How to Future-Proof Your Supply Chain from Freight Embargoes

The less than truckload (LTL) industry is no stranger to freight embargoes. They have become more common in recent years as the COVID-19 pandemic upended the supply chain world and led to temporary LTL service outages due to surging demand and constrained carrier capacity. Freight embargoes are imposed by carriers in a range of forms — timeframe, geographic region, or specific freight characteristics, just to name a few.

Carriers have the flexibility to also activate embargos at their discretion, but it’s often necessary to impose an embargo to balance capacity during times of peak demand. That’s why it’s crucial to engage technology that provides comprehensive carrier information, empowering shippers to make better decisions during an embargo to mitigate disruptions in LTL service.

Freight embargoes are common when disruptions such as tight carrier capacity, severe weather, terminal repair or closure, geographic events, and other unforeseen incidents occur. Shippers frequently voice frustration during freight embargoes as they risk being unable to deliver on time for their customers. Suddenly learning that a carrier will stop accepting loads can significantly disrupt shippers’ day-to-day operations, customer relationships, and the bottom line.

Planned embargoes can be less disruptive if shippers know they are coming versus unplanned embargoes that don’t allow time for advanced planning. For instance, carriers routinely impose LTL embargoes around the peak season of November and December to overcome logistical challenges and balance capacity.

Unplanned Freight Embargoes

Severe regional weather and other unforeseen events can strain the supply chain for days, weeks, and even months. Shippers are left scrambling to find carriers outside their usual network that can take on their loads and keep products moving. They also may have to endure higher pricing during freight embargoes if they can find a carrier that will accept their shipment.

The impacts of unplanned freight embargoes usually can’t be avoided. Sudden and unexpected embargoes force the supply chain to temporarily adjust to the strain on LTL carrier resources. Using logistics technology can bring much-needed visibility to the supply chain and help drive better decision-making during these challenging times.  

Planned Freight Embargoes

In comparison, planned freight embargoes, such as those imposed during peak season, can be more easily navigated. The duration of planned freight embargoes is typically stated up front, though carriers can extend it if capacity hasn’t eased sufficiently. Knowing how long an embargo will continue helps shippers weather the disruption better—and communicate with their customers in advance.

Planned freight embargoes allow shippers more time to explore other lanes and understand the costs associated with newfound carriers. Just like unplanned embargoes, planned embargoes are aided by access to technology that can harness all this information and make it visible to shippers.

Transit Service Alerts Aid Better Decision-Making

Having to manually search for carrier transit times and service details during a freight embargo is a time-consuming, frustrating, and arduous process. Access to accurate, comprehensive, up-to-date LTL transit details is invaluable. SMC³’s CarrierConnect® XL delivers this data, providing LTL transit times and LTL carrier service detail from more than 300 leading national, super-regional, and regional carriers across North America.

CarrierConnect XL also provides transit service alerts to shippers for both planned and unplanned freight embargos. The technology sends transit service alerts directly to the shipper by the specific type of embargo that has been imposed.

Alerts are sent to shippers when carriers indicate there is a strain on their capacity. Alerts for hurricanes, tornadoes, blizzards and snowstorms, and heavy rain and flooding are all sent through the technology.

If a carrier indicates they must shut down in an area for terminal maintenance and other repairs, an alert goes out. Shippers are also alerted to terminal closures that aren’t due to repairs. Even large events occurring in certain geographic areas —Mardi Gras, for instance— will trigger an alert. A catch-all alert is sent for embargos that don’t fall into the other categories.

Comprehensive, Up-to-Date Carrier Details

With CarrierConnect XL and transit service alerts, shippers can future-proof their supply chains. This technology empowers carriers to manage embargoes and custom messaging for shippers at the terminal, city, or postal code level. It also allows carriers to adjust pickup dates and calculate estimated delivery dates based on optional embargo data.

The technology helps shippers make the most accurate routing decisions during a freight embargo. With CarrierConnect XL 3.0, dynamically updated carrier information can be accessed through either RESTful APIs or SOAP API messaging. When combined with SMC³’s RateWare® XL technology, CarrierConnect integrates carrier-specific points of service and transit times with rates to provide a holistic view of LTL pricing, transit times, and carrier services.

To learn more, visit https://www.smc3.com/carrierconnect.htm or download the datasheet << https://www.smc3.com/knowledge-hub/data-sheets/SMC3_DataSheet_CarrierConnectXL_20647.pdf>&gt;