July 24, 2019
What is Peak Season?
A period of elevated shipping activity that lasts from mid-August to mid-October.
What causes Peak Season?
Peak Season starts with the "back-to-school effect" of increased retail spending as a result of people purchasing a variety of items for the beginning of the school/college years. It ends with Black Friday and Cyber Monday with people preparing for the winter holiday season. Retailers conduct large volumes of business during this period. Naturally, they need to ship more during this period, which causes major challenges for supply-chain efficiency.
What are the challenges associated with Peak Season for retailers?
Increased orders create increased revenue and shipments. This stretches the supply-chain capabilities of companies, large and small, to the max, and many rely on relationships they have built with carriers and freight forwarders to get through these turbulent times. Increased shipments mean that carriers will charge premium rates (and Peak Season Surcharges). Backlogging at ports is a real issue, and expect increased truck wait times during peak season (which means trucker waiting fees).
Peak Season is one of the most challenging times of the year for shippers.
What are the challenges associated with Peak Season for carriers?
There tends to be overbooking of services with the fastest transit times, so that creates a backlog across the supply chain. The increases in volume means prioritization is more prevalent than ever. Carriers put their biggest clients first, which means you should plan accordingly if you aren't a big brand.
What are the challenges associated with Peak Season for freight forwarders?
Crane Worldwide Logistics always strive to be the best client advocate in the industry. Major challenges include reducing costs and obtaining the shortest possible transit times. This requires a tremendous amount of coordination between our different teams, and we pride ourselves in being able to solve complex logistical problems.
What are some things that you can do ensure that you have a smooth Peak Season?
Plan ahead. Many large carriers and online retailers have firm cutoff dates during Peak Season. At Crane Worldwide Logistics we are Peak Season battle tested. Get in touch to see how we can be an asset to help you be on your way to Peak Season success!