The holiday season is meant to be a time of sharing joy amongst your family and friends, but to those of us in the logistics industry we know the holiday season can be one of the most stressful times of year due to higher freight rates, reduced availability of carriers and the potential for severe weather to bring entire supply chains to a halt.
U.S retail sales are expected to grow 3.7% this holiday season according to The National Retail Federation
U.S retail sales are expected to grow 3.7% this holiday season according to The National Retail Federation, with an estimated $630 billion being spent by consumers between November and December of 2015. This increase in retail sales translates to a lower number of available carriers to transport goods as large retail stores limit carrier availability as they bring in truckloads of inventory to stock their store shelves for eager consumers. As with all things related to supply and demand you can expect higher rates as a result of higher demand for freight transportation.
Delays can cost transportation companies anywhere from $2.2 to $3.5 billion dollars per year
In addition to freight capacity issues, severe weather can also cost companies a significant amount of time and money. Transit delays due to severe weather have a huge negative impact on your production and fulfillment schedules. The U.S. Department of Transportation states that freight transportation delays can cost transportation companies anywhere from $2.2 to $3.5 billion dollars per year. Those costs are often being passed on to companies that are shipping directly with carriers instead of relying on the assistance of a 3PL like BlueGrace to mitigate and negotiate lower costs for them.
BlueGrace has the following tips for utilizing freight services this holiday season :
- Allow BlueGrace to do a free cost analysis of your current truckload lanes and LTL rates to insure your rates are fairly aligned with the market and that your current providers haven’t added their expenses to your rates.
- Consider utilizing rail versus standard dry van on non-time sensitive shipments to take advantage of lower rates and a hassle-free booking process. BlueGrace has a strong portfolio of rail providers to provide flexibility, competitive rates and reliable service.
- Consolidate multiple LTL shipments to take advantage of savings found by moving large pallet counts through Volume LTL or Partial Truckload providers. BlueGrace has 2 full teams dedicated to finding you the lowest cost possible!
- Prepare and avoid the worst by getting your inventory on the road sooner to avoid the premium put on freight rates once the holiday season is in full swing. Trust us, you do not ever want to be in a bidding war against Walmart or Amazon to get a truckload covered. These retailers have blank checks to write as empty shelves guarantee lost revenue for them.
Feel free to contact our team here at BlueGrace with any questions you may have. Our team of experts have hundreds of years of combined freight experience and can always find you a customized solution for any transportation need you have.