The holiday system is almost upon us and independent freight forwarders are already feeling the pressure of volume spikes and tight deadlines. The last three months of the year are a very busy one for the freight forwarding industry when they need to cope with increased consumer demand. Logistics companies need to start preparing themselves and find the right carriers to move their shipment quickly. The massive demand for goods all over the world and the rise in the volume of shipments necessitate forwarders, shippers, and other stakeholders in this industry to start preparing well in advance.
In a time when the top players in the industry are hiring workforce to prepare for the extra work-load in the last quarter of 2022, the independent freight forwarders also need to figure out a useful strategy to ensure the flow of cargoes, make timely deliveries and minimize bottom-line risks. Keep reading today’s post to find out a few tried and tested tactics that will help you deal with the pressure during the Christmas season.
How independent freight forwarders should prepare for the Christmas and New Year season
-
Plan ahead
To begin with, you need to mark your calendar and come up with a strategy for moving goods before and after the Christmas holidays. Planning ahead and forecasting could give you valuable insights allowing your team to understand if you need to consider adding staff, getting a new fleet and adding to your resources. Additionally, you also need to think about other factors like warehouse capacity to match your delivery plans. Shipping companies stand a chance to find better carrier availability and faster delivery time by connecting with the shipping lines beforehand.
-
On time communications
When it comes to timely delivery during the peak season, proper communication is of paramount importance. It is strongly suggested that you make your communications with every element of your team more frequent. This should also include your customers and suppliers. Whenever there is any sort of change taking place, make sure to communicate clearly and explain the situation to all concerned parties. This will help to allay the anxiety of your customers.
-
Leverage digitization
Shipping cargo in the peak season often entails a spike in freight rates and a reduction of freight capacity. This makes the process of shipping all the more complicated for independent freight forwarders. A simple yet effective solution is to leverage digital tools such as Transport Management Systems (TMS), Route Optimization Software, Track and trace systems, and other digital tools that can help you check freight rates, choose the best carrier, get good rates, plan the best routes to make on-time deliveries. Additionally, online freight tools can allow freight forwarding companies to get more visibility of the shipments and keep tabs on every aspect of the shipping process.
-
Ship on-time to avoid demurrage and detention charges
You need to send your shipment before time to avoid any possibilities of demurrage fees and delays. In case your cargo reaches the port of entry and exit right during Christmas and New Year, then, it is likely that your shipment will spend more time than usual waiting for customs clearance at the port.This prolonged wait time is obviously because of the long queue of shipments during the peak season. Additionally, the reduction of the workforce in the ports during the holiday season often adds to the delay. In a situation like this, you will be at risk of accruing demurrage charges. These charges can build up at an alarming speed adding hundreds of dollars to your shipping expenses.
-
Think of your warehousing requirements
Logistics companies need to have an inventory storage plan for the efficient storage and distribution of the cargo. The cargoes move really fast during the peak season. This is why you need to hire a warehouse that is capable of distribution, storage, and reverse logistics needs. In case your warehousing service provider is unable to provide you with enough space, you need to hire the services of a third-party warehouse provider for a couple of months. Having an inventory plan handy will ensure that the product never runs out of stock. Although delays are expected during Christmas, an extended delay might have disastrous consequences in the competitive e-commerce landscape.
-
Connect with your network partners in-advance
It is always a good idea to reach out to your Globalia partners in the territories where you need to send the shipments. All Globalia members are handpicked freight forwarders who are one of the best agents in the cities they represent. They are in the best position to help you cope with the market situation and find the ideal solution for your shipping requirement. As the most competent freight forwarders, Globalia agents will help you navigate the peak season and its pitfalls and ensure that your operations run smoothly. Your network partners are some of the most reliable and competent freight forwarding agents who will give you an exact idea of the current scenario, provide you with an insider connection and find the most innovative way-outs.