Supply chain teams are facing a peak season unlike any other. While record-breaking holiday e-commerce sales — projected at $271.58 billion — look good on paper, they create unprecedented pressure on logistics operations. Port strikes, Red Sea shipping detours, and systemwide capacity constraints aren’t just headlines — they’re daily challenges driving up freight claims when companies can least afford disruption.
The reality of peak season 2024 is hitting differently than other years.
A shorter holiday window due to late-November Thanksgiving means tighter delivery schedules. Combine that with volatile shipping rates, persistent labor shortages, and increasing omnichannel demands, and the risk of freight claims takes on new urgency.
If your team is already operating at maximum capacity, it’s crunch time. You can still go ahead and prepare for these 5 developments to minimize their impact now and in the new year.
1. Freight Claims Surge Due to Increased E-commerce
With e-commerce growing 9.4% year over year and accounting for 20.1% of all retail purchases, it’s pushing the supply chain to new limits. More purchases equal higher volumes, which means the potential for shipment issues at every touchpoint.
The pressure intensifies during early holiday shopping as already-strained logistics networks face even greater challenges.
The impact is evident in return rates: While traditional retail sees manageable returns, your e-commerce operations now face a staggering 18.1% return rate — and it gets even more challenging during the holidays when returns spike to 30%.
- Electronics are especially vulnerable to returns at an 8% rate, reflecting their susceptibility to shipping damage. Every extra stop in the transportation process puts your delicate electronics and retail goods at greater risk of drops, jolts, and mishandling.
It creates a challenging cycle. As your e-commerce volumes grow, so do your chances of damage, loss, and freight claims, particularly for sensitive items that require special handling but often don’t get it during high-volume periods.
2. Impact of Recent Hurricane Damage on Freight Claims
Recent hurricanes Helene and Milton wreaked havoc on freight transport infrastructure.
Helene caused severe damage to Southeast freight corridors and forced the closure of Estes Express Lines’ Asheville, North Carolina, terminal. At the same time, Milton disrupted operations at major Florida ports, including Tampa Bay and Jacksonville, and flooded interstates 75, 275, 4, and 95.
When severe weather events like these hurricanes strike, 3 primary types of freight claims typically emerge:
- Damaged goods claims from water damage and structural impacts.
- Late delivery claims due to blocked routes and necessary rerouting.
- Concealed damage claims are particularly problematic because they may only be visible after delivery.
Pay especially close attention to concealed damage claims, as they require careful documentation and immediate reporting; carriers are becoming more stringent with their policies around them.
3. Anticipation of Higher Returns & Reverse Logistics Claims
The holiday rush you’re gearing up for comes with a hefty returns hangover — one that hits your logistics operations harder each year.
While you’re managing that surge of holiday orders, the reality paints a challenging picture: The National Retail Federation (NRF) reported 2023 holiday return rates at 15.4%. Modern Retail, as of December 2023, revealed that each return costs retailers an average of $30 — a figure that’s tripled since the pandemic-driven e-commerce boom.
These returns boomerang through your supply chain, peak in January, and unleash a wave of freight claims. Every return is another shipment to track, another potential claim to process, and another direct hit to your bottom line.
Black Friday has evolved from a single day of sales into the starting gun for an extended returns marathon, and customer expectations for free return shipping have only raised the bar. Your reverse logistics network now faces a longer, more intense peak season in which new orders and returns collide head-on. The pressure to process returns quickly while maintaining careful documentation for freight claims has never been higher, and each return shipment carries its own risk of loss, damage, or delay — not ideal to be exposed to freight claims this way when your operations are already running at full tilt.
4. New Challenges from Organized Crime Targeting Freight Shipments
If you manage supply chain operations right now, you face an alarming surge in cargo theft — 776 thefts in Q3 2024 alone (up 14% from last year), with a staggering $39 million in losses.
Peak season is particularly vulnerable to thefts, especially around Thanksgiving — criminals have executed 174 thefts worth $7.84 million during this period in just the past five years alone.
These aren’t the ragtag bandits from “Home Alone” targeting your warehouses, parking lots, and truck stops. They’re sophisticated criminal organizations with established black market connections. They know which shipments (from general freight to liquor and auto parts) will turn the highest profit.
Even more concerning is how these criminals evolve beyond traditional theft tactics. For instance, with more than 450 fictitious pickup attempts already recorded in 2024, we’re on the way to shattering last year’s records. The Monday after Thanksgiving is most vulnerable to such attempts, as these groups exploit reduced holiday staffing, facility closures, and the natural operational gaps that come with holiday schedules.
5. Leveraging Technology for Efficient Claims Management
Finally, let’s discuss the elephant in the shipping room. Managing freight claims across multiple modes is draining your team’s time and money.
The good news? MercuryMyEZClaim turns this headache into a streamlined process by centralizing all your loss, damage, and overcharge claims in one powerful hub. With smart automation handling everything from carrier form creation to report generation across more than 600 variables, you can finally say goodbye to manual processing, postage costs, and fax machine roulette. Your team gets back valuable hours while your operation gains powerful efficiency — all through one intuitive platform.
What’s more, MercuryMyEZClaim works as your claims command center, generating over 120 automated reports that actually tell you something useful about your operation. Spot carrier performance trends, track patterns across states and counties, and convert carrier claims to vendor claims with a single click. Your team focuses on what matters while the system handles the heavy lifting. With all your documentation, tracking, and analytics in one place, you’re processing claims faster and building a smarter, more efficient operation.
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Turn Freight Claims Challenges into Operational Advantages
Our MercuryMyEZClaim solution turns this complex challenge into a strategic advantage by centralizing your claims processing and uncovering valuable operational insights. Protect your income and operations, and take this seriously. Peak season comes once a year, and now is the time to take the next step.
Register and watch our 3 With the SME digital event, “Understanding the Value of Claims Management Automation,” to see how leaders tackle these challenges head-on.
And for an immediate deep dive into one of your biggest pain points, download our comprehensive “Guide to Concealed Damage Claims” and our “Measure the Savings” infographic to discover exactly how much you could save by modernizing your claims management approach.
