What is peak season for freight?

Freight shipping is the process of transporting goods by land, sea, or air. Freight shipping is essential for the global economy, as it enables the movement of raw materials, finished products, and consumer goods across different regions and markets. However, freight shipping is not always smooth and predictable. There are times when the demand for freight shipping exceeds the supply of available transportation capacity, resulting in higher costs, delays, and disruptions. This is known as the peak season for freight.

Factors influencing peak season for freight shipping

The peak season for freight shipping varies depending on the mode of transportation, the origin and destination of the goods, and the type of goods being shipped. However, some common factors that influence the peak season for freight shipping are:

  • Seasonal demand: Some goods have a higher demand during certain seasons, such as agricultural products, perishable goods, holiday gifts, and seasonal clothing. For example, the peak season for ocean freight shipping from Asia to North America is usually from August to October, as retailers stock up for the holiday shopping season.

  • Weather conditions: Extreme weather events, such as hurricanes, typhoons, floods, snowstorms, and wildfires, can affect the availability and reliability of freight transportation. For example, the peak season for air freight shipping is usually from November to December, as shippers try to avoid the potential delays and disruptions caused by winter weather.

  • Economic factors: The state of the global and regional economies, as well as the trade policies and regulations, can affect the demand and supply of freight shipping. For example, the peak season for trucking in the United States is usually from June to September, as the economic activity and consumer spending increase during the summer months. However, this can also be affected by factors such as fuel prices, labor shortages, tariffs, and trade wars.

Understanding the challenges during peak season

The peak season for freight shipping poses several challenges for shippers, carriers, and logistics providers, such as:

  • Higher rates: The peak season for freight shipping is characterized by a surge in demand and a shortage of supply, resulting in higher rates for freight transportation. According to a report by Freightos, the average ocean freight rate from China to the US West Coast increased by 63% from July to October 2020, reaching a record high of $3,758 per 40-foot container. Similarly, the average air freight rate from China to North America increased by 112% from January to November 2020, reaching $6.18 per kilogram.

  • Longer transit times: The peak season for freight shipping also leads to longer transit times, as the transportation networks become congested and overloaded. For example, the average transit time for ocean freight from China to the US West Coast increased by 30% from July to October 2020, reaching 35 days. Likewise, the average transit time for air freight from China to North America increased by 25% from January to November 2020, reaching 8.5 days.

  • Lower service quality: The peak season for freight shipping also affects the service quality, as the carriers and logistics providers struggle to meet the expectations and requirements of the shippers. For example, the average on-time performance for ocean freight from Asia to North America dropped from 85% in January 2020 to 41% in October 2020. Similarly, the average on-time performance for air freight from Asia to North America dropped from 82% in January 2020 to 74% in November 2020.

Strategies for managing peak season demands

The peak season for freight shipping can be a stressful and costly time for shippers, carriers, and logistics providers. However, there are some strategies that can help them manage the peak season demands and mitigate the risks, such as:

  • Advanced planning: The most important strategy for managing the peak season for freight shipping is to plan ahead and anticipate the potential challenges and opportunities. This involves analyzing the historical and forecasted data, identifying the peak season trends and patterns, and aligning the supply chain goals and objectives. By planning ahead, shippers can secure the transportation capacity, negotiate the rates, and optimize the routes and schedules. Carriers and logistics providers can allocate the resources, adjust the operations, and improve the service quality.

  • Technology and innovation: Another strategy for managing the peak season for freight shipping is to leverage the technology and innovation that can enhance the efficiency and visibility of the freight transportation. This involves using the digital platforms, tools, and solutions that can facilitate the booking, tracking, and payment of the freight shipments. For example, shippers can use online freight marketplaces, such as Freightos, to compare and book the freight rates and services from different carriers and logistics providers. Carriers and logistics providers can use cloud-based software, such as Project44, to monitor and manage the freight movements and performance across different modes and regions.

  • Collaboration and communication: A third strategy for managing the peak season for freight shipping is to foster the collaboration and communication among the supply chain partners, such as shippers, carriers, logistics providers, and customers. This involves sharing the information, data, and feedback, as well as coordinating the actions, decisions, and solutions. By collaborating and communicating, shippers can improve the accuracy and reliability of the demand and supply forecasts, as well as the responsiveness and flexibility of the supply chain. Carriers and logistics providers can enhance the transparency and accountability of the freight transportation, as well as the customer satisfaction and loyalty.

Choosing the right freight shipping partner

The peak season for freight shipping can be a challenging and competitive time for shippers, carriers, and logistics providers. However, it can also be an opportunity to gain a competitive edge and achieve a strategic advantage in the market. The key to success is to choose the right freight shipping partner that can offer the best value and service for the freight transportation. Some of the factors to consider when choosing the right freight shipping partner are:

  • Experience and expertise: The right freight shipping partner should have the experience and expertise in handling the freight transportation during the peak season, as well as the knowledge and understanding of the specific industry, market, and product. The right freight shipping partner should be able to provide the guidance, advice, and support for the freight shipping, as well as the best practices, insights, and solutions for the peak season challenges and opportunities.

  • Capacity and availability: The right freight shipping partner should have the capacity and availability to meet the demand and supply of the freight transportation during the peak season, as well as the flexibility and scalability to adapt to the changing and uncertain conditions. The right freight shipping partner should be able to offer the transportation options, modes, and routes that can suit the needs and preferences of the shippers, as well as the contingency plans, backup solutions, and alternative scenarios for the peak season risks and disruptions.

  • Quality and reliability: The right freight shipping partner should have the quality and reliability to deliver the freight transportation during the peak season, as well as the performance and consistency to exceed the expectations and requirements of the shippers. The right freight shipping partner should be able to offer the service levels, standards, and guarantees that can ensure the safety, security, and timeliness of the freight shipments, as well as the metrics, indicators, and reports that can measure and monitor the freight transportation.

Conclusion

The peak season for freight shipping is a critical and complex time for shippers, carriers, and logistics providers. It is influenced by various factors, such as seasonal demand, weather conditions, and economic factors. It poses several challenges, such as higher rates, longer transit times, and lower service quality. However, it can also be managed and mitigated by using some strategies, such as advanced planning, technology and innovation, and collaboration and communication. The key to success is to choose the right freight shipping partner that can offer the experience and expertise, capacity and availability, and quality and reliability for the freight transportation. By doing so, shippers, carriers, and logistics providers can turn the peak season for freight shipping into a competitive advantage and a strategic opportunity.

Best freight shipping partners from China

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