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    Shipping Challenges

    Shipping Challenges

    Additional lead time recommended when placing orders

    Updated July 26, 2021

    As we move into the last half of 2021, the BSG Logistics team has provided another update on the challenges facing the North American freight market. For those just looking for the bottom line: BSG recommends allowing additional lead time when placing orders, and allowing for a 48-hour buffer between planned delivery arrival and “drop dead date.” 

    For a more in-depth look at the global factors affecting freight and supply chain and a synopsis of the current landscape, please read on:

     

    Less Than Truckload (LTL) Shipments

    TOP STORY: LTL MARKET IS FACING LABOR SHORTAGES

    Much like truckload and intermodal services, LTL currently faces demand pressures:

    • Manufacturing is competing with e-commerce and retail for limited LTL capacity.
    • Driver labor shortages and elevated purchased transportation costs remain challenging. 
    • BSG continues to outpace industry average for on-time delivery (OTD).

     

    Full Truckload (FTL) Shipments

    TOP STORY: DEMAND IMBALANCE CONTINUES INTO SECOND HALF OF 2021

    Supply and demand imbalance continues into the second half of 2021. Year over year truckload volume is up 57.8% and fuel has risen 36.8%. This is the tightest spot market in six years. Week 28 2020 to present shows a 12-month stretch of prolonged load to truck ratio highs. BSG continues to offer better-than-industry average on-time delivery for FTL shipments.

    Import Ocean Containers 

    TOP STORY: DEMAND CONTINUES TO BE HIGH AND FORECASTED TO BE SO THROUGH Q3 AND POSSIBLY Q4

    Equipment shortages in Europe are affecting all trades. Shippers are struggling to secure capacity, get their goods onboard, and get them delivered. An estimated 5.5% of all ocean capacity is currently waiting outside a port and storage space for products waiting to be shipped is becoming scarce, exacerbating the already critical capacity crunch. 

    Rail and truck networks are stretched in all regions, with the East Coast feeling additional stress caused by the backlog of full and empty containers from the reopening of the Suez Canal.

    More About International Ocean Freight Disruptions

    While BSG is proud to provide industry-leading customer service, there are unavoidable setbacks in our operations that are caused by (but not limited to) several setbacks in global trade. Our global logistics partner, Kuehne + Nagel, published a video about the challenges facing the supply chain industry that stemmed from the COVID pandemic. In this video, they outline the factors that led us to where we are today:

     

    What We Can Do 

    BSG continues to actively source additional capacity and establish relationships with new carriers. We realize that on-time deliveries are a critical metric for many of our customers and to that end, we strongly suggest the following:

    • When possible, allow additional lead time when placing an order. We see this as very important to have in order for our customers to not experience inventory delays.
    • 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. 
    • Provide BSG with a forecast on major changes to your current order quantities so that we can work on securing additional capacity. Also consider increasing safety stock on your staple ingredients. 
    • Plan in additional time for any special delivery requests such as liftgate, call-ahead, or straight truck delivery. 

    Thank you very much for your continued partnership. We greatly appreciate your business and relationships and will continue to do our best to deliver on-time and intact.