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It is summertime, which means the peak summer shipping season is here. As the world starts opening up a bit more every day, the economy is making a comeback, especially e-commerce sales that are reaching new highs amid labor shortages. Therefore, when it comes to transportations, certain situations do look a bit different. Freight capacity is continuing to be tight and has not improved in its positions. Challenges faced are container shortages and congestion at the port. With the lack of laborers, there is also a shortage of truck drivers.
With the increased demand for product fulfillment services and the ongoing pandemic, there are trends this summer that are foreseen to continue with no end in sight. However, rather than allowing for the recent circumstances to determine the success of a business, order fulfillment companies are finding a way to work around the dilemmas.
When Will it End?
No one necessarily knows when circumstances will improve. The demand for e-commerce products is having a massive impact on the freight market that no one could have predicted. Manufacturers are turning towards other intermodel to complete deliveries. Trucking, rail, ocean, and air cargo are increasing in usage as means of transportation. The need for these alternative transportation units is not foreseen to go away anytime soon. Manufacturers are even thinking as far ahead as Black Friday and Cyber Monday campaigns. To keep up with the demand they will receive, they must begin planning now.
Preparing for Challenges
It goes without saying that fulfillment service companies have experienced a turn of events they did not anticipate. While most companies have figured out how to combat the challenges, some might slowly be fighting it out. While it is optimistic to believe the situation will improve soon, it is not enough for a business to survive. Looking ahead and planning how you can keep up with the demand is essential. Companies should think about building new cargo ships and adding containers. These two solutions can allow for the ocean congestion to decrease and space to be more available. Product fulfillment companies that have been planning to take on the challenges know that this progress does not happen overnight. It takes time, so beginning now can save your business.
Budgeting and Preparation
A worry amid the changes and challenges is cost. By preparing a good budget, companies can remove negative impacts while becoming more appealing to the market. Demand forecasting can allow for order fulfillment services to plan out freight services to ensure operations run smoothly.
At OctoChem, we provide third-party logistic services that allow businesses to optimize warehousing and leave shipment fulfillments to the experts. For more information, contact us today.
