Note: Today’s post is part of our “Editor’s Pick” series where we highlight recent posts published by our sponsors that provide practical knowledge and advice on timely and important supply chain and logistics topics. This post by Jillian Sullivan from Kuebix’s blog discusses how technology can help companies address the challenges of the peak shipping season.
As crazy as it may sound, planning for peak shipping season has already begun! In the U.S., peak shipping season extends from August until January of the following year. Peak shipping season can be broken down into two spikes in demand. The first occurs from August until October. This significant increase can be largely attributed to the holidays occurring in the next few months like Thanksgiving and Christmas. After a brief lull towards the end of October, a second spike carries the trend from November until the end of January.
The more customers shop online, the more expensive the season becomes for shippers. The pandemic shifted the mindset of many consumers – instead of placing an online order every once in a while, they started to depend on e-commerce. As a result, this peak shipping season is projected to be more expensive and busy for shippers than 2020.
Both FedEx and UPS are increasing their additional handling surcharges as a result of high order volumes and tight capacity. Both increases will start over the summer and last through peak shipping season. While raising surcharges is a start to handling peak shipping season, technology is providing a larger and more sustainable answer.