While many of us are soaking up the last of summer’s sun and fun, food manufacturing supply chains are readying for the upcoming holiday food rush.

Have you ever noticed a lot of our favorite memories are surrounded by food? When we go to celebrate something like a birthday, anniversary, or special achievement, it usually involves food. It’s no surprise then that over the holiday season, nearly 165 million consumers across the U.S. purchase food and beverages to celebrate, according to a study from Cornell. As the holidays soon approach, food consumption surges, with the average American indulging up to an extra 440 calories per serving!

The increased demand and tight holiday deadlines can present challenges for many food and beverage companies with their logistics. This is in addition to already facing a competitive peak shipping season! However, by understanding the dynamics of this unique period of time, shippers can ensure success is ahead of them. First, let’s dive into some fascinating facts and insights about food during the holiday season. Then, we’ll follow that with some essential tips so your company can be prepared for the holiday food rush!

Holiday Food Supply Timeline & Stats

The Holiday Food Surge Begins with Fall

The holiday food rush first begins with the arrival of fall flavors. Pumpkin spice, now seen as the quintessential flavor of fall, has seen a 47 percent increase in sales, as reported by The Guardian, within the past five years. In 2023 alone, Datassential reported 144 new limited-time offers that featured pumpkin on major restaurant menus. From the infamous Pumpkin Spice Lattes (PSLs) to pumpkin soups and ravioli, this flavor dominates the season. But we can’t forget another fall favorite – apple. Food and beverage items with caramel apple were one of the highest-indexing flavors last fall.

Halloween Signals Significant Holiday Food Consumption Increase

Halloween is a major milestone in the holiday food timeline, with 65 percent of consumers participating in the festivities. In fact, of all 172 million that celebrate the spooky season, 95 percent of them purchase candy. Even more staggering is that a quarter of all the candy sold annually comes from Halloween sales. It’s not all about the sweets, though! Pizza is the most popular dinner staple on All Hallow’s Eve, according to Grubhub. There’s also the annual tradition of carving a pumpkin, with Statista reporting roughly 154 million Americans partaking in the activity in 2023.

Dia de Los Muertos Celebrations Begin to Trend

Datassential reports that 10 percent of consumers in the U.S. report celebrating Dia de Los Muertos, or Day of the Dead. This holiday is gaining popularity, which means so are the celebratory foods associated with it! Pan de Muerto is one traditional sweet bread that’s essential to the celebration.

Thanksgiving Continues to Drive Food Supply Chain Demand

Thanksgiving remains the most popular fall holiday, with 83 percent of Americans celebrating the tradition. A whopping 46 million turkeys are consumed each year, according to the U.S. Department of Agriculture. Other top holiday staples include cranberry sauce, stuffing, green bean casserole, mashed potatoes, macaroni and cheese, sweet potatoes, and pumpkin and apple pies. That’s a lot of food to prepare for a meal, so 23 percent of consumers will buy a full, ready-made meal from a restaurant. Another 22 percent will supplement with some food from restaurants for part of their feasts.

Sweets, Candy & Chocolate Build Holiday Food Demand at Christmas & New Year’s

Leading up to Christmas, many enjoy hot cocoa, cookies, and other treats. 1.76 billion candy canes, a holiday staple, are made annually for this joyous time of the year. 70 percent of Americans make Christmas desserts, with frosted sugar cookies being the top ones consumed annually. Don’t forget the eggnog! 122 million pounds of it is poured and drunk each year.

When it comes to Christmas dinner, pork dishes are the most popular globally, but turkey still trumps all for the U.S. Other winter feast staples include roasted or mashed potatoes, roasted carrots, gravy, stuffing, shrimp, and lots of Christmas pudding, cookies, and pies. Sweet tooths rejoice as 83 percent of consumers fill stockings with treats like candy and chocolate.

Christmas and New Year’s are among the busiest holidays for restaurants. Both holidays also see a spike in alcohol consumption, with New Year’s Eve being the second most alcohol-associated holiday behind Mardi Gras. Champagne is the fan favorite for those ringing in the New Year.

Logistics & SHipping Tips for Holiday Food Shipping

The holiday season often brings those in logistics the gift of increased demand and decreased capacity. Like most Americans, truck drivers aim to be home for the holidays, trimming the number of available carriers down. Freight of all kinds can increase during the period, further cutting the number of trucks available. Shippers with more specialized requirements, like temperature control, can find even less capacity. Shippers also have tighter deadlines to meet at this time to make the most of the seasonal business.

Overall, the holiday season can be a time of heightened stress and disruption. Given these unique challenges, it’s crucial for food and beverage shippers to prepare thoroughly to appease customers.

Five Tips for the Best Holiday Food Shipping Logistics Outcomes

Tip 1: Keep Inventory Stocked

Running out of stock during the holiday season is a surefire way to lose customers. Track your inventory levels closely and replenish supplies early to ensure you’re well-stocked. By keeping orders moving consistently, you’ll be able to meet consumer demand and avoid causing any disappointment.

Tip 2: Have Backup Shipping Plans Ready

The chances of any disruptions or delays happening during this season are increased. Having backup shipping plans already prepared is essential to keep your goods moving.

