operation has likely been laser-focused on gearing up for these massive volumesThe Reality of the "January Jolt"
The transition into the new year is characterized by wild shifts in volume.
The Holiday Disruption: Christmas and New Year’s Day disrupt volume—both up and down—more significantly than any other period in the year.
The Early Drop: Historically, service providers see a massive drop-off in the very first week of the year.
The Mini-Peak: This lull is short-lived; returns and restocking typically drive a "mini-peak" by mid-January.
Strategies for Maintaining Efficiency
To keep your margins steady through these fluctuations, you must prioritize high-operational flexibility.
Communicate Clearly: Ensure your team understands that dispatches must be adjusted based on anticipated volume.
Trust the History: Weather and external factors often make modern projections unreliable. Review your historical volume operating plans and last year’s data for your specific CSA to get the most accurate picture of how many dispatches to expect.
Avoid the "Lazy" Dispatch: It is tempting to reward your team for their hard work during peak by dispatching short days. However, this is a costly mistake that can actually cause you to lose more than you made during the peak season. Now is the time for premium planning and execution, not relaxed standards.
Turn Downtime into Opportunity
The post-peak period is the ideal time to stabilize your infrastructure and look for growth.
Fleet Maintenance: Take trucks with major issues out of the lineup and get them into the shop. Not only do you likely have the earnings from peak to cover these repairs, but reducing your fleet count during this time makes your remaining dispatches more productive and reduces the pressure to pay for rentals.
Expansion Potential: FedEx often analyzes which operations struggled or failed during the peak. Be prepared for opportunities to take over open work areas or parts of work areas as corrections are made.
Structural Improvements: The beginning of the year is the best time to make structural changes, such as adopting eTruckBiz IQ programs, to propel your business toward better results in the coming year.
