Need Help
close button

How can we help?

Select One:

The Memphis Bridge Closure Is Wreaking Havoc on Businesses–and It Could Get Much Worse

14 May 2021
Category: News
Author: Evan Pundyk
Shape
The closure of the Hernando de Soto Bridge over the Mississippi River is creating headaches for business owners across the U.S.

The closure of a bridge in Memphis is wreaking havoc on businesses.

A cracked beam discovered during a routine inspection of the Hernando de Soto Bridge on Tuesday has shut it down indefinitely. The bridge, which spans the Mississippi River and connects Arkansas with Tennessee, will remain closed until a full inspection can be performed. That might take several weeks, according to NPR, and the repairs could keep the bridge closed even longer. Vessels are also temporarily prohibited from traveling beneath the bridge.

Shipping and logistics companies throughout the country are already experiencing problems. “If you’re going from the Southeast to the Southwest or vice versa, you’re going through Memphis,” says Chris Wang, founder and CEO of Chattanooga-based Taimen Transport, which claimed the No. 1,683 spot on the 2020 Inc. 5000 list. The transportation management software company works with more than 15,000 carriers and is already seeing the closure affect its clients’ shipments, including a Memphis-based beverage company that’s one of the largest in the U.S. “It’s causing huge delays,” Wang says. “It’s a major inconvenience.”

About 11,000 commercial trucks travel over the de Soto Bridge per day, according to Wang. A second bridge a few miles south serves an alternate route, but it’s only two lanes wide in each direction and not equipped to handle the excess traffic. Congestion in the area is causing delays of up to three hours.

Those slowdowns could affect time-sensitive shipments, including vaccines, which need to be delivered in a timely fashion due to refrigeration issues. Wang says Taimen Transport was responsible for moving a huge shipment of vaccines that arrived in Memphis in December. “They were pulled off a plane and put on an expedited truck that had to deliver them to the Midwest within 12 hours,” he says. That would have been impossible with the current delays.

The consequences of the delays are wide-ranging. Truckers generally get paid by the trip, not per hour, so drivers will have little incentive to accept trips that terminate in or pass through Memphis, Wang says. Shippers will likely have to compensate by paying drivers more for those routes.

Trucking rates are already at all-time highs as the economy rebounds from the Covid-19 pandemic. The cost of the Chicago to Memphis route, for example, is up 121 percent year over year.

“That’s pretty drastic, and it’s only going to get worse,” says Wang. “Delays cost money.”

A major logistics hub, thanks in part to its access to the Mississippi River and proximity to cities throughout the South and Midwest, Memphis is home to the global headquarters of FedEx. Many shipping routes include stops in the western Tennessee city.

“It’s a regional hub that a lot of freight travels through,” says David Spencer, director of business intelligence at Austin-based Arrive Logistics, which was No. 589 on the 2020 Inc. 5000 and handles freight logistics for more than 6,000 clients.

Department of Transportation regulations limit truckers to 11 hours of driving per day, which generally allows them to make one-day trips of about 450 to 500 miles, according to Spencer. Adding several hours to certain routes, like the 453-mile journey from Dallas to Memphis, will push them to two days. That can mean storage and refrigeration fees, as well as a shortage of trucks.

“It disrupts both directions,” says Spencer. “This could push the current all-time truck costs even higher.”

Halting water-based travel along the Mississippi River, one of the country’s major shipping arteries, is also causing business disruptions. Aaron Keck, head of sales at Chattanooga-based Lync Logistics, No. 786 on the 2020 Inc. 5000, says this is resulting in shipments being undelivered and causing supply chain disruptions. “It’s starting to look like the Suez Canal, part two,” says Keck, referring to the March blockage of that waterway by a 400-meter container ship.

Fifty percent of the country’s agricultural water-based exports depart from the Port of New Orleans, according to Spencer. Midwestern crops like soy and corn that get shipped overseas are currently unable to reach the southern end of the Mississippi River. Shippers might have to resort to rail transportation, which is far less cost-effective, resulting in a price increase for consumers. Plus, the Port of New Orleans isn’t equipped to handle the influx of cargo that would arrive if many shippers decide to pivot to railway travel, so delays would be further exacerbated.

“Should the bridge remain closed for an extended period of time,” says Spencer, “the ripple effect could be massive.”

Photo credit: Getty Images, original article published here: https://www.inc.com/kevin-j-ryan/memphis-bridge-hernando-de-soto-closure-business-headaches.html


Tim Denoyer,
VP and Senior Analyst at ACT Research

As VP and Senior Analyst at ACT Research, Tim analyzes commercial vehicle demand and alternative powertrain development (i.e. electrification), and authors the ACT Freight Forecast, U.S. Rate and Volume Outlook. He previously spent fifteen years in equity research focused primarily on the transportation, machinery, and automotive industries, and co-founded leading equity research firm Wolfe Research.

Contact Us

"*" indicates required fields

Subscribe to receive freight market updates​​

"*" indicates required fields


Quick Apply

"*" indicates required fields

Max. file size: 50 MB.

