The holiday season is the peak season for many retailers and e-commerce companies. Preparing for peak season freight claims trends ensures the supply chain and shipping process work as smoothly as possible for optimal profits.
While peak season is the prime time for selling, it also comes with serious challenges like higher returns and freight claims. The arrival of peak season is the perfect time to monitor transportation industry and freight claims trends. This way, your company can prepare for shipping management, so increased activity doesn’t send costs out of control.
Increased E-commerce Equates to Increased Problems
Freight claims protect shippers when there is a problem with a product that a carrier is responsible for shipping and delivering. For instance, a product may become damaged after it leaves your warehouse and before it reaches the customer.
Since more goods are shipped at the end of the year — not just from your company but through carriers in general — the risk increases for more claims. E-commerce went from 10 percent of global retail sales to 20.4 percent in the past five years. So a more significant number of peak season freight claims is expected.
Expect Pre-January Returns and Freight Claims
While retailers expect returns in January, it’s essential to be ready for December. UPS expected its returns to be highest on December 19. Even packages that return in early January often start their journey in December.
This trend of early returns is primarily caused by early Black Friday sales, free return shipping, and easy returns. People also make personal purchases when they see holiday deals and promotions. People return more when they buy online than through in-store shopping, so it stands to reason that increasing e-commerce activity means a higher return rate.
Different Types of Freight Claims Trends Are Likely
It’s common for shippers to experience loss claims and damage claims. Nonetheless, one of the freight claims trends to watch is that e-commerce has made other types of claims more common.
Changes in the Market Affect Claims
Recently, we have seen numerous changes in the market due to the pandemic, conflict in Ukraine, a worldwide supply chain crisis, and other factors. By June 2022, the U.S. had seen a 9.1 percent 12-month increase in consumer prices, the highest we have experienced in four decades.
Winter Weather Plays a Role
The Farmer’s Almanac Extended Winter Weather Forecast predicts:
- Early onset of winter weather.
- Active storm patterns in the eastern U.S.
- Snow and heavy rain throughout large portions of the country.
- Extra cold arctic air.
Difficult weather conditions wouldn’t be surprising based on climate trends. Of course, inclement weather affects transportation and shipping, causing delays and damage that lead to claims. This is something to expect as part of peak season freight claims.
Freight Claims Management Is Essential
Prepare for a Surge in Freight Claims with the Right System
Download our white paper to learn more about the advantages of a web-based claims management system. It highlights the benefits shippers and 3PLs can achieve when adopting this software solution into their transportation management platform.