What Shippers Can Expect for the Remainder of the Year

As we head into the final months of the year, shippers face a whirlwind of activity. The last quarter is always a busy period, driven by heightened demand for goods, the holiday shopping frenzy, and fluctuating market conditions. For shippers, it’s crucial to understand what’s coming and prepare accordingly to avoid disruptions and take advantage of opportunities. Here’s what shippers can expect as we wrap up the year.

1. Freight Volume Surge

The final months of the year see a significant increase in shipping volumes, especially as we approach the holiday season. Retailers, manufacturers, and e-commerce businesses ramp up operations to meet customer demand, which leads to a surge in freight movement. This uptick in shipping activity can strain transportation networks and cause delays if capacity isn’t secured early.

What This Means for You:

Expect more competition for trucks, especially in the spot market, and higher rates. If you’re managing shipments, securing your capacity ahead of time will be crucial to keeping deliveries on schedule.

2. Rate Volatility: Spot vs. Contract

With more freight on the move, rates—especially in the spot market—are likely to fluctuate. Spot market rates rise sharply when demand exceeds capacity, which is common in the final quarter. On the other hand, contract rates, which offer more predictability, may still face pressure due to high demand and tighter capacity.

How to Stay Ahead:

Plan to balance your use of spot and contract rates. Contracts can provide stability, while the spot market might be necessary to handle overflow or last-minute needs. Just be prepared for higher spot rates during peak periods.

3. Tightening Capacity

As freight volumes rise, available carrier capacity becomes scarcer. This is especially true during the final quarter when carriers are stretched thin trying to meet the surge in demand. It’s also common for specific regions—like those near ports or major urban centers—to feel the pinch more acutely as goods move through the supply chain.

What to Do:

Start building relationships with your carriers and logistics providers early on. The earlier you lock in your transportation needs, the less likely you are to experience disruptions. Diversifying your carrier options can also help.

4. Holiday Challenges and E-commerce Growth

The rise of e-commerce has been a game-changer in shipping, and it’s no different in the last few months of the year. From Black Friday and Cyber Monday to Christmas, online shopping peaks, and so does the need for last-mile delivery services. This adds a layer of complexity to your shipping plans, especially when it comes to meeting delivery expectations.

How to Prepare:

Consider partnering with carriers who specialize in last-mile delivery or parcel services to ensure your shipments reach customers on time. Additionally, review your inventory strategies and make sure your stock levels align with the expected surge in holiday demand.

5. Post-Pandemic Supply Chain Issues

Even as things normalize post-pandemic, supply chains remain vulnerable to disruptions. Whether it’s labor shortages, fluctuating consumer demand, or unexpected economic changes, shippers still face uncertainties.

Staying Flexible:

Work closely with your logistics providers to build flexibility into your shipping plans. By being adaptable and having contingency plans in place, you can better handle unexpected challenges and minimize their impact on your operations.

Final Thoughts 

The last few months of the year can be challenging, but they also present significant opportunities. If shippers can anticipate increased demand, manage rate volatility, and secure capacity early, they’ll be well-positioned to finish the year strong. At NTP Freight, we’re here to help you navigate this busy period, offering tailored logistics solutions that ensure your freight moves efficiently and on time.

Ready to make the most of the remaining months? Contact NTP Freight today to optimize your shipping strategy.

Written by Dan Mamedov