GRAND RAPIDS, Mich.- The logistics and transportation industry is constantly shifting. A few times a year, the international freight business experiences a larger volume of traffic than usual causing a variety of challenges for carriers and customers. This increase in traffic is referred to as peak shipping season.
About Peak Shipping Season
During this time of year, demand for shipping services and volume increase. Freight rates rise and transportation times lengthen. During peak season, it is important to strategically plan ahead.
There are two different types of peak shipping seasons between August and February. The first peak shipping season (August – October) is due to an increased demand for consumer products involving holidays such as Thanksgiving, Black Friday and Christmas. The second peak shipping season (January – February) is a result of the Chinese New Year, affecting production operations for the largest exporter in the world.
What to Expect for Peak Shipping Season 2021
After the pandemic, peak shipping season in 2021 is projected to be more active than last year. As a result, there will be continued tight capacity and extended transit times. Furthermore, there has been a higher demand for freight transportation as a result of the pandemic.
Effects of Peak Shipping Season
- High shipping volumes
- Freight rates rise
- Transit times lengthen
- Increased freight shipping activity
- Demand for shipping services
Tight Capacity Market
There has been increased demand for freight transportation since the pandemic. Due to the rise in demand, tight capacity has been more prominent in the market. A common problem that has continued to occur is high transportation demand with limited labor supply. There has been an evolving cycle of supply and material shortages, limiting the ability to manufacture trucks and transfer goods. Shippers are having to compete for space availability and as a result of the demand, freight rates have risen.
“This year we expect to see capacity continue to tighten, as holiday and retail freight hit the market carriers will gain more leverage with rates. Rates cannot be controlled right now, but what we can control is the level of service. Providing exceptional service and reliability to our customer and carrier partners will be two of the main focuses for FWF this peak shipping season. ”Zach Trumble, Vice President of Brokerage Operations at FWF
Freight Shipping Activity Increases
Peak shipping season is projected to spark more freight shipping activity. Businesses are beginning to fully reopen as vaccination rates climb. The 2021 peak shipping season will be more active than it was a year ago, according to 79% of freight transportation, logistics, and supply chain stakeholders in a recent survey by Logistics Management. It is important to connect with a trusted and reliable 3PL during this season in the transportation industry.
Extended Transit Time and Delays
During peak season, shippers can expect to see increased transportation times, while also expecting delays to occur, affecting arrival time on deliveries. Considering all of the possibilities that could occur when shipping freight, it is important to allow extra lead time for different variables that could occur.
FWF’s Elite Insight during Peak Shipping Season
Peak shipping season 2021 is proving to be challenging with increased freight shipping activity, a tight capacity market, longer transit times, and an increase in freight rates.
It is essential to work with an established third-party logistics provider (3PL). At FWF, we guarantee honest and trustworthy communication to guarantee your shipments are handled with industry-leading service and reliability. Our mission is to create long-term relationships with customers, carriers, and vendors. FWF experts are here to help navigate the freight market during the busiest time of the year.
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Hear What Our Customers Say About Us
“Working with FWF has helped me learn my position and become more efficient. I’m grateful for their patience and experience in educating me, this is truly a two-way street. I always smile when I see the caller ID showing Fifth Wheel Freight, as it’s going to be a fun call. We get our business handled quickly, efficiently, and help each other with background information.”Wholesale Trade Customer
Connect with FWF
Contact FWF today to experience industry-leading service and reliability to ensure your shipments are delivered safely and securely during peak shipping season.