Build relationships with multiple carriers and suppliers, or even a third-party logistics provider (3PL). This way, you’ll have known contacts ready in case you need any help. 

Look at alternate modes of transportation and be prepared to quickly shift plans should something happen. Exploring multimodal options can be a great way to diversify risk, add capacity, and protect your freight budget. Having this flexibility available and ready can help you stay on track and your supply chain running smoothly.

Tip 3: Real-Time Visibility is Needed for Success

In today’s supply chains, having access to the visibility you need is crucial. You should either work with a provider that offers it or invest in your own technology, like a Transportation Management System (TMS).

A TMS can be very helpful during the holiday season. It can help you with routing decisions by matching your freight with the best carriers, lanes, and rates. In addition, it will allow you to optimize the in-house processes of your transportation network – which can be helpful during busy and slow seasons. By selecting the best carriers and optimizing your routes, you’ll not only increase your service but reduce your risk.

Using a TMS also gives you data-driven insights to better manage disruptions, reduce downtime, and budget your logistics spend. Data analytics can help you recognize which carriers are most likely to have the capacity, saving you time arranging your shipments.

Tip 4: Communication and Collaboration

Effective communication is key to a successful holiday season. Regularly communicate with all stakeholders, including suppliers, carriers, and customers. Collaborating with your partners during the seasonal planning phase can provide valuable insights and help you identify potential issues before they arise.

Tip 5: Partner with a 3PL

Working with a 3PL can be a game-changer during the holiday season. A 3PL offers access to a larger network of carriers, advanced technology, and expertise in managing complex logistics challenges. With their support, you can ensure your supply chain remains resilient, even in the face of unexpected disruptions.

Treat Yourself with Easier Logistics This Holiday Season

Navigating the holiday food rush can be overwhelming, and that’s why Trinity Logistics is here to be your guide. Like Santa, we’ve been around a while, with 45 years of experience handling logistics during holiday seasons.

Right away, you’ll gain access to our large network of vetted, quality carrier relationships to cover your shipments. But that’s just the start! There are many more benefits to working with Trinity, including:

• Multiple modes of transportation to find the best bang for your buck, support your business growth, or just have a backup plan ready
• Best-in-class technology and customized Managed Transportation solutions available, giving you the exact visibility and data you want
• 24/7/365 support, so no matter what day or time it is, you’ll have the help you need

One benefit that tends to shine above all else? Our exceptional People-Centric service. It’s the trait that makes Trinity different from other 3PLs and keeps our customers returning time and time again. It’s truly our care, compassion, and communication that you’ll notice and appreciate.

Everyone wants to enjoy the holiday season. Why not let Trinity focus on the logistics for your business, so you can go back to doing what you enjoy – helping consumers savor holiday treats and create memorable moments with your product.

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Severe weather events are the new normal. Can the logistics industry handle more supply chain disruption?

It’s a hot, sunny day, and you’ve found the perfect spot on the beach to sit back, relax, and enjoy the cool breeze of the ocean waves. As you’ve sat down and unpacked your snacks, a thunderstorm rolls in, causing the lifeguards to hop off their chairs, stating the beach is closing. Plans = ruined.

We’ve all been there – when poor weather makes an inconvenient appearance. But severe weather is more than just rain on your wedding day. It’s more extreme, like high winds, flooding from heavy rain, wildfires, or droughts. Severe weather events are becoming more intense and commonplace, causing supply chains to struggle. Logistics professionals often face challenges like disrupted deliveries, product shortages, and skyrocketing costs.

From intense hurricanes to wildfires, the growing effects of climate change on supply chains are becoming impossible to ignore. In a report by Breakthrough, 39 percent of transportation professionals note severe weather as the biggest challenge to their networks, having primary concerns surrounding climate change and sustainability. With severe weather and its effect of supply chain disruption being a challenge for companies for the foreseeable future, they must take proactive measures to maintain resiliency. Is your supply chain prepared?

CASES OF SUPPLY CHAIN DISRUPTION FROM RECENT SEVERE WEATHER

Climate change has led to an increase in severe weather events. If you’re uncertain as to how much of an increase we’ve seen, let me share an eye-opening fact with you. The U.S. National Climate Assessment estimates that in the 1980’s, a billion-dollar extreme weather event would take place once every four months. Now, they occur once every three weeks! That’s not a lot of downtime in between events for affected supply chains to regroup.

Supply chain disruption from severe weather like the ones mentioned below is no longer a distant worry but a constant concern.

Droughts

In recent years, droughts have been impacting vital waterways. The Panama Canal, a critical path for global shipments, has experienced its worst drought since records began in 1950. Due to low water levels, restrictions were imposed, limiting heights and the number of daily vessels. Similarly, the Mississippi River has faced periods of drought and low water levels, making it difficult to transport goods.

Elevated heat and droughts affect not only waterways for transportation but also the production of goods. For example, coffee, cocoa beans, and olives have all recently faced drought conditions, resulting in a lower output of their respective products.

Wildfires

Often fueled by extreme heat and droughts, wildfires are now an expected annual danger to many parts of the world, like the Western U.S. and parts of Canada. Fire seasons start earlier and last longer while growing in intensity and size. Though the wildfires themselves are one problem, the spread of the smoke coming off them greatly expands their impact. The smoke reduces not only our air quality but also visibility, such as with the wildfires in Canada in 2023, which created widespread smoky conditions and delayed several shipments in populated locations such as Chicago and New York.

