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Seasonal Cycles of Ohio Trucking Are Back, Per Cleveland Trucking Experts
Ohio trucking services have historically adhered to clear seasonal cycles, generally broken down into four quarters.
We all know that trucking – and the transportation industry as a whole – are heavily influenced by supply-and-demand, which set the bar for rates and capacity. Market conditions can vary year-over-year, but there are also consistent seasonal patterns that emerge as well.
But as our Northeast Ohio trucking service providers can explain, the largely predictable ups-and-downs of the trucking and freight industry were thrown completely for a loop during the pandemic. As noted by the International Finance Corporation, land freight was a somewhat less impacted cog in the supply chain wheel (compared to air and ocean freight) if only because roads across the globe largely remained open (except in countries or places under severe lockdown). Trucking capacity ended up being strained, particularly as there was a booming demand for food and medical supplies.
What we’re seeing now is those supply chain imbalances start to ease. The Journal of Commerce reports the market is beginning to realign (though not quite to the level of pre-COVID levels and pricing). What this means is we’re going to start seeing a shift back to seasonal Ohio trucking trends.
Being Prepared for Seasonal Ohio Trucking Trends
An understanding of trucking seasonality is important for stockholders in a broad range of industries because it can be used to forecast capacity, rates, and delivery times.
Those in the trucking and logistics sector typically identify four key seasons in freight:
Quiet Season (January – March). Volume tends to be down during this quarter. Weather across much of the U.S. (including Northeast Ohio) is not ideal for shipping. It may be possible during this quarter to find somewhat reduced shipping rates because demand has slid.
Produce Season (April – July). Ohio trucking volumes start to kick into high gear. The market tightens, demand increases, and finding a truck becomes more challenging. As a result, this season is associated with rate increases.
Peak Season (August-October). The produce season is starting to ease, but shippers are still very busy. They’re prepping for the back-to-school supply demands, as well as ramping up for upcoming holiday demands. Both volumes and rates are going to be at their peak during this period.
Holiday Season (November-December). Thanksgiving, Christmas, and New Year’s Eve put a lot of demand on the freight industry – with pressure to get it all wrapped up before the final week of December. Once we get to that final week, demand for trucking freight begins to slow, and continues that lull until the following spring.
Specifically here in the Midwest, we’re going to see the highest trucking volumes between June and September.
Cleveland 3PL Recommends Ample Planning to Cope With Packaging Shortage
Packaging supplies continue to be in high demand despite limited availability, with shortages expected to continue through to at least the end of this year. Our Cleveland 3PL providers are advising the best way to avoid major problems on this front is to forecast, plan, and order materials at least six months out.
Basically, if you’re expecting higher demand and product shipping around the holidays, the time to start ordering those packaging materials now and arranging for their storage.
Packaging materials include things like boxes, foam inserts, poly bags, adhesive tape, anti-static sheets, labels – all the items that ensure items are safe, protected, and clean. While packaging tends to be something of an afterthought for consumers, smart businesses recognize that the right packaging is mission critical. Improper packaging can lead to breakage, spoiling, rusting, leaking – or the product never even making it to its destination. All of this not only hurts the company’s bottom line, but also its reputation.
One analysis by Smithers revealed that in a single recent year, global spending on packaging supplies was more than $917 billion. Demand was expected to increase nearly 3 percent, crossing the $1 trillion threshold, by 2024. But that was before the pandemic, when e-commerce demand exploded.
Compounding matters is that the packaging materials industry hasn’t been immune to the seismic supply chain disruptions of recent years. Not only the pandemic, but extreme weather and a greater demand for sustainable materials has but a lot of pressure on suppliers.
Senior supply chain analysts with Gartner anticipate packaging supply is going to remind a challenge for companies through the 2022 holiday season. Lead time on packaging supply orders that used to take four to six weeks is now more like six months. Things like labels previously had lead times of somewhere around four to six weeks, but are now closer to three-to-four months.
Cleveland 3PL Can Help by Establishing Supply Chain Resilience
In addition to forecasting the need for packaging materials well in advance of expected demand surges (months instead of weeks in advance), companies might also consider working with a third-party logistics company.
