From two years of Covid pandemic to Russia’s current war on Ukraine; the last couple of years have seen extraordinary stress on our lives, the economy, and the supply chain.

Shippers, and their customers, are feeling the pressure of balancing ever-increasing demand against ever-decreasing capacity. With the government’s latest announcement of banning Russian oil imports, the cost of shipping just got even more expensive.

The supply chain is being tested by major events

As we saw during the height of Covid, the supply chain has long been in need of improvement. Supply chain resiliency and transparency were lacking. Outdated processes and inadequate technology could not sufficiently handle sustained major events.

Despite port and factory closures, lockdowns, and driver shortages exacerbating the issue, some positive outcomes were seen. Executive-level commitment to new technologies, and a willingness to work with third-party logistics providers (3PLs), has had good results for many producers and shippers.

It’s impossible to predict when supply chain pressure will settle

Heading into 2022, experts were not optimistic about supply chain pressure easing. In fact, most predictions were that it would take at least twelve months for the pandemic-induced backlog to begin to clear.

The supply chain was not prepared for additional pressures. A war between Russia and Ukraine has a drastic and immediate effect on the supply chain here in the US. In addition to rising fuel costs, manufacturers face yet another supply shortage, this time of nickel and other commodities.

Shippers need help finding reliable capacity

Rising costs and delivery delays mean disgruntled customers. And even though we’re all in the same boat, so to speak, retaining customer loyalty is still important. Couple that with a steadily increasing demand for sustainability, and shippers are under a lot of pressure to optimize routes.

Producers with the ability to quickly scale (up or down), and pivot where needed, will fair best in the current environment. But building the types of relationships necessary for quickly identifying safe and reliable carriers takes time and effort.

A strong broker helps reduce workload and cost

A freight broker partner provides a single point of contact, taking care of all the necessary shipment details. Freight brokers leverage their carrier relationships and industry expertise to find the optimal routes and capacity. With a Federal Motor Carrier Safety Administration (FMCSA) license, the freight broker adds value and flexibility to a shipper’s supply chain.

In fact, 90% of Fortune 500 companies utilize 3PLs to help them maintain their competitive advantage. Outsourcing the details of shipping gives valuable time back to shippers to focus on their own priorities.

Benefits of partnering with a freight broker

• Expertise in the shipping area;
• Peace of mind over compliance and regulatory details;
• Access to reliable carriers;
• Oversight to ensure delivery;
• Flexibility for scaling up or down, pivoting when needed.

If you don’t already have a dedicated shipping department focusing on the intricacies of freight delivery, then finding a good freight broker will drastically improve your workflow. Utilizing the freight broker’s existing relationships and expertise means you can focus on your business.

Loop Logistics experts are available 24/7 to answer your questions. We cover every detail to ensure fast, efficient delivery.