Hurricanes

Hurricane Season continues to bring more hurricanes and stronger storms each year. In fact, the National Oceanic and Atmospheric Association (NOAA) forecasts that the 2024 season will see 17 – 25 named storms, with four to seven being a Category 3 or greater. On average, there are 14 named storms with three being a Category 3 storm or greater.

Hurricane Ian was one severe weather event to cause supply chain disruption in the Southeast in 2022. Ian was a Category 4 storm when it made landfall in Florida and resulted in a 75 percent drop in shipments during its course. More than $416 million of citrus crops, a major good grown in the area, were destroyed by Ian.

Another Category 4, Hurricane Harvey, struck Texas in 2017. More than 50 inches of rain fell, breaking previous U.S. records and causing massive flooding, which closed roadways and many facilities. Several ports along the Gulf Coast were closed for nearly a week.

Even a Category 1 hurricane can impact supply chains. In July 2024, Hurricane Beryl hit South Texas, causing major flooding, power outages, and port closures.

Deep Freezes

Several locations have seen unusual deep freezes in recent years. In 2021, Texas saw a widespread freeze that their electric grid was unplanned for, causing a blackout for over two weeks. Many manufacturing businesses had to shut down, and railroads did, too. This caused significant supply chain disruption for transportation between Texas and the Pacific Northwest.

In 2022, New York experienced Winter Storm Elliott, which lasted roughly a week. Heavy snowfall and extreme cold temperatures caused power outages, resulting in a 40 percent decrease in shipment volume.

These are just a few examples of the impact severe weather has had on supply chains in recent years. Scientists believe that supply chain disruption from severe weather events will only intensify in the coming years as extreme temperatures and sea levels continue to rise.

HOW SEVERE WEATHER CAUSES SUPPLY CHAIN DISRUPTION

Severe weather events can wreak havoc on supply chains in many ways!

Infrastructure Damage

Roads, bridges, or ports can become damaged and make routes unavailable.

Shipping and Transportation Delays

The effects of severe weather, such as flooding or wind gusts, can slow or stop transit, causing delays and increased shipping times.

Shortages and Increased Costs

Damages and delays from severe weather can impact production, reducing inventory and capacity. Increased demand then increases the cost of materials, products, or shipping.

HOW SUPPLY CHAINS CAN STAY PROACTIVE

While you can’t control the weather, you can control whether your supply chain is prepared. Now is the time to be proactive and plan so your supply chain survives and thrives when severe weather strikes.

Assess Your Risk

Map out your entire supply chain to find gaps and vulnerabilities. Identify which companies and suppliers are involved and what severe weather events might impact them. If capable, look at previous data on supply chain disruption to learn from it. Are there certain sites that experience frequent disruption? How could you have been better prepared?

Have a Contingency Plan

Now that your supply chain is mapped and risks identified, it’s time to build plans for when disruption hits. Confirm that your supply chain partners have their own plan in place. Determine backup suppliers and partners for when current ones are affected. Find and select alternative transportation methods and routes. Once established, regularly assess this plan to ensure it will operate effectively.

Invest in Extra Insurance

This may seem like simple advice but invest in insurance to protect your business from losses. For example, flood or hurricane insurance will help you restore any damaged assets from a severe storm. Business interruption coverage can offer added protection, covering any lost sales during a disruption from severe weather.

Invest in Technology

There is a lot of technology available to help you be prepared for severe weather. Technology with Artificial Intelligence (AI) and predictive analytics can be useful to help you forecast and respond quickly when issues unfold. Leveraging AI and machine learning can help you reach a level of automation in which decisions can be made from data in a matter of seconds.

Create End-to-End Visibility

One of the most common weaknesses in supply chains is a lack of visibility. With the increase in severe weather and supply chain disruption, visibility is needed now more than ever. Having real-time access to tracking, carriers, suppliers, and inventory can help you identify any issues before disruption takes place.

A transportation management system (TMS) can provide the visibility you need. It provides critical data about your shipments and orders in real-time, giving you an advantage should a problem arise. This can help you make quick decisions to reroute shipments, avoid affected areas, and keep your customers informed.

Establish Open Communication

Establishing open communication among your supply chain partners now will benefit you when severe weather happens. Be transparent. Share details about when you receive orders, where they go, and when they are due.

Let partners know your backup plans and ensure they are prepared for any severe weather events. When there is a chance of supply chain disruption, send communications right away. The earlier you can make partners aware of the possibility, the more time they have to adjust their plans.

Collaborate with Resilient Partners

Are your supply chain partners prepared for potential disruption? Identify those who are ready to weather the storms and those who are vulnerable. Supply chain disruption isn’t going away, so you’ll want to raise your concerns and highlight your need for resiliency. If the risk is too great for your supply chain, you may consider looking into alternative partners to replace them.

WEATHER ANY STORM WITH TRINITY LOGISTICS

Working with a reliable logistics provider like Trinity Logistics is a great way to build supply chain resiliency and overcome severe weather threats.

