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Have you noticed how freight demand has a clearly observable ebb and flow throughout the year? The longer you’ve spent in the logistics, the easier this has probably been for you to see. At some point, you don’t even have to consciously map them – you just sense it and react to it.
Your reaction to the shifts of the seasons is about more than filling trucks, though. You’ve got to figure out how to maximise your efficiency, reduce costs whenever possible, and position your business ahead of the curve.
If you’re not sure about the best way to navigate seasonal trends in freight, that’s what we’re here for. Let’s get right into it.
Mapping Out the Freight Seasons
The main idea of seasonal freight trends comes down to the fact that there are predictable spikes and dips in demand throughout the year. They’re influenced by holidays, harvests, and even weather patterns. This works as a brief rundown of how these trends flow over the year:
January to March
During this time of year, consumers are recovering from their holiday spending. Thus, the freight market cools down as buyers lay low. Consumer demand goes down, so there are significantly fewer shipments and tighter margins as a result.
April to July
In the northern hemisphere, this is the Spring season. The weather’s warmer up there, so freight volumes pick up dramatically as in-season agricultural demand rises. This predictably spreads to consumers in the southern hemisphere, and freight profitability starts to climb again.
August to October
This period is the peak season for freight, as its typically the busiest time of the year. Retailers are stocking up for the holiday season, schools are back in session, and demand is higher for a huge range of goods across the board.
November to December
Peak retail season – and for the spot market. Demand for goods is higher than ever during this period, so businesses in freight should expect higher competition, tighter capacities, and the ability to charge premium rates.
What you should keep in mind about these patterns is that they’re rarely static. Each year has weather anomalies, shifting economic conditions, and even global events that impact supply and demand. Just know that this works as a general outline for seasonal freight trends.
Navigating Freight’s Highs and Lows
One of the core factors that separates a successful logistics operation from the rest is how effectively they anticipate and manage the seasonal trends we’ve described. If you want to be able to describe yours this way, embrace this:
Deeply Understand Your Market
Make sure you completely understand your specific industry segment. If you haul refrigerated goods, keep your eye on weather forecasts. As a mover of construction materials, follow the housing market. Be curious, and always be learning.
Flexible Fleet Planning
Never be satisfied with your fleet management to the point where you become rigid, set in your ways. It’ll work fine for you most of the time, but if you can’t adapt when necessary you won’t be able to capitalise on seasonal surges or course-correct during downturns.
Lock in Capacity and Rates Early
Before the heights of peak seasons, make sure you’ve secured your contracts early. If you wait until demand peaks, it’s the same as trying to buy your spouse’s Christmas gift on Christmas Eve. It’ll be more expensive, more stressful, and you might leave empty-handed.
Lean into Your Technology
Modern freight management solutions do a lot of the heavy lifting when it comes to managing peaks and troughs. An FMS is an absolute necessity these days thanks to the complexity of the global transportation industry – all the way down to operations on the smallest scales. They help you forecast demand, automate dispatch, track deliveries in real-time, optimise route planning, and more.
Common Mistakes During Peak Seasons
No matter how solid your planning, you can still get caught off guard during peak season chaos. Watch closely so you don’t make these common missteps:
- Overcommitting Capacity: In business, we always want to be saying “Yes!” to opportunities. Until we’re stretched way too thin. The consequences for service providers can be delayed shipments, strained client relationships, low morale, and exhaustion in your team.
- Ignoring Routine Maintenance: When you’re constantly busy, you might end up postponing routine maintenance. But when equipment breaks down during a peak season, it can be one seriously expensive disruption. Adhere to a set maintenance schedule with near-religious intensity.
- Poor Communication Strategies: Communication channels kept clear with your clients and drivers is hugely important during your busiest periods. Any miscommunications can snowball from minor hiccups to major disruptions.
Long-Term Planning for Seasonal Freight Trends
Sometimes making your way through each year doesn’t simply come down to quick reaction times. In the majority of cases, staying several moves ahead is what keeps you resilient. You need to ask yourself tough questions as early as possible: how effective will you be in the face of an unexpected disruption or severe downturn? Are your clients diversified enough to ensure you can weather downturns in specific industries or markets?
Contingency planning pays dividends any time the unexpected strikes. Major economic swings, extreme weather events, or even a global pandemic – having regularly reviewed and updated plans ensures your flexibility and financial durability is baked into your operations.
At the end of the day, seasonal peaks and troughs come and go. A business build on solid fundamentals with proactive planning will consistently survive and come out ahead.
How a Reliable Freight Management Software Makes a Difference
One of the most practical steps you can take is to invest in technological solutions like a Freight Management Software. Now let’s go into a little more detail about how it can simplify seasonal complexity:
- Predictive Analytics: A powerful FMS can anticipate seasonal demand fluctuations and empower you to strategise months in advance. You’ll also benefit from real time analytics on KPIs to help you react to day-to-day changes.
- Automated Scheduling and Dispatch: The less you have to perform manual scheduling practices, the fewer human errors you’ll see. You’ll also see your operations speed up and happier customers – even when you’re at your busiest.
- Efficient Freight Consolidation: In seasons with fluctuating shipment volumes, you’ll be able to consolidate freight to ensure your trucks are optimally loaded. This reduces the number of trips required and helps you control costs.
- Adaptive Carrier Selection: In those high-demand peaks, an FMS that provides least cost carrier selection can help you maintain profitability. You’ll be able to choose carriers that offer the best rates without compromising service quality.
If all of this sounds good – you’re already in the right place. At Transvirtual, our Freight Management Software provides all of this and much more. You know these seasonal freight trends are inevitable, but our software and services will help you turn those seasonal challenges into strategic advantages.
Ready to connect with the team at Transvirtual? Schedule a FREE 10 minute strategy session with one of our representatives.