WHAT IS THE SCALE OF THE PEAKS?
Are you curious about for how much % increases the number of pallets shipped per day at the end of the month compared with the average number of pallets in the other "standard" working days? According to the results of the survey conducted among 22 logistics directors of high-volume companies, an average volume in the "peak" days of the month was of 202% compared to the "standard" volume. This means that at the end of the month the company requires 2 times more cargo space to transport their goods.
According to the data of the logistics operator, the volume of a single client can increase up to 300% - in this case, in only a few days as many as half of the orders from all over the month are executed (!). Here is a sample chart showing the distribution of the number of pallets transported of one of the producers on the market of home appliances in a daily basis. The data represents the period from July 2013 to the end of April 2014.
In the case that such fluctuations at the end of the month concerned a producer who carries monthly around 30 - 50 000 pallets, you can imagine what happens when there is an accumulation of 10 or 20 such companies. The battle for the available means of transport begins and freight rates are rising. But this is not the only consequence of the peaks. Some of the negative effects are less visible, but more severe and spread over time....
A high volume is obviously a positive trend in the market, but only if it is regular. The situation in which for three weeks of each month the haulers do not have a job, and suddenly in the last week receive three times more orders, is a prerequisite to deepen their losses - this state of affairs requires the involvement of major means of transport and capital. As a result, due to the lack of stable employment, haulers often are forced to move in the so-called gray area, which in turn negatively impacts the example in the labor market or the quality of logistics services.