Businesses Adapt Supply Chains to Weather Disruptions

Extreme weather events disrupt logistics and transportation. How can businesses respond? This article offers strategies for building a resilient supply chain, focusing on five key areas: communication, resources, technology, collaboration, and risk management. By implementing these strategies, companies can navigate adversity, maintain business stability, and overcome challenges posed by severe weather conditions. The aim is to help businesses proactively prepare for and effectively mitigate the impact of disruptions on their supply chains.
Businesses Adapt Supply Chains to Weather Disruptions

Imagine this scenario: howling winter winds and heavy snowfall force highway closures, paralyze rail transport, and delay countless flights—yet your shipment must still reach customers on time. This nightmare scenario for logistics teams represents the ultimate test of supply chain resilience. How can businesses turn these weather-related crises into opportunities while maintaining normal operations?

Recent extreme winter conditions across the United States have significantly impacted domestic freight operations. Major carriers including XPO Logistics, UPS, FedEx, Union Pacific, and BNSF Railway have all issued customer advisories warning of service delays and disruptions. As FedEx stated, dangerous weather conditions mean that "inbound and outbound services across the U.S. may experience delays and disruptions" despite contingency planning.

Weather-related freight challenges are nothing new. Many supply chain professionals still recall the 2014 polar vortex that severely affected the nation's rail, road, airport, and barge networks, causing widespread delays and cancellations. No business was immune.

The Dual Challenges of Winter Freight Operations

Greg Orr, Executive Vice President of U.S. Trucking at TFI International and CFI, identifies two primary challenges when serving shippers during severe weather: "Communication is absolutely critical. Our professional drivers are doing their utmost to operate safely and continue moving freight when conditions permit, but at significantly reduced speeds. Maintaining constant communication with drivers and providing timely updates becomes essential for successful deliveries."

"The second challenge involves understanding which shipments represent the highest priorities for our customers," Orr continues. "This allows us to focus resources on keeping high-visibility products in stock. Managing expectations becomes extremely difficult in these situations—our top priorities remain driver safety, asset protection, and preventing cargo damage."

Lessons From Past Weather Events

Orr emphasizes that each weather event—whether hurricanes, tornadoes, or major snowstorms—provides valuable lessons. "The most important takeaway is leveraging all available tools," he explains. "Technology and communication tools continue evolving rapidly. However, trusting our professional drivers as 'captains of their ships' remains our most valuable resource. We respect and support their judgment regarding safety and road conditions, and we unequivocally endorse their commitment to prioritizing safe deliveries."

Looking ahead, Orr notes that once weather improves, the biggest challenge becomes rapidly returning drivers to service. "Daily freight demand this week exceeded bookings by 175%—we don't want to disappoint customers," he says. "Our goal is safely returning as many trucks to operation as quickly as conditions allow. We've maintained transparent communication with every client about our challenges while providing real-time updates."

"The current challenge focuses on professional drivers across the industry," Orr adds. "We want them safe, with access to fuel and food. Many locations have closed due to power outages or frozen fuel lines—we're doing everything possible to support all U.S. truckers' safety and wellbeing."

The Retail Supply Chain Perspective

Jonathan Foster, Chief Consultant at Proxima, notes that even under optimal conditions, supply chain disruptions typically persist for weeks after major weather events. "Networks become unbalanced due to pent-up demand and immediate fulfillment interruptions from ongoing closures," Foster explains. "Additional disruptions compound the situation. As ice and snow melt, consumers will flock to stores for products they couldn't immediately obtain—creating demand surges while carriers work through backlogs."

Foster describes this as a "dynamic disruption" affecting the nation's core infrastructure. He notes carriers typically prioritize local deliveries before expanding outward, particularly for less-than-truckload (LTL) carriers that often restrict inbound freight until creating delivery capacity.

"Experience shows recovery requires three times the closure duration—three recovery days for each closure day," Foster says. "Compounding the challenge, ocean freight backlogs along coastlines already affect markets significantly. Carriers struggle positioning assets appropriately—this problem will worsen, with critical freight prices rising accordingly. All product categories will experience disruptions and pricing pressures since manufactured goods require inbound freight before distribution."

Five Strategies for Weather-Resilient Supply Chains

1. Enhanced Communication and Transparent Information Sharing

  • Establish real-time updates for drivers, customers, and internal teams regarding weather, road closures, and estimated delays
  • Proactively warn customers about potential disruptions to facilitate preparation
  • Utilize multiple communication channels (phone, text, email, online platforms) to ensure message delivery

2. Optimized Resource Allocation and Flexible Solutions

  • Identify and prioritize mission-critical shipments for customers
  • Develop alternative transportation routes for unexpected closures
  • Implement intermodal solutions combining road, rail, and air transport for greater flexibility

3. Technology-Driven Operational Efficiency

  • Implement intelligent dispatch systems that optimize routes based on real-time conditions
  • Deploy advanced shipment tracking for real-time visibility and issue resolution
  • Analyze historical data to predict future weather patterns and potential disruptions

4. Strategic Partnerships and Network Development

  • Diversify carrier relationships to ensure capacity during disruptions
  • Develop strategic partnerships with suppliers and customers for mutual support
  • Establish localized inventory in key markets to reduce delivery times and risks

5. Proactive Risk Management

  • Develop detailed contingency plans with clear departmental responsibilities
  • Conduct regular risk assessments to identify potential supply chain vulnerabilities
  • Secure appropriate insurance coverage for weather-related losses and disruptions

While extreme weather presents significant supply chain challenges, it also offers businesses opportunities to strengthen resilience. Through improved communication, optimized resource allocation, technological integration, strategic partnerships, and proactive risk management, organizations can not only weather operational storms but potentially discover new avenues for growth. True competitive advantage emerges from the ability to adapt and thrive amid adversity.