{"id":17362,"date":"2021-06-24T14:25:07","date_gmt":"2021-06-24T14:25:07","guid":{"rendered":"https:\/\/www.odysseylogistics.com\/?p=17362"},"modified":"2023-12-28T04:55:31","modified_gmt":"2023-12-28T04:55:31","slug":"peak-summer-shipping-season-2021","status":"publish","type":"blog","link":"https:\/\/www.odysseylogistics.com\/blog\/peak-summer-shipping-season-2021\/","title":{"rendered":"Top summer supply chain trends to watch\u00a0"},"content":{"rendered":"\t\t
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Here\u2019s what shippers can expect for the peak summer shipping season and some tips on how to manage the current transportation marketplace volatility.<\/h6>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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With the national economy coming back to life, e-commerce sales hitting new highs, and the labor shortage in full swing, the summer of 2021 looks to be like none other when it comes to logistics and transportation.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Freight capacity was already tight coming into the year, and it hasn\u2019t improved much as 2021 has progressed. Now at the halfway point, the year has produced interesting new challenges like port congestion and container shortages, all within the context of a persistent truck driver shortage.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u201cThe increased e-commerce volume generated by the pandemic has no end in sight\u2014and signals a permanent\u00a0behavioral shift of an indeterminate magnitude,\u201d Breakthrough Supply Chain\u2019s Brooks A. Bentz writes in\u00a0Logistics Management<\/a>. \u201cIn fact, it has provided an opportunity for carriers, vehicle manufacturers, and tech companies to research, test, and invest in alternative ways to provide pick up, transport, sortation, and delivery.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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No End in Sight <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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High e-commerce volumes are (and will continue to) impact the freight market in ways that Bentz says weren\u2019t predicted just five years ago. They\u2019re also shifting shipment size and volumes toward parcel and less-than-truckload (LTL) from truckload and intermodal. However, the biggest impact of e-commerce can be seen in the parcel business, where \u201cnetworks are being pushed beyond capacity in many areas by the time it takes to complete deliveries on low-density routes,\u201d Bentz writes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Trucking, air cargo, ocean cargo, and even rail\u2014which shippers are increasingly turning to as an alternative to their traditional transportation choices\u2014are all feeling similar impacts, many of which may carry through the summer and into the fall. With manufacturers, distributors, and retailers already preparing their Black Friday and Cyber Monday shopping campaigns, capacity constraints and other freight-related issues may continue right into the peak holiday season.\u00a0\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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These and other trends could keep transportation rates elevated (or at least fluctuating) through the end of 2021 and into 2022. On the ocean front, for example,\u00a0Transport Topics<\/a>\u00a0says that stretched global supply chains have driven ocean rates to record highs. U.S. ports are struggling to work through bottlenecks of goods imported on containerships, it adds, while the rail and truck networks that disperse them across the country are strained with equipment and labor shortages.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Navigating the Perfect Storm<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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For now at least, shippers will have to contend with this \u201cperfect storm\u201d of challenges as they plan out their supply chain strategies for the remainder of the year. \u201cIf this is primarily a supply and demand issue, then unfortunately it\u2019s going to continue because the supply is limited and the demand just keeps on going up,\u201d Dan Maffei, chairman of the Federal Maritime Commission, told Transport Topics, which adds that the congestion will collide in a surge in demand for goods as the July\/August peak shipping season approaches.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Looking ahead,\u00a0Supply Chain Brain<\/a>\u00a0says plans are underway to build new ships and add more containers, both of which would help ease the ocean congestion and free up available capacity. Unfortunately, these efforts take time and the results won\u2019t come overnight.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u201cSupply chains are finding it difficult to keep up with demand as shipping capacity struggles,\u201d Ben Hackett, founder of Hackett Associates, said in a\u00a0JOC<\/a>\u00a0statement. \u201cVessel delays in Asian and US ports, and tight labor conditions and equipment shortages throughout the port and inland supply chains could continue through the remainder of 2021.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Good Preparation & Budgeting<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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With good preparation and budgeting, shippers can ward off some of the negative impacts of the current freight environment and begin to plan for a more affable market in 2022. Using demand forecasting, for example, companies can plan out their freight needs earlier than normal and work to keep their production schedule flowing without any significant disruptions.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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By combining this type of advanced planning with technology (e.g., visibility tools that support good decision-making and help you react quickly to fluctuations in capacity)\u2014and also recognizing that rates will likely increase as the year progresses\u2014companies can more effectively allocate their resources and come up with a logistics plan that meets their customers\u2019 needs in any business conditions.\u00a0\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Here at\u00a0Odyssey Logistics<\/a>, we continue to monitor the current situation and support our customers as they work through the challenges that are placed in front of them. By optimizing every aspect of the logistics supply chain, including transportation management, planning, tendering, visibility, event management, and freight audit\/payment\/reporting across a global logistics network, we serve as a valued partner for shippers operating in\u00a0any<\/i>\u00a0business conditions.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Here\u2019s what shippers can expect for the peak summer shipping season and some tips on how to manage the current transportation marketplace volatility. With the national economy coming back to life, e-commerce sales hitting new highs, and the labor shortage in full swing, the summer of 2021 looks to be like none other when it comes to logistics and transportation. <\/p>\n","protected":false},"author":8,"featured_media":22390,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"blog_category":[74],"class_list":["post-17362","blog","type-blog","status-publish","has-post-thumbnail","hentry","blog_category-industry-trends"],"acf":[],"yoast_head":"\nTop Summer Supply Chain Trends to Watch - Odyssey Logistics<\/title>\n<meta name=\"description\" content=\"What shippers can expect for the peak summer shipping season and tips on how to manage the current transportation marketplace volatility.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.odysseylogistics.com\/blog\/peak-summer-shipping-season-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Top Summer Supply Chain Trends to Watch - 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