Impact-O-Graph keeps getting more and more customers asking “why are we experiencing damage to our shipments now?” Some individuals have said to us that their packaging was designed extremely well and they rarely saw any problems with damage in the past so why is damage happening now they ask. What is going on?
So why are companies seeing an increase in damage to their goods in transit? We keep hearing this question so much, we decided to investigate this problem and share our findings.
Increase in Damaged Shipments – Causes to the Recent Surge in Shipping Damage
- Tremendous growth in e-commerce equals higher growth in parcel shipments. The parcel shipment trend shows a 17-28% increase projection per year from 2019 forward based on Parcel Shipping index reports. In addition, the pandemic has altered purchasing habits contributing to higher-than-normal demand online resulting in more parcel shipments. The unprecedented volume in shipments creates an increased opportunity for damage. Ordering online is here to stay and will keep growing.
- The increased parcel shipment volume puts greater strain on carrier employees to get shipments moved and delivered on-time. The never-ending need for speed to deliver can, in some cases, cause negative behavior in personnel. This results in handlers throwing boxes when loading or unloading trucks to speed up the process. Also, the lack of carriers finding adequate number of employees to support handling puts even greater pressure on the existing employees. Rougher handling caused by tossing boxes and dropping shipments will contribute to damaged goods.
- Cross-docking is a newer trend that helps get products to customers faster. However, it requires unloading inbound freight from one truck to another truck, or holding it in a warehouse or terminal for a very short period of time then loading the package onto another truck for outbound The result is increased handling and potential risk for damage.
- Impact-O-Graph visited a local distribution and sorting facility of a leading parcel carrier to see first-hand how parcel shipments are handled. The newer facility is a super-sized high speed automated distribution center – overwhelmingly big. The conveyors carrying parcels are three to five stories high moving goods at high rates of speed. Nearly all handling is performed at the loading docks for loading and unloading. The important takeaway here is the conveyor heights that have increased in these facilities. The unfortunate boxes falling from these substantially increased heights will most certainly be damaged.
- Improved automation technology allows for increased conveyor speeds to get parcels sorted faster for loading on delivery trucks for rapid delivery. This is great for customers getting their goods quickly but damage can happen. Jams can occur with high-speed conveyors, crushing boxes and falls will happen. The technology is great but the high speeds will eventually cause damage to some shipments.
- Acknowledge the End of the Freight Recession: The freight industry is gradually emerging from the recession that began in late 2022. While there are promising signs of recovery, challenges still loom. Shippers must remain agile, adjusting their strategies to navigate fluctuating demand, evolving market conditions, and persistent operational pressures. Now is the time to reassess logistics approaches, strengthen partnerships, and explore innovative solutions to stay competitive in a still-recovering market.
- Discuss the New Freight-Class System: A new freight-class system is being introduced to bring more transparency and accuracy to shipping costs. By aligning pricing more closely with cargo characteristics, such as density, stowability, handling, and liability, this system offers the potential for significant cost savings. Shippers who take the time to understand and integrate these changes into their logistics strategies can optimize shipping expenses and enhance overall supply chain efficiency.
- Address workforce shortages: Workforce shortages remain a critical challenge in the shipping industry, creating a ripple effect on operational efficiency and product integrity. As businesses struggle to maintain staffing levels, existing employees face increased workloads and pressure, which can contribute to higher risks of handling errors and potential damage to goods. Addressing this issue involves not only recruiting new talent but also investing in employee training, enhancing workplace safety measures, and leveraging automation technologies to reduce the strain on human resources.
- Highlight specific shipping routes: Expand on how conditions on major shipping routes, such as the Asia-Europe Mainline, Trans-Atlantic Route, and South Atlantic Route, may contribute to increased damage3. For example, increased congestion at key ports or geopolitical risks could impact handling and care.
What Can You Do? Navigating Modern Shipping Challenges: Expert Tips for 2025
As the global shipping landscape continues to evolve, businesses need to stay ahead of trends, technologies, and regulatory changes to maintain efficient and cost-effective operations. Here are some updated insights to help you navigate the complex world of logistics and shipping in 2025.
1. Embrace Sustainable Shipping Options
Sustainability is not just a trend—it’s becoming a standard in shipping practices. One innovative approach gaining traction is the use of wind-powered vessels, particularly on transatlantic routes. These eco-friendly initiatives can significantly reduce carbon footprints and align your business with global sustainability goals. Exploring such options could enhance your brand’s reputation while contributing to a greener planet.
2. Leverage AI and Blockchain Technologies
Efficiency and transparency are critical in modern supply chains. Implementing AI-driven route optimization can minimize transit times and reduce fuel consumption. Additionally, blockchain technology offers a secure and transparent method for tracking goods throughout the supply chain, providing stakeholders with real-time insights and minimizing the risk of disruptions.
3. Stay Ahead of Regulatory Changes
The shipping industry is facing increasing regulatory pressures, from stricter emissions standards to potential tariff adjustments. Staying informed about these changes is essential. Preparing in advance can help businesses adapt their strategies, avoid compliance issues, and mitigate the impact of potential cost increases.
4. Anticipate Rising Operational Costs
Rising fuel prices and the expenses associated with environmental compliance can squeeze profit margins. Businesses should proactively factor these costs into their financial planning and explore ways to optimize logistics, such as consolidating shipments or negotiating better rates with carriers.
5. Prepare for Seasonal Disruptions
Seasonal weather conditions can pose significant operational challenges, from port delays to disrupted shipping routes. Keeping an eye on seasonal forecasts and building flexibility into your logistics planning can help mitigate risks and ensure smoother operations during peak seasons.
6. Re-evaluate Packaging Solutions
The journey from origin to destination can be rough on goods. Re-examining your packaging to ensure it can withstand harsher handling during transit is crucial. Durable, eco-friendly packaging not only protects your products but also aligns with sustainability efforts, offering a dual advantage.
7. Integrate Monitoring Devices for Enhanced Visibility
Using advanced monitoring devices, such as impact sensors and temperature trackers, can provide valuable insights into the condition of your shipments. These technologies help detect issues early, allowing for quick responses to prevent damage and maintain product quality upon delivery.
Good to know
- If you don’t already know what the threshold for damage is for a specific product, it would be a good idea to determine what g force causes damage. To understand more about this, read here about g force and download our report on how to determine sensitivity.
- If you are working with one specific carrier and have not visited your local distribution facility, it would be worthwhile to schedule a visit. You can discuss your damage issue with the manager of the facility to see if there is any support the carrier can provide.
- Last, not least; monitor your shipments. Determine the best indicator to monitor your shipment and include a warning label that your shipment is being monitored. The handler will think twice before throwing the box. Read the benefits to monitoring your shipments and using impact indicators.
Conclusion
Rapid changes in the supply chain mean businesses need to adapt their methods if increased shipping damage is occurring. Changes in distribution facilities and methods of handling will also evolve that may contribute or hopefully reduce damage to your shipments. Monitoring your product with an impact indicator works. Talk with one of our friendly and knowledgeable advisors to find out more.
