Agriculture industry: 7 key logistics challenges and digital solutions for agri shippers

Without the right strategies, these logistics hurdles can result in missed opportunities and substantial financial losses. However, digital tools tailored specifically for the agricultural sector can mitigate these risks and offer a competitive edge. Below, we explore seven critical logistics challenges faced by agricultural shippers and how CargoON’s dedicated solutions can help manage them effectively.

1. Seasonal demand variations

Agriculture is inherently seasonal, and this seasonality often results in sharp spikes in transportation demand during key periods, such as harvest time. These seasonal fluctuations place enormous pressure on shippers, who must scramble to secure transportation capacity when it’s needed most. During off-peak seasons, on the other hand, shippers may face underutilization of resources, leading to inefficiencies and increased operational costs. Balancing these demand swings is crucial, but achieving this without the right tools can result in delays, higher costs, and missed deliveries.

Solution: CargoON helps shippers address these challenges by offering access to a wide network of carriers. By leveraging real-time visibility of carrier availability, the platform allows shippers to secure transportation capacity during peak demand periods. Additionally, CargoON’s access to spot market options ensures that shippers can quickly find carriers when seasonal demand surges, preventing bottlenecks and costly delays. By enabling better planning and real-time adjustments, shippers can more effectively balance seasonal fluctuations and maintain smooth logistics operations throughout the year.

2.Perishable goods management

Perishable agricultural products, such as fruits, vegetables, and dairy, are highly sensitive to delays. Poor timing in the logistics chain can lead to spoilage, quality degradation, and ultimately financial losses for shippers. Transporting these goods requires precise coordination, temperature-controlled vehicles, and prompt handling at each stage of the supply chain. When perishable goods sit too long at a dock or are delayed en route, the consequences can be severe.

Solution: CargoON’s Dock Scheduler optimizes loading and unloading times, ensuring that perishable goods move through the logistics chain as quickly as possible. This tool reduces wait times at both loading points and delivery destinations, minimizing the risk of spoilage. For refrigerated trucks, where every minute counts, the dock scheduler ensures that goods are handled promptly and efficiently, improving overall coordination between shippers, carriers, and receivers. This optimization directly enhances the on-time delivery performance, critical for maintaining product quality and meeting customer expectations.

3. Lack of carrier availability during peak times

The agricultural sector relies heavily on specialized vehicles, particularly during high-demand periods such as the harvest season. Unfortunately, there is often a shortage of these vehicles, including refrigerated trucks and bulk carriers, during peak times. This scarcity can lead to delays, missed delivery slots, and increased transportation costs, especially when perishable or time-sensitive goods are involved.

Solution: CargoON provides an answer to this challenge through its expansive carrier network, which includes specialized vehicles tailored to the needs of the agricultural sector. Shippers can also utilize CargoON’s multifreight management feature, allowing them to group multiple shipments into a single offer. This feature increases the likelihood of securing carriers during peak periods by providing them with more flexible options to take on available loads. Shippers can also rely on spot market availability to ensure they meet transportation requirements during critical high-demand periods, ensuring timely and efficient deliveries​.

4. Inefficient resource allocation

One of the recurring issues in agricultural logistics is inefficient resource allocation. Due to the unpredictable nature of demand and fluctuating volumes, shippers may experience periods of underutilization or bottlenecks, where resources are either wasted or insufficient to handle sudden spikes in volume. These inefficiencies lead to higher operational costs, delayed deliveries, and strained relationships with clients.

Solution: CargoON’s comprehensive Reports and Dashboard tools provide detailed insights into transportation performance and resource utilization, enabling shippers to better allocate labor, equipment, and vehicles in real-time. By analyzing historical and real-time data, shippers can anticipate demand fluctuations and adjust resource deployment accordingly. This helps reduce idle time, improve operational efficiency, and optimize the use of vehicles and labor, resulting in more streamlined logistics operations and lower costs. By providing clear visibility into resource allocation, CargoON ensures that shippers are always equipped to handle demand without unnecessary waste​.

5. Meeting tight delivery slots

In agricultural logistics, timeliness is not just a matter of efficiency but of necessity, particularly when dealing with seasonal or perishable products. Delays in delivery can compromise product quality, reduce market value, or even render goods unsellable. Maintaining strict control over delivery times is crucial to ensuring the success of agricultural shipments, as a delay of even a few hours can result in significant financial losses, especially when dealing with fresh produce or other time-sensitive goods.

Solution: CargoON’s Transit Time feature offers precise control over delivery schedules by allowing shippers to define specific timeframes for each freight order. This ensures that all parties are aware of the maximum allowable transit times, which minimizes the risk of delays and helps maintain punctuality. By tracking shipments in real-time and setting clear delivery expectations, CargoON enables shippers to plan more effectively and reduce the likelihood of late deliveries. This feature is particularly valuable for agricultural shippers handling perishable goods, where every hour of delay can impact product quality and sales​.

6. Unclear or inaccurate cost calculations

In the bulk agricultural materials sector, traditional payment structures based on estimated weight can result in discrepancies between the shipped and actual weight. This lack of precision often leads to disputes or inefficiencies in cost management, especially when transporting large volumes of commodities such as grains, seeds, or fertilizers.

Solution: CargoON offers a payment per ton solution, which ensures that shippers and transport companies pay based on the actual weight of the goods transported, rather than estimates. This provides greater transparency and accuracy in invoicing, allowing shippers to manage their budgets more effectively and avoid costly discrepancies. With a clearer understanding of transport costs based on real data, shippers can also negotiate better rates and optimize their overall logistics spend.

7. Ensuring vehicle suitability and cleanliness

Agricultural logistics require strict adherence to hygiene and regulatory standards, especially when transporting products like feed or food-related goods. The wrong type of vehicle or inadequate cleanliness can lead to contamination, spoilage, or even legal penalties, making it crucial for shippers to have a clear understanding of vehicle specifications and cleanliness requirements.

Solution: CargoON provides a vehicle specification feature that allows shippers to set precise requirements regarding the type of vehicle needed, such as steel or aluminum tippers. Additionally, shippers can specify cleanliness standards and certifications (e.g., Qualimat, TASCC) to ensure compliance with industry regulations. For shippers transporting sensitive goods, like feed or grain, CargoON also supports the definition of IDTF codes and cleaning standards for trailers, ensuring that vehicles meet the necessary hygiene requirements. This reduces the risk of contamination and ensures that all legal and quality standards are met during transport.

Final thoughts

Agricultural logistics present a unique set of challenges that require careful coordination and advanced planning to overcome. From seasonal demand spikes to the need for precise control over delivery times, shippers must navigate a complex and dynamic environment. 

CargoON’s suite of digital solutions – including multifreight management, dock scheduling, payment per ton, and Transit Time – provides shippers with the tools they need to optimize resource allocation, improve delivery punctuality, and streamline operations. By adopting these digital solutions, agricultural businesses can mitigate logistical risks, reduce costs, and enhance the overall efficiency of their supply chains.