Truck Driver Shortages and Regional Third-Party Warehouses
Headline after headline highlights the current and impending doom of the nationwide driver shortage facing the trucking industry across the United States. Brad Jacobs, CEO of XPO Logistics, is building his company on the belief the “mother of all capacity crunches” is coming. The American Trucking Association points out, “Trucking employs a greater percentage of persons age 65 or older — 6.1 percent — than 20-24 year olds — 4.9 percent.” On a daily basis transportation managers struggle to find trucking and drayage capacity.
Technology-driven, non-asset based 3PL and transportation management providers are working to connect shippers with carriers who have available capacity. These efforts have clearly helped to “squeeze out” every iota of available capacity in the constrained trucking industry. But who do we – as a nationwide industry – turn to when there is no more capacity? What do we do when we have turned over every single couch cushion and there is no more “extra change” to find?
At Palisades Logistics, we believe in the value of partnering with strong, regionally-based public warehouse providers. Take States Logistics for example, one of the oldest, privately-owned public warehouse companies in California. States Logistics operates over 4 million square feet of contract and public warehouse space throughout California and Arizona. They run one of the most organized, public warehouses in California. Their docks are so clean you can practically eat off of them!
But the service that sets States Logistics apart from other public warehouse providers in California is the company fleet it operates out of its facilities. The fleet is comprised of company-owned trucks and trailers operated by employees on the payroll with States Logistics. By warehousing with States Logistics, you get access to their asset-based transportation services, which essentially alleviates issues caused by the growing driver shortage.
Miami Frozen Storage
Another company that utilizes a strong, regional 3PL-warehouse-provider model to support its company’s transportation business is Miami Frozen Storage. Miami Frozen Storage is a premier, privately-owned provider of frozen warehousing services in Miami, Florida. Miami can be considered a micro-market in which frozen warehousing services are specific to the consumer base in the greater Miami area. Additionally Miami requires support for the import activities associated with the port of Miami. These are two separate markets with distinctly different warehousing and transportation needs.
When a beneficial cargo owner (BCO)/shipper requires frozen warehouse and fulfillment services in Miami, they can have all of their inbound and outbound transportation needs met through the services and relationships offered by Miami Frozen Storage. Inbound drayage from the Port of Miami – covered. Outbound transportation to destinations within Florida – covered.
Shippers who require frozen warehousing services need not worry about the nationwide driver shortage and its effect in Miami. Miami Frozen Storage, through their local transportation relationships, can provide all necessary and required inbound and outbound frozen transportation services.
Certainly the truck driver shortage is a growing concern in the logistics industry; however, it does not have to be your concern. Palisades Logistics has established and nurtured business relationships with top-notch companies such as States Logistics and Miami Frozen Storage. The Palisades Logistics’ growing, regional network of partners affords the customers of Palisades Logistics a single source provider who has the resources ready to meet all your third-party logistics requirements whether they are local or regional in nature.