Fleet Advantage, a data-driven fleet management solutions provider, says outbound and inbound freight will take weeks, if not months, to get moving again. This will be true for both for-hire and private fleets in Texas and Florida. Companies in the affected areas that had a fleet will have to find other vehicles or sources to move goods or freight if their trucks were damaged.
The shortfall that may occur with oil and refining capabilities will surely create an under capacity situation and fuel prices will likely increase. Demand for capacity and volume drive price. We can expect prices to increase not only on fuel but also on supplies and materials. Production will be affected negatively and other production resources outside of the disaster areas will have to fill in behind the damaged plants. We always counsel our fleet truck partners to pay close attention to fuel and diesel prices, even when prices are low. Diesel can represent a significant portion of operational costs for a truck fleet company, which is why many are now shifting their strategies to a shorter operational lifecycle. This ultimately helps drive down costs not only for the fleet operator, but throughout the supply chain, the Fleet Advantage representative added.
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