23 September, 2024
Small businesses face challenges no matter the time of year. But one period is known to put significant pressure on shippers to balance supply and demand and maintain efficiency: peak season freight shipping.
Over the last few years, the global economy has had its share of fluctuations to manage and logistical hurdles to overcome. As freight disruptions have become more widespread they’ve caused supply bottlenecks and delays. This has forced the industry to find more creative solutions for logistics while focusing on cost reductions, so that shippers can maintain ROI and deliver excellent experiences to their customers.
To help shippers get their best performance as demand ticks up this year, here we address when is shipping peak season, what it can mean for shippers and how best to manage it.
Over the last few years, the global economy has had its share of fluctuations to manage and logistical hurdles to overcome. As freight disruptions have become more widespread they’ve caused supply bottlenecks and delays. This has forced the industry to find more creative solutions for logistics while focusing on cost reductions, so that shippers can maintain ROI and deliver excellent experiences to their customers.
To help shippers get their best performance as demand ticks up this year, here we address when is shipping peak season, what it can mean for shippers and how best to manage it.
What is peak season?
The concept of peak season shipping is straightforward: in the second half of the year, businesses import volumes tend to experience a sharp rise as winter holidays and other events encourage consumers to make more purchases than during other times of the year. In turn, this causes freight rates to increase on average. Peak seasons are known for volatility and not only higher demand for goods but also for fast shipping.
When is the peak shipping season?
It’s important to note that freight peak seasons will vary based on sector. This means that your peak seasons could be different. For instance, if it’s not largely influenced by holiday demand. Camping equipment, swimwear, sunglasses, etc. are an example of seasonal products with demand peaks during the summer.
Conventionally, there are two ‘peak seasons’ in a year, but they go by different names: ‘peak’ season and the ‘holiday’ season:
Peak shipping season
From mid-August to mid-October, retail cycles and consumer demand heavily influence what is often referred to as trucking’s peak shipping. It’s a popular time of consumption across various retailers, and many use this period of rising demand to sell off surplus inventory from the summer.
Holiday season
The period from November to December is known as the holiday season, where both consumer and business behaviour drives an end-of-year rush. In the U.S., U.K and most of Europe, winter holidays like Thanksgiving and Christmas drive up consumer demand, along with sales events like Black Friday and Cyber Monday. Warehouses are at their busiest during this period.
Conventionally, there are two ‘peak seasons’ in a year, but they go by different names: ‘peak’ season and the ‘holiday’ season:
Peak shipping season
From mid-August to mid-October, retail cycles and consumer demand heavily influence what is often referred to as trucking’s peak shipping. It’s a popular time of consumption across various retailers, and many use this period of rising demand to sell off surplus inventory from the summer.
Holiday season
The period from November to December is known as the holiday season, where both consumer and business behaviour drives an end-of-year rush. In the U.S., U.K and most of Europe, winter holidays like Thanksgiving and Christmas drive up consumer demand, along with sales events like Black Friday and Cyber Monday. Warehouses are at their busiest during this period.
What are the main challenges of peak season?
Demand Spikes
The primary issue for shippers during peak season is being overwhelmed by demand spikes. Back to school, Black Friday, Cyber Monday and last-minute holiday sales can contribute a large proportion of many retailers’ annual revenues.
Staff and supplier shortages
It can be especially challenging to manage seasonal demand within short timeframes. Since holiday season also coincides with workers taking more annual leave, this adds additional pressure on meeting a sharp rise in shipping orders. This is magnified further by the fact that suppliers also do the same.
Transportation costs
Periods of high demand can put a strain on operations for various actors across supply chains. For example, freight carriers need to transport more goods than normal, leading to higher driving fuel and labour costs. They raise prices to capitalise on rising demand, but this creates further financial pressures for shippers and retailers.
Storage costs
The same applies for storage: owners of containers and fulfilment centres often raise their prices or add surcharges as the demand for capacity outpaces existing supply. However, some freight consultancies expect container rates to be more competitive this year, having reached their peak in 2023.
Longer lead times
Supply chain pressures and disruptions are most impactful during peak season. Geopolitical tensions in major trade routes like the Red Sea have caused significant bottlenecks and uncertainty this year, resulting in delays and longer lead times. These have the knock-on effect of drawing out delivery schedules and hindering transport efficiency.
The primary issue for shippers during peak season is being overwhelmed by demand spikes. Back to school, Black Friday, Cyber Monday and last-minute holiday sales can contribute a large proportion of many retailers’ annual revenues.