Trinity Logistics has been supporting thousands of supply chains through all sorts of supply chain disruption for over 45 years. Severe weather events don’t scare us away, as we thrive on quickly solving issues like those that storms can bring. We also have a dedicated After-Hours Team to support your business at any time. Even if severe weather halts your shipping overnight, on a holiday, or weekend, we’re here to help. 

Our nationwide network of trusted carrier relationships will ensure your shipments arrive safely at their delivery locations. You can also count on our multiple transportation options to allow you to keep your goods moving through rain, hail, or snow. Lastly, our customizable Managed Transportation solutions can give you the real-time visibility you need to stay updated and make any changes in a matter of minutes.  

Don’t let supply chain disruption fog up your company’s goals. Try Trinity Logistics and see how our People-Centric service can light the way to success.  

After several record setting years, 2023 saw shifts to the freight market. How did the 2023 freight market affect shipper and carrier businesses? Did other businesses have the same struggles as yours? Are they expecting to face similar difficulties in 2024? How are their partner relationships? 

Trinity Logistics wanted to get answers to these questions for you, so we asked a random sample of our shipper and carrier relationships to gauge the effect 2023 had on their business and what their expectations for 2024 in our first Freight Market Survey. Here’s what we found out:

2023 SHipper & Carrier Data: Freight Market Survey Results

Past Challenges – Same, But Different

Considering the recent turndown of demand and the freight market, it’s not a big surprise that money was the biggest issue for shippers and carriers alike. Shippers answered that transportation costs were their biggest challenge in 2023, with supply chain delays/disruption and capacity not far behind. Low rates and increasing operating costs were the main challenges facing carriers. 

Business Impact – Could Have Been Better

Even with the change in consumer demand trending downwards throughout 2023, most shippers answered that their year was good overall. Carriers on the other hand seemed to face a rougher year in business with over half of them stating their year could have been better or was poor. 

A LOOK INTO 2024

Future Challenges – Money Problems

2024 isn’t looking much different in terms of challenges compared to 2023. Shippers look to have the same financial challenges as they did in 2023 with transportation costs, supply chain delays/disruption, and decreased demand being the top concerns selected. Carriers are still concerned about low rates, operating costs, and low freight volumes hurting their businesses. 

Hot Trends

Even though transportation costs are shippers’ strongest concerns in their previous answers, it seems the increased amount of supply chain disruptions and delays we’ve all experienced in these recent years have hit a nerve, with the majority answering that supply chain resilience is the trend their business is most interested in. Cybersecurity also looks to be a growing interest.

Carriers on the other hand, interestingly enough, look to the recent trend of Artificial Intelligence (AI). Also, as noted in the comment boxes of our “Other” option, increased rates and better fuel prices were trends they’d like to see in 2024. 

Load Volumes & Capacity – Slightly Positive Outlook

Overall, shippers are slightly more optimistic for 2024, thinking it won’t bring any change or the change it brings will be positive. Most think load volumes will stay the same or there will be a little more in freight volumes this year. As for truck capacity, they think it will be the same as 2023 or slightly tighter. 

Carriers also think 2024 will bring more freight volumes and that capacity will likely stay the same or get tighten slightly versus 2023.  

Spot or Contract?

Year-over-year, shippers aren’t looking to change much in terms of which market they turn to. Most look to continue to put most of their freight on the spot market.

For carriers, there looks to be some change anticipated. In 2023, most carriers ran spot market freight but in 2024, over half of them look to haul contracted freight. 

Do Shippers Have a TMS?

It’s 2024, so you’d think most shippers would have a transportation management system (TMS), and no surprise, they do. For those that don’t and answered, it seems they did not have a good experience with one in the past or don’t know enough about them. 

Brokers Are the Way to Go

When asked how they like to move their shipments, most shippers use a mix of carriers and third-party logistics providers (3PLs) or just 3PLs. A few do use their own trucks. For those that do outsource to 3PLs, they usually just stick to one provider.

Shippers most often look to a 3PL for help with their everyday shipments, for transportation management, visibility, and access to their capacity. The main reason shippers choose not to work a 3PL for their logistics? They don’t like the risk. 

Transportation Modes – Staying Consistent

Overall, shippers aren’t looking to change what transportation modes they use for their shipments. Truckload and less-than-truckload (LTL) are the primary modes they like to use, with a little diversification sprinkled in.

Exceptional Service Stands the Test of Time

When it comes to their logistics partners, shippers find the most value in receiving exceptional service, with costs coming in as a close second. 

Most Wanted: Long Mileage, Flatbed Shipments

When it comes to mileage, most carrier companies tend to run long-hauls or a mix of short and long shipments. Flatbed hauls are the type of shipments most carriers like to haul with dry van coming in as a close second. 

Load Boards are the Way

With 74 percent selecting this option, load boards are the norm for carriers to find available shipments. Sometimes they use their shipper relationships, and occasionally they make use of a 3PL. 

3PLs – Expanding a Carrier’s Reach

Carriers most often look to a 3PL for help with gaining access to available shipments that they wouldn’t have otherwise. Covering backhauls are another big reason carriers reach out to a 3PL. 

For those that choose to not work with a 3PL, it’s often because of money; rates not being high enough. Surprisingly in the comments, many are not familiar with what a 3PL or freight broker is as well.  

