What Shippers Need to Know for the Peak Shipping Season
As the temperatures cool, the shipping world heats up. The fall and winter months bring the busiest phases for the industry, meaning that if freight logistics start to break down when orders take off, the customers will ultimately feel the impact. Don’t let bottlenecks and unexpected delays keep you from missing out on ample revenue opportunities or damage your reputation. The following tips will prepare you for the peak season so you can break a little less of a sweat and focus on what you do best.
When is peak season?
A transportation season is broken down into four quarters:
Q1: The Quiet Season
Q2: The Produce Shipping Season
Q3: The Peak Shipping Season
Q4: The Holiday Shipping Season
Typically, the peak shipping season starts in mid-August and stretches to the end of autumn, though this can vary depending on current events that affect supply chains.
The prominent peak season shopping events in the US include (but are not limited to):
Back to school – Aug. to Sept.
Halloween – Oct. 31
Thanksgiving – Nov. 2
Black Friday & Cyber Monday – Nov. 26 to 29
How to prepare for peak season
Peak shipping season can create stress, and the nature of the time means it's ripe for catastrophes, disruptions, and delays. Besides the usual hiccups and checkboxes, here are some general best practices we think you need to have in your peak season prep toolkit.
Know what you need
As the business proverb goes: “You can’t manage what you can’t measure,” meaning peak season planning must start with data. Review your fulfillment and shipping data from last year’s peak season: How efficiently was your warehouse organized? How quickly did packages travel through it, from receiving to stocking the inventory to shipping? How much did your carrier charge in surcharges? How many of your parcels arrived at their destinations on time? Knowing these answers can better help shape the framework for handling your needs.
2. Build in extra time
Waiting until the last minute is never a sound decision in logistics; this sentiment is only amplified during the holiday season due to common issues like limited capacity, weather delays, and carrier issues— not to mention the other unforeseen events that can throw a wrench into holiday logistics (like a pandemic). Building a few days in as a buffer for problem-solving can only benefit you.
Additionally, if you do not give your transportation partner or carrier ample lead time, you’re bound to pay for it. With urgent deliveries, rates spike substantially, and capacity is scarce. Working ahead is one of the most important things to keep costs down and hit delivery standards during peak.
A quick way to get ahead is to pick up most of the necessary packing materials as soon as possible. With all your packing and shipping materials on-site in advance, you’ll save time and avoid delays in fulfilling orders, especially if they start coming in earlier than expected.
Pallet packaging tips:
Choose strong boxes that can withstand stacking
Fill all space in your boxes with filler material
Seal each box to be palletized using the H-style taping method
Select a damage-free pallet that’s at least standard industry size (48” x 40”)
When loading your pallet, place the heaviest boxes on the bottom and ensure you meet maximum weight limitations
Wrap your pallet with high-quality shrink wrap
Ensure your packaging label is visibly located on the side of the pallet
3. Prepare for surcharges
Rising fuel prices, PSS, and GRIs are driving costs up for both air and ocean shipments, and congested ports mean longer wait times for carriers, who will charge wait fees and port congestion fees. On top of that, some ports and rail ramps experience chassis shortages, which can result in chassis split charges.
Furthermore, surcharges are a bit of a wild card because they can be a flat rate or a percentage, making them hard to account for in forecasting. Leave a cushion for surcharges based on the previous year, and don’t be alarmed when surcharges get higher than you anticipated.
Carriers also often list their surcharges for the season on their websites. However, the lowest price doesn’t always mean the best deal. Keep on-time delivery rates and service reviews in mind when choosing a carrier.
4. Partner with a 3PL (like Sparrow)
Deciding what 3PL to partner with can be a little daunting, especially if you’re new to it. There are many options, and you want to ensure they have adequate experience, especially during the peak shipping season. Partnering with a company not experienced in the peak season can cause significant setbacks in the shipping process. To avoid this, make sure you do your research and pick what 3PL is best for you.
Partnering with a logistics provider is an efficient way for businesses to manage their supply chains. This allows them to benefit from the technological expertise and networks that 3PLs bring to the table to make a smooth transition to peak shipping season. 3PLs can assist businesses and shippers with different supply chain levels, thus helping reduce inefficiencies.
Ways Freight Brokers Help Shippers Strategize Through Peak Season
Freight brokers play both sides of logistics, acting as a carrier-like service and shipper-like clients. This balance exists to help brokers ensure their carrier and shipper partners meet company goals. For carriers, this amounts to finding high-quality loads, avoiding empty miles, and boosting profitability. For shippers, this means they help take the guesswork out of prep work.
They thoroughly understand the receiver’s requirements: Storage space is a source of challenges during the peak shipping season. Logistic companies like Sparrow can make the process of warehouse or distribution center storage simpler by preemptively collecting information like size, weights, and exact scheduling for delivery.
They possess expertise in unique transport types: Brokers can help shippers manage unique nuances of certain goods, including hazmat, food service, and over-dimensional. Unique transportation expertise goes a long way toward reducing other hazards in the industry and drivers of higher rates.
They root out inefficiencies: With a focus on freight moves and optimizing the upstream supply chain, 3PL teams identify waste and increase productivity in supply chains. Additionally, they consistently analyze and compare the best lanes, modes, and market variables.
Sparrow Logistics is here to help
Peak season can be overwhelming no matter how seasoned you are in the industry. Let Sparrow help you during the craziness that comes with the busy shipping so you can focus on getting everything where it needs to go. At Sparrow, we understand how important it is to meet your goals. That is why we pride ourselves on doing business right each step of the way— problems solved, promises kept for the client, carrier, and employees.
Need help with expediting your shipping? Contact us today!