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Unvaccinated Truck Drivers Threaten Global Supply Chain Stability

The Biden administration has closed the borders to partially vaccinated and unvaccinated Canadian and Mexican truck drivers. The new rules were put in place as a response to the pandemic. Drivers are now not allowed to enter without the proper documentation that drivers have been fully vaccinated.

Driver shortages threaten global supply chain stability.

Unvaxinated truck drivers throughout Canada and Mexico are threatening global supply chain stability. The shortages are caused by a recent rise in anti-vaccination beliefs that cause many people to forego vaccines. This, coupled with an aging driver population, makes it more difficult for companies to recruit new employees to meet demand. Those new employees that they can attract lack experience driving big rigs on international highways. Many have never been out of their home province, let alone country! As a result of these factors, shipping times have increased dramatically and some shipments have been forced to reroute. These changes cost businesses and governments millions of dollars per day.

Delivery delays in the US are increasing dramatically.

Consequences could be devastating for US consumers and businesses alike. The nation is in desperate need of new drivers and do not have enough to handle shipping demand. The shortage of Mexican and Canadian truck drivers thanks to strict vaccination laws along their borders is creating the potential for incresing shortages at US docks and distribution centers here in 2022. Throw in other factors like frieght still stuck at sea or things like weather related events, and you can see how this is a big problem.

Potential economic consequences

An estimated 10% of American truck drivers do not have their vaccines up to date. As a result, trucking companies are forced to hire what are known as replacement drivers to drive for short periods of time. This practice is costly, and will in turn effect both consumers and other businesses with higher shipping prices across North America. Any price concerns like longer wait times on the ships or longer storage times on the docks from a lack of drivers will increase the end users purchase price. The price of goods steadily rising while paycheck staying the same is a recipe for disaster called inflation.

Financial cost of disruptions to global supply chains.

$1.4 trillion per year, $2 billion per day. With global trade currently at a record high, it’s time to ask: what would happen if freight shipments were stopped by this pandemic? If it were to spread through trucking lines or maritime shipping, it could easily put a serious dent in international revenue, causing global GDP to fall as much as 0.5 percent each year over several years while supply chains are reconstituted—if they can be. Truly scary to think about, but that is exactly what we're potentially facing so maneuver accordingly.

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