When it comes to measuring value in their 3PL partners, most carriers want good rates and great communication.

Fraud Concerns Growing

Fraud and scams have been growing in the industry, so we wanted to know what carriers think about it. Carriers are most worried about double and triple brokering affecting their businesses compared to concerns of identity theft or cargo theft. 

Many of today’s manufacturing trends are in line with the industry’s goals to improve processes, create more efficiency, and meet consumer demand.

The manufacturing industry has seen challenges, from changes in the way people work to the rapid growth in demand, with many of these challenges accelerated by the recent covid-19 pandemic.

So, what evolutions and challenges are the manufacturing industry currently facing? Let’s dive into the latest manufacturing trends.

WHAT ARE THE LATEST TRENDS IN MANUFACTURING?

• DIFFICULTY FINDING LABOR
• DIVERSIFYING WORKFORCE
• TECHNOLOGY IS TAKING OVER
• INCREASING CYBERSECURITY
• CARBON NEUTRALITY
• BUILDING RESILIENT SUPPLY CHAINS

DIFFICULTY FINDING LABOR

Manufacturers are still struggling to find labor, with a recent Deloitte survey estimating that the manufacturing sector will be short 2.1 million skilled workers by 2030. It’s difficult for manufacturers to fill open positions, with respondents claiming it is 36 percent more difficult to recruit than in 2018.

To combat the shortage, manufacturers are looking for ways to recruit and retain skilled talent, by raising wages and reskilling current talent to meet company needs. According to the Manufacturing Institute, young employees are attracted to companies that look to train and invest in them. 70 percent of manufacturing workers under 25 said they will stick with an employer because of these opportunities to grow.

Additionally, technology is advancing and should help manufacturers combat their labor challenges. With tools like artificial intelligence (AI) and the Internet of Things (IoT) becoming more accessible, companies should be able to become more efficient and able to produce more with fewer people.

DIVERSIFYING WORKFORCE

Diversifying the workforce is one of the growing manufacturing trends because the industry has held a reputation for being a male-dominated industry. According to a study by the Manufacturing Institute, less than 30 percent of manufacturing workers are women. So, in 2021, the Building Economic Strength Through Manufacturing Act was passed. This bill seeks to double the number of women-owned and minority-owned manufacturers.

According to Glassdoor, when applying for jobs, 76 percent of applicants look for company diversity. Diversifying the workforce is a trend that goes in hand with employee recruiting. It creates opportunities for new talent and can help make operations more resilient.

TECHNOLOGY IS CHANGING THE INDUSTRY

Technology changing the industry has been and will be a manufacturing trend for some time. Technology is improving, becoming more accessible, and showing its benefits, so many manufacturers are investing in it more. Manufacturers need technology to keep up with the challenges of increased demand while facing a labor shortage.

Some technology tools companies are using include AI, automation, sensors, IoT, robotics, predictive maintenance, and remote monitoring. These tools help manufacturers with the manual and repetitive tasks that they struggle to find the labor for. In addition, companies are evaluating their operations to make the best use of technology and people.

Frontline workers will likely expand their roles to take on new responsibilities. As technology automates processes, workers will need to use more communication, collaboration, and analytical skills. Technology will also offer more flexibility and safety for frontline workers, further helping with employee recruiting and retention.

Some manufacturers are even pushing the limit and testing our “dark factories”. These are fully automated factories without any human workers on site.

Industry 4.0 is what many refer to as this trend of technology. It’s a shortened term for what is being called the fourth industrial revolution. Industry 4.0 technologies, such as the above examples, can raise productivity by 40 percent.

INCREASING CYBERSECURITY

As technology use increases and manufacturing processes get more connected and complex, a growing challenge is cybersecurity. In 2021, manufacturing was the industry that suffered the most cyberattacks, according to IBM’s X-Force Threat Intelligence Index. In fact, according to a survey by Omdia, the increasing risk of cyber attacks are one of the main challenges slowing down the implementation of more analytics, automation, and AI in manufacturing.

Because of its increased risk for cyber attacks compared to any other industry, manufacturing companies are investing more in the cybersecurity strategies and monitoring, implementing the use of multi-factor authentication, issuing employee training on cybersecurity, and building recovery plans to be prepared should any attacks take place.

CARBON NEUTRALITY

Combatting climate change is a priority on everyone’s mind and the manufacturing industry is no exception. The manufacturing industry produces almost a quarter of global greenhouse emissions. However, with the government pushing industries towards sustainability, manufacturing companies are rethinking their operations.

One manufacturing trend is carbon neutrality. Carbon neutral is when a company removes the same amount of carbon dioxide it emits into the atmosphere.

Manufacturing companies can become carbon neutral by purchasing carbon offsets. An example of this would be a company sponsoring a solar energy farm or a project for reforestation.

BUILDING SUPPLY CHAIN RESILIENCE

Since the start of the covid-19 pandemic and the supply chain bottlenecks we continue to face, supply chain resilience remains a top manufacturing trend.

Supply chain bottlenecks like the covid-19 pandemic, high container costs and delays, severe weather, protests, and new regulations are a few of the disruptions that have shed light on manufacturers’ fragile supply chains.

