing down the auto transport supply chain.
Strain On Human Resources
Humans are an essential part of the auto transport supply chain, be it the engineers, manufacturers, operators, or drivers, all of them contribute equally to the success of automobile transport supply. Dire weather conditions cause a threat to people responsible for the production and shipment process. As the need for protection increases, and the number of human resources become scarce, the supply chain breaks down.
What Can Be Done?
With manufacturing, operations, shipment, as well as human resources taking a hit due to weather disruptions impacting the auto transport supply chain negatively, it’s essential to have a contingency plan in place.
By assessing the potential environmental risks that may come one’s way using a forecasting tool, investing in open channels of communication, focusing on protection and training of the workforce, and using optimum technology, one can reduce the disruptions in the auto transport supply chain, and ensure customer satisfaction.
