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Market Update

2022 has seen more than its share of logistical and economic disruptions that have affected businesses across all industries. As we approach the end of the calendar year, BSG continues to work hard to further strengthen our business and insulate our customers from market shifts. As your trusted partner and supplier, we are committed to working alongside you finding creative solutions to supply chain issues.

Railroad Union Update:

BSG was disappointed to learn that one of the twelve domestic rail unions has voted against the proposed terms that helped a tentative agreement be reached earlier this fall. A US rail strike would be very challenging for our customers and the greater US economy. However, we believe that appropriate terms will be offered and approved by all parties prior to the November 19th deadline. Multiple unions have approved the current terms, which is a good sign that an agreement is close. We are closely monitoring this situation and will provide further updates as we get closer to November 19th.

Logistics Update:

  • Fuel surcharges have fallen but continue to stay at a historical high and are almost double where they were in Q4 2022. These fuel prices have a large effect on the overall rate of freight and continue to inflate costs.
  • Full truckload volumes continue to drop due to an increase in capacity and the slowing of several industries (primarily produce and retail). This allows more opportunity for load consolidations and conversion.
  • LTL (Less-Than-Truckload) volumes continue to grow. Manufacturing is a historical foundation of the LTL trucking segment and has experienced steady growth. This, along with the continued growth of ecommerce, means that we are still seeing LTL freight volume demand exceed its capacity.
  • BSG’s experienced Logistics Team continues to anticipate and minimize potential disruptions to our customer’s supply chain.

Relationships in business matter – now more than ever. Because of our relationships with suppliers and high-volume distribution, BSG can provide the best shipping outcomes possible in the current market.

Ways to minimize delays and freight cost:

  • Allow extra lead time. When possible, allow for 72 hours lead time when placing an order. Building in longer lead times is the number one way you can help us keep your freight costs down!
  • Let us know your plans. Providing a forecast on major changes to your current order quantities will help us secure additional capacity in advance. Also consider increasing safety stock on your staple ingredients.
  • Anticipate extra time for special delivery requests. Plan in additional time for any special delivery requests such as liftgate, call-ahead, or straight truck delivery.

BSG would love to leverage our supply chain and logistics experience to help your business with the current challenges all sectors of industry are facing. If you have any questions regarding receiving freight, carrier selection, consistent delivery times, or similar – we are here to assist!

Please let our team know how we can best solution-plan and serve you!

Contact our Logistics team directly at BSGLogisticsGroup@bsgcraft.com.