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Managing Your Supply Chain Amidst the Canadian Truckload Capacity Crunch: Solutions to keep your operation moving

February 27, 2025

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Feeling the squeeze
from Canada’s truckload capacity crunch?

With tender rejection rates in Eastern hubs like Toronto and Montreal reaching their highest levels since 2022, securing reliable capacity for domestic and cross-border shipments is tougher than ever. To keep your supply chain moving, it’s essential to explore alternative strategies and optimize your logistics approach. Here’s how you can navigate these challenges effectively.

1. Convert Truckload Freight to Intermodal Where Possible

One of the most effective ways to navigate capacity constraints is by shifting truckload shipments to intermodal transportation. Intermodal combines rail and truck transport, offering several key advantages:

  • Increased Capacity: Rail networks provide additional space when truckload availability is tight.
  • Cost Savings: Intermodal shipments can be more cost-effective than over-the-road truckload, especially for long hauls.
  • Sustainability: Rail transport reduces carbon emissions, supporting your company’s sustainability initiatives.
  • Reliability: Rail schedules are predictable and less susceptible to driver shortages and highway congestion.

By leveraging intermodal solutions where feasible, you can free up truckload capacity for shipments that require faster transit times.

2. Advance Inventory to Strategic Warehouses

To avoid disruptions caused by delayed truckload shipments, consider moving inventory in advance to warehouses that are central to your distribution network. With TRAFFIX’ short-term warehousing solutions, you can store products closer to key markets and fulfill orders locally. This approach offers several benefits:

  • Faster Order Fulfillment: Reduce lead times by positioning inventory near customers.
  • Lower Last-Mile Costs: Cut down on expensive long-haul deliveries by shipping from regional warehouses.
  • Greater Flexibility: Quickly adapt to demand fluctuations and avoid stockouts.

By proactively staging inventory, you can mitigate supply chain risks and keep your operations running efficiently.

3. Prevent Stockouts with LTL and Expedited Shipping

Stockouts and production line disruptions can have costly repercussions. When faced with supply shortages, consider shipping partial orders via Less-Than-Truckload (LTL) or Expedited Services to keep inventory flowing. This strategy helps:

  • Prevent Line-Down Situations: Keep manufacturing operations moving by ensuring critical components arrive on time.
  • Maintain Customer Satisfaction: Avoid prolonged backorders and lost sales by delivering partial shipments as soon as possible.
  • Enhance Supply Chain Resilience: Maintain flexibility in your logistics strategy to address unforeseen disruptions.

When full truckload shipments aren’t an option, LTL and expedited freight provide valuable alternatives to minimize downtime.

Plan Ahead to Secure Truckload Capacity

If you choose to stick with truckload freight, advance planning is key. Securing capacity early can help avoid last-minute delays and inflated spot rates. Booking shipments in advance reduces the risk of missing critical deadlines due to capacity shortages.

By taking proactive measures and exploring alternative shipping solutions, you can successfully navigate the Canadian truckload capacity crunch. TRAFFIX is here to help you optimize your supply chain and secure the right freight solutions tailored to your needs. Contact us today to explore the best options for your business.

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