There are numerous benefits to working with our Cleveland 3PL, but one that can make a huge difference on this front is helping to establish supply chain resilience.
Our services include not only warehousing and trucking, but packing, labeling, and kitting. We have close connections with suppliers of all kinds of packaging materials, and can work with customers to find alternative solutions when their original packing plans are jeopardized or uncertain.
Throughout the pandemic, there’s been a rush on paper product packaging – primarily folding boxes, corrugated boxes, and non-corrugated boxes. We may see this start to ease a bit as supply begins to finally catch up with the demand, but that might not be for another six months or so, which means companies need to think outside the box (literally).
We can help customers explore alternative packaging methods. That could mean sacrificing certain aspects that are the ideal (glossy coatings, colorful graphics, etc.), but less complicated and therefore more realistic for vendors to turn around by the deadline. As long as the package keeps the product clean, safe, and protected while it works its way to its final destination, that may need to take priority over certain custom aesthetics.
We work to help our clients formulate supply chain segmentation strategies. These involve optimizing certain processes for different needs/outcomes to serve customer bases that are diverse and/or growing.
For instance, the same product may be sold both in retail stores and online. Customers may be buying the same thing, but they have different needs when buying in the store than purchasing online. You might break up the inventory for those two segments and store – and package – them differently. Items sold in stores may require less packaging than those sold online.
Packaging needs can be segmented by material type, end-use markets, and regional markets. Efficient supply chain segmentation strategies can help reinforce your supply chain resilience, allowing you to be better prepared for challenges – whether that’s the expected (like an ongoing packaging shortage) or other hurdles not yet forecasted.
For information on 3PL Warehousing and Inventory Management Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
How to find packaging materials in a ‘perfect storm’ of supply chain issues, June 16, 2022, By Jen A. Miller, Supply Chain Dive
More Blog Entries:
Benefits of Outsourcing Cleveland Inventory Management, May 27, 2022, Cleveland 3PL Blog
Federal Shipping Reform Impact to Cleveland Warehousing, Trucking
A new law promises sweeping changes to the ocean shipping industry following more than two years of port delays, congestion, and growing consumer costs – all of which may have an impact on Cleveland warehousing and trucking. The bipartisan act has several goals. These include:
- Promotion of U.S. shipping exports.
- Limiting ocean carrier market power (thereby reducing shipping costs, which have risen dramatically this past year).
- Improving supply chain efficiency overall.
As our Cleveland warehousing and trucking professionals can explain, the Ocean Shipping Reform Act is the most significant overhaul of shipping regulations in nearly 25 years. The precise impact it will have on Northeast Ohio supply chains isn’t crystal clear, but there is almost certain to be a ripple effect.
Many shipping companies have lauded the measure as a substantial step in the direction of addressing the growing list of shipping disruptions in recent years, including not only astronomical fees, but a lack of containers fit for agricultural exports.
However, much of the law’s effectiveness is going to come down to the Federal Maritime Commission, which has the authority to regulate the shipping industry, but with limiting funding, has always been slow to do so. The law does empower the agency with more enforcement power to investigate and penalize unfair practices. However, even the head of the FMC acknowledged to Supply Chain Dive that the law is “no silver bullet” and there may only be so much the feds can do to check shipping port congestion and soaring costs driven by supply and demand.
Supply Chain Delays, Congestion Drive Up Costs
Virtually all supply chains are subject to some degree of volatility, to varying extents. That’s why our 3PL Cleveland warehousing and trucking team is prepared at all times to forecast sudden shifts and changes and quickly adapt.
But federal legislators have been under intense pressure to do something as global supply chains have been disrupted and erratic ever since the start of the pandemic more than two years ago. Unpredictable schedules have thrown off regular business operations, resulting in higher prices for transportation, even amid big delays.
Benefits of Outsourcing Cleveland Inventory Management
Inventory management is a systematic approach to sourcing, storing, and selling inventory. That includes both raw components and finished products. Your Cleveland inventory management strategy must involve swift and accurate identification of the right stock, at the correct levels, in the right time and place – and at the ideal price point.
