July Newsletter Roundup
What Direct-to-Consumer & Retail Brands Need to Know
About the Supply Chain this Month
We are a team of supply chain professionals with decades of experience in optimizing the product's journey. From the manufacturing floor all the way to a consumer's door, we help companies solve complex supply chain challenges.
Our mission at TransGlacier is to help connect DTC and retail brands with vetted partners so that we can build strong, reliable, and trustworthy supply chains.
Top Insights this Month
It's been another busy month in logistics (we say that a lot in this industry but it's true) and our experts have identified the following three things as the top factors that are impacting shippers, and the freight ecosystem at large, this month.
1. High fuel prices continue to inflate LTL & FTL rates
The price for U.S. diesel fuel remains sky high and, on average, hovers about two dollars higher than 2021 prices. With LTL and FTL carriers passing along this increase in costs to shippers, freight rates follow suit. Until fuel prices moderate, we expect that LTL and FTL rates will remain higher than normal—which means shippers are looking for different ways to capture supply chain savings. Take advantage of our free Supply Chain Review to help review your costs.
2. International container spot rates and port congestion levels remain elevated
Getting product from Asia to the United States continues to be a pain point for importers. Port congestion hit its peak a few weeks ago, taking nearly 75 days longer for cargo to arrive than the previous average of 15 days. There's limited space on TPEB vessels, ships are waiting longer to berth at U.S. ports, and truckers are waiting in lengthy lines to pick up containers. All of this has led an increase in international container spot rates. While this certainly impacts importers directly, this also causes a trickle effect on the domestic shipping landscape and will take some time to clear.
3. Stiff competition for labor continues
Companies around the country are competing for labor resources and this is impacting all facets of the supply chain—from dispatchers to truck drivers to warehouse pickers. While the industry has recently become more digitized, companies are still extremely reliant on humans to maintain high levels of performance. We expect that the logistics and warehousing space will continue to suffer regionally, especially during peak volume seasons. Although we do see disruptions less in the upcoming 2 to 3 years, we expect that the true test will be peak shipping season 2022. We recommend brands to expect odd distributions and TTH (time to home) impacts.
About Our Partner Network
We've been busy vetting partners so you don't have to. In addition to our current partner network, we're on pace to onboard more than 10 new partners in the coming weeks. These partners span all facets of the supply chain - from domestic to international and small parcel to full containers - but three common denominators remain: honesty, transparency, and trust. We're excited to share more in the days ahead. Stay tuned for our next newsletter.
Solutions at Scale -- Coming Soon!
In just a few weeks, we'll be debuting a new section in our newsletter called 'Solutions at Scale' that expands beyond logistics and helps business leaders optimize their operations. Stay tuned to find out!
Let's Talk Logistics
We live to talk about all things logistics. Whether that be about your viewpoints on other key market factors that will impact the road ahead or discussing how we can help you build a more resilient supply chain, you can connect always connect with us here.