We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Disruptions, plant shutdowns weigh on food supply chain

Disruptions, plant shutdowns weigh on food supply chain

Study shows more than 10% drop in shipped loads over the past month across meat, dairy, alcohol, and pet food.

May 4, 2020
DC Velocity Staff
No Comments

The supply chain impact of the Covid-19 pandemic is moving upstream, showing signs of wear on the food supply chain, according to data from logistics software provider FourKites, released May 1. A report from the company’s Chief Technology Officer Vivek Vaid shows that food shipments declined more than 10% in the last month due to supply disruptions and plant shutdowns, with the brunt of the impact occurring in the meat processing industry.

FourKites analyzed aggregate load volume across the major food suppliers in the country, looking at four sectors: meat, dairy, alcohol, and pet food. The results offer a snapshot of what’s happening across the food supply chain as a whole. 

“In aggregate, our data points to a 10-15% drop in shipped loads over the past month across meat, dairy, alcohol, and pet food,” Vaid wrote May 1. “And while that is certainly a significant drop, it’s not quite as precipitous as we expected.”

Other results include: 

  • Total shipment volume across the major meat processing companies in the U.S. declined 17% during the week of April 13 compared to its peak the week of March 23.
  • Correspondingly, load cancelations for meat processing companies—or loads that were planned two to three weeks in advance but then canceled by the customer—reached an all-time high last week [the week of April 20], up 9% from the week of April 13 and up 22% month over month. “This is especially concerning for the industry and supply outlook,” Vaid said.

Despite the challenges, Vaid said the meat distribution story remains “incredibly fluid,” especially in light of the Trump administration’s recent efforts to keep meat processing plants open. The President signed an executive order last week allowing the Secretary of Agriculture to invoke the Defense Production Act to keep plants running.

“If food producers bring workers in, we may see distributors and retailers increasing demand on carriers to keep up with escalating load volume,” Vaid wrote. “It will inevitably be a local decision based on a multitude of factors, and we will keep close watch on how this story unfolds.”

Data from other industry sectors, according to FourKites, includes: 

  • Load volumes across dairy, alcohol, and pet food are also down from their peak in early March, though they have each seen increased volume across the board in the month of April.
  • Alcohol, which saw declines from its peak in the week of March 30, saw a sharp increase this week [April 27]—up 28% from the week of 4/13.
  • The personal care and CPG industry has bounced back from its dip in load volume in mid-March, and rebounded strong in April, with load volume consistently higher than it’s been at any other point this year.

To see further coverage of the coronavirus crisis and how it's affecting the logistics industry, check out our Covid-19 landing page. And click here for our compilation of virus-focused websites and resource page from around the supply chain sector.

Coronavirus Coverage
  • Related Articles

    Companies step-up efforts to supply PPE—Covid-19 roundup, May 1

    Air industry warns of mail cargo capacity shortage

    Covid-19 crisis accelerates adoption of online grocery model

Recent Articles by DC Velocity Staff

Truckload carrier predicts challenging year ahead for industry

Train kept a rollin’

Werner invests in autonomous trucking firm TuSimple

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • For container lines and ports, what a difference a year makes

  • Outlook 2021: What’s in store for logistics supply chain?

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

  • Capacity challenges will continue in 2021

Now Playing on DCV-TV

2mw 01 11 21 thumb

Ocean Sector Shaping the Next Shipageddon

DCV-TV 4: Viewer Contributed
If you're a shipper, it's never good when a rep for an ocean carrier tells you, "You better sit down before you read this." We've been seeing astoundingly high increases in the ocean sector and they seem to have staying power. While the ocean carriers used blank sailings last year to tip the balance of supply and...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing