Managing Sudden Spot Rate Hikes
When preparing for weather events, it’s crucial to consider how truckload rates can be impacted. With supply chains now functioning as a global engine, disruptions in one location can create ripples that affect others. For shippers, such disruptions can lead to unexpectedly higher shipping rates.
Here are some best practices for dealing with a sudden surge in spot rates:
Leverage a Third-Party Logistics (3PL) Provider:
Consider this option to enhance your available capacity and carrier options. Outsourcing reduces the burden of in-house work while relying on operational efficiency. 3PLs bring a holistic approach, buying power, and negotiating skills that can bolster your operations year-round.
Explore Intermodal and Multimodal Shipping:
When the first signs of a storm’s arrival become apparent, explore intermodal and multimodal shipping options. While these terms are often used interchangeably, both offer unique advantages, like flexibility, for weather-proofing and navigating post-weather event challenges.
Proactive, Cost-Saving Measures:
Increase your shipping budget by implementing proactive cost-saving measures throughout the year. Improving dock management and load planning naturally leads to budget savings. Allocate a portion of these savings for handling budget stretches caused by disasters. Furthermore, efficiency gains enhance resilience and agility, allowing your supply chain to adapt to post-disaster demands.
Securing Your HQ
While spot rates address weather events abroad, what happens when the storm is right at your doorstep? Truck diversions can slow your supply chain, but if your central operations are incapacitated, everything grinds to a halt. Establishing a robust plan is crucial, especially if your location is prone to annual weather risks.
Your first step should be ensuring the right infrastructure is in place. Does your main office have backup power contingencies? Is internet access guaranteed? Can your employees access company systems remotely? Simple measures like backup generators and remote desktops can weather-proof your operations despite external factors.
Consider your personnel too. Flexibility and cross-training ensure that every member of your team can handle a broader range of responsibilities. This becomes especially critical during crisis management situations when your top customer service team may be occupied with other essential tasks.
The more prepared your team is, the more efficient they’ll be when it truly matters. Establishing the right infrastructure is just the beginning; having a well-defined plan in place for adverse weather conditions is equally important. Moreover, your team should be well-versed in the procedures to follow during such events. The better prepared you are, the more effective your response will be when it counts.
Ready to fortify your supply chain and weather-proof it to withstand any storm? Contact us today to discuss your preparedness plan with our freight experts!