Manufacturers continue to look for more resilience to keep up with consumer demand despite these challenges.

Improving communications with supply chain partners, onshoring or reshoring, and investing in supply chain technology are some of the ways manufacturers are making their supply chains more stable.

STAY AHEAD OF MANUFACTURING TRENDS

Whether you know the latest manufacturing trends are or not, having an expert on your side is one easy way to stay ahead. And that’s just what Trinity Logistics aims to be.

Yes, our primary focus is as your logistics partner, but our People-Centric culture means we’re more than that. As a business relationship, we’re invested in your company’s success. We stay knowledgeable on what’s going on in your industry to help keep you updated. And we stand at the ready to offer your business any logistics support and expertise that you need.

Don’t miss your opportunity to gain a business relationship that stays on top of your industry’s trends and is people focused. Let’s get connected.

At the time this article is being published, it’s been 22 months, just shy of 2 years, with Covid-19. As time has passed and treatments and vaccines have become available, most (though not all) of life has returned to normal. A “new normal” as many now call it. In-person gatherings and events have returned, remote and flexible workstyles have become the new norm, kids are back in school, and online shopping and inflation have rapidly risen. So, what are we wishing wasn’t part of this “new normal”? Supply chain disruption.

The Start of Supply Chain Disruption

As COVID-19 began to spread, governments responded with lockdowns. Nonessential businesses closed, and panicked consumers bought out paper products, soap, and disinfectants. With many businesses closed or down to a skeleton crew, this meant longer transportation times. To make do, alternative routes and modes were sought out, but even those became backlogged too. Shipping networks started to become strained. With people staying home and governments offering financial help, online shopping quickly increased.

Amidst the waves of Covid-19 came more supply chain disruption. There was the Texas freeze that caused many manufacturing plants to shut down. Then there was the Suez Canal blockage which caused severe delays in imports from several days of being blocked. There were the wildfires that raged across the west coast, adding further supply chain disruption. As a result, companies have faced material shortages, increased freight costs, labor shortages, tight capacity, and more. 

Current Conditions

In the standard supply chain, raw materials get sent to factories to manufacture goods. Then shipped to warehouses for storage, then to retailers or consumers. Currently, companies face warehouse shortages, labor shortages, tight capacity, exponentially high freight rates, and import delays. It’s gotten so bad for so long that supply chain disruption continues to be a headline in the news. Even people not in or knowledgeable about logistics are talking about it. 

The hot topic in the news as of late is the overwhelming demand surging at U.S. ports. Demand for goods has grown so rapidly since the start of the pandemic that it’s equal to adding about 50 million new Americans to the economy, as reported by Insider. Lately, we’ve seen record highs in ships waiting to dock, containers waiting to unload, a lack of storage space to put goods, and empty containers sitting in truck lots and streets, with no place to go. 

What to Expect in 2022

Experts continue to say that we will keep seeing supply chain disruption and delays through 2022, if not to 2023. This is because we’ll still have our current supply chain bottlenecks to work through, labor, material, and warehousing shortages to figure out, and Covid-19 remains an issue. 

But perhaps we will begin to see some easing of supply chain disruption this coming year. For one, the recently passed infrastructure bill will hopefully begin to affect and strengthen supply chains through its funding into roads, bridges, and ports. More and better infrastructure will help keep certain supply chain disruptions at bay, such as offering more warehousing space and keeping bridges and roads safe and free from closing. Nonetheless, this is longer-term and farther out. 

Ideally, what would give the supply chain some short-term relief would be if consumers slowed down a bit with their online shopping. It’s still expected that consumer spending will at one point switch back to travel and entertainment at some port, but no one is quite sure when that may happen.

Tips for Shippers

The past (almost) two years have shown us that supply chains aren’t as resilient as we thought they were. Considering we’re still in the thick of supply chain disruption, it makes sense to improve your supply chain and logistics. Here are some tips you may find useful in keeping your business moving forward until we get back to normal.

Consider Shortening Your Chain

Global supply chains are seeing the worst disruption in their logistics. If anything’s come to light since Covid-19 began, it’s that businesses might want to look into shortening their supply chains. One way to do this is by moving your manufacturing back to the U.S., also known as onshoring. 

Identify Any Vulnerabilities 

By understanding where any risks lie, you’ll be able to better protect yourself from supply chain disruption. You’ll need to take some time to map out your entire supply chain, down to your distribution facilities and transportation hubs. Though this may be time-consuming and expensive, it can help prevent you from facing a surprise disruption that brings your business to a stop and can be much more costly. 

Diversify Your Supply Chain

Once you’ve identified where risk is in your supply chain, you can take that information to address it. This can be done by diversifying your resources. Instead of heavy dependence on one high-risk source, you can add more sources in locations that are not vulnerable to the same risk, so if one gets disrupted, you don’t have to be shut down completely. 

Begin Holding Safety Stock (if possible)

This may not be possible for all shippers, and now may not be the best time to start this considering all the current bottlenecks supply chains are facing. But, when possible, this is something that could save you from supply chain disruption down the road. 

Keep Up With Timely Communication

Communication is always needed to run your best business, but even more so during this pandemic. Make sure you are communicating properly and timely with your carriers and transportation providers on any new sanitation procedures, requirements, changes in operating hours, or upcoming closures. 

