Nov
13
It feels as though Halloween just ended and in typical American fashion, we are already being bombarded with Black Friday deals, Christmas carols and Holiday décor at every turn. As a consumer, this can be incredibly overwhelming but for the logistics and supply chain industries, the rush is only beginning. The 2014 peak season is upon us, and it is a good time to start thinking ahead. Deloitte is predicting that retail sales may increase as much as 4.5% this year and amount to nearly $1 trillion dollars, making 2014 the busiest peak season since the 2009 recession. With that being said, you will want to have your company ahead of the curve and prepared for this holiday season by working closely with your 3PL to strategize and plan so that you are able to meet all of your customer’s needs.
2014 is going to be a very profitable peak season for most retailers. Due to the bounce back of the economy and lower gas price, consumers have about 2.6% more disposable income this year. Shipping conglomerates are gearing up for this and we are predicted to see as many as 800,000 seasonal jobs being created to support the holiday season. UPS is expecting it’s shipments to be up 11% from last year and is speculating that December 17 will be the busiest day of their year, with over 117 million tracking requests being held for that day. Freight companies have already seen major congestion at the Port of Los Angeles, and several other ports such as San Diego, Oakland and Savannah being used to relieve the pressure. Industry leaders have been reporting on these trends for several months now and only expect the congestion and rush to get worse as we approach December and January.
With consumer spending and sales expecting to be up this year, retailers can count on a lower supply of equipment to move product starting several months before the holiday season actually hits. During the summer months, trucks and containers are easily had on short notice, even as little as 24 hours, but the last few months of the year, transportation is going to be more scarce or more expensive should you wait until the last minute. Major retailers have been planning their loads for months now to ensure timely delivery and lower rates, causing a jam for smaller companies planning their holiday transportation. In a survey done by Deloitte, as many as 52% of shippers are expecting to may additional surcharges to move their freight this season and because of this, many of them are expecting to rely more heavily on freight brokers to assist in their transportation needs.
There are many benefits to using to a freight solutions provider to handle your shipping needs. At TMI, we offer advanced tracking software so that we can provide minute-to-minute updates on where your product is and when it will arrive. TMI also has an extended, and qualified, network of drivers all over the globe so that we can provide shipping to any place at a fair market rates. The holiday season is stressful enough; TMI Sales is a great investment and we focus on your shipping needs so you can focus on the big picture. If you are not already doing so, consult with us to secure your shipping needs, not only for the peak season, but for your full calendar, because your fair weather friends may just fly south on you soon.
-John Hollen, Director of Transportation at TMI Sales