Inventory management involves numerous duties, including:
- Controlling and overseeing purchases
- Maintaining the storage of stock
- Controlling the amount of product for sale
- Order fulfillment
This is a huge responsibility – and tough to consistently nail down without the proper systems and professionals in place. That’s why many companies opt to outsource this component of their supply chain.
Any company in a goods-based business recognizes the impact of inventory management on operational efficiency. Lack of adequate inventory will mean lost sales and unsatisfied customers. Too much inventory will mean higher costs for storage and management, less cash on hand, and reduced value of your products. The U.S. government recognizes the value of proper inventory management to the extent that publicly-traded companies are actually required to track inventory and document management systems if they want to be compliant with the Securities and Exchange Commission.
Exact inventory management systems can vary from business-to-business, depending on their size, the types of products sold, and the channels through which they’re sold. That said, partnering with a third-party logistics company means you have the benefit of a system that’s flexible, processes that have been proven, and professionals who are experienced.
Here, we’re going to run through the benefits of outsourcing Cleveland inventory management one-by-one.
Importance of Blocking & Bracing Cleveland CFS Cargo
Blocking & bracing are essential to ensure maximum protection of your Cleveland CFS cargo.
As our logistics professionals can explain, meticulous planning is critical in container loads to ensure equal weight distribution during transit. It’s especially important for damage prevention when moving larger-sized loads.
Properly securing cargo may take a bit of extra effort, but it ultimately saves you time and money, increases safety, protects business relationships, and is required by state and federal laws.
We work to correctly block & brace every portion of loaded freight containers, ensuring your cargo gets where it needs to be – intact, on time, every time.
What is Blocking & Bracing?
Blocking is the means of preventing loads from moving laterally (side-to-side, front-to-back). Bracing, meanwhile, is the means of preventing vertical movement (up-and-down). Failure to brace properly can result in loads jumping over the blocks. And if the blocks aren’t implemented properly, the braces aren’t going to hold.
Visualize your heavy load resting in a container. Some assume that because it’s heavy, it’s unlikely to budge much. This is a miscalculation – a potentially catastrophic one. As our Cleveland CFS cargo experts can explain, once a container is moving, the internal object’s momentum in any direction is going to be proportionate to its weight.
Whatever the mode – whether it’s rail, truck, or ship – proper blocking, bracing, and loading is critical. It’s also important to understand that these techniques differ from load-to-load.
In the case of CFS shipments prepped for intermodal transport (cross-country or international), expect the potential for all kinds of jostling movements, including:
- Forward surges
- Front-to-back pitching
- Side-to-side rolling
- Up-and-down heaving
- Irregular motions
- Vibrations
- Sudden impacts
When your shipment is properly blocked and braced, it’s going to be protected on every leg of the journey.
Some of the factors impacting how we block and brace:
- Container size
- Loading type (cartons, drums, pallets, etc.)
- Dimensions
- Number of pallets or units
- Weights
- Whether the cargo will be loaded onto pallets or floor-loaded
How to Get the Best Cleveland Trucking Spot Rates
The Wall Street Journal recently reported that last-minute spot loads in the truckload market are once again falling as the shipping demand is becoming more aligned with available truck capacity. This is great news for B2Bs and retailers alike. Still, how can you be assured you’re getting the best Cleveland trucking spot rates? Here, our Cleveland trucking team offers some insight.
Contract Rates vs. Spot Rates
For those who may be unfamiliar, most truckload freight is moved via contract rate. This is when shippers and trucking companies strike a longer-term agreement to regularly move a given volume of goods between Origin A to Destination B at a predetermined, per-mile rate that may/may not be adjustable.
Spot rates are more of a one-off deal, but they still comprise about 20 percent of the truckload freight market. They can include (but are not always) same-day and next-day deliveries. These rates are based on existing supply-and-demand for trucks available to make one-time or inconsistent load volumes slated for specific origins/destinations. Some regions/markets can be much more volatile than others, but the spot trucking market in general tends to be much more capricious, with rates negotiated closer to deadline by the load, the lane, or the time. High load volumes + tight trucking capacity = Higher spot rates.
Companies that tend to rely on Cleveland spot rate trucking usually have lower volumes, inconsistent timing, varied destinations, and special/non-standard load requirements.
