Shippers Seek To Transfer US Inbound Freight from West Coast Ports to US Gulf Coast & East Coast Ports
Below are results from a great survey conducted and put out by the team at JOC. Full results and the subsequent article can be found at http://www.joc.com/maritime-news/trade-lanes/65-percent-shippers-surveyed-say-they%E2%80%99ll-divert-west-coast_20150225.html
Why does this affect Palisades Logistics and our key stakeholders – both 3rd Party Warehouse providers and buyers of warehousing services? In the first 60 days of 2015 – Palisades Logistics has seen a significant increase in the number of warehousing RFPs and requests for warehousing rates at our locations in the US Gulf Coast ports and US East Coast ports – specifically Savannah, Miami, Baltimore and New Jersey (Port Elizabeth).
The first step in the process of creating a 3rd party warehousing solution and a 3rd party warehousing rate quote for an inquiring buyer / shipper – is an in-depth and detailed discovery call with the buyer / shipper. 3rd party warehousing is not an “off-the-shelf product.” Rates are customized and specific to each buyer / shipper and their specific warehousing needs. This is the reason for the discovery stage and conversation that Palisades Logistics has with each inquiring buyer / shipper.
This discovery conversation touches all of the keys areas that determine warehousing pricing – how does product arrive at the warehouse, how is product packaged (determining how it can be stored) and what is the profile of an outbound order. With this information – Palisades Logistics can provide an inquiring mind with a rate quote for third party warehousing services.
Additionally – one of the key areas of discussion during the discovery conversation is “why are you (the buyer/shipper) seeking third party warehousing services?” Is this a new need and require a new distribution point? Maybe you are unhappy with your current provider and are seeking to make a change? The reasons for seeking a new 3rd party warehousing partner are many.
During this process – Palisades Logistics is able to take a consultative approach and speak with the buyer / shipper as a partner, rather than simply a service provider. Over the past 60 days – Palisades Logistics has picked up on the desire from shippers to transfer inbound product from the US West Coast ports to US Gulf Coast and US East Coast port locations due to the congestion and delays caused by the negotiations between the employers and ILWU. Credit and praise to the folks at the JOC for confirming Palisades Logistics hunch and daily conversations into practical research and industry trends!
If you are a buyer of third party warehousing and logistics services – and would be interested in exploring a 3rd party warehousing, distribution and fulfillment solution at a US Gulf Coast and/or US East Coast port location – please do not hesitate to contact the team at Palisades Logistics for a discovery conversation.
For more information about Palisades Logistics, please contact us at 908-200-7429 or via this website using our Contact Form.