Supply Chain Disruptions Could Increase as Truck Drivers Quit in Droves Due to COVID Concerns
Logistics and shipping companies across the world are facing serious staffing challenges, according to the latest data from Bloomberg. This could lead to increased supply chain disruptions for consumers and, ultimately, higher prices on many goods.
The International Road Transport Union said that roughly 20% of all professional truck driving jobs are unfilled worldwide, in spite of increased wages. The American Trucking Association noted a truck driver shortage in the U.S. of at least 80,000 people in 2021. Mickey Weaver, owner of two truck driver recruiting companies, told Vox, “I’ve got more jobs than I’ve got drivers.”
Fears of getting sick, delays and regulations crossing borders, and weeks of quarantine has many people in the transportation and logistics industries, including truck drivers and those who work on cargo ships, refusing contracts or quitting their jobs.
As a result of the labor shortages and other logistical challenges created by the pandemic, transport, warehouse, and inventory costs have risen close to the 100 index mark. Transport costs, specifically, climbed more than 200% since April 2020, according to a chart published by Bloomberg based on figures from the Logistics Managers’ Index.
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