Preparing for peak season

WITH THE shipping peak season under way, consumers and retailers will need to be more resourceful to manage possible cost increases.

The shipping peak season occurs around August to October as retailers stock up for the expected back-to-school demand and the busy holiday shopping season. The increased consumer demand often leads to delays at ports and container shortages, which contribute to higher shipping prices. In recent times, this has worsened due to the pandemic impacts. The surge in ocean freight prices since 2020 proved a significant moment for the industry as the pandemic pushed rates to historic highs. Though costs have dropped significantly from those soaring rates, higher-than-usual prices are still expected.

For local consumers and retailers, knowing what to expect and how to prepare will be important to receiving timely orders.

DELAYED DELIVERIES

One of the primary effects of the shipping peak season on Jamaican consumers is delayed deliveries. With a heightened volume of goods being shipped into the country, ports and port operations can become overwhelmed, which leads to longer processing times and delays.

What is more, as demand for shipping services accelerates, shipping companies may increase their prices to manage with the growing workload. This markup in shipping costs is often passed on, with consumers bearing the brunt through higher prices for goods.

Additionally, the shipping peak season is often beset by supply shortages as the flood of orders exceeds the ability of manufacturers to provide some products. As a result, consumers may find it difficult to get popular products when needed, and those that are available may be at higher price points. While this annual increase is almost unavoidable, companies can limit its effects by forecasting its needs based on experience and ordering early to reduce the adverse impacts caused by market fluctuations.

PLAN AHEAD

Businesses that rely on importing goods to meet customer demand may face logistical challenges and increased expenses during the shipping peak season. If they are unable to meet consumer demand, they could suffer a reduction in profits. As such, it is important for businesses and consumers to plan ahead to avoid delays and elevated prices around busy shipping periods.

Shopping early and making purchases ahead of the peak season can help to avoid many of the challenges faced during this difficult period. For staple products, retailers may use experience of previous years to guide their orders to avoid delays and ensure timely delivery.

For consumers, embracing locally produced goods can help to reduce dependence on imported items during the peak season. Supporting local businesses not only strengthens the national economy, but also helps mitigate the effects of supply shortages and shipping delays. They may also use shipment tracking services to follow their deliveries, which allows them ample time to make alternative arrangements should there be delays.

While the shipping peak season certainly presents challenges for Jamaican consumers and retailers, there are several methods that can be used to limit their impact. Planning ahead, anticipating demand, and using technology to track deliveries can help to improve this experience without being severely hampered by the seasonal effects.