Summary: Summer Seasonality Impacting Freight
Summer brings various seasonal disruptions to freight markets, driven by recurring situations that temporarily increase demand or decrease supply. This article reviews the typical summer disruptions impacting transportation, particularly focusing on hurricane season, the 4th of July, and Labor Day.
Hurricane Season:
- Dates: June 1 - November 30, with peak activity from August to October.
- 2024 Forecast: NOAA predicts 17-25 named storms, with Tropical Storm Alberto already impacting the Laredo/Matamoras/Monterrey area.
- Phases of Impact:
- Before the Storm: Freight rushes out of affected areas, carriers avoid inbound freight, leading to temporary market tightening and increased rates.
- During the Storm: Movements are limited to safety and relief efforts.
- After the Storm: Damage assessment dictates freight movement phases, with rates increasing for supplies and materials inbound to affected areas, causing regional truck availability to decrease.
Holiday Impacts:
- 4th of July and Labor Day:
- Shippers increase demand before holidays to manage order closures and holiday-related increases.
- Carriers aim to return home, leading to potential market imbalances.
- High-volume lanes perform better, while low-volume lanes are more susceptible to route guide degradation during holidays.
Recommendations:
- Develop specific procurement strategies for the holiday periods to limit tender rejections and unplanned cost increases.
- Contact C.H. Robinson account teams for support in creating these strategies.
Understanding and planning for these seasonal impacts can help mitigate disruptions and manage costs effectively during the summer months.