Transportation shortages strain food supply chain
The agriculture industry relies on transportation.
It is utilized in every aspect of food production from planting to harvest to final product distribution. A shortage in transportation strains the supply chain and can lead to empty grocery store shelves.
Transportation allows Wisconsin to contribute to the national and global food supply chain. During 2020, Wisconsin exported more than $3.37 billion agricultural and food products to 145 countries, according to the Wisconsin Department of Agriculture, Trade and Consumer Protection.
The most utilized form of transportation in the US is trucking. Trucks are often used alongside another form of transportation when exporting goods to other countries. The United States Department of Agriculture estimates that 80% of American cities are serviced by the trucking industry.
Trucks serve a key role throughout the supply chain, where they typically cover both the first and last miles before food arrives on the dinner table. Timeliness of the trucking industry is crucial when delivering perishable food sources.
Because the agriculture industry needs transportation, meeting the demand of the industry is necessary. Recruiting and retaining a workforce is critical for the transportation industry. Otherwise, growers and processors cannot ensure their products arrive in grocery stores.
A lack of available workforce can be affected by fuel costs, toll costs, lower freight rates and even long waits at shipping or receiving facilities. More than 90% of the trucking industry is run by small businesses operating with fewer than 20 trucks. It is estimated that 85% are run by those operating 6 trucks or less.
The American Trucking Association estimates more than one million drivers will need to be hired within the next decade to meet transportation requirements. Currently, a shortage of drivers is one of the biggest challenges facing the industry. The shortage of drivers has been an ongoing issue for several years, according to the ATA. Much like other industries, the inability to meet market demands leads to costs rising.
To combat the shortage, companies are spending more on recruitment and retention efforts, which then translates to the cost of shipping increased. The cost is then passed on to the consumer, which means the prices of goods increase. Transportation plays a key role throughout the supply chain.
The average truck driver's salary in the US is $70,447 per year, according to Indeed. However, salary is often dependent on experience and qualifications.
If interested in learning more about what it take to become a driver in Wisconsin, visit Wisconsin Department of Transportation's website.
This is the second article in the National Learning & Development Month series. Throughout October, we will be posting articles to help you gain a better understanding of the topics above in relation to your food. Be sure to follow us on social media channels to stay up to date with all published content.
