Preparing for Holiday Shipping: Best Practices for Freight Brokers

With the holiday season approaching, freight brokers face the unique challenge of managing a surge in shipping demands. According to recent projections, holiday e-commerce sales in the U.S. are expected to grow between 10% and 12% compared to the previous year, totaling nearly $260 billion for the 2023 season. Managing the holiday rush requires planning, coordination, and flexibility to keep things running smoothly. Here are some best practices to help brokers handle the peak shipping season effectively.

Start Planning Early and Forecast Demand
Planning is everything when it comes to handling seasonal shipping demands. Data from recent years show that holiday-related e-commerce sales growth has consistently averaged over 10% per year, making it crucial for brokers to forecast demand accurately and start planning well in advance. With holiday shopping beginning as early as October, it’s wise to communicate early with carriers, clients, and warehouse partners to ensure availability during peak periods. Early planning helps secure capacity and minimizes delays that often come with last-minute bookings.
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Diversify Carrier Partnerships
Relying on a single carrier during peak times can be risky. Partnering with multiple carriers, including regional and speciality carriers, provides flexibility, especially when major providers are at full capacity. Many regional carriers offer more flexible options for high-demand seasons, which can prevent costly delays and enhance service quality for time-sensitive shipments. During last year’s holiday season, 27% of brokers and logistics providers reported delays due to limited carrier capacity, underlining the importance of carrier diversity.
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Optimize Load Planning and Route Efficiency
With increased volume, efficient route planning is essential. Using a Transportation Management System (TMS) with dynamic routing capabilities can significantly enhance delivery times by adjusting routes in real-time based on weather, traffic, and capacity data. Dynamic routing not only reduces delivery times but also cuts down on fuel costs, which is a big win given that fuel costs typically rise by around 5% during the holiday season.
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Prioritize Customer Communication and Transparency
With an increase in shipping volume, the chances of delays naturally rise. This is where proactive customer communication becomes vital. Research shows that 85% of customers expect real-time tracking for their holiday purchases, and 69% of customers are more likely to return to businesses that keep them informed during delays. Proactive updates build trust and show clients you’re committed to handling their shipments reliably, even in busy periods.
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Implement a Contingency Plan for Disruptions
Unexpected disruptions, like weather events, labor strikes, or mechanical failures, can throw even the best-laid plans off track. During peak season, these disruptions are particularly costly due to heightened demand. Developing a contingency plan with backup carriers, alternative routes, and emergency communication strategies helps maintain operations during unexpected incidents. For instance, in December 2022, winter storms delayed an estimated 1 in 5 shipments across the U.S. Northeast, showing the impact of unpredictable events.
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Use Data-Driven Insights to Improve Processes
After the holiday season, take time to review your logistics performance. Metrics like on-time delivery rates, customer feedback, and carrier performance can help identify improvement areas. This data-driven approach ensures that you’re not only prepared for the next holiday peak but continuously refining your processes to enhance efficiency year-round. Analyzing post-holiday data also allows brokers to assess which carriers and routes performed best, providing valuable insights that can help streamline operations in future high-demand periods. Continuous improvement based on real insights ensures that each holiday season runs more smoothly than the last.

Review and Update Service Agreements
Ensure all service level agreements (SLAs) with clients and carriers are up-to-date and account for holiday-specific conditions. Holiday surcharges, peak-period timelines, and adjusted payment terms can be included in these agreements to protect both parties during the rush. Setting clear expectations minimizes misunderstandings and helps maintain strong relationships even during high-stress times.

Final Thought
The holiday season may be one of the most challenging times of the year for freight brokers, but with careful planning, strategic partnerships, and a focus on customer transparency, it’s possible to meet demands effectively. Implementing these best practices not only helps keep shipments on track but builds a foundation for customer loyalty and operational excellence. With data, preparation, and flexibility, freight brokers can turn holiday logistics challenges into opportunities for growth and customer satisfaction.

Written by Dan Mamedov