Many aspects of the logistics industry must overcome supply chain hurdles with the help of partners like drayage companies. Challenges persist as shippers race for available capacity in a booming e-commerce world. Difficulties such as the trucking shortage across the United States or the chassis shortage at ports for drayage, force shippers to find new, innovative ways to snag their space for transit. Drayage companies are now adding value by providing supply chain continuity through warehouse assets and freight brokerage services so that once a container is drayed, if there is not truckload capacity immediately available, the drayage company can use its assets to store the goods or the container while the brokerage division looks for capacity. This approach is aiding in reducing total transportation costs, particularly per diem fees like detention and demurrage. Learn how the triad of drayage, brokerage, and warehouse assets are helping shippers find capacity and build resiliency in supply chains.
What Are The Challenges With Capacity For Shippers
As peak shipping season approaches, shippers begin to feel the constraint of limited capacity within transportation methods. Problems like unexpected delays, fewer drivers for ground freight, or other global impositions such as the pandemic prevent shippers from finding ready and reliable carriers. Other problematic hurdles like demand exceeding national and international supplies keep shippers from fulfilling their promises to consumers. As well as limitations imposed across the world due to COVID-19, and other unforeseen circumstances, navigating a post-COVID world may prove difficult for shippers as they scurry to find solutions.
How Drayage Companies, Brokerages, and Warehouses Leverage Technology to Navigate Capacity Constraints
Experts continue to find new ways to improve e-commerce shipping for shippers, carriers, customers, and other supply chain stakeholders. Drayage companies who also have freight brokerages and warehouses can make the processes more efficient. Essentially, they do this by finding technology that can quickly integrate with the existing software and applications for a more seamless transition. With new technology, brokerages can monitor capacity in real-time and can arrange transport for shippers instantaneously, while simultaneously helping shippers who have incrased import volumes, due in part to rising consumer demand, having drayage for short haul moves of the container from the ship to the port. Additionally, if a drayage company has warehouse assets, to avoid detention and demurrage while the brokerage arm seeks capacity, the company can store the goods or container. These new approaches of having drayage, warehousing, and brokerage solutions in one company pave the way for businesses to overcome the overwhelming demand created by the booming e-commerce industry, according to SupplyChainBrain.
Tips to Overcome Capacity Challenges Using the Right Partners
Overcoming hurdles for capacity means integrating other means of transit such as intermodal shipping. Utilizing air freight or rail freight as an option for items that require either extremely time sensitive or that can't wait for an extended delivery time, hitting both the shortest and longest transit timelines at once, can significantly reduce the number of shippers looking for capacity. Other tips like consulting drayage companies and other partners help overcome these challenges and include:
- Consider alternative methods of transportation when possible. If air, rail, or ocean freight transportation is available and cost-effective, utilize those options to ensure on-time deliveries.
- Implement new technology platforms. Invest and combine all existing and latest software to create a user-friendly technology package that can monitor real-time load availability.
- Ensure inventory supply availability. Booking loads for shippers can be successful only if products can be shipped on time, meaning inventory is ready to roll. With increasing demand, the stock must be kept up to date as often as possible.
- Expand your network. Expanding the network of carriers will dramatically boost the amount of capacity available for drayage companies and truck brokerages.
- Consult experts when needed. Ultimately, they know best. So, consult them if any issues persist or teams cannot find solutions without wasting money.
Overcome Challenges in Capacity by Building the Right Group For Your Team
Leveraging technology and other strategies will keep shippers returning to drayage companies who can also store goods in available warehouse assets temporarily to avoid detention and demurrage as well as provide, truckload brokerage services to book a truck. This three leg approach aids shippers in reducing total costs and find capacity. Your supply chain is only as strong as its weakest link and when transportation and distribution problems go unchecked, you lose control of your shipment, your revenue, and your brand. Simply put, everything is at stake.
Because we offer comprehensive port drayage, transportation brokerage and distribution solutions, Port City Logistics is uniquely positioned to minimize the risk of late, damaged, or mis-shipped goods.
Contact Port City Logistics to schedule an introductory call to review your needs.