Outlook of Peak Season 2022

Outlook of Peak Season 2022

   As peak season approaches there is hope that this year will bring reduced concerns. While most supply chain companies were able to achieve their performance goals the majority were able to complete them at a higher cost than they would have liked. Looking at an overview of the peak season of 2021, it confirmed that almost half of the drivers were completing runs at a high stress level while there were rumors of a decrease in productivity.

Last summer, in the midst of the pandemic and the appearance of the new variant Omicron, hiring for new drivers became extremely difficult with some drivers needing to pick up overtime shifts as there was a shortage in the number of drivers available. Since Covid has been a part of our lives for almost three years now, shippers and carriers have gotten use to the trends, and it should allow for peak season to reach its production in 2022. As peak season of ocean freight begins in September, there are still backups in ports that may enforce companies to pressure their drivers in order to maintain current demand. Some of the major dilemmas that supply chains experienced ranged from a delay in products, shippers that were often unreliable and even broken equipment.

What this has taught us is that business executives should make a plan for 2022 to be prepared for any form of supply chain issue that can occur. Thinking ahead will allow for companies to locate new shippers and carriers that will provide the sense of security that if any issue or shortage of carriers and equipment occurs then there is a plan in place to safeguard orders to ensure that the company is still keeping up with the demand of their carriers. With employers working even harder to be prepared for peak season they have been working hard to plan in advance and make arrangements as all the planning that is made still will not allow for them to be fully prepared as contingency plans help to deliver on time regardless of the situation.

Reviewing many peak reviews from 2021 has showed that if supply chains can keep up with the demand of the freight that needs to be moved, then it is possible they can make peak season be year-round. However, that is dependent on how well executed this peak season goes. Companies need to ensure that all deadlines will be made prior to their projected due date and that if they get this completed it will allow for new opportunities to avoid crisis situations and help to create new opportunities for staffers to onboard new drivers. Such factors are making it difficult for stakeholders who are dealing with these things on a regular basis.

The Logistics Management survey indicates that Peak Season of 2022 will likely compare to that of 2021. The review concluded that 2022 was initially predicted to surpass 2021 but with rates landing roughly 20% less then what was expected. With many people questioning if the supply chain stress will get better towards the end of 2022, it was discovered that there was an ease of pressure within the supply chain even though they still remanded at historic high levels.

An important strategy to consider as we approach the peak season of 2022 is that shippers would want to focus on getting a head start for last minute deliveries to prepare for a surplus in expedited shipping as the holidays begin to approach. With inflation at the largest increase in 40 years, many fear that there is going to be a dip in the demand and purchase cycle. However, even with inflation being high, we are starting to see a decrease in rates which is hopeful. One key attribute is by developing those relationships with 3PL who have the ability to get a head start on prospective scenarios to be prepared.

Most would recommend getting ready for peak season now and to focus on training new employees to make sure all supply chain companies and 3PL are fully staffed to prepare for this peak season. Be sure to set specific expectations for customers to make sure that all requests and expectations are met and that the company and customers will be fully prepared for the upcoming peak season.


 

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