How to Survive the 2021 Peak Season

High Demand: How to Handle the 2021 Peak Season

Peak Season is upon us! For many shippers, this time of year can often be hectic and filled with problems. At Freightcom we know all about the stresses that many business owners face during peak season, so we’re here to offer some advice to help you make it through this season successfully.

 

What is Peak Season?

Peak Season is the period typically between early August and mid-December. During this time, manufacturers are preparing their products for back-to-school, the holiday rush and everything in-between. The sudden uptick in demand for freight services causes pressure across the entire supply chain as a result.

Peak season also affects more than just freight. For example, in 2020 the US saw a steady increase from 13.3 million eCommerce orders shipped in August to 22.3 million in December[1], and Canada Post saw 181 consecutive days of delivering one million or more packages a day from mid-April to the end of 2020[2].

The result? Exponentially higher demand placed on all shipping carriers. And where there is higher demand there is a higher chance of issues.

 

Increased Demand can Mean Increased Issues

Peak season surcharges for ocean freight saw as much as a 450% cost increase last year, with a projection of only minimal correction for 2021[3]. Those costs, by and large, trickle down the whole supply chain, impacting pallet, parcel, PAK, and envelope costs.

To add to this, ACT research is projecting a 40-50% year-over year volume increase for the 2021 peak season period[4]. Combine this added incoming volume with the fact that the transportation industry shrank more than any other Canadian industry last year, and you have more freight, fewer trucks, and the makings of an unprecedented industry squeeze.

The unfortunate reality is that, for the majority of businesses, peak season is unavoidable. Thankfully, there are ways to reduce the potential pain points that you may face while navigating this logistical crunch time.

Survive Peak Season with these Five Tips

 

Operate at Peak Performance

There are a few key steps that every shipper, big and small, should take in order to manage the peak season.

 

Plan Ahead

Many businesses will begin planning for peak season as early as December of the previous year. The high-demand, low-supply nature of peak season means that you need to account for longer than standard shipping times.

Don't Wait to Extend Credit Limits

 

Prioritize Your Inventory

While nobody wants inventory shortages of any kind, during peak season you may be forced to pick your battles. Take note of which products are highest in demand and be sure that they take precedence.

Improve Your Inventory Optimization

Diversify Your Shipping Services

Utilizing several shipping services will allow you to shop for the best rates and fastest transit times possible throughout peak season, and the entire year.

Experience Freightcom's Multimode Platform

Use Trusted Carriers

This may seem obvious, but it’s a point that is super important. The most reputable freight and courier companies are your best bet for reliable service and to ensure customer is happy. Selecting the right carrier ensures your customer receives their products in time, with proper tracking, and with protection from shipping mishaps.

Add Insurance to Protect Your Bottom Line

Avoid Unnecessary Charges

This is another point you must carefully watch. This is a common issue for both freight and parcel shipments. Ensure that all your information is accurate prior to shipping, including ancillary services such as tailgate, limited access, or residential delivery.

Use Your Shipping History to Predict Future Costs

 

Put Your Trust in the Experts

If navigating peak season has got you worried, have no fear. With Freightcom, you have an all-in-one platform that can help manage the stress of peak season shipping.

We partner with leading freight and courier companies to offer major discounts on LTL, parcel, PAK, and envelope shipping, even during peak season. Contact one of our shipping experts today at 1-877-335-8740 or at sales@freightcom.com and learn how we can make shipping easier for your business all year around!


[1] https://www.digitalcommerce360.com/2021/01/07/ups-ranks-no-1-in-on-time-deliveries-during-the-holiday-season/

[2] https://www.canadapost-postescanada.ca/cpc/en/our-company/about-us/financial-reports/2020-annual-report/an-unprecedented-year.page

[3] https://theloadstar.com/shippers-brace-for-new-price-hikes-in-the-new-normal-for-ocean-freight/

[4]https://www.cassinfo.com/freight-audit-payment/cass-transportation-indexes/march-2021

Brandon Draga

Written by Brandon Draga

Brandon Draga is a full-time content writer at Freightcom, the leading shipping solution for businesses in Canada. When Brandon is not writing content to help businesses with their shipping needs, he can be found at local skate parks or writing fantasy novels.