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

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

Share This:

‘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

Share This:

Related


What is the Better Recovery Option – Carrier’s Legal Liability or Cargo Insurance?

As featured in 3PL Perspectives Magazine in October 2023 Shippers must understand the differences in recovery options and choose the best and most cost-effective method to safeguard their financial interests. Property brokers and forwarders can assist customers by providing insightful guidance on these commonly misunderstood options. Rules of the Road – Interstate Shipments Since 1906, […]

Cargo Insurance, Shippers Interest Cargo Insurance

Guarding Against Fictitious Pickups and Cargo Theft: Tips and Training

Fictitious pickups are increasing in North America. In the US, the percentage of cargo thefts due to fictitious pickup rose from 1% in 2022 to 17% in 2023. Strategic theft patterns are also rising, where thieves use identity theft and fraud with fictitious pickup and brokering schemes to obtain loads from freight locations. Combatting this […]

Cargo Insurance, Industry Insights

2024 NCBFAA Scholarship & Application Announcement

Roanoke Insurance Group is delighted to once again sponsor  a $5,000 scholarship to students intending to join the trade industry. The National Customs Broker and Forwarder Association of America (NCBFAA) offers this $5,000 scholarship award yearly and will be presented to the winner at the NCBFAA annual conference in April 2024. The topic for this […]

Events, Industry Insights

Sign up for our latest articles and events.

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc. A Munich Re company

Better Business Bureau logoCoverholder at Lloyd's logo