SIMIC

The Omicron variant of Covid-19 represents yet another setback for railroads, warehouse operators, and trucking companies already struggling to hire and retain enough workers to keep cargo flowing, reports IHS Media.

With a record 1.08 million new infections on January 3 in the US, according to the Centre for Disease Control and Prevention (CDC), the first few signs are appearing that the fast-moving variant is beginning to further crimp labour supply.

The CSX railway reported contracting Covid-19 following the holidays. Dockers and office workers serving the ports of Los Angeles and Long Beach are increasingly reporting sick, although not yet to an extent that it's causing shortages, according to the Pacific Maritime Association (PMA).

Arguably, the weakest labour links are the distribution centres and warehouses. Seeing the threat escalate, Amazon on December 21 reinstated a mask requirement for distribution centre workers, as reported by CNBC.

Similar to last year, warehouse operators are struggling to keep workers, as employees hop from one job to another, taking advantage of higher pay offers, according to an analysis by two academics.

Warehouse operators say Coivd-19 stimulus payments made it more difficult to find workers in early 2021 and now potential hires have less appetite to take more shifts given a relative boost in their take home pay.

Warehouse operators said last year they increased pay substantially but were still short of workers needed to pick goods and load or unload trailers and containers, even before Omicron began to make headlines.