Following legal issues related to supply chain management.

Monday, November 2, 2009

Rockslide closes I-40, creates supply chain headaches for truckers

Early on the morning of October 26th, a rockslide closed a part of Interstate 40 in western North Carolina. The highway is one of the state's key trucking routes, and one of the chief roads used by tourists and others traveling to the Blue Ridge Mountains, Tennessee and beyond.

According to experts in the trucking industry, the I-40 road closure will require truckers going both east and west to travel an extra 100 miles to detour around the rockslide. Depending upon their tariffs, it could cost an extra $125 to $200 each way. Typical daily truck volume through this section of I-40 is 12,000 to 15,000. That’s $3 million per day. The section is estimated to be closed for up to three months. That adds up to $270 million in extra freight costs, and right in the middle of the holiday season.

This unpredictable natural disaster underscores the need for continual review of your supply chain, and having recovery plans in place and multiple sources of supply and transport available.

- Greg Chabon


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