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Carriers, Cold Supply Chain, Drayage, Flatbed, Flatbed Transportation, Fleet, Food & Beverage, Food Grade, Freight Brokerage, Intermodal Transportation, Inventory Management, Leadership, Operations, Port Services, Retail, Supply Chain, Supply Chain Management, Technology, Third Party Logistics, Transloading, Truck Driving

If you’ve seen higher than expected freight rates, we hear you, we see you. There’s a couple of potential factors for these increases. Since Q2 of 2020, the freight markets have shown robust growth, which has raised rates dramatically. While this is good news for carriers and manufacturers, it has caused CPG shippers to pay the price in rising freight rates. In this week’s blog, our team analyzes the various factors that are driving up freight rates and why they are happening.

Factor 1 | Port Congestion 


With pandemic-related consumer shopping habits, many West Coast ports operated at maximum capacity during the summer. In 2021, the uptick in imports has compounded the situation and caused even more congestion. March retail sales increased by 9.8% sequentially and 14.3% year-over-year. A 27.7% jump led to an increase in sales of food services. With more imports on board, shippers should brace for capacity constraints. As the produce season gets underway, rates will also rise.

Factor 2 | Produce Season


The start of the produce season typically occurs in February in the southern US. By spring/summertime, it has reached the majority of the US. During this time, capacity is tightened as refrigerated carriers dedicate a lot of their space to hauling produce. Other products that can ship via dry van or on refrigerated trucks will move to van transport, thus increasing freight rates across the board.

Factor 3 | Reliance on Split Shipments 


eCommerce brands have been comprehensively using split shipments for years. Firstly goods need to be picked from inventories across different locations. With not enough room on a single truck or plane for an entire shipment, it may have to be divided into individual boxes and delivered individually. Split shipments happen to occur even more often during cross-country or international shipment of goods. The more the shipments, the costlier the shipping costs; therefore, the trend ends up being a pricey affair and often harmful to the shipping ecosystem.

Counter Rising Rates with these Techniques: 

Advance Planning


One of the most effective ways to combat these high freight rates is planning shipments far in advance. Cargo cost is increasing every day. To avoid paying surged charges and avail early bird facilities, companies have to plan their shipments well in advance strategically. Working with a team of transportation experts (Like Taylor) that uses digital platforms to leverage data on the freight costs to predict rates and trends affecting the rates will help to plan and lower costs. 

Work With A Team Of Experts

Work with a dedicated logistics team to ensure conditions do not endanger profitability. Teaming up with a partner like Taylor can help your organization correctly forecast costs and find more favorable pricing through consolidation or mode optimization services.

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Cincinnati, Drayage, Intermodal Transportation, Transloading
Taylor Logistics Inc. Transloading in Cincinnati Ohio Drayage Team

Transloading services are an essential part of the supply chain, primarily when shipping with intermodal drayage. When cargo is moved from rail to a truck (or the other way around), the transloading area is where an experienced team uses forklifts, cranes, and other equipment to ensure a seamless transfer of freight. Often, shippers want to combine the economic advantages of rail shipping with the flexibility of over-the-road trucking, using affordable rail shipping for the long haul and trucks for final delivery. Here’s our drayage team tips on how to save:

But First, Products That Can Be Transloaded


Standard Rail Commodities: Lumber, metals, paper, rebar bundles, palletized products


Liquids: Ethanol, biodiesel


Oversized: Transformers, wind blades, and machinery


Bulk: Sand, plastic pellets, food product


Service Sensitive/Critical: Auto parts, parcel, frozen food, and perishables


Everything: Bricks, floor tile, coil, solar panels and nearly everything else 

Container Capacity


Don’t waste container space! Abiding by container rules and regulations, strive to consolidate as much freight as possible into a larger container. For example, the contents of three 40 ft containers can fit into two 53 footers. Thus, reducing your overall costs significantly..

Check Your Container Cartons


If your container is hauling more cartons than the allocated number, you could incur extra fees. Stay up to date on regulations to avoid paying more.

Try To Palletize Your Products


To save space, putting your product on pallets always helps. When freight arrives at the transloading area, palletize cargo to make distribution handling more efficient.

Partner With A 3PL


Taylor has a full drayage team of transportation professionals that know what to look for to help you cut costs and streamline your supply chain with transloading.

Talk With Taylor


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Carriers, Flatbed Transportation, Fleet, Freight Brokerage, Intermodal Transportation, LTL, Port Services, Team Taylor, Transloading, Truck Driving
Freight Shipping Transportation Taylor Logistics

Your favorite co-hosts, Chris Baum and Noelle Taylor, are back covering a full range of topics from port to door services, the lunar new year, expecting the unexpected, and drop trailer services.

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