Peak season is here, and if you’re in logistics, you know what that means: freight rates are about to become as unpredictable as the weather. But unlike weather, you can actually prepare for peak season pricing with the right strategy.
Let’s break down what’s coming your way and how to budget for it without breaking the bank.
What Makes Peak Season Different
Peak season isn’t just “busy season,” it’s a completely different freight market. From October through December, the entire logistics ecosystem shifts into overdrive.
Supply and demand economics take over. More goods need to move, but the number of trucks and drivers remains relatively constant. This imbalance drives prices up across all shipping modes.
Capacity becomes scarce. Carriers start prioritizing their most profitable routes and loyal customers. If you’re not already on their preferred shipper list, you’ll pay premium rates for whatever capacity remains.
Weather adds complexity. Winter weather doesn’t just slow down deliveries, it reduces available capacity as drivers take longer routes or delay trips entirely.
The Peak Season Pricing Timeline
Understanding when rates typically surge helps you plan better:
Early October
Rates begin their upward climb as retailers stock up for holiday sales. This is your last chance to lock in pre-peak pricing for regular shipments.
Mid to Late October
The first significant price jump occurs. Spot market rates start reflecting true peak season premiums.
November
Peak pricing hits full stride. Emergency shipments and last-minute bookings command premium rates.
December
Maximum pricing intensity. Rates can reach their highest points of the year, especially for expedited services.
Types of Rate Increases to Expect
Base Rate Increases
Your contracted rates with carriers often include peak season surcharges, typically a percentage increase that kicks in during designated peak months.
Fuel Surcharge Volatility
Fuel surcharges tend to be more volatile during peak season as demand for transportation increases overall fuel consumption in the logistics sector.
Accessorial Charges
Additional services like liftgate delivery, residential delivery, and inside pickup/delivery often see rate increases during peak season.
Spot Market Premiums
When you need capacity outside your contracted agreements, spot market rates can be significantly higher than normal seasonal rates.
Building Your Peak Season Budget
Start with Historical Analysis
Look at your previous year’s shipping costs month by month. Identify the percentage increases you experienced during peak months compared to your baseline rates.
Factor in Growth
If your business has grown since the last peak season, scale your historical costs accordingly. Don’t just multiply by growth percentage, consider that larger volumes might qualify you for better rates.
Build in Contingency
eak season always brings surprises. Whether it’s weather delays requiring expedited replacement shipments or unexpected demand spikes, build a contingency buffer into your budget.
Consider Service Level Trade-offs
Budget for multiple scenarios. Standard transit might cost X, but if you need guaranteed delivery, budget for expedited service costs that could be 2-3 times higher.
Smart Budgeting Tactics
- Separate Emergency from Planned
Create two budget line items: planned peak season shipments and emergency/expedited shipments. This helps you track where your money is really going. - Budget by Service Type
LTL rates behave differently than FTL rates during peak season. Truckload capacity might become scarce, while LTL rates might increase but remain available. - Account for Transit Time Premiums
Longer transit times during peak season might force you to ship earlier or pay for faster service. Budget for these timing-related costs. - Plan for Alternative Routing
Your usual lanes might become prohibitively expensive. Budget for alternative routing options that might cost more but keep your supply chain moving.
Making Your Budget Work
Get Quotes Early
Don’t wait until you need to ship. Get pricing estimates now for your anticipated peak season volume. Many carriers offer early booking discounts.
Negotiate Peak Season Terms
If you’re working on annual contracts, negotiate specific peak season terms rather than accepting standard peak surcharges.
Consider Capacity Guarantees
Some carriers offer capacity guarantees in exchange for volume commitments. This might cost more upfront but provides budget certainty.
Plan Shipment Timing
Sometimes shifting shipments by a few days can save significant money. Build flexibility into your shipping schedule where possible.
How GoShip Simplifies Peak Season Budgeting
Peak season budgeting becomes much easier when you can see all your options in one place. Instead of spending hours calling different carriers for quotes, GoShip lets you compare multiple FTL and LTL carriers instantly.
Here’s how this changes your budgeting game:
- Instant Price Comparisons: Get quotes from multiple carriers in minutes, not days. This means you can budget with real pricing data instead of estimates.
- Real-Time Rate Visibility: See exactly how much rates are fluctuating during peak season. When you can compare carriers side-by-side, you’ll spot the best deals immediately.
- No Phone Tag: Skip the endless calls to carriers. Get your quotes online, compare your options, and book the best one, all from your computer.
- Budget with Confidence: When you can see all available options, you make better budgeting decisions. No more wondering if you could have gotten a better rate elsewhere.
Peak season pricing isn’t something that happens to you, it’s something you can prepare for and manage strategically. The companies that struggle with peak season costs are usually the ones that treat it like a surprise instead of an annual, predictable event.
Start with realistic expectations based on historical data, build in appropriate contingencies, and have multiple options for when your primary plan doesn’t work out.
Most importantly, remember that the cheapest option isn’t always the best option during peak season. A slightly higher rate from a reliable carrier beats a low rate from a carrier that might leave your freight sitting on a dock for days.
Don’t spend peak season calling carriers one by one, hoping for the best rate. Get instant quotes from multiple FTL and LTL carriers, compare your options, and choose what works best for your budget and timeline.Ready to see how much you could save this peak season? Get your instant freight quote and compare rates from top carriers in your area.