Managing Katrina's impact.(trucking management)

Just when transportation managers were breathing a sigh of relief that last year's West Coast port congestion seemed unlikely to repeat in 2005, Hurricane Katrina caused unforeseen trauma in Louisiana, Mississippi and Alabama. The temporary halt of Gulf oil production and distribution sets the stage for even higher fuel prices, translating into higher transportation costs. The American Trucking Associations says motor carriers are on pace to spend a record $80 billion to fill up their tractors this year. Here are five actions logistics managers can take to mitigate this supply chain shock:

1. Check the Health of Your Carriers

Smaller trucking companies and those that rely on owner-operators are at greatest risk of bankruptcy due to rising fuel prices. Fuel represents up to …