Imagine your online purchase, from the moment you click "buy," embarks on a high-speed race akin to a year-end sprint. While household names like UPS and FedEx dominate the spotlight, regional logistics providers quietly shoulder a critical role in this frenzy. As annual shopping events like Black Friday and Christmas unleash tidal waves of packages, how do these smaller players adapt? What unseen challenges and strategies define their survival? Today, we unveil the playbook of ShipRight, a regional carrier based in South Portland, Maine, as it navigates the industry’s most demanding quarter.
Peak Season: The Unconventional Battle for Regional Carriers
The fourth quarter is a logistical marathon. E-commerce promotions and holiday gifting send package volumes skyrocketing, testing even the most robust networks. For giants like FedEx, peak seasons follow well-rehearsed scripts. But for regional carriers like ShipRight—specializing in order fulfillment, call centers, and last-mile delivery—the stakes are higher. Executive Vice President Todd Flaherty and Founder/President Drew Graham share their tactical blueprint.
Strategy 1: Space as a Strategic Reserve
Peak planning, Flaherty notes, is a year-round endeavor. To absorb the surge, ShipRight maintains roughly one-third of its warehouse space vacant—a deliberate inefficiency that ensures flexibility. "It’s like reserving runway space before takeoff," he explains. Three weeks before peak hits, the company aggressively clears inventory, even dispatching shipments on less profitable routes. Additional contractors, trucks, and even temporary trailer parking are secured to expedite inbound flows.
Strategy 2: Real-Time Data as a Compass
Graham emphasizes ShipRight’s military-grade monitoring. Daily freight volume tracking, analyzed via Zoom "war rooms," enables rapid pivots. "We scrutinize inbound and outbound data, sometimes meeting daily," he says. This agility helps preempt bottlenecks before they escalate.
Strategy 3: The Human Toll of Peak
Six- or seven-day workweeks become the norm from Thanksgiving through Christmas. Graham stresses that warehouse capacity is the linchpin: once storage overflows, locating items slows to a crawl. "We’ll repurpose fulfillment center space as a last resort—it’s inefficient, but better than gridlock," he adds. Labor and vehicle shortages compound the strain; a full warehouse amplifies the crisis.
The Profit Paradox: More Volume, Less Gain
Ironically, peak season often erodes ShipRight’s margins. Overtime pay and contractor fees devour profits, leaving the carrier financially exposed while retailers thrive. Compounding the pain: fixed-price contracts prevent peak surcharges. "We’re locked into rates, and competition discourages hikes," Graham admits. Some clients, bound by retailer agreements, can’t pass costs downstream—a catch-22 with no easy exit.
Service Integrity: No Compromises
Despite deluges, ShipRight refuses to prioritize clients or cut corners. "If forecasts hold, we maintain standards. If chaos hits, everyone feels it," Graham states. The caveat? Accurate demand projections from clients—a rarity in today’s disrupted supply chains.
The Growth Dilemma
Flaherty reveals ShipRight typically rejects new business during peaks. "Overextending risks service failures—a losing trade," he says. Even giants like FedEx penalize clients for exceeding forecasts. ShipRight now requires large customers to share projections, enabling better resource allocation. Proactive dialogue, Graham adds, beats reactive firefighting.
Forecasting Blind Spots
Supply chain volatility—container delays, material shortages—makes predictions unreliable. "Retailer-direct shippers forecast best," Graham observes. "Third-party logistics firms aggregating multiple retailers? Less so." He argues 3PLs should treat forecasting as a core competency.
The 'Free and Fast' Mirage
Graham critiques e-commerce’s unsustainable mantra. "‘Free shipping’ is a myth—costs hide in product prices," he says. Flaherty urges retailers to nudge consumer behavior, like charging nominal fees for expedited or delayed delivery. "Quality, speed, and affordability can’t coexist at scale."
Regional Carriers’ Edge: The Alternative Route
Flaherty detects a shift: shippers eyeing regional carriers as hedges against national giants’ peak surcharges and service lapses. After 2017’s delivery failures, retailers now seek backups. "Last peak, national retailers asked if we could handle their regional volumes," he notes—a sign of changing tides.
For regional carriers, peak season is a crucible of risk and opportunity. Through preparation, adaptability, and principled service, they’re carving niches in an industry where size no longer guarantees supremacy.