Staff and supplier shortages
It can be especially challenging to manage seasonal demand within short timeframes. Since holiday season also coincides with workers taking more annual leave, this adds additional pressure on meeting a sharp rise in shipping orders. This is magnified further by the fact that suppliers also do the same.
Transportation costs
Periods of high demand can put a strain on operations for various actors across supply chains. For example, freight carriers need to transport more goods than normal, leading to higher driving fuel and labour costs. They raise prices to capitalise on rising demand, but this creates further financial pressures for shippers and retailers.
Storage costs
The same applies for storage: owners of containers and fulfilment centres often raise their prices or add surcharges as the demand for capacity outpaces existing supply. However, some freight consultancies expect container rates to be more competitive this year, having reached their peak in 2023.
Longer lead times
Supply chain pressures and disruptions are most impactful during peak season. Geopolitical tensions in major trade routes like the Red Sea have caused significant bottlenecks and uncertainty this year, resulting in delays and longer lead times. These have the knock-on effect of drawing out delivery schedules and hindering transport efficiency.
How can shippers best prepare for peak season in 2024?
Businesses’ logistics teams need to consider the likely obstacles they could face during 2024’s peak, especially in the wake of prolonged port congestion and the ongoing effects of global supply chain disruptions. Customer expectations remain higher than ever, so shippers need a thorough strategy to manage peak shipping season and stay competitive throughout.
1. Keep stock moving
As demand spikes, it’s important to ensure the supply chain moves smoothly. This requires businesses to get ahead of the demand curve by freeing up warehouse space in advance, negotiating with suppliers and other logistics partners well ahead of anticipated peak to get the best terms possible and prepare for any surcharges.
2. Leverage technology
Tech innovations continue to provide new solutions for supply chain management that can significantly reduce the pressure around peak and holiday seasons. For example, warehouse management systems (WMS) provide real-time visibility into stock levels so that inventory can be efficiently managed during the period of supply chain volatility.]
Transportation management systems (TMS) also let shippers monitor journeys and provide real-time updates, alerting them to disruptions as they occur. This offers shippers insights and data they need to quickly adjust their shipping strategies to maintain timely deliveries and notify recipients in case of delays, providing transparency and helping support a positive customer experience.
3. Forecast demand
Accurate demand forecasting lets businesses create clear projections about how much they’ll be required to ship during high season. Looking at past sales data, economic and industrial changes, and other consumer behaviour information helps vendors to decide which specific items to stock during peak demand, and meticulous inventory tracking maintains accurate stock management.
This may be easier said than done, since no business can predict the future. But shippers can use inventory management systems to get real-time insights into what they have on hand. These also automate stock tracking processes, saving time and boosting accuracy.
4. Adjust e-commerce for online and offline sales
E-commerce platforms have great value for small shippers in particular. During peak season, it’s important to monitor brand websites and maintain performance as internet traffic starts to build. IT teams need to ensure that site speed is performing well to boost conversion rates. Online shoppers should also have a range of payment options and be able to easily navigate the site on their mobile devices.
Many e-commerce platforms also offer integrations to provide recipients with real-time shipping information and item tracking, so shippers can maintain visibility for customers at all times.
5. Use trusted third parties
Shippers may struggle during peak season if they do not have the cash flow available to scale up warehousing and transport capacity to meet rising demand. That’s where partnering with a third party logistics (3PL) provider makes the process easier.
Most can deliver a range of logistics solutions that shippers can pick and choose from, and customise as business grows or even just for periods of peak demand. These services can include order fulfilment, inventory management, reverse logistics, and expedited shipping.
Amazon Freight provides businesses with GPS-tracked shipping through a diverse network of carrier partners, route optimisation, and fulfilment through Amazon FCs, plus distribution and other services for fast and hassle-free shipping.
6. Communicate
Consistent, regular communication with end-buyers and supply chain partners is crucial all year round, but especially during peak season. Customers need to know if any delays are expected. If global supply chain conditions will likely affect transportation and delivery times, shippers should alert customers well in advance and provide as much detail as they can to maintain trust and brand loyalty.
Effective demand forecasting also helps businesses to keep suppliers informed with anticipated order volumes in good time to avoid delays and accurately gauge their capacity. For best practice, shippers should establish as wide a network with suppliers as possible. This includes keeping a list of backup manufacturers to mitigate any unforeseen production problems a supplier may encounter.
