Shipping by the Season: Mastering Yearly Over-the-Road Peaks and Valleys

Just like nature, every industry has
specific seasons, marked by high levels of demand or relative quiet and
operational downtime. Though the shipping industry has been in a state of
constant flux and disruption over the past few years — driven by the pandemic
and growing popularity of e-commerce — there are certain long-familiar industry
patterns which remain intact to this day.

While seasons change, the need to
maximize efficiency is present year-round, and is key to meeting demand
throughout each annual cycle. Understanding seasonal freight and parcel trends
allows stakeholders to anticipate and easily overcome their associated
challenges, as well as take full advantage of opportunities. This is what the
annual rhythm of the industry looks like:

OTR Transportation in the
Spring: Setting the Tone for the Year

The spring season from April to July
marks an increase in shipping volume as levels return to normal following the
post-holiday slowdown.

Challenges: During the spring, shippers can expect an uptick in order volumes
as many industries pick up after a typically slow winter season, leading to
increased demand for OTR transportation. After a quarter of downtime and lower
order volume (depending on the industry), shippers are under pressure to make
up for lost revenue. During this time, meticulous planning is crucial to
maximize cost savings and profitability. Laying a foundation for efficiency now
is essential, as it prepares operations to handle the increased volume and
demands of summer and fall, and sets the tone for higher annual profits.

Considerations: Identifying and eliminating inefficiencies throughout
the operation frees up resources and increases shipping capacity, so shippers
can make the most of the year to come — all areas where transportation software
can help.

OTR Transportation in the
Summer: Peak Freight Shipping

The summer months from May to September
(often bleeding into October) are usually the busiest time of the year for
freight services. Retailers gear up to stock inventory in preparation for the
holiday season, requiring efficient logistics to move the perishable goods
safely to market.

Challenges: For freight shippers, maximizing revenue now is critical, as
order volume and demand won’t return to this level for another year.
Maintaining efficiency is key to not only handling the increased volume and
competitiveness of the landscape, but also cutting out inefficiencies to reap
more profit. Extreme weather events like summer storms and wildfires pose a
significant risk, potentially disrupting operations with unexpected delays and
logistical hurdles.

Considerations: Shippers must be vigilant and have contingency plans in place to
mitigate the impact of these disruptions on their schedules and service
commitments. Learn more in our Summer shipping blog.

OTR Transportation in the
Fall: Peak Parcel

November and December are peak parcel
season as consumers ship a record-high number of packages for the holidays.
This time of year has always been the busiest for parcel, but demand exploded
during the pandemic as e-commerce accelerated in popularity. Experts pace U.S.
e-commerce holiday sales as growing at
11.3% year over year. Freight companies could
also see unusually high order volumes as retailers work to replenish their
inventory during the holiday season, but for most freight shippers, the busiest
days were in the summer.

Challenges: Because there’s so much demand and so little room for error,
it’s essential for shippers to improve shipment accuracy, streamline
operations, and maximize resource utilization as much as possible by the time
this season rolls around to avoid costly errors, delays that hurt their
reputation, and lost business. With so much demand, parcel companies have the
leverage to negotiate their best rates of the year, making efficiency even more
important to fully capitalize on this opportunity.

Considerations: Transportation and shipping software are crucial during this busy
season to maximize efficiency, ensure on-time delivery, maintain a low error
rate, and avoid employee burnout.

OTR Transportation in the
Winter: The Down Season

The rise of ecommerce has transformed
January into an increasingly busy shipping season due to the high volume of
post-holiday returns. However, once returns drop off,  the shipping sector
typically enters a quieter period in February and March, with shipping volume
at its lowest point of the year. This slowdown allows companies to recover and
reassess their operations following the intense peak season, providing time for
maintenance, planning, and preparation for the upcoming busier months.

Challenges: During winter, shippers face dangerous road conditions due to snow
and ice, so workers benefit from this period’s lower demand. Because of lower
order volume, many shippers face the decision of whether to scale back capacity
until business picks up. However, this down period also presents an opportunity
to assess operations and review performance from throughout the previous year.
It’s also an ideal time to implement new technologies, such as transportation
software, which can enhance operational efficiency and reduce operating costs
for the coming year.

Considerations: Investing in and utilizing data analytics from transportation
software will help stakeholders glean valuable insight into operational
shortcomings and how to improve performance in the coming year.

Stay Ahead of Seasonal Freight
Trends with 3G

Optimizing shipments and operational
efficiency in such a hectic logistics environment is virtually impossible for
companies that rely on manual processes and standalone software. To truly
weather the challenges of each season, shippers need trusted and advanced
transportation and shipping software to unify workflows and serve as a central
command center for the entire operation. That’s where 3G
transportation management and shipping software comes in.

With cutting-edge capabilities for automated route
planning and load optimization, predictive packing, carrier selection, and
more, 3G’s solutions are the key for every type of player in the logistics
landscape to improve efficiency and maximize cost savings. Schedule a demo to experience the platform yourself.