Also, Keep Transparency

Be transparent with your audiences. They appreciate it more than you think.

Stay Informed

COVID-19 and many other supply chain disruptions came quickly, and the future remains uncertain. Be sure to stay updated on current developments that may end up slowing down your business.

Find Support in a Transportation Partner

Third-party logistics companies, such as Trinity Logistics, can help you find creative ways to your logistics challenges. We’re experienced in complicated situations and stay knowledgeable on what is going on in the industry. We were quickly able to pivot when the pandemic first hit, so we could keep your business moving forward. We know that even in times of disruption, the shipping industry does not stop, so neither do we. 

If you’re ready to gain support in your logistics with Trinity Logistics, no matter the condition of the industry, let’s get connected.

Author: Christine Morris

All industries are currently facing challenges with their logistics and the supply chain. Challenges that include overwhelming demand, tight capacity, rising freight rates, and shortages in materials, products, labor, and drivers. However, industries facing high flatbed demand, like construction and manufacturing, are seeing more difficulty than others. 

These industries have been dealing with capacity challenges throughout the pandemic as they have remained in high-demand. As it continues to rise, the needs for their supplies have increased, creating a surge of flatbed demand that’s weighing on the supply chain. Let’s take a deeper look into these challenges and present some considerations for how those in the industry can overcome them. 

FLATBED DEMAND VS. VAN AND REEFER

Finding truck capacity of any type is proving to be difficult. Flatbed capacity seems even more challenging because of the continued demand in construction and manufacturing. As a result, flatbed spot rates are reaching new highs and convincing more shippers to look for solutions. 

According to DAT, the flatbed load-to-truck ratio is up 169.3 percent year-over-year (YOY) from June 2020 to June 2021. In comparison, reefer’s load-to-truck ratio is up 111.7 percent YOY. Van load-to-truck ratio is up 57.8 percent YOY. 

The monthly national average flatbed spot rates have risen for eight consecutive months, reaching $3.15 per mile in June. There’s not looking to be any fall soon, as the industries pushing the flatbed demand are cranking it into the next gear. 

FACING DISRUPTION AFTER DISRUPTION

The return to normal may be farther away than you think. With demand, there are still projects waiting in the wings until materials can be properly sourced and shipped. And demand already has construction projects beyond their pre-pandemic heights. Just look at the Associated Builders and Contractors’ Confidence Index, which is now positive for sales, profit, and staffing level expectations for the next six months. 

Covid-19 Hit First..

When the pandemic hit, people had found they had nothing to do while staying home. And so, we saw a rapid uptick in those wanting to buy a new house or remodel. Demand quickly exceeded supply. Supply shortages and delays have put pressure on contractors as the demand rose despite a lack of supply.

..Then There was the Texas Freeze..

In February and March 2021, Texas saw their lowest temperatures in years and were not prepared for the intense weather conditions that they experienced. Many manufacturing plants in the area had to shut down, which created more disruption in the supply chain. 

..Then the Suez Canal Blockage..

The ship that blocked the Suez Canal for several days caused severe delays in the imports of many products needed. This created many shipping bottlenecks that we’re still experiencing the aftermath of today. 

..Now the Wildfires.

Currently, the raging wildfires on the west coast are causing further disruption and delays to an already stressed supply chain.

Issues such as these are causing supply chain disruption after disruption, resulting in increased costs and delays. Many companies rely on materials that come from delayed or now-unavailable, global manufacturers. This has shifted companies to search for regionally based suppliers, creating higher demand on smaller supply chains. After over a year of continuous supply chain disruptions, there’s been an industry-wide realization that building resilience into supply chains is vital. 

RISING FUEL PRICES

One of the areas affecting logistics cost are the continuing rise in the costs of fuel. The latest Energy Information Administration data shows the national average diesel price is at $3.34 per gallon, a $.05 increase from one month ago. Regional diesel prices range from $3.08 in the gulf coast states to $3.48 in the central Atlantic region. California diesel prices are averaging $4.19 per gallon.

SHORTAGES AND DELAYS

Lumber shortages continue to be a significant problem nationwide. Both steel and electrical supplies have faced steep price increases in the past year. According to the U.S. Census Bureau’s Small Business Pulse Survey, 59.7 percent of respondents reported domestic supplier delays which is a huge jump over the national average of 36.3 percent. These aren’t domestic only issues as 19.1 percent of respondents are also dealing with foreign supplier delays. 

MATERIALS THAT HAVE BEEN EXPERIENCING SHORTAGES

• Timber
• Steel
• Roof tiles
• Cement
• Electrical components
• Paints and sealants
• Plaster and plasterboard
• Concrete
• PIR insulation
• Bricks and blocks
• Aggregates
• PE and PP plastics
• Screws
• Plumbing items

THE RAW MATERIAL SHORTAGE

There is currently a global shortage of raw materials. This comes from factory slowdowns and, in some instances, factory closures due to many reasons. The shortage of raw materials continues to put a strain on the production of products, like insulation, paints and adhesives, and packaging.

