In the dynamic world of freight logistics, understanding seasonal trends can mean the difference between a booming and struggling business. While it may seem like a daunting task to navigate the fluctuations in the market, paying attention to the seasonal shifts can help you predict when to expect peaks and valleys in demand, empowering you to optimize your operations.
In this blog, we explain the mechanisms behind seasonal freight trends, discuss some common trends that should be on your radar, and share tips for planning around the trends.
Should you pay attention to seasonal freight trends?
Yes. Paying attention to seasonal trends is crucial for making the most of peak seasons and riding out quieter months. When you know what to expect of the market, you can allocate resources, conduct maintenance, and negotiate pricing appropriately.
Common Seasonal Freight Trends to Know
Seasonal freight trends largely pertain to the spot smarket which varies in a seasonal pattern. For those not in the know, a spot rate is a one-time fee a shipper pays to move a load at the current market rate, and it reflects the real-time balance of shipper demand and carrier supply.
January to March – The Quiet Months
As the holiday season winds down and temperatures drop, January to March is typically a time of reduced activity in the freight industry. With businesses scaling back operations and consumers tightening their belts post-holiday spending, freight volumes tend to dip during these months. Manufacturing typically slows or pauses during the Lunar New Year celebrated mid January to mid Februrary. Adverse winter weather conditions such as snow and ice can complicate highway shipping, further dampening demand. For truck drivers, this period presents an opportunity to take a breather and prepare for the busier seasons ahead.
April to July – Ramping up for Produce Season
As the weather warms and nature springs to life, April to July is known as the produce season. With fruits and vegetables ripening for harvest, demand for shipping spikes as growers rush to get their perishable goods to market. This surge in demand, coupled with the time-senstive nature of produce shipments, often leads to higher rates and increased competition for available capacity. Produce shippers often pay higher rates so non-produce shippers have to do the same to find a truck, especially in regions where there is a lot of produce to ship. Towards the end of this season, Amazon Prime Day leads to an increase in demand as well. To capitlaize on this lucrative market, carriers and truckers must ensure their fleets are primed and ready to meet the demands of the season.
August to October – Peak Season
As if the produce season wasn’t busy enough, the peak season from August to October sees retailers gearing up for the holiday rush. From stocking up on inventory to meeting the demand for back-to-school supplies, businesses across the board are in overdrive, spiking up freight volumes and rates in the process. To stay ahead of the curve, carriers must be prepared to navigate the frenetic pace of peak season, ensuring they have the capacity and customer service resources to meet the surge in demand.
November to December – The Holidays
As the festive season unfolds, November to December brings with it a flurry of activity in the freight market. With holiday shopping in full swing and businesses rushing to meet year-end deadlines, freight volumes soar to near heights. Coupled with last-minute expedited loads and tight delivery windows, this period presents both challenges and opportunities for carriers and drivers. By ensuring you have enough drivers to meet the demand and trucks in tip top shape, you can capitalize on the high demand and lucrative rates that characterize the holiday season.
Planning Around Seasonal Freight Trends
In an industry as volatile and unpredictable as freight, planning around seasonal trends is crucial for success. By anticipating fluctuations in demand and adjusting your operations accordingly, you can position your business for success year-round. Whether it’s investing in additional capacity during peak season or leveraging downtime to optimize your fleet, staying ahead of the curve is key to thriving in the ever-evoling world of logistics.
Here at First Star Logistics, we pride ourselves on setting our shipping customers and carriers up for success.
With more than six decades of experience, First Star Logistics is a reliable asset-based global brokerage company. We are committed to meeting the needs of our customers, carriers, brokers, and agents. When it comes to our customers, we recognize the importance of efficiency, safety, and reliability all year around. For our carriers, we offer comprehensive support including technology, management, and resources to thrive across all seasonal waves. Our agents and brokers benefit from a dedicated management team and exclusive software that empowers them to thrive in their roles.
To navigate the seasonal trends with ease and success, contact First Star Logistics today!
