December 18, 2017 | Cargo Insurance, Industry Insights, Shipping, Transportation

‘Tis a Very Busy Season for this Holiday for Logistics Companies

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‘Tis a Very Busy Season for this Holiday for Logistics CompaniesThe most recent figures from the Labor Department shows that the warehousing and storage sector geared up in November for the holiday season, adding 8,100 jobs to pick, pack and ship e-commerce orders. This number reflects the most jobs the sector has added in a single month since December 2015, according to an article in the Wall Street Journal (WSJ).

The holiday job surge marks the eight straight month of expansion in the logistics sector as increasingly more people are purchasing goods on-line from Amazon and others. In fact, according to Adobe Systems Inc., shoppers spent a record $6.59 billion online this past Cyber Monday.

The transportation industry in general is on a brighter path, bolstered by an uptick in manufacturing and increased freight demand from retailers, cites the WSJ. In November, for example, trucking payrolls rose by 1,800 as carriers added more drivers to meet shipping demands. Average rates in November for refrigerated transport and for dry vans, which carry everything from consumer electronics to clothes, hit a three-year high on the spot market, where shippers book transportation on a daily basis, said DAT Solutions LLC.

The good news also extends to imports, which are up the nation’s top ports of entry, Los Angeles-Long Beach and New York-New Jersey, according to the WSJ. Combined October cargo volumes rose 2.5% year-over-year. Imports in December at major retail container ports are expected to increase 1.5% compared last year this time, according to the Global Port Tracker report, released monthly by the National Retail Federation and research firm Hackett Associates.

Big employers such as UPS and FedEx have been on a hiring spree for months, too, having brought in tens of thousands of seasonal staff for the holiday peak. DHL, for instance, says WSJ, is bringing on 6,000 seasonal workers across its North American units that handle contract logistics, fulfillment, freight transportation and express delivery. DHL expects volume growth of between 15% and 40% across those businesses this holiday season.

With all this increased activity and new hires on the job, it’s critical for the logistics industry to remain vigilant and on high alert to protect cargo. The holiday peak season is traditionally marked by a significant surge in cargo theft. Whether it be a fraudulent pick up, unsecured parking area, or insider job, it is imperative to take extreme caution and steps in preventing all types of cargo theft.

It’s also important, of course, to have the proper insurance protection. Roanoke Trade provides a full spectrum of insurance products, including legal liability products that address the exposures to logistics service providers that may result from theft and fraud, and cargo insurance that protects shippers from financial loss. To speak to a Roanoke specialist about your insurance protection, please contact us at 1.800.ROANOKE (800.762.6653).

Source: WSJ

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