1. Keep stock moving
As demand spikes, it’s important to ensure the supply chain moves smoothly. This requires businesses to get ahead of the demand curve by freeing up warehouse space in advance, negotiating with suppliers and other logistics partners well ahead of anticipated peak to get the best terms possible and prepare for any surcharges.
2. Leverage technology
Tech innovations continue to provide new solutions for supply chain management that can significantly reduce the pressure around peak and holiday seasons. For example, warehouse management systems (WMS) provide real-time visibility into stock levels so that inventory can be efficiently managed during the period of supply chain volatility.]
Transportation management systems (TMS) also let shippers monitor journeys and provide real-time updates, alerting them to disruptions as they occur. This offers shippers insights and data they need to quickly adjust their shipping strategies to maintain timely deliveries and notify recipients in case of delays, providing transparency and helping support a positive customer experience.
3. Forecast demand
Accurate demand forecasting lets businesses create clear projections about how much they’ll be required to ship during high season. Looking at past sales data, economic and industrial changes, and other consumer behaviour information helps vendors to decide which specific items to stock during peak demand, and meticulous inventory tracking maintains accurate stock management.
This may be easier said than done, since no business can predict the future. But shippers can use inventory management systems to get real-time insights into what they have on hand. These also automate stock tracking processes, saving time and boosting accuracy.
4. Adjust e-commerce for online and offline sales
E-commerce platforms have great value for small shippers in particular. During peak season, it’s important to monitor brand websites and maintain performance as internet traffic starts to build. IT teams need to ensure that site speed is performing well to boost conversion rates. Online shoppers should also have a range of payment options and be able to easily navigate the site on their mobile devices.
Many e-commerce platforms also offer integrations to provide recipients with real-time shipping information and item tracking, so shippers can maintain visibility for customers at all times.
5. Use trusted third parties
Shippers may struggle during peak season if they do not have the cash flow available to scale up warehousing and transport capacity to meet rising demand. That’s where partnering with a third party logistics (3PL) provider makes the process easier.
Most can deliver a range of logistics solutions that shippers can pick and choose from, and customise as business grows or even just for periods of peak demand. These services can include order fulfilment, inventory management, reverse logistics, and expedited shipping.
Amazon Freight provides businesses with GPS-tracked shipping through a diverse network of carrier partners, route optimisation, and fulfilment through Amazon FCs, plus distribution and other services for fast and hassle-free shipping.
6. Communicate
Consistent, regular communication with end-buyers and supply chain partners is crucial all year round, but especially during peak season. Customers need to know if any delays are expected. If global supply chain conditions will likely affect transportation and delivery times, shippers should alert customers well in advance and provide as much detail as they can to maintain trust and brand loyalty.
Effective demand forecasting also helps businesses to keep suppliers informed with anticipated order volumes in good time to avoid delays and accurately gauge their capacity. For best practice, shippers should establish as wide a network with suppliers as possible. This includes keeping a list of backup manufacturers to mitigate any unforeseen production problems a supplier may encounter.
Partner with Amazon Freight for efficient, hassle-free shipping all year round
We’re proud of our peak performance in 2023 and ready to help you navigate the road ahead. For frustration-free deliveries during peak season 2024, we encourage shippers to book freight in advance and to consider flexible opening hours for access to alternative delivery slots.
We use FC fixed slots where possible, and are continuously looking for ways to improve delivery appointments. Our customers can receive severe weather warnings, updates for suggested routes according to any hazards and get regular alerts throughout the journey enabled by GPS-tracking.
Once booked, we’ll always honour a confirmed load. Shippers can also get 24/7 dedicated support throughout their shipment journey. Get started today by creating your free shipper account and receive an instant quote from us. For any other queries, contact us at freight-eu-interest@amazon.com.
We use FC fixed slots where possible, and are continuously looking for ways to improve delivery appointments. Our customers can receive severe weather warnings, updates for suggested routes according to any hazards and get regular alerts throughout the journey enabled by GPS-tracking.
Once booked, we’ll always honour a confirmed load. Shippers can also get 24/7 dedicated support throughout their shipment journey. Get started today by creating your free shipper account and receive an instant quote from us. For any other queries, contact us at freight-eu-interest@amazon.com.
Amazon Freight uses cookies to enhance your experience and help us understand how you use our website. Because we respect your right to privacy, you can choose what types of cookies you allow. Click Accept All to allow all cookies or open Cookie Preferences to set your preferences.