The Big Three: Breaking Down the Top Challenges in Food Manufacturing

adam • June 16, 2023

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The Big Three: Breaking Down the Top Challenges in Food Manufacturing

In 2021 the US food and beverage market was worth over $5,815 billion. With so much food being consumed annually, it’s vital to understand the top challenges in food manufacturing and how the best 3PL partner can help food manufacturers address challenges and ensure sustained growth.

The Top Challenges in Food Manufacturing

Food manufacturing has its own set of unique challenges. Our food supply chains are long and complex, with many weak points where delays can build up. Furthermore, labor shortages and a lack of trained truck drivers affect logistics and slow deliveries. The wait for manufacturing or delivery could spell spoilage for perishable food items, so it’s essential to identify the major slowdowns and how we can overcome them.

1: Supply Chain Complexity & Specialization

Our food supply chains are already highly complex, even before delays or issues. From growers to packers to shippers and retailers, multiple stakeholders are almost always involved in each supply chain. The complexity of food supply chains means challenges associated with managing inventory, preparing logistics, and coordinating orders.

As such, it’s essential that each stakeholder plans ahead and prepares for contingencies. In times of high demand, having streamlined supply chain solutions can improve efficiency and reduce costs. The ability to deliver highly-desired goods to stores when competitors cannot sets your business apart from others and builds customer loyalty.

Even as the supply chain is very complex, it’s also highly specialized, with a small number of actors producing the majority of many staples. The war in Ukraine is one instance where supply chain consolidation affected the industry. Ukraine is a top producer of grains and oilseeds globally. In 2022, Ukraine was the biggest global exporter of sunflower oil and meal and No. 3 for grapeseed oil. With the outbreak of the war, supply chains globally were affected by a shortage of sunflower oil, deepening food crises in East Africa and affecting food production with oil globally. Just as it's vital to have a broad foundation of carriers to meet varying capacity demand, building robust and resilient supply chains will include diversifying the sources of our ingredients.

2: The Ongoing Labor Shortage

The ongoing labor shortage in food manufacturing and logistics is a pressing problem for the food industry. More than 130,000 positions in food manufacturing were vacant in 2021. Furthermore, the trucking industry reported an 80,000 trucker shortage and projected that figure may rise to 160,000 by 2030.

Food manufacturers are facing severe employee shortages. This is affecting production and slowing down manufacturing lines. Each manufacturer is approaching scarcity differently, but many are turning to time-proven tactics, including:

Increasing pay or benefits.
Training and promoting internally.
Improving working conditions with more amenities and flexibility.

Labor strikes also play a role in decreased production and logistics. Work stops and production or logistics get backed up as laborers strike for changes in conditions or pay. These delays can compound across ports, factories and shipping routes.

The biggest challenge with many job vacancies is maintaining adequate capacity. Food producers struggle to meet production demand without enough workers, and a lack of truck drivers means goods sit longer before they are transported.

For the logistics industry, labor shortages remain top of mind, and as a result, logistics leaders are looking towards automation to address long-term labor shortages. In addition to technological advancements, a large portion of logistics and production industry companies are looking to increase environmental standards and reduce their footprint through smarter tech.

3: Demand Fluctuations and Seasonality

On top of supply chain complexity and the labor crunch, regular seasonal fluctuations in demand can impact capacity. Many consumer preferences, especially for food items, change seasonally; thus, demand fluctuates. Additionally, non-seasonal occurrences such as oncoming storms or hot weather can also impact demand for items such as bread, eggs, or ice cream.

These changes in demand pose additional challenges for manufacturers since they need to predict expected demand and adjust manufacturing and shipping to meet these desires. Proper demand forecasting involves carefully monitoring inventory levels and using industry forecasting reports and software, such as consumer or market reports.

But the most essential tool for aptly managing demand changes is flexibility. Flexible production processes and an adaptive supply chain means companies are more able to increase or reduce production to meet changing tastes, and it means that they’ll be able to provide the desired products faster than their competitors, gaining market share and building customer loyalty.

In addition to a proactive manufacturing arm, a good food supply chain also requires adaptive and efficient trucking. Without the trucks and drivers to move desired items to retailers, it doesn’t matter how adaptive your manufacturing capacities are; the items still won’t arrive at their destination on time. To meet end demand, you need a strong connection with a 3PL provider who has the capacity to respond to your needs and find reliable truckers to transport your goods.

In a Challenging Industry, It’s All About Who You Know

Food supply chain professionals facing these challenges often struggle to succeed. Finding the right 3PL specialized in food manufacturing can make all the difference. Entourage Freight Solutions (EFS) is here to support your needs. Its expert team of logistics professionals can minimize complexity, improve reliability, and help you grow sustainably.

Addressing Key Challenges

With the right provider, you can simplify complex food supply chains through technology that makes your shipments traceable and live. Utilize your provider’s deep expertise to solve problems in real time and ensure that your deliveries arrive on time.

A 3PL partner can also address labor shortages and strikes by tapping into their deep network of carriers. If your usual carrier does not have the capacity to transport, be assured that a 3PL like EFS can connect you with a network of other carriers capable of meeting your specific needs. This can even include last-minute and expedited shipments. If something happens to your initial carrier and they miss a pickup or have a breakdown, EFS can help you find a solution that delivers your goods on time and in top condition.

A 3PL provider like EFS can also support you with their suite of technologies for planning shipments and meeting demand. Its vast network of reliable carriers means that, no matter the demand or shipping speed, it’ll be able to match you with a dependable carrier that can meet your needs. Use EFS to ensure reliable capacity in a dynamic industry.

Accessing Additional Services

Working with a strong 3PL provider like EFS is about more than just avoiding the biggest slowdowns in logistics; it’s about enhancing the quality of your shipping and improving the end result. Experts at a 3PL can help with kitting, quick-freezing, packing, and more.

At EFS, their food manufacturing team can offer pre-shipment services that ensure the quality of your items. They can individually quick-freeze products to ensure food arrives in the best condition without affecting quality. They can also kit products into individual components according to your specifications to ensure clients can easily assemble and enjoy your products.

For all your products, EFS offers tracking and tracing services throughout the food manufacturing process to ensure that food remains fresh and uncontaminated. This tracing also creates an unchangeable record that will prove your diligence and protect consumers from any issues.

Use EFS For Easier Food Manufacturing Logistics

The food manufacturing supply chain may be complex, but shipping your goods can be easy with a 3PL partner like EFS. Complexity in the supply chain, labor shortages, and demand fluctuations are all food manufacturing challenges that EFS can help you address. Whether you need expedited shipping, kitting, or more reliable capacity, EFS can help you build a reliable, scalable food supply chain. Contact Entourage Freight Solutions today for a quote.

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Tariffs, Trade Policy, and the Great Freight Fallout

By Nick Terry • April 28, 2025

In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.