Peak season is right around the corner. Are you ready?

5 Questions with Chiara Venuti Marken’s VP, Global Drug Distribution

As we approach the final quarter of 2024, the air cargo market will face challenging months ahead. With demand outpacing capacity, the industry will experience high volume impacts, capacity constraints, strike risks, airfreight delays and significantly inflated spot rates and surcharges.

The only way to mitigate these seasonal stressors is to plan ahead.

Trust Marken’s precision logistics teams to help you plan ahead with confidence, ensuring your global bulk depot resupply shipments are handled with meticulous care, delivered on time, and within specifications. As experts at navigating the risks created by the busy holiday season, we find cost-efficient, customized solutions for you, so you can focus on achieving your year-end goals.

To set you up for success, Marken’s VP of Global Drug Distribution, Chiara Venuti, shares her expert insights on end-of-year planning for the distribution of your critical products.

1. When does the peak season for bulk depot shipments typically begin and end?

If you have not made plans for your logistic needs for the remainder of the year, you are already falling behind, but Marken’s team of experts is here to support you. Airfreight volumes start to rise in October and continue to skyrocket throughout Q4, driven by the holiday rush and the need for many organizations to complete their projects before year-end. Undoubtedly, Black Friday and the days surrounding the Christmas holiday see the largest volume surges for shipments around the world, followed closely by the added strain of the Chinese New Year. Throughout this span of time, cargo volumes – including passengers, specialty cargo, and e-commerce packages – stresses overall cargo space, reduces transport options and creates bottlenecks.  

2. What are the anticipated shipping volume increases during peak season?

According to Xeneta’s analytics platform, the capacity utilization has already risen by 4% in 2024 compared to last year, and we expect a similar increase in Q4. This surge will likely drive higher rates especially for routes coming out of Asian markets. Demand in Q4 is expected to produce inflated rates which has caused some companies to consider peak season surcharges for shipments. Overall, air cargo companies are projected to deliver double digit growth in 2024.  

3. Which shipping modes (e.g., air, ocean, ground) and routes are most affected by peak season congestion?

Every mode of transport in the supply chain experiences the impacts from increased shipments at the end of the year. Ocean freight is the first to experience the strain, starting in July and August due to longer lead times. Air freight is the second mode to feel the pressure starting in October and escalating quickly towards the end of the year as cargo space becomes limited. Airlines prioritize passengers and their luggage, which reduces capacity for other cargo. Finally, ground transport experiences exceptionally high volumes, providing regional supply movement and final mile delivery for air and ocean lanes. This year, there is an additional risk for delays, as US dockworkers along the eastern coast and Gulf of Mexico entered a strike on Oct 1st, closing almost half of US ports and creating a ripple effect throughout supply chains worldwide. This puts additional stresses not only on ocean freight, but airfreight as well, as they try to compensate for this deficit. As this situation is fluid, Marken has business continuity and contingency plans in place and are ready to mitigate potentials challenges if/when they occur.

4. What shipping routes or destinations are more prone to congestion during peak season?

Due to high demand and limited capacity, Asia remains the focal point of congestion, with the highest volume increases seen on lanes from Asia to the US, followed by Asia to Europe.

5. What are the risks associated with delaying your peak season shipments?

Waiting until the last minute to secure your shipment slots can be costly and risky. Delays can jeopardize the timely delivery of vital medicines, potentially leading to product expiration or halts in production for raw materials or pharmaceutical ingredients. Last-minute shipments often incur additional costs through expedited services or price increases for secondary route options. Ultimately, delays can compromise the quality, efficacy and integrity of medical products that patients rely on, while also impacting company revenue as year-end financial evaluations are made.

Timing is critical. Choose Marken to ensure your packaging is ready-now and reserved for you through the rest of the year, providing you complete peace of mind this holiday season.

With an unlimited packaging-agnostic fleet providing real-time temp monitoring, tracking & GPS location, we deliver end-to-end visibility throughout the supply chain from clinical to commercial. 

Contact Us Today. Let us show you how Marken can optimize your global supply chain while minimizing costs – all under one roof. Our team of experts are ready to assist you.