Managing Capacity Shortages in December: How Freight Brokers Can Help

As December begins, the holiday shopping frenzy kicks into high gear, creating unprecedented demand for shipping services. E-commerce orders surge, retailers restock shelves, and last-minute holiday purchases flood the logistics system. While this is a lucrative time for businesses, it also brings challenges—particularly capacity shortages in the freight industry.

Limited carrier availability, rising rates, and unpredictable demand spikes can overwhelm businesses trying to meet holiday deadlines. Freight brokers are uniquely positioned to help companies navigate these challenges by securing reliable carriers, managing demand fluctuations, and optimizing shipping strategies. Here’s how brokers can be your lifeline during December’s capacity crunch.

The Reality of December’s Capacity Shortages
The shipping industry operates at full throttle in December, making capacity one of the most sought-after resources. According to FreightWaves, spot market rates can increase by 30% or more during peak holiday periods due to carrier shortages. Trucks that are available are often overbooked, leaving businesses scrambling to secure reliable transportation.

Several factors contribute to these shortages:
High Seasonal Demand: Retailers and e-commerce platforms ramp up shipments to meet customer orders.
Driver Shortages: An ongoing challenge in the trucking industry worsens during the holidays, as drivers take time off or prioritize higher-paying loads.
Weather Disruptions: Snowstorms and icy roads in certain regions further complicate logistics, delaying shipments and reducing available capacity.
For businesses, this perfect storm of challenges can lead to late deliveries, frustrated customers, and increased costs.

How Freight Brokers Address Capacity Challenges
Freight brokers act as intermediaries between shippers and carriers, using their networks and expertise to solve capacity-related problems. Their ability to adapt quickly to changing market conditions makes them invaluable during December’s high-pressure shipping season.

Access to a Wide Network of Carriers
Freight brokers maintain relationships with a diverse network of carriers, including large fleets, regional providers, and niche operators. This expansive network allows them to secure capacity even when demand spikes.

For example, if traditional trucking lanes are overbooked, brokers can tap into smaller carriers or explore alternative modes of transportation, such as intermodal shipping or air freight. Their connections give businesses access to options they might not find on their own.

Securing Competitive Rates
With spot market rates soaring during December, freight brokers help businesses control costs by negotiating favorable terms with carriers. Brokers leverage their volume of shipments and existing relationships to lock in rates that are often more competitive than what individual shippers could achieve.
By comparing rates across multiple carriers, brokers ensure businesses don’t overpay for last-minute capacity while still securing reliable service.

Managing Demand Spikes with Strategic Planning
Demand spikes in December are often unpredictable, making it challenging for businesses to plan shipments. Freight brokers use advanced tools, such as Transportation Management Systems (TMS), to analyze shipping needs, optimize routes, and allocate resources effectively.

For example, if a retailer suddenly experiences a surge in online orders, a broker can quickly adjust shipping schedules, consolidate loads, or prioritize time-sensitive deliveries to meet deadlines without disrupting the overall supply chain. According to a study by Descartes, 70% of businesses see a measurable improvement in shipping efficiency when working with a broker during peak seasons.

Providing Contingency Plans
Unforeseen events like weather delays, equipment breakdowns, or last-minute carrier cancellations are common during December. Freight brokers prepare for these scenarios by having contingency plans in place.

This could mean arranging backup carriers, rerouting shipments to avoid severe weather, or securing temporary warehousing near key delivery areas. Their ability to adapt to disruptions ensures that businesses can maintain service levels, even when faced with unexpected challenges.

Enhancing Customer Communication
Freight brokers also improve customer satisfaction by providing transparency and real-time updates. Businesses can use the tracking tools and communication systems offered by brokers to keep their customers informed about shipment statuses.
This proactive approach reduces customer inquiries, builds trust, and ensures that holiday shoppers feel confident their orders will arrive on time.

Why Freight Brokers Are Essential in December
The role of freight brokers during December’s capacity shortages cannot be overstated. Their expertise, relationships, and technology solutions enable businesses to:

1. Avoid costly delays and disruptions.
2. Maintain competitive pricing despite rising rates.
3. Deliver on tight timelines, even under challenging conditions.

Brokers act as partners in navigating the complexities of peak-season logistics, helping businesses stay agile and focused on meeting customer expectations.

Final Thoughts
December’s capacity shortages may be inevitable, but they don’t have to derail your operations. By partnering with a freight broker, businesses gain access to the tools, resources, and expertise needed to manage demand spikes and secure reliable shipping solutions. Whether it’s finding last-minute carriers, negotiating better rates, or handling unexpected disruptions, brokers are the key to ensuring your holiday season runs smoothly.

As the year-end rush intensifies, make freight brokers part of your logistics strategy—and let them handle the capacity crunch so you can focus on delivering exceptional service to your customers.

Sources
FreightWaves on Spot Market Trends
Descartes Systems Group