THE LABOR & DRIVER SHORTAGE

Another cause of rising costs and delays is the shortage of labor and drivers. Labor rates have skyrocketed in recent months. This is due to the high labor demand and trades raising their rates because of the overwhelming amount of work. The big challenge these industries face is finding qualified labor to perform work, whether that be driving a truck to deliver materials and products, painting a house, or installing plumbing. In logistics, driving a flatbed truck, especially one hauling an oversized load, requires a different skill set than your typical van trailer trucking.

HIGH PRICES KEEP HEADING HIGHER

The Associated General Contractors of America (AGC) released a survey recently showing 93 percent of more than 1,400 respondents reported higher costs for materials, parts, and supplies. Construction material prices have increased so much in 2021 that the AGC issued a rare Construction Inflation Alert. This hasn’t taken since place 2008, citing a 12.8 percent jump of input costs for projects since the pandemic began. While that number is notable, some materials have risen even more. Lumber and plywood jumped 62 percent and steel recorded a 20 percent rise since April 2020. Diesel fuel, the lifeblood of the heavy equipment and transportation haulers needed to build major projects, has surged 114 percent. Even when materials are ready to be shipped, the transportation market is trying to play catch up. As mentioned earlier, there is currently more demand than there are trucks available. 

Rising costs and supply chain disruptions have pushed more hardships on the construction and manufacturing industries, slowing down their projects and business progress. Data found that more than three-fourths of construction firms have indicated projects are being postponed or canceled due to unavailable materials or cost overruns. 

POSSIBLE SOLUTIONS

Experts are estimating that the high demand in these industries and flatbed demand may continue through 2022. Not to mention, who knows what other possible disruptions we may see soon. Hurricane season is upon us and could cause some more delays. 

It’s never too late to find ways to improve your supply chain and keep costs budgeted. Here are some suggested solutions to facing this difficult time we’re in.

LOOK FOR ALTERNATIVE ITEMS

It might be worth checking into other materials to offer your customers. Many other companies are doing what they can to keep their projects moving forward and communicating this with their customers. For example, with rising lumber costs, you may find redwood or cedar to be more affordable alternatives. They may also be much easier to get your hands on. 

INTEGRATE TECHNOLOGY

Integrating technology has become a necessity for all stakeholders to maintain real-time communication and visibility. Gain total visibility and trust from your stakeholders with logistics technology like a transportation management system (TMS). A TMS can help you with routing decisions by matching your freight with the best carriers, lanes, rates, and transit service. 

Having a best-in-class TMS also provides you with data-driven insight to better manage disruptions and budget your logistics spend. By using data analytics, you’ll be able to recognize which carriers are most likely to have capacity and have a full view of your transportation management and what’s happening across all markets. 

CONSIDER NEW OPTIONS

When possible, see if you can use van options for your transportation, considering the load-to-truck ratio shows less demand and lower freight rates. You may also be able to consider other modes, if possible, but any oversized freight must be hauledwith a flatbed trailer. 

PLAN IN ADVANCE

Many other companies are stocking up on available supplies or finding other ways to look far ahead. Consider doing the same. Stock up on what materials you use most often for your projects. Do keep in mind that the more you stock up on, reduces the overall supply, increases demand, and thus pushes prices higher. Don’t go overboard and hoard ALL of it but do try to keep some stock in supply. Try planning your projects far enough out, correlating with the longer lead times we’re experiencing. If the material you need says it will take nine to ten months, then plan your project around that time frame.

BUILD A STRONG NETWORK OF CARRIER RELATIONSHIPS

Due to the over-demand of freight, load boards don’t move shipments the way they once did. Strong relationships will get you the coverage you need, better pricing options, and often better service. If building a large enough network for you seems daunting, you can always partner with a third-party logistics company (3PL), whose main role is their relationships among shippers and carriers. Here at Trinity Logistics, we have over 70,000 qualified carrier relationships to help haul your freight. 

BUILD A RESILIENT SUPPLY CHAIN

At a time when your costs are a critical issue, reimagining your supply chain could be a way to build resilience and reduce costly disruptions before they happen. Now is the perfect time for companies to build resilience into their operations to be better prepared for future disruption we may see.

Opportunities to do so range from reevaluating your business models and building efficient industrial supply chains, to building new and more regional manufacturing and distribution facilities to help with the vulnerabilities the pandemic brought to light. You could put in place more flexible sourcing and distribution strategies, including shifting your suppliers closer to home.

WORK WITH A QUALITY 3PL, LIKE TRINITY

We do more than arrange your freight. Consider us your logistics consultants. As logistics experts, we keep a close eye on the market, keeping you educated so we can help you plan and forecast. 

No matter the market, you can use your Trinity relationship and discuss your current and upcoming projects, even if they are in the planning stages. This helps us give you things to look out for to keep your transportation aspect of business more stable and reliable. When markets fluctuate, having a solid relationship with experts such as Trinity will prove to be your largest asset. 

Should issues arise, we at Trinity, work until they are resolved through and communicated. In the logistics industry, things will happen, and bad news doesn’t get better with time. We stay upfront with any challenges, and we bring solutions. When given the chance to prove our communication and service, we make sure to set the bar high. 

If you’re ready for a reliable provider to help you with your shipping needs and logistics management through People-Centric Freight Solutions®, then request your first quote to get started.

Author: Paul Nelson