Operators in all three tiers of beverage alcohol are still facing challenges in transportation. While global supply chain disruptions may have started with the pandemic, some factors essential to logistics have worsened in recent times. It’s important to get a sense of the current transportation landscape so that brands can understand the challenges they face and start planning around them.
In the latest video from Park Street University, Adriana McKinnon, Park Street’s Director of Logistics, offers advice for navigating the current disruption. She explains the market conditions that are causing these challenges and gives advice for putting your shipment in the best possible position amid the circumstances. By anticipating potential obstacles and using the best practices for arranging shipments, brands can better prepare for the obstacles they come across.
McKinnon notes, “Even with these obstacles and the unpredictability, there are still some steps you can take to put your shipment in the best possible position amid the circumstances.”
Adriana McKinnon 0:00
Hello, I’m Adriana McKinnon with Park Street University. Today, we’ll be discussing how to adapt to challenges in transportation. The country is still facing extreme challenges as a result of global supply chain disruptions that started with the pandemic and worsened with the addition of other key factors essential to logistics. Even after several months of navigating through the challenges that affect these disruptions, we continue to see delayed transit times, extreme delays in pickups, lack of equipment, and an increase in shipping fees, among many other obstacles.
Adriana McKinnon 0:47
Now, at a time when shipping market capacity is historically strained, the U.S. Department of Energy reported that the national average price of diesel jumped 75 cents in the first week of March, up a total of $1.71 from one year ago. International and domestic transportation providers are warning that significant transportation cost increases are expected immediately. Even with these obstacles and unpredictability, there are still some steps you can take to put your shipment in the best possible position amid the circumstances.
Adriana McKinnon 1:20
First, favor door-to-door arrangements over steamship-line-only moves. Arrangements made to the port only or with a separate drayage carrier are far more likely to be affected by delays and extra fees given trucker and equipment shortages. This can be specified to the forwarding company when making arrangements. Additionally, any and all changes to your supply chain should be communicated to all parties involved, especially to the receiver in charge of overseeing arrival operations and customs clearance.
Adriana McKinnon 2:02
Expect delays and a reduction in the information that is received from transportation providers. Consider that bookings are based on estimates only and are not a guarantee—even with a confirmed booking, delays can occur. Furthermore, be prepared for cost fluctuations after having approved the rate. Focus on shipping over negotiating rates, and consider that rates will be reviewed by forwarders periodically and may be updated even if the shipment is already in transit.
Adriana McKinnon 2:35
Budget for potential additional expenses due to storage, rate fluctuations, and additional fees billed by the service provider. Failure to pay additional fees on time may result in further additional fees. For that reason, it is imperative that funds are available when needed.
Adriana McKinnon 2:52
I hope this information is useful as you plan your upcoming shipments and navigate the market. Thank you!