Thursday, November 26, 2015

Gaining The Edge During The Holiday: The Grinch Who Stole Christmas

There is no way merchants would not capitalize on the barrage of your senses this holiday season or allow the increase in shopping during the holiday season to be disrupted unless goods do not get to stores at the right time. The goals of any merchant is to always get you to fork over more cash. Although during the month of October the American Trucking Association reported truck tonnage increased by 1.9% compared with the previous month, the industry group fright index hit 135.7 in October shy of its all time high of 135.8 in January.

Nervousness has left industry experts uneasy because of the uncertainty willing to submerge sales as a result will have an effect on the holiday demand  of freight volumes. As noted by ATA chief economist Bob Costello “ I remain concerned about the high level of inventories throughout the supply chain.” The problem highlighted by logistics operators present fears that the system is reacting to an imbalance of shipping and demand capacity, that seems to be affecting the freight services across all modes of transportation, including truck, rail, air and ocean carriers.

This problem has fully surfaced on both the east and west coast of the United States; like the Port of New York and the West Coast ports that handle container ships from Asia. Out of the chaos of the freight overflow Savannah -  the best-run port in North America has emerged and has a reported 15% increase and has no hint of congestion like it counterparts on both coast.

But as the holiday season begins in late November and ends in early January, problems loom on the the horizon with rerouting of ocean freight to smaller ports driver scarcity becoming a problem across modes of transportation, logistics services providers consolidation of services and labor strikes. Could this be the " Grinch Who Stole Christmas?"

  This logic is consistent wiith what we learned in Chapter 4 and Chapter 15.

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