Freight Embargoes, What are They?
Freight embargoes are common in the logistics industry, and they’ve become more frequent in recent times as we recover from the COVID-19 pandemic and the demand for moving freight has drastically increased.
A Freight embargo is when a carrier stops accepting freight shipments from a specific geographic location or product category. Embargoes could last days, weeks, or months, depending on the event. Freight embargoes can happen to cargo moving over-the-road, by air, or by sea.
Why Do Carriers Set Them?
The answer to the above question is simple. Embargoes happen generally because carriers are over their capacity in certain markets and do not have the resources available to fulfill the demand resulting from peak shipping season, and limited access to certain locations, among others.
Other reasons to set an embargo could be unfavorable weather conditions. For example, airlines may place embargoes on the transportation of live animals during summertime due to the high temperatures in certain areas.
Embargoes are necessary for the carrier to recover control of their service and reduce risks of losing or damaging cargo due to excess beyond their capacity.
An interesting fact is that, contrary to other industries, freight embargoes are not imposed by any government or official agency but by the carriers themselves.
How to Manage Freight Embargoes
Freight embargoes can disrupt the supply chain and your business. it’s critical to work with a logistics provider like Promptus LLC who can help you find the carrier you need to get your shipments back on track. Promptus LLC can help you get through carrier embargoes by:
- Connecting you to a vast network of carriers and helping you find carriers that are servicing at the origin or destination of your shipment.
- Negotiating competitive rates to offset the cost of any delay in your shipment caused by an embargo.
- Plan routes and determine the best shipping option for your freight to ensure that it arrives on schedule.
- Help you plan and keep your shipment schedules on track by being proactive during changing delivery times.
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