It’s worth noting that while news of dropping spot rates is definitely welcome by many shippers, it comes on the heels of rates that have been historically high. Ultimately, you still want to make sure you’re getting the most for your money.
Tips for Scoring Great Cleveland Trucking Spot Rates
Rate negotiation factors are fairly standard, but being prepared and knowledgeable can help ensure you’re getting the best possible deal.
Side note: Best doesn’t always mean cheapest. If you get the lowest price, but it results in a missed pickup, damaged products, or hidden charges, it’s going to cost you much more in the long run. When on-time, intact delivery matters, your trucking partner becomes an extension of your brand. Make sure they have a reputation worthy of the trust you’re placing in them.
Beyond that:
Cleveland 3PL Warehousing Must Evolve With Shifts in Customer Demand
Top-performing businesses have always felt big pressure to earn and maintain superior customer satisfaction. These days, however, they’re faced with the herculean task of doing so while grappling with the aftermath of a global pandemic, long-standing labor shortages, and a seemingly unrelenting stream of supply chain disruptions. The good news is: These challenges too shall pass – eventually. However, some recent changes are part of bigger movements that are likely here to stay. Primarily, these include booming e-commerce sales, high demand for direct-to-consumer deliveries, and robust enforcement of warehouse worker rights. One way to gain an edge on the competition is by working with a dedicated Cleveland 3PL warehousing & distribution company – particularly one with a rock solid reputation and the flexibility to shift amid changing times and customer demands.
Recently, the Logistics Managers Index (which measures U.S. supply chain pressures) rose to a record-high. This reflects not only soaring inflation costs impacting inventory and logistics, but also the waning amount of available warehousing space. Bloomberg reports inventory stockpiles many companies purchased during the pandemic may be contributing. Companies are now holding excess inventory at premium rates, something likely to continue for at least another year. Consumer hesitance driven by inflation appears to be further exacerbating the issue. On the flip side, given the global supply chain tumult of late, many manufacturers, suppliers, and retailers have seen the value of having at least some inventory stockpiled so they aren’t caught short.
In any case, one thing is clear: Whereas warehousing was once considered an afterthought for most companies, it’s now recognized as a critical element in the go-to-market strategy for most firms.
“It’s sort of like the shift we saw with the information technology sector in the early aughts,” explained On Time Delivery & Warehouse CEO Anthony Figliano. “What was once basically a background function quickly became a pivotal part of intraorganizational planning – and for good reason. Today, it’s the warehousing and distribution functions that are increasingly acknowledged as mission critical.
“But of course, that’s been at the core of our wheelhouse from the start, so we’ve always recognized its inherent value. As 3PL partners, we’re as committed as ever to continuing to meet fluctuating demands with both top speed and accuracy.”
Business Advantages to 3PL Box Truck Deliveries
If you’re managing a products company, you know that more often than not, clients need their orders as soon as possible. No matter what your industry, speedy delivery is a universally high-value service. Box truck deliveries – particularly those with same-day and next-day capabilities – can help you achieve that.
Box trucks are ideal for companies that make frequent deliveries and drop-offs and have fast turnaround times. It’s a means of reliable transportation without the trailer, allowing for easier deliveries – particularly in tighter urban and suburban terrain. Working with a 3PL for box truck delivery services can help you enhance customer service, reduce liability risk, and even save money.
What Exactly is a Box Truck?
According to the American Trucking Associations, trucks move roughly 73 percent of the nation’s freight by weight. A good number of those local deliveries involve some type of box truck.
Box trucks fairly obviously get their name from their shape: They look like giant boxes. Sometimes referred to as a “cube truck,” “box van,” “cube van” or even “rolling toaster,” a box truck is typically much smaller than a full-size cargo truck, though with many of the same positive features. It doesn’t have a trailer, which can reduce the amount of time spent loading, hauling, and unloading. They tend to be smaller than dry vans, and they’re often more affordable than larger rigs. They’re also pretty secure – and fairly safe, when driven by an experienced, careful driver.
