The Fall Frenzy: How to Prepare for the Upcoming Holiday Shipping Season

The Fall Frenzy: How to Prepare for the Upcoming Holiday Shipping Season

Quick Hits:

  • The source of rising shipping costs
  • Shipping Delays in the Panama Canal
  • Seasonal impact on capacity

With drivers on the road 24/7, there really isn’t an end or beginning to the trucking season. Nevertheless, the change of season always brings a change in shipping trends. As September winds down and October begins, we approach the coming holidays and all the intricacies that come with it. As with each year, there will always be things that catch us off guard, but there is also a sense of familiar patterns that allow you to plan ahead for any issues in the supply chain. The U.S. supply chain has improved significantly from the disruptions caused by the pandemic also a sense of familiar was sluggish. But not all companies have benefited as we have watched the fall of several large companies over the last couple of months. Yellow, one of the largest when the economies in the U.S, just filed for bankruptcy. Yellow made up nearly 15% of the shipping company market share. As shipping companies sweep up the remnants of Yellow’s clientele LTL shipping market that the frugal price structure Yellow will not be honored.

It has been very clear that the U.S. shipping community feels the effects of this as the coming months show no break in the rising cost of shipping. Global shipping has been affected terribly by the drought in Panama. Panama Canal Authority officials warn that restrictions will be in place for at least the next year in an effort to conserve water. This means a huge halt and a number of delays on all ships passing through one of the most important trading routes in the world. And as short-term shipping rates will likely be higher as a result and changes to routes entirely.

To get more specific on the trends that will affect us and our customers directly, next we will discuss the seasons’ impact on dry vans specifically. Because of its large size and diverse range of products, a dry van is often used as a benchmark for the performance record of the U.S. truckload market. The most popular mode of shipping has less availability now than it has in a long while. Although more balanced than the previous couple of years, the load-to-truck ratios are still much lower than the 5-year average. The Panama Canal crisis is beyond our control and will likely disrupt the dry van routes from the east to the west coast, resulting in higher prices for shorter trips within the East. Conversely, we may see lower costs for trucks heading west as they seek more load opportunities.

Putting the logistics of the logistics seasonal changes aside, there are certain aspects you can always count on. Each day of October we lose about an hour of sunlight. As the window of daylight shortens and weather becomes increasingly unpredictable planning ahead becomes vital. By simply increasing windows for pickups and deliveries you can make a world of difference to the price and the availability of a load. With the holidays, the more time you give your carrier, the more time they will be able to provide you with an adequate lead time. Thankfully, when you have a partner like Raging Wolf Solutions, you can always count on exemplary service and swift solutions. During this busy season, let us help take some stress off your plate so you have more room for holiday treats!