During peak season, Indian exporters are under immense pressure as rising demand forces them to handle increased production and shipping challenges. This surge in orders, often compounded by freight and supply delays, necessitates that exporters efficiently navigate these challenges to meet customer needs and maintain operational continuity.
This article will discuss the exporters’ main challenges and how to prepare for peak season demand in 2024.1
The holiday rush: Understanding peak season trends
Certain times of the year see significant increases in consumer demand, driven by local and international holidays, cultural celebrations, and significant sales events. For instance, Diwali is one of the largest festivals in India, with heightened demand for textiles, handicrafts, and other traditional goods. Similarly, global sales events such as Black Friday, Cyber Monday, and Christmas surge exports for categories like fashion, electronics, and home goods.
Indian exporters must anticipate these seasonal fluctuations by analyzing historical data, market trends, and industry reports. This foresight allows businesses to forecast demand more accurately and prepare for potential supply chain disruptions.
Moreover, understanding logistics trends and global trade conditions—such as consumer preferences or shipping patterns during peak seasons in other countries—enables exporters to target international markets more effectively.
Shipping challenges faced by exporters in India
India’s export sector faces significant shipping challenges, adding to the complexity of the global trading environment. According to a report from The Economic Times, disruptions in the Red Sea region and persistent logistical bottlenecks have caused India's exports to contract by 9.3% in August 2024.
With the upcoming holiday season fast approaching, these challenges become even more pressing as global demand typically surges.
Indian exporters must prepare for the added pressure to meet peak season demands. Shipping delays and logistical constraints could significantly impact fulfilling international orders in time for holiday sales.
Most common overseas shipping challenges during the holiday season
While the holiday season offers lucrative opportunities for Indian exporters, it also presents several challenges that can disrupt the smooth business flow.
Here are the most common challenges e-commerce exporters need to anticipate and address during peak seasons:
Freight delays
As holiday sales ramp up, global shipping networks become overloaded, leading to significant delays. Ports are congested, carriers are booked to capacity, and customs clearance times increase due to the sheer volume of goods in transit.
These delays in international shipping can be detrimental for exporters, particularly those working with tight holiday deadlines or in industries where timely delivery is crucial. Missing delivery windows can affect customer relationships and cause long-term reputational damage.
Capacity shortages
During peak season, securing transportation and warehousing becomes increasingly tricky. Limited availability of shipping containers, vessels, and warehouse space can lead to higher costs and delays in production and shipment.
Indian exporters often compete for space, which adds pressure to maintain a smooth supply chain. This scarcity of capacity, if not planned for, can result in bottlenecks and order fulfillment issues.
Increased demand
The holidays see a sudden spike in demand, which can strain an exporter’s ability to scale production and meet order volumes. This increased demand impacts every part of the supply chain—from raw material sourcing to manufacturing and shipping—often leading to shipping delays during peak seasons.
With proper forecasting and resource allocation, businesses may be able to keep up with orders, leading to stock shortages or late deliveries.
Exporting tips to navigate peak season logistics
For Indian exporters, meeting holiday shipping deadlines can be particularly challenging during this period. However, there are ways for Indian exporters to address shipping challenges and ensure the timely delivery of their goods.
Here are essential tips to streamline logistics during the peak seasons:
- Book shipments early: One of the most effective ways to avoid freight delays is to book shipments well in advance. As peak season approaches, overseas shipping services become overwhelmed, leading to limited availability of air space and higher freight costs. Early booking helps ensure that exporters in India can lock in necessary shipping space at competitive rates, a critical part of managing peak-season logistics.
- Diversify shipping methods: Relying on a single shipping method can be risky when delays are common during peak periods. Exporters should consider diversifying their shipping options by using different options such as Breakbulk Express, Hybrid Breakbulk, etc.
- Plan for buffer time: Given the unpredictability of shipping during peak seasons, building buffer time into delivery schedules is crucial. Allowing extra time for potential freight delays at ports or in transit helps mitigate the risk of missing holiday shipping deadlines. Exporters should communicate these timelines clearly with customers to manage expectations and maintain trust.
- Leverage technology for supply chain visibility: Using digital tools for real-time tracking and supply chain management can significantly enhance efficiency. Technologies like GPS tracking, inventory management systems, and data analytics provide Indian exporters with complete visibility of their shipments, allowing them to anticipate delays and take proactive steps to avoid disruptions.
- Work with reliable peak season logistics partners: Partnering with experienced and dependable logistics providers is essential to overcoming capacity shortages and delays. Reliable partners have established networks and can offer priority handling for urgent shipments. They can also provide real-time tracking and support with customs clearance, ensuring that goods move smoothly through the supply chain, even during high-demand seasons.
- Use express shipping services: Express shipping is crucial in preventing delays in international shipping. DHL Express provides best-in-class shipping to ensure customers receive their parcels within 3-4 working days. This provides unmatched reliability and speed that businesses can depend on to deliver right on schedule, especially during peak seasons.
Address shipping challenges during peak seasons
During the e-commerce peak season, Indian exporters must maintain efficiency and meet holiday shipping deadlines to ensure customer satisfaction.
DHL Express offers comprehensive solutions to ensure smooth shipping during the holidays. Our global network, with advanced tracking tools and on-demand delivery services, helps minimize delays and ensures shipments reach their destinations, especially during the peak seasons.
With our centralized systems, service excellence, and e-commerce expertise, we can help exporters handle holiday demand while minimizing the risk of shipping delays.
Streamline your overseas shipping with DHL Express. Open a business account today to learn more.
