It’s common for companies to face challenges. However, there’s one time of year that puts additional pressure on logistics companies and retailers: peak shipping season.
In recent years, the global economy has also struggled with volatility and logistical hurdles, resulting in frequent freight disruptions, supply chain bottlenecks and delays.
This presents an opportunity for the logistics industry to look for creative solutions not only to keep prices constant while saving costs, but also to be prepared for higher demand during peak shipping times. Here, we explain when the peak shipping time is, what it means for shippers and logisticians and how you can best manage it.
What is the peak season for shipping?
The peak shipping season, also known as peak shipping season, refers to the months of the year when the import of goods is particularly high—especially in the second half of the year.
The winter holidays and special sales days, such as Black Friday, encourage consumers to buy more than at other times of the year. This increases freight rates, and freight forwarders and logistics companies run at full speed to keep up with demand.
The peak shipping season is therefore characterised by higher demand from retailers and the need for faster delivery of goods, but also by higher volatility. To counteract this, optimal time management, perfect safety regulations and effective route planning are required.
When is the peak shipping season?
Freight peak season varies depending on the sector.For example, camping equipment, swimwear, sunglasses, etc. are seasonal products with increased demand in summer. Christmas decorations and warm winter jackets are in higher demand at Christmas time.
Conventionally, there are two “peak seasons” in the year, but they are called differently: the “peak season” and “holiday season” for shipping.
Peak season in logistics
The period from mid-August to mid-October is heavily influenced by retail and consumer demand and is considered peak season freight. It is also the peak hour for truck traffic, as freight transport by truck is still the most time-effective within Europe.
The start of the fall season is popular with many retailers as increased demand from consumers during the summer sale allows excess inventory to be sold before new merchandise for the fall and winter seasons arrives in store.
Holiday season in logistics
The period from November to December is known as the holiday season because the behaviour of consumers and companies leads to increased demand for shipping (peak shipping).
In most European countries, the Christmas holidays drive up consumer demand, as do previous sales events such as Black Friday in late October and the following Cyber Monday. During this time there is a lot of activity in the camps.
What are the biggest challenges for logistics in the peak season?
Increased demand
The main problem for logistics companies in the peak shipping season is the extremely high demand in a very short period of time. Back-to-school, Black Friday, Cyber Monday, and last-minute summer holiday sales account for a large portion of retailers’ annual sales. That’s why more freight is sent during these times.
Shortage of personnel and suppliers
A particular challenge is effectively managing seasonal demand. Since the summer and winter holidays coincide with the annual vacation of many freight carriers, the pressure on transport service providers increases to cope with the sharp increase in shipping orders despite a shortage of staff.
Transport costs
Periods of high demand can place stress on various actors in the supply chain. For example, freight forwarders have to transport more goods than usual, which leads to higher fuel and labour costs. Some are taking advantage of the opportunity and increasing their prices. However, this creates financial pressure on partners and retailers.
Storage costs
The same goes for warehousing: owners of containers and distribution centres (fulfilment centres) often increase their prices or add surcharges when demand for capacity exceeds existing supply. Some freight consultancies expect container rates to become more competitive for inventory this year after peaking in 2023.
Longer lead times
The pressure on the supply chain and disruptions to it are greatest during peak season. Geopolitical tensions on key trade routes such as the Red Sea have caused significant bottlenecks and uncertainty this year, resulting in delays and longer shipping times. This means that delivery times are extended and efficiency is affected during the peak shipping season.
How can shippers best prepare for the peak shipping season?
Logistics teams must use good planning and excellent preparation to prevent obstacles that may arise during the peak cargo season of 2024, in particular, persistent port congestion and frequent supply chain disruptions. Therefore, shippers need a comprehensive strategy to manage peak transit times and remain consistently competitive.
1. Organise inventory in a timely manner
When demand skyrockets, it is important that the supply chain runs smoothly. This requires companies to get ahead of demand and free up storage space weeks in advance, negotiate with suppliers and logistics partners in a timely manner to obtain the best possible conditions, and prepare for possible markups.
2. Leverage technology
Technological innovations offer new supply chain management solutions to ease pressure during peak season shipping. Merchandise management systems, for example, offer real-time monitoring of inventory levels so that goods can be managed efficiently at any time, even in the event of bottlenecks in the supply chain.
Transportation management systems (TMS) also enable shippers to obtain efficient route planning and monitor trips in real time. This means that shippers always have an overview and can quickly adjust their shipping strategy in the event of delays to guarantee safe delivery. Recipients can also be notified quickly to ensure transparency and contribute to a positive customer experience.
3. Predictive forecasts
By analysing data, companies can create statistics about how much freight they need to deliver during peak seasons. The statistics of past sales data, economic and industrial changes, and additional information about consumer behaviour help sellers choose the right items to keep in stock during peak seasons. Careful inventory tracking also ensures accurate inventory management.
4. Customization of the website for online and offline sales
E-commerce platforms are particularly valuable for small shippers. During peak freight season, it is important to monitor websites and maintain performance as internet traffic increases. IT teams need to ensure website speed is working optimally to increase conversion rates. Online shoppers should also be offered a range of payment options and be able to navigate the website from their smartphone.
Many e-commerce platforms also offer shipping integration to allow recipients to track shipments in real time. This means buyers always have an overview of where their goods are.
5. Use trusted third parties
One problem that can arise for shippers during peak freight seasons is that they do not have the cash flow necessary to increase storage and transportation capacity. Working with a third-party logistics provider (3PL) makes the process easier here.
Most third-party providers have a range of logistics solutions that shippers can choose from to customise as demand increases. These services include order fulfilment, inventory management, reverse logistics and expedited shipping, among others.
Amazon Freight offers companies, for example, GPS tracking through a diverse network of shipping partners, route optimization and fulfilment through Amazon’s distribution centres, as well as numerous other services for fast and hassle-free shipping—especially during peak shipping times for logistics.
6. Communication
Consistent, regular communication with end users and supply chain partners is important year-round, but especially during peak freight shipping times. Customers must be informed in good time whether delays are to be expected.
Effective demand forecasting also helps companies inform suppliers of expected order volumes in a timely manner to avoid delays, select the right mode of transport and accurately estimate capacities.
In practice, freight forwarders and logisticians should build as wide a network of suppliers as possible. This also includes maintaining a list of replacement manufacturers to mitigate unforeseen production problems from a supplier.
Partner with Amazon Freight for efficient, hassle-free shipping all year round
We’re proud of our peak performance in 2023 and ready to help you navigate the road ahead. For frustration-free deliveries during peak season 2024, we encourage shippers to book freight in advance and to consider flexible opening hours for access to alternative delivery slots.
We use FC fixed slots where possible, and are continuously looking for ways to improve delivery appointments. Our customers can receive severe weather warnings, updates for suggested routes according to any hazards and get regular alerts throughout the journey enabled by GPS-tracking.
Once booked, we’ll always honour a confirmed load. Shippers can also get 24/7 dedicated support throughout their shipment journey. Get started today by creating your free shipper account and receive an instant quote from us. For any other queries, contact us at freight-eu-interest@amazon.com.