Some businesses invest in their own box truck purchases for local deliveries. Anyone considering buying a box truck right now should know the current market is quite volatile. According to truckpaper.com, a popular site for large truck sales, a used, tandem axle, 24′ box truck is probably going to cost somewhere north of $50,000, depending on the condition and mileage. A brand new 24′ tandem-axle box truck is probably going to be around $75,000, at least – and that’s if you can find it. Most medium-sized chassis trucks are backordered until at least 2023. On top of that, you need someone trained, reliable, and insured to load and drive it. Then there are maintenance outlays, gas expenses, and more. The costs can quickly add up.
Arranging 3PL box truck deliveries is often a smarter, more cost-effective option for many companies. At On Time Delivery & Warehouse, we have the box truck fleet AND the disciplined workforce to get goods where they need to go.
Ohio Warehouse & Logistics Labor Oversight to Increase
The safety and well-being of our valued Ohio warehouse & logistics workers have always been an imperative at On Time Delivery & Warehouse.
Recently, the U.S. Department of Labor announced that given the heightened demands being placed on warehousing and logistics employees, it would be launching a new initiative to vigorously enforce these workers’ wage and hour rights and safety protections.
“The increased demand and constraints on the global supply chain have combined to place enormous strain on the nation’s warehouse and logistics industries,” the DOL said in a news release.
Regulators are ramping up federal enforcement to ensure employees are safe from harassment, paid their legally-owed wages, and are afforded proper family and medical leave in accordance with applicable employment laws. They’ll also be watching for potential misclassification of employees as independent contractors, a practice that tends to result in underpaid wages and benefits, as well as an unfair competitive advantage for companies in the free market.
Of course, the agency has had its eye on the industry for some time now. But the pandemic underscored the critical economic function of warehouse workers, truckers, delivery drivers, and other Ohio warehouse & logistics professionals. Ongoing supply chain exigencies have left more than few logistics firms scrambling to keep pace. Still, the DOL doesn’t see that as an excuse to make concessions on worker pay and safety measures. The recent announcement involves news that the agency is hiring more than 100 new wage and hour investigators – with more likely on the way.
Our Ohio Warehouse & Logistics Team is Committed to Worker Safety and Customer Satisfaction
We recognize that Northeast Ohio warehouse & logistics costs and challenges have risen in recent months, but investment in dedicated employees and their well-being is a core tenet on which our team has never compromised. We’ve had this commitment dialed in for decades, so the DOL’s announcement has no real impact on our day-to-day activities.
Meanwhile, companies that are just launching and/or struggling may want to reconsider any internal warehousing and logistics operations – especially knowing that there will be additional federal oversight and zero room to cut corners without significant penalties.
Cleveland Warehouse Devanning Explained
Cleveland warehouse devanning is a critical component of the logistics process that involves removing cargo from sealed containers. This sounds fairly straightforward, but our warehousing and logistics management experts know it’s one of the more demanding aspects of the job. Devanning incorrectly can lead to serious safety risks as well as damaged goods. Proper devanning keeps workers safe, minimizes unnecessary product loss, and keeps supply chains rolling smoothly.
Container devanning is sometimes called unpacking, stripping, deconsolidation, or unstuffing. It typically (but not always) involves goods from international shipping. Containers are received and then carefully unloaded by highly-skilled handlers, often with cranes and forklifts.
It requires not only having an adequate workforce with the right training and equipment needed to physically move the goods, but also professionals with the technical skill required to effectively manage the digital technology to ensure each item in the container is prepped and ready for the next phase. Well-practiced devanning teams spend years developing the most effective approaches to unloading different types, shapes, and sizes of containers, while ensuring maximum efficiency. If you’re looking for Cleveland warehouse devanning, make sure your third-party logistics partner has the ability to receive containers, de-van them, palletize your goods, properly store each item, and then carefully pick, load, and deliver them on demand.
The type of shipment can impact where goods are going to be devanned. In most cases, full container load (FCL) shipments are going to be devanned at the destination warehouse. On the other hand, less-than-container load (LCL) are usually devanned at the Container Freight Station (CFS). On Time Delivery & Warehouse can serve as both.
The Cleveland Warehouse Devanning Process
When containers arrive at our Cleveland warehousing facility, it’s our top priority to ensure full care and attention is paid to getting the goods safely unloaded and stored and then prepped for the next leg of the journey.