Technology is Essential in Navigating Peak Shipping Season

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As crazy as it may sound, planning for peak shipping season has already begun! In the U.S., peak shipping season extends from August until January of the following year. Peak shipping season can be broken down into two spikes in demand. The first occurs from August until October. This significant increase can be largely attributed to the holidays occurring in the next few months like Thanksgiving and Christmas. After a brief lull towards the end of October, a second spike carries the trend from November until the end of January.

The more customers shop online, the more expensive the season becomes for shippers. The pandemic shifted the mindset of many consumers – instead of placing an online order every once in a while, they started to depend on e-commerce. As a result, this peak shipping season is projected to be more expensive and busy for shippers than 2020.

Both FedEx and UPS are increasing their additional handling surcharges as a result of high order volumes and tight capacity. Both increases will start over the summer and last through peak shipping season. While raising surcharges is a start to handling peak shipping season, technology is providing a larger and more sustainable answer.

How Technology and Automation Can Help

In order to keep up with the steady increase in order volume, FedEx is working to increase its capacity by building out its infrastructure. The expansion will include 16 new automated facilities that will be finished just in time for peak shipping season. They already have over 140 facilities that are fully automated! FedEx’s automated facilities use advanced technology to handle, sort and scan packages. Automating traditionally manual processes saves them time and money without the added stress of hiring additional people.

For shippers and other peak season stakeholders, integrating technology into their traditionally manual logistics processes can feel overwhelming. A great way to start is by implementing a transportation management system (TMS). By leveraging a TMS, shippers can rate, book and track their shipments on a single platform where they can collaborate with carriers. 

A TMS that integrates directly with a visibility platform is especially important. Navigating an increase in order volume while keeping up with growing customer expectations can be difficult. With a visibility platform, shippers can view each aspect of their supply chain in detail as moves are planned, alerts are sent and real-time adjustments are made. Visibility platforms collect data and use it to create actionable analytics. By leveraging a visibility platform that integrates seamlessly with their TMS, shippers can keep customers informed while continuously improving their logistics operation!

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2020 Projected to be the Busiest Peak Capacity Season Yet

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It’s no secret that the Covid-19 pandemic has made many consumers value e-commerce shopping above traditional in-store experiences. As the holiday season begins in full force, the transportation industry is realizing that online shopping is creating what may be the busiest peak capacity season yet.

Popular transportation companies including FedEx, UPS and DHL are all experiencing a surge in order volume thanks to online shopping. Order volume is expected to continue trending upwards as consumers shop for holiday presents and décor.

While brick and mortar locations won’t have to worry as much about the foot traffic coming through their doors, shippers will have additional freight to transport.

Technology’s Role in Conquering Peak Capacity Season

The secret to handling a next-level peak season (and an overall unpredictable year) lies within technology. Shippers worried about an extra busy peak capacity season should consider joining a network that benefits both shippers and carriers to find beneficial opportunities for collaboration.

A shipping network makes it easier than ever to find truckload capacity. Users can compare negotiated truckload rates from their carriers against carriers that are a part of the network. With so many carriers to choose from, shippers can be sure they are getting the best rate for their freight. Instead of juggling multiple websites, making phone calls and sending emails to find a truck, users can satisfy all of their shipping needs on a single platform.

Shippers are not the only ones who benefit from a shipping network. Carriers looking to establish long-term relationships with shippers and fill backhaul can leverage a shipping network. When they join, carriers can specify their preferred lanes to make sure they are only connecting with shippers doing business in those lanes. It’s a win-win, carriers get more business and shippers can take advantage of the best prices.

Some advanced shipping networks offer RFP and lane analysis services as well. With a shipping network, the process of running bids and conducting RFPs is simplified, allowing shippers to consistently secure capacity. Carriers are able to take short-term opportunities on the spot market with shippers whose logistics goals align with theirs and turn them into long-term relationships with the help of an RFP service.

In order to make it through peak capacity season, shippers and carriers need to work together in a way that works for both parties. Technology like Kuebix’s Community Load Match makes mutually beneficial collaboration possible. Whether you are a shipper in search of the best rate for your freight or a carrier looking to fill empty capacity, technology is key in helping you make the most of this year’s peak capacity season!