Shipping volatility and how preparation in the supply chain can help.
Vancouver’s leader in trucking and warehousing has tips on how to tackle shipping volatility this season with supply chain success. Read on for full details!
The impact that the pandemic has had on the movement of goods in our world has been challenging for many small and medium businesses and the shipping volatility doesn’t seem to be ending anytime soon. But with every challenge, there are also opportunities. As a leader in the lower mainland’s LTL and FTL trucking industry, we’ve got some tips to help you tackle shipping volatility through supply chain success.
A vast majority of goods sold globally are transported through ocean freight. Moving goods across the ocean and through borders efficiently already involved many experienced partners before the pandemic. The tricky conditions that businesses have experienced since 2020 have unfortunately carried over and seem to be here to stay for the time being.
The Container Crunch
With Covid-19 shutting down many businesses and manufacturing plants at the beginning of the pandemic, the world was bracing for an economic downturn. Transport carriers took a conservative approach and started limiting capacity and bumping rates up when closures began to happen across the globe.
Closures of Chinese suppliers also led to a decrease in freight needing to be shipped out, reduced sailings by shipping lines and left empty containers around the world.
While many were bracing for a downturn in freight, the opposite happened as people who stayed at home contributed to a gigantic online shopping boom.
The decrease in sailings, increase in prices, port delays, and the inability of container manufacturers to meet skyrocketing demands ultimately contributed to a container crunch, long shipping times, and higher costs.
Having a successful supply chain
The pandemic forced many to shift to e-commerce as storefronts were closed. Those who had an online shopping platform set up already experienced a massive boom in sales. Others who weren’t quite as ready to sell their goods online were pushed into getting things up and running fast. Nonetheless, having products on hand to sell was also important and business owners that were savvy with importing and exporting were able to take advantage of this opportunity.
Tips to having a smooth supply chain:
- Tackling transit time and booking early – there are many reasons for delays and having a buffer in your shipping schedule gives you more breathing room. Your freight forwarder should have the most up-to-date information regarding transit times.
- Diversifying your modes – you can hedge against delays as best as you can by shipping via different modes of transportation.
- Leave more room in the budget for surprises – there’s a whole string of costs associated with importing goods so budgeting for additional costs will help you calculate the profitability.
- Maintain a healthy inventory – high freight prices may lead to some owners postponing the ordering of goods, but shipping costs aren’t going to be coming down soon and having bare shelves will only result in missed sales opportunities.
Being able to actively prepare for shipping volatility is an essential part of any business that generates revenue from selling and getting products to their customers on time. As one of Vancouver’s leaders in the trucking and warehousing industry, we are classified by Port Metro Vancouver as a large fleet carrier and have authorized access to all major ports and rails in Greater Vancouver. Our extensive knowledge and decades of experience will help you tackle any transport challenges that may come your way.
Whether you are importing or exporting goods or require LTL/FTL services, we are here to help. Contact us at (604)-276-9044 or info@sandhartrucking.com today for more information and to see our 100,000 square foot facility!