Fall 2021 Barley Crop Update
US and Canadian barley harvest volumes are down this season. As a result, the availability of malting-quality barley will be lower than last year (oat and wheat harvests are also below average). The decrease in volume is due to drought—key barley crop regions across the northern US and western Canada experienced a severe lack of moisture during the weeks of highest water demand.
The combination of decreased harvest volume and increased logistics and transportation costs across all global business sectors will impact malt prices. Rahr Malting is committed to strict quality control standards and well-positioned to receive top quality and consistent barley, thanks to long-term relationships with the farmers who supply the Alix, AB and Shakopee, MN malting facilities.
As we head into the fourth quarter of 2021, the craft beverage industry is not immune to the current difficulties in the global freight market.
Although these are worldwide issues impacting every business that relies on freight and rail shipping, we understand the unique challenges that carrier shortages and ocean delays pose to brewery production schedules to fulfill commitments to distributors and customers in your taproom.
BSG has a dedicated and highly experienced Logistics Team committed to anticipating and minimizing disruptions to your supply chain by continually sourcing additional freight capacity and establishing relationships with new carriers.
Because of our relationships with suppliers and high-volume distribution, BSG is able to 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!
- Plan a 48-hour buffer around expected delivery date. Once an order has shipped from BSG’s warehouse, allow for a 48-hour buffer between planned delivery arrival and your “drop-dead date” – when you must have product on hand to brew or on the shelves for customers. This will help reduce any major impacts to your brew schedule or shelf cycle.
- 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.
If you have any questions or feedback, the BSG Logistics Group is here for you! BSGLogisticsGroup@bsgcraft.com
LTL: BSG’s on-time delivery beats national average despite record tonnage, full networks
Throughout the past year we have aggressively sourced capacity and been able to maintain an on-time delivery metric that is 13% above the national average.
- Less Than Truckload (LTL) tonnage forecasts are at historically high levels and carriers are struggling to keep up.
- This is due to a resurgence in manufacturing, combined with extremely strong consumer spending in retail and ecommerce.
- Plan for LTL networks to continue to be full and stressed through the end of 2021.
FTL: High demand to persist into 2022, BSG reduces YOY FTL costs
In 2021 BSG sourced more full truckload contract rates than ever before and will continue to reduce rates as much as possible.
- Full Truckload (FTL) continues to see disruption as it absorbs excess volume from both LTL and Rail markets.
- Currently there is an average of 6.5 loads for every reported available truck within the US, which is an 11.9% growth since the end of summer.
Import ocean containers: tight capacity, record rates and delays
- 100% of ocean capacity has been deployed globally.
- The ports of Los Angeles, Houston, & Savannah continue to experience the greatest delays across North America.
- Continued congestion at Midwest rail hubs is also influencing ocean carrier strategies for inland moves of full containers.
As is the case with every other transportation-intensive businesses, there are unavoidable setbacks in our operations that are caused by capacity and delay issues in global trade. This video outlines the factors that led us to where we are today and the challenges the industry is currently facing: https://www.youtube.com/watch?v=PbVcFwC7ikQ