What is Peak Season?

What is Peak Season?

It is a period of the year in which there is a massive and concentrated increase in demand for freight transport services, especially on major trade routes such as the Transpacific (Asia-North America) and Asia-Europe.

When does it occur?

There are different types of Peak Season depending on the route and the time. Many of them are fixed on the calendar, such as Black Friday/Cyber Monday and Christmas, during which retailers and distributors must stock their inventories sufficiently in advance to meet demand. Others include Asian festivities (Chinese New Year, Golden Week) when factories close and importers seek to move their merchandise before these shutdowns.

Impact and consequences

• Rate Increases (PSS): Shipping lines impose the Peak Season Surcharge (PSS), a seasonal surcharge to manage capacity and additional operational costs.
• Freight rates (spot rates) skyrocket due to high demand.
• Capacity Shortages: There is a shortage of space on vessels and, often, a shortage of available containers for shipping.
• Cargo Rollovers (Roll-overs): Reserved containers may be "rolled over" or postponed, meaning they are not loaded onto the intended vessel and are moved to the next sailing, causing unplanned delays.
• Port Congestion: High activity saturates the ports, causing significant delays in loading, unloading, and customs clearance.
• Longer Transit Times: The combination of port delays and the risk of rollovers makes transit times longer and more unpredictable.

What is the key to facing it? ANTICIPATION AND FLEXIBILITY

1. Planning and advance booking
   • Inventory forecasting (Forecast)
   • Booking space in advance (scheduled at least 4 weeks in advance)
2. Partner and agreement management
   • Always have trusted logistics partners
   • Try to secure annual or long-term agreements with space guarantees
3. Flexibility and diversification
   • Consider different scenarios that bring together a larger number of shipping lines, services with different routes, and a diversity of transit times. Securing space and different arrival dates for greater coverage.
4. Technology and proactivity
   • Detailed tracking of shipments through our client space
   • Operations specialists in the trade monitoring shipments from the moment of booking until arrival at your facilities.

Preparing operations in time and having a contingency plan for delays and additional costs could minimize the impact of Peak Season on your supply chain.

At Global Cargo System, we use our strategic alliances to offer you the experience and reliability your merchandise needs.