Have your 3PL charges gone up?

Have your 3PL charges gone up?

2022-11-25 11:56:21

If so, you are not alone. The recent supply chain disruption due to Covid-19 has been challenging and well documented. Being able to ship products on demand is an essential business requirement. The challenge in today's environment is the lack of predictability. With the increase in Covid-19 cases, the need for food to replenish grocery stores has risen sharply, while the demand for food in restaurants and hotels has slowed sharply. This shift is just one example of unusual changes in freight demand. As demand increases, prices rise. As the market falls, prices fall. When both happen at the same time, it can be very challenging.


Ⅰ. Third-party logistics companies can reduce pressure


Third-party logistics companies can help relieve some of the pressure because they handle large volumes of cargo and closely monitor the capacity of trucks. This number means they have a strong relationship in the transportation industry and warehouse space and can help provide solutions that many transportation companies cannot offer. Powerful third-party logistics companies are committed to finding solutions for customers in unexpected ways. Third-party logistics can help "flatten the curve of transportation costs" and reduce the damage caused by price fluctuations. Here are some specific ways that third-party logistics can help when your freight costs rise, and your freight needs change rapidly.


Ⅱ. The specific ways that third-party logistics assists


Consignment: Whether it is export or import, international freight may be difficult to arrange time in terms of labour. Third-party logistics can not only pick up the TEU (container) from the port, but also directly ship to your warehouse or customer, or they can cross-dock products in the warehouse (usually less than a week) to allow more time to find the lowest available freight.


Mode change: Due to the sharp decline in passenger flights, the cost of using passenger airlines to transport goods internationally has increased. In the past, frequent and reliable flights increased freight to obtain capacity at a reasonable cost. International transportation may require special cargo flights, usually expedited, but the price is much higher. How do third-party logistics solve this problem? Maybe with the change of transportation mode. International transportation by ship or domestic transit by rail or truck. Time may be a factor to consider.


Flexibility: Third-party logistics has many solutions to choose from to help reduce your freight costs and save costs from unexpected places. When dealing with uncertain future freight costs, it only makes sense to establish a partnership focused on reducing costs to help you meet future challenges.

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