Arrive Carrier Requirements

Please have the following info ready to complete registration

  • MC, MX, DOT, or state reg #
  • Tax ID & W9 info
  • Cert of Insurance: $100k cargo, $1M Auto, & $1M commercial general liability coverage
  • Active Common or Contract Authority (365+ days)
  • Safety Rating of at least Satisfactory (or None)

Fraud Prevention

Freight fraud continues to impact our industry. We encourage shippers and carriers to reach out to Arrive immediately if there is ever a shipment in question that may be subject to fraud. Arrive will not ask you to pay upfront for any dedicated lane or committed capacity program. If the offer you are receiving sounds too good to be true or unrealistic, it may be fraud. Arrive Logistics recommends verifying all communications come from our registered email domain is @arrivelogistics.com. Our 24/7 phone number is 888-861-0650 and our leadership team can also be reached at feedback@arrivelogistics.com.

Use of Cookies

We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze site traffic. By continuing to use this website, you acknowledge and consent to our use of cookies as detailed in our privacy policy.

Get Access to the Shipper Portal

Current Customers

Already shipping with Arrive?

Connect with your representative to get access to your ARRIVEnow Shipper Portal. Can’t connect with your rep? Use this form to reach out.

New Customers

Not shipping with Arrive yet?

If you’re not an Arrive customer, please join our network to access the portal.

Carrier Scorecard Feedback

Scott Sandager,
Chief Administrative Officer 

Scott Sandager is the Chief Administrative Officer at Arrive Logistics. He joined Arrive in 2018, bringing over 14 years of logistics and brokerage experience, with expertise in project and change management, organizational design, talent development and customer satisfaction. Scott previously held many diverse roles of increasing responsibility with AFN, a Chicago-based freight brokerage.

Barry Conlon,
CEO & Founder at Overhaul

Barry Conlon is the CEO and founder of Overhaul, the global leader in active supply chain risk management and intelligence. With a remarkable career spanning over 30 years in supply chain security, he is widely regarded as a trailblazer in modern-day supply chain security standards and best practices.

Matt Pyatt, Chief Executive Officer

Matt Pyatt is the Chief Executive Officer of Arrive Logistics. He co-founded Arrive with President Eric Dunigan in 2014 after building his career at Command Transportation. As CEO, he is responsible for overseeing the company’s financial health, strategic vision and culture, as well as building a scalable leadership team to support Arrive’s growth.

Eric Dunigan,
President & Co-Founder

Eric Dunigan is the President of Arrive Logistics. He began his career at Command Transportation before co-founding Arrive with Matt Pyatt in 2014. As president, he is responsible for driving revenue and growth, as well as leading the Strategic Partnerships team — a veteran group of supply chain experts who work with Arrive’s customers to reimagine their shipping strategy.

Arrive Logistics VP of Market Intelligence David Spencer Headshot

David Spencer,
VP of Market Intelligence

David Spencer is the Vice President of Market Intelligence at Arrive Logistics. David joined Arrive in 2017 after spending six years at AFN focused on business intelligence. His department provides critical market data and expert analysis to internal teams and publishes monthly market updates for shippers and carriers under the Arrive Insights banner.

Andrew Clarke, Board Chair,
Arrive Logistics and Global Critical Logistics

Andrew Clarke is Board Chairman for Global Critical and DCLI, Inc., and a board member for Arrive Logistics and Element Fleet Management Corp. His 20 years of global transportation and logistics experience include time as CFO of C.H. Robinson, CEO of Panther Expedited Services, Inc. and SVP and CFO roles at Forward Air Corporation.

Dean Croke,
Principal Analyst
at DAT Freight and Analytics

Dean Croke is a Market Analyst at DAT Solutions, where he focuses on freight market intelligence and data analytics. His 35 years of experience with data analytics, transportation, supply chain management, mining and insurance risk management include time as co-founder of FleetRisk Advisors and in a number of other high-level roles with FreightWaves, Spireon, Lancer Insurance, Omnitracs Analytics (formerly Qualcomm) and more.

Asanka Jayasuriya,
CTO and Partner at 8VC

Asanka Jayasuriya is the CTO at 8VC. He is an accomplished engineering and product leader with 20+ years of experience in the cloud. He has a strong background in enterprise SaaS, PLG products, infrastructure, and security. Notably, he served as CTO and SVP of Engineering at SailPoint, leading their successful transition to the cloud and successful exit event. He also held senior leadership roles at InVision, Atlassian, and Amazon, driving growth, operational excellence, and innovation. At 8VC, Asanka works with the entrepreneurs and leaders in our portfolio as a virtual CTO supporting their growth.

Chad Eichelberger,
President at Reliance Partners

Chad Eichelberger is the President of Reliance Partners. Since 2015, he’s leveraged his extensive experience in risk management, compliance, best practices and contracts to lead the company’s logistics and truck insurance strategy and operations. Chad was previously the President of Access America Transport, where he led the company from $8M to over $600M in revenue.

Download this Report

"*" indicates required fields

Add me to the monthly distribution