Spot shipments can help shippers deal with shipping capacity issues
Less-than-truckload (LTL) shipping is a vital component of the transportation industry, allowing shippers to move smaller loads of goods across the country efficiently and cost-effectively. However, it isn’t always easy for shippers to secure capacity.
What causes capacity issues?
Capacity issues can have many causes, including increased demand, supply chain disruptions, and driver shortages. The Covid-19 pandemic led to a surge in e-commerce, putting a tremendous amount of pressure on the LTL shipping industry. As consumers increasingly shop online, carriers may struggle to keep up with the volume of shipments.
Severe weather and natural disasters such as snowstorms, hurricanes, and wildfires can disrupt supply chains, shutting down key transportation routes for days at a time. Carriers begin to face a backlog of shipments on these routes, creating a ripple effect that lasts beyond the weather event itself.
Driver shortages can be another cause for tight capacity in the LTL industry. For many years, the trucking industry has struggled to attract younger drivers. The average age of a truck driver is 46. As older truckers retire, without new drivers to take their place, carriers will struggle to meet shipping demand.
How do capacity issues affect shippers?
Tight capacity in LTL shipping has a significant impact on shippers, affecting their bottom line and their ability to meet customer demand. Shippers may face longer wait times, increased costs, and reduced efficiency, making it difficult for them to meet customer demand and stay competitive.
Smaller shippers especially could be adversely affected by increased competition for capacity. Carriers prioritize shipments from their largest customers, leaving smaller shippers with limited options. This can make it difficult for small and medium-sized businesses to compete.
When shippers have difficulty booking freight capacity with their regular carriers, they can turn to spot shipping.
What is spot shipping and how can it help?
Instead of pre-planning a shipment and booking capacity weeks or months in advance, LTL spot shipments allow companies to quickly and easily book trucking capacity in real-time.
One of the biggest advantages of LTL spot shipments is speed. By eliminating the need for pre-planning, companies can react to changes in demand much more quickly. For example, if a company experiences a sudden increase in sales, they can quickly arrange for an LTL spot shipment to get the product to the customer as soon as possible.
LTL spot shipments also offer greater flexibility. Because they are booked on a real-time basis, companies can make changes to their shipments as needed. For example, if a shipment is delayed, a company can quickly rebook capacity and get the product to its destination as soon as possible.
Spot shipments allow shippers to take advantage of unexpected or temporary shipping capacity surpluses, helping them navigate capacity constraints. By utilizing spot shipments, LTL shippers can ensure that their freight is moving and reach their customers' expectations, even in times of high demand.
To get the best rates, shippers should work with a tech-enabled 3PL like Koho. In just minutes, using Koho’s booking platform, they can get quotes from multiple high-quality carriers and select the one that best suits their needs. If you want to learn more about how to use spot shipments for your LTL needs, contact the team of experts at gokoho.com.
Spot shipments can help shippers deal with shipping capacity issues
Less-than-truckload (LTL) shipping is a vital component of the transportation industry, allowing shippers to move smaller loads of goods across the country efficiently and cost-effectively. However, it isn’t always easy for shippers to secure capacity.
What causes capacity issues?
Capacity issues can have many causes, including increased demand, supply chain disruptions, and driver shortages. The Covid-19 pandemic led to a surge in e-commerce, putting a tremendous amount of pressure on the LTL shipping industry. As consumers increasingly shop online, carriers may struggle to keep up with the volume of shipments.
Severe weather and natural disasters such as snowstorms, hurricanes, and wildfires can disrupt supply chains, shutting down key transportation routes for days at a time. Carriers begin to face a backlog of shipments on these routes, creating a ripple effect that lasts beyond the weather event itself.
Driver shortages can be another cause for tight capacity in the LTL industry. For many years, the trucking industry has struggled to attract younger drivers. The average age of a truck driver is 46. As older truckers retire, without new drivers to take their place, carriers will struggle to meet shipping demand.
How do capacity issues affect shippers?
Tight capacity in LTL shipping has a significant impact on shippers, affecting their bottom line and their ability to meet customer demand. Shippers may face longer wait times, increased costs, and reduced efficiency, making it difficult for them to meet customer demand and stay competitive.
Smaller shippers especially could be adversely affected by increased competition for capacity. Carriers prioritize shipments from their largest customers, leaving smaller shippers with limited options. This can make it difficult for small and medium-sized businesses to compete.
When shippers have difficulty booking freight capacity with their regular carriers, they can turn to spot shipping.
What is spot shipping and how can it help?
Instead of pre-planning a shipment and booking capacity weeks or months in advance, LTL spot shipments allow companies to quickly and easily book trucking capacity in real-time.
One of the biggest advantages of LTL spot shipments is speed. By eliminating the need for pre-planning, companies can react to changes in demand much more quickly. For example, if a company experiences a sudden increase in sales, they can quickly arrange for an LTL spot shipment to get the product to the customer as soon as possible.
LTL spot shipments also offer greater flexibility. Because they are booked on a real-time basis, companies can make changes to their shipments as needed. For example, if a shipment is delayed, a company can quickly rebook capacity and get the product to its destination as soon as possible.
Spot shipments allow shippers to take advantage of unexpected or temporary shipping capacity surpluses, helping them navigate capacity constraints. By utilizing spot shipments, LTL shippers can ensure that their freight is moving and reach their customers' expectations, even in times of high demand.
To get the best rates, shippers should work with a tech-enabled 3PL like Koho. In just minutes, using Koho’s booking platform, they can get quotes from multiple high-quality carriers and select the one that best suits their needs. If you want to learn more about how to use spot shipments for your LTL needs, contact the team of experts at gokoho.com.
