We’re all used to the weather changing as the seasons change, but did you know that the seasons also affect the demand for freight shipping? As we move through the different seasons, prices fluctuate and securing space becomes more competitive, only to change again a few months later.
From the rush of Chinese New Year to peak shipping season to the quieter summer months, understanding the trend in shipping seasons is vital to optimising your logistics operations. Each season can bring its own set of challenges and opportunities. By understanding these, you can stay ahead of the competition and ensure your shipments are never impacted or delayed. Read on to discover everything you need to know about each freight season, how to prepare for them and how to leverage them to your advantage.
You may think that following the festive period things would get quieter in the freight industry, however demand starts to ramp up again in January. This is due to Chinese New Year, also known as Lunar New Year. Chinese New Year is a week-long celebration and it can fall at any time between 21st January to 20th February. During these seven days of celebrations, people in China are given a week off work to relax and celebrate, which sees almost all of the factories across the country closed. Production usually slows early-mid January and gradually picks up again following the holiday, marking a total of 4-6 weeks worth of disruptions around this time of year.
China is one of the primary trade centres, especially for sea freight shipments, so a lull in production and closure of operations greatly affects supply chains worldwide. Companies often place orders earlier than usual to ensure their goods are shipped before the holiday closures begin, leading to a spike in demand for shipping services. This means that towards the end of December and beginning of January, carriers and freight forwarders start preparing for the impending surge.
Following Chinese New Year, the demand for shipping generally starts to quiet down again. The arrival of spring however brings produce season with it, meaning that in certain regions demand can rise as local farmers and distributors begin to send their crops to market. As the produce is time-sensitive, it’s required to be sent while it’s at peak freshness meaning carriers often need to secure refrigerated trucks and fast transport methods, such as shipping via air. This demand for air freight and refrigerated road transport can create logistical challenges and increased costs for these transport methods.
It’s during this time however that most businesses can begin to plan for peak shipping season and get ready for the upcoming holiday rush. Analysing previous years shipping data allows carriers to forecast demand and work with businesses to plan ahead.
Peak shipping season is upon us. These months are the busiest of the year with lots of annual events occurring such as Amazon Prime Day, back to school, Halloween and the preparation for the festive season. In anticipation of Christmas and Black Friday, retailers want to make sure they have enough stock to meet demand and therefore ramp up shipments to their facilities. This then leads to a surge in shipping rates and competition for space on vessels and aircraft increases. In order to accommodate this demand, many businesses begin to order extra stock in September.
October also sees Golden Week celebrated in China, a week-long public holiday that sees some factories closed and sees a similar impact on supply chains as Chinese New Year does.
Peak Shipping Season 2024
In 2024, demand for air freight out of China is higher than it’s ever been during peak shipping season thanks to online ecommerce stores such as Temu and Shein. Competition for aircraft space in the south of China has massively increased, with rates in June up 40% compared to previous years.
Demand in the fourth quarter of the year is expected to be higher than usual and space on aircrafts may be tighter than previous years. Shipping rates are also expected to rise come October and manufacturers and retailers are being warned to pre-book their shipments now to avoid delays and increased costs.
The end of the year sometimes sees a last minute rush from shippers looking to fulfil their final orders and get everything shipped prior to Christmas.
As we move away from peak shipping season however, rates begin to decrease and demand usually reduces around mid-November/early December. This allows carriers and shippers to begin making plans to prepare for the Chinese New Year rush as the cycle begins all over again.
Now that you’re a bit more familiar with the peak freight seasons and when they occur throughout the year, let’s talk about how to prepare for them.
First things first, you need to plan ahead using data. By analysing data from previous peak seasons you can forecast demand for certain products, as well as checking which products have been selling quickly throughout the year. This is going to help you optimise your stock levels accordingly and make better decisions on how much of each product to order. It’s also wise to think through any planned promotions during Q4 and whether you have enough stock to meet this.
Communicating with customers during this time and providing them with accurate shipping updates is vital. It’s also important to communicate closely with your manufacturers and suppliers however to share your order volume ahead of time and to gain an understanding of production lead time.
Perhaps the most important thing you can do to be prepared for peak shipping seasons is to plan ahead. The worst thing you can do is leave everything until the last minute and risk missing out on vessel and aircraft space, miss important delivery dates and incur higher shipping costs. It’s always best to start planning for peak shipping times a month or two ahead of time, pre-booking shipments to ensure your cargo is prioritised and to avoid increased rates.
The best way however to prepare for peak shipping seasons is to work alongside a trusted and reliable freight forwarding company. With a knowledgeable freight forwarder by your side, you’ll have access to industry insights and expert logistical support that can make all the difference.
If you’re in need of a trusted freight forwarding partner, look no further than Jenkar Shipping. With 45+ years of industry experience, we are well equipped to handle your shipping needs during peak seasons and get your cargo where it needs to be on time. We have an established network of global partners across sea, road and air, meaning we can negotiate the best rates on your behalf, saving you time and money.
We’ll even take care of all of your documentation and customs clearance, ensuring a seamless and hassle-free shipping process. Our friendly team of experts are committed to providing exceptional service and personalised solutions to meet your needs. Our comprehensive tracking solution allows you to monitor all of your consignments in real-time, giving you peace of mind and full visibility from origin to destination. Get started by requesting your free freight quote today.