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Market Update

As we move into the second half of 2022 our industry continues to face logistical and supply challenges. The ongoing impact of COVID-19, climate change and geopolitical issues have combined to put significant strain on the global supply chain and economies. 

Despite these challenges BSG remains committed to working with our customers to find solutions. As a trusted partner and ingredients supplier we want to ensure our customers have all the information they need to create outstanding products.

Logistics Update

  • Fuel surcharges are at an all-time high, with diesel fuel prices averaging $5.52 in July, vs. $2.43 one year ago. Fuel prices have a large effect on the overall price of LTL and Truckload freight. Among major LTL carriers, the average fuel surcharge increased from 34% in Q1 to 47.6% in Q2 
  • Weak performance in several industries has helped flatten the growth rate of full truckload rates this summer 
  • BSG has secured updated contract pricing on most outbound lanes lowering our rates to their lowest point in 12 months 
  • Many shippers shifted to IMDL and rail service leading to increased rail congestion and delays. 

BSG’s experienced Logistics Team continues to anticipate and minimize potential disruptions to our customer’s supply chain. By onboarding new carriers, expanding our courier service programs and contract rates, BSG’s on time delivery has trended up for 6 of the past 7 months. 

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.