How The Holiday Season Impacts The Trucking Industry
It’s Time To Shop!
The trucking and shipping industries see unprecedented levels of activity during the winter holidays. Due to the season’s extreme commercialism, Christmas shopping has begun, and retail sales are expected to increase dramatically.
Most consumers don’t give much thought to where their presents originate from, but those who work in the trucking and shipping industries know well how much work goes into ensuring that consumers can get their holiday shipments on time and purchase a Christmas ham.
Here is how the holidays impact the trucking business
Rapid Expansion of Retail and Online Commerce
The need for drivers, particularly during the holidays, is likely to soar in the coming years as internet shopping continues its 16.9% annual growth. Most of the cargo during the holiday season consists of presents and overstock from stores’ seasonal discounts and promotions. The holidays have always been the busiest time of year for companies, and with the explosion of e-commerce, it’s not unusual for many to depend on Christmas sales to sustain them throughout the rest of the year.
Because of the increased volume, delivery times may be shorter and drivers may have tighter schedules. People may like how easy it is to get sweets and gifts quickly, but the transportation industry will have to work more hours to keep up with the trend.
The emergence of e-commerce giants like Amazon has forced traditional retailers to rethink their delivery strategies. All retailers have felt pressure to match Amazon’s famed two-day delivery. Due to Amazon Prime’s success, rival retailer Walmart.com has now started providing two-day delivery.
This may be helpful for the client, but it places a tremendous burden on the transportation providers, who must meet all of these needs.
It’s not only the retail sector that’s seeing a surge in shipping activity; the food sector is also bustling as increased stock levels are required for numerous products. The tasty turkey you’ll be eating this Thanksgiving didn’t come out of thin air; it was probably transported to the market by a delivery person.
Due to the increased demand, seasonal goods are often sent at odd hours. Due to the perishable nature of food, it is essential that it be delivered within a narrow time window in order to maintain its freshness; however, this can be difficult to achieve when drivers and facility workers are in short supply, as is the case with many major providers in the current labor market.
Stress on Carriers
Due to the enormous quantities of goods that would need to be moved, many businesses that were hitherto restricted to daytime hours may expand to twenty-four-hour operations. Timed appointments for drop-offs and pickups are affected. Many smaller or independent carriers have trouble finding drivers willing to put in the additional time on the road or handle facility handoffs, so they provide incentives to entice their drivers to work longer shifts.
Gains for Drivers
The need for drivers is at an all-time high. Many businesses are attempting to meet the growing demand for their services by providing incentives like holiday bonuses and increased overtime compensation. The situation is exacerbated if you have to work on a legitimate holiday, such as Christmas or New Year’s Day.
Gaining those longer routes usually results in overtime compensation. In many cases, overtime hours will be compensated at “time and a half,” which significantly increases your earnings potential. Keeping drivers upbeat and inspired is important if we’re going to meet the high expectations of the season.
Vineyard Brokerage will be there for you every step of the way throughout this hectic holiday season. We will see to it that the delivery of your products occurs on schedule and that you do not lose out on the earnings that can be made during this time of year.