The holiday season is hectic, saying this holiday season is much different from any other would be an understatement. In previous years, the freight market has typically loosened after an early summer surge, then tightened in preparation for spiking consumer demand during the holidays. This year, shippers and carriers navigated market imbalances throughout the spring. Even as those imbalances began to soften, capacity shortages and dependence on spot loads have become long-term trends, according to Uber Freight’s latest data and research.
Ensuring that every item is in the right place at the right time can be difficult- there’s just so much work that needs to be done! If your business is middle-sized to big-sized, this task will be even harder.
One of the biggest questions is whether logistics companies will have the necessary capacity to deliver all of these orders. According to multiple reports, UPS and FedEx have begun telling shippers that they have essentially reached full capacity already. With the onslaught of online shopping to come, retailers and logistics companies alike are telling consumers to shop and ship early. These companies are bracing for the potential of a massive capacity shortfall which could impact up to 7 million packages per day between Thanksgiving and Christmas.
As such, logistics companies and retailers are planning earlier than ever to get ahead of the capacity crunch.
What can we expect for the holiday season and implications for logistics?
- A blockbuster season for e-commerce sales
- Temp labor market will be tight in several markets.
- Significantly higher logistics costs.
- Interesting partnerships emerge for returns processing.
- Inventory placement more pivotal than ever
- Use of advanced analytics will set the winners apart.
The stakes are higher than ever for this holiday season due to a combination of the aforementioned factors. Organizations with better visibility and decision making will benefit the most from a season like never before.
Growth + Change = Opportunity! How are you going to capitalize on the opportunity as a freight broker, agent or dispatcher?