Capstone Logistics Market Insights: November 2024

2024 Cargo Theft Is Surging, Emphasizing the Importance of Carrier Verification

By: Freightwaves

2024 is on track to reach record-high cargo thefts. The schemes range from thieves breaking into trailers to entire tractor-trailers vanishing without a trace. According to CargoNet, cargo theft incidents rose 14% in Q3 alone, totalling 776 recorded cargo theft events across the U.S. and Canada, with an estimated loss of $39 million in stolen goods for the quarter.

Amid this increase, some 3PL insurance providers are tightening coverage, meaning clients may bear the risk if cargo is mistakenly loaded onto an unauthorized carrier. In cases where a load is tendered to one carrier but picked up by another, it could result in costly claims for shippers without support from insurers or their 3PLs.

CAPSTONE TAKEAWAY

To mitigate the increasing risks of cargo theft, shippers should strengthen their carrier verification processes by partnering with a trusted freight broker. Reputable freight brokers, like Capstone Logistics, offer a network of rigorously vetted carriers selected for their safety records, reliability, and compliance with stringent security standards, minimizing the risk of engaging with untrustworthy operators.

In addition, look for brokers that provide cargo insurance and technology like Capstone’s APEX system that enables real-time tracking and constant communication with carriers. A platform that offers proactive alerts and rapid response if suspicious activity is detected, help to prevent cargo theft and ensure peace of mind. By partnering with a reliable logistics provider like Capstone, shippers can safeguard their goods and maintain control over their supply chain, even as industry risks evolve.

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Navigating a Shorter, Busier, and Unpredictable 2024 Holiday Season

By: Forbes

Forecasts from most associations and consulting firms predict that holiday spending for 2024 will grow over last year, with ecommerce sales driving the biggest increase. But with five fewer shopping days between Thanksgiving and Christmas, inflation concerns, and ongoing economic uncertainties, predicting the right seasonal staffing levels has become a significant challenge.

Staffing too early or too heavily can incur unnecessary costs, while understaffing risks backlogs, delayed shipping times, lost sales, and diminished customer satisfaction — especially critical for ecommerce customers who expect fast, reliable delivery. Striking the right balance is essential for maintaining operational efficiency and meeting customer expectations.

Boston Consulting Group highlights the need for readiness amid unpredictability, noting, “The 2024 Holiday season in the U.S. will accelerate quickly, right out of the gate, with hilly, twisty terrain ahead across a compressed peak-season calendar.” To succeed, they advise that businesses prioritize both speed and agility.

CAPSTONE TAKEAWAY

Misjudging seasonal staffing needs can be costly for retailers, impacting both finances and customer satisfaction. By partnering with a 3PL like Capstone Logistics, retailers can access a trained, scalable, flexible workforce ready to support critical holiday operations, including warehouse management, order fulfillment, packing, and shipping. Capstone’s rapid deployment capabilities mean that our experienced teams can be on-site and operational within 72 hours, helping you maintain high service levels and meet tight deadlines, even during peak season.

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Christmas presents with colorful wrapping

USPS Changes Will Hit Last Mile Delivery Hard

By: Capstone Logistics

Recent changes at USPS, including eliminating workshare discounts and limiting drop-off points, will hit shippers’ last-mile delivery expenses and shipping times hard, especially in rural and exurban areas. We estimate expenses could increase by up to 30%. This shift will hit small businesses hardest, especially those relying on USPS’s previous rates to stay competitive.

One of the key impacts will be driven by USPS’s decision to end specific discounts previously offered to workshare partners. This will likely raise last-mile delivery costs, particularly for businesses that rely on USPS’s previous rates to stay competitive.

Shipping times will also be affected by the changes at USPS. According the the postmaster general, the number of drop-off locations that consolidators use will be reduced from about 10,000 locations to about 500 large hubs near metro areas. Speed options such as same-day and next-day delivery will be jeopardized, and capacity for some services could be strained and create bottlenecks, resulting in additional delays.

CAPSTONE TAKEAWAY

The most successful organizations are addressing workforce shortages on multiple fronts. Recruiting and retaining top talent is key, as is a strategic use of automation without over-reliance on costly new technology.

Additionally, partnering with warehousing labor specialists is a wise strategy to ensure operational continuity during peak seasons or labor shortages. These partnerships can provide scalable, flexible labor solutions that fill workforce gaps, allow businesses to consistently meet demand, and retain their best employees even under challenging conditions.

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