TPS Latest News

Peak Season has arrived a month early

Peak-SeasonEarly Peak Season demand is affecting rates on both sea and air freight.

At TPS Global Logistics we are holding competitive air freight rates on US routes. We have also got some good export air rates Manchester to Shanghai. Prices have levelled and air freight remains competitive. Please contact us if you are interested in air freight services

Ships are still avoiding the Red Sea and these diversions are looking set to continue for some time. Our TPS Global operations team are monitoring developments, as well as keeping an eye on a proposed US East Coast labour strike in September. The team work hard to avoid potential port congestion and vessel delays for our customers. Find out more or speak to one of our sea freight team

Peak Season this year has moved from July to June. This means sea freight rates are still high and space is really tight. We expect congestion and rates to reach their highest in July and August.

The good news is that this could mean an earlier end to peak season. With rates and pressure on capacity dipping in October.

However, there is a possibility that if Red Sea diversions are still in place for Chinese New Year (starts 29 January 2025) we could see the same pattern with an earlier than usual shipping demand pre-CNY shutdown.

Our freight forwarding operations team are working hard to secure the best rates for our TPS customers.

Our advice is get in early, reserve space, speak to us about rates and routes. We recommend shippers look at their sourcing patterns and regularly review their supply chain to mitigate against hold ups.

What is Peak Season?

 

Peak shipping season is a period where supply chains experience a surge in demand, this results in a reduction in capacity and an increase in prices. It mostly affects sea freight, but can also impact air freight as urgency for cargo outweighs typical cost and capacity constraints.

Peak season usually occurs between August and October, when goods are being shipped for retail ahead of Black Friday, Cyber Monday and Christmas.

Another peak season takes place in January and February for businesses who source and ship goods from China.

Chinese New Year takes place between late January and mid-February each year. During this national holiday factories and manufacturers close and vast numbers of the Chinese population travel to visit family and friends.

queued ships

How to prepare for peak shipping season?

 

Businesses can plan to avoid peak season delays. Our tips would be –

  1. Ship well ahead of deadlines
  2. Consolidate shipments going to the same location
  3. Provide clearance documents and information upon departure from origin
  4. Ensure delivery instructions are correct
  5. Utilise your data to check stock levels and forecast sales spikes based on historical data.
  6. Communicate with your freight forwarding partner to track and manage your shipping and supply chain.
  7. Budget for rate increases and peak season surcharges
  8. Avoid booking multiple containers on a single bill of lading – separate bills of lading mean if one is rolled, you may still get something shipped.
  9. Insure cargo – as demand and volumes increase, so does risk

Our team at TPS Global Logistics have more than a few Peak Seasons under our belts and are happy to advise. Please contact us on 44 (0) 1622 237 979 email sales@tps-global.com

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