In April 2023, we wrote about some of the common problems shippers faced heading into Q2 of this year. It highlighted how despite a 7% increase in container imports in March, shippers were still left with a significant volume of products in their warehouses due to slumping consumer spending amid rising U.S. economic inflation. With bloated inventories and continued uncertainty over the state of labor relations between the shipping lines and unionized U.S. West Coast dock workers, import volumes to the West Coast have seen a steep drop. East Coast volumes have also slumped. However, the enormous investment and strategic improvements pumped into East Coast ports to strengthen supply chains and modernize port terminals show the strategic nature that East Coast ports like Savannah, Ga., will play in the future. 

Shipping managers who work for U.S. companies and global manufacturers are probably familiar with Foreign-Trade Zones (FTZs). These facilities, which are under the supervision of the U.S. Customs and Border Protection (CBP), are located near ports of entry and are the U.S. equivalent of free-trade zones. FTZs were created during The Great Depression, under the 1934 Foreign-Trade Zones Act, which was designed to help protect U.S. business interests who suffered immensely from the collapse in foreign trade. FTZs facilitate the controlled movement of foreign and domestic commodities in and out of the United States. And since the 1930s, U.S. companies who import or export goods have received protections from FTZs in the form of trade exemptions like reduced taxes, fees, and custom duties. 

Shipping managers know how important reliable transloading and warehouse services are to maintaining the integrity of their supply chains. These facilities are critical infrastructures that shippers and transportation service providers use every day to help connect global manufacturers to their customers. We already wrote about the different kinds of 3PL warehouse and distribution services available for shippers. We described some of the value-added services that shippers should look for when partnering with a transportation provider that owns its facilities.

The logistics industry is currently experiencing a critical shortage of workers in positions within warehouses and distribution centers. Across North America, openings for material handlers and forklift operators remain vacant. The lack of personnel at these facilities delays loading and unloading times, contributes to accessorial fees like detention and demurrage, and causes supply chain disruptions that, ultimately, create tensions among carrier partners and customers. A recent report released by the Robotics Business Review shows that across the logistics industry, the vast majority of warehouses are short more than 10-25% of personnel and are finding it difficult to fill and retain workers in these positions. Economic inflation does not help either, and is probably a major factor why these jobs remain unfilled as workers everywhere seek higher-paying jobs that are less physically demanding. 

Shippers are moving into Q2 2023 of the logistics calendar with a bit of uncertainty. On the one hand, a recent FreightWaves report shows that the U.S. imported almost 7% more containerized freight in March than the month before. On the other hand, shippers find it problematic that their inventory levels are still relatively high due to stagnant domestic sales fueled by ongoing economic inflation. The ratcheting of belts by U.S. consumers means it's less likely they will have the extra purchasing power to buy nonessential items. The increased container freight from last March was not equally distributed among North American ports. In fact, East Coast shipping terminals actually experienced a loss of container volume in U.S. ports like Charleston and Savannah. These ports are strategically important for a number of reasons. The drop in volume in the short term is most likely temporary when considering the long-term investment that has poured into East Coast ports in the past few years. Last month, we wrote about the concerns of a market slowdown on the horizon and how the long-term forecast looked pretty good for places like the Port of Savannah. 

In a quote attributed to Ray Kroc, the founder of McDonald's once said that “when you’re green you’re growing, when you’re ripe you rot.” 

Third party logistics providers (3PLs) play a crucial role in managing the operations and arranging the transportation for tens of thousands of shippers,freight forwarders, and major manufacturers found globally. According to a recent market report published last week, in 2022, the total 3PL market in the United States was estimated at over $230 billion; that same study forecasts the freight business to reach a market size of $488 billion by 2030. These numbers are staggering and indicate just how important  transportation service providers are in connecting global consumers to the essential and non-essential goods that we all desire on an everyday basis. But not all 3PLs are the same, of course. Most freight brokerages are simply a rate and a truck, and fingers crossed they actually have a truck in hand that doesn’t have a ton of freightguards and a poor service record.

South Carolina’s Ports set a record for shipping volume in 2022, handling more than 2.8 million TEUs in a single year! According to data from the U.S. Census Bureau, The Port of Charleston, is ranked the sixth largest seaport terminals in the United States, handling over $72bn worth of imports and exports. As one of the busiest ports in the world, The Port of Charleston plays a significant role for shippers large and small who depend on this valuable terminal to connect their products to global markets and consumers. This article calls attention to the Port of Charleston providing companies with information about its overall significance, and what  the future holds for this crucial shipping terminal.

According to the Savannah Chamber of Commerce, in 2022, the Port of Savannah stood as the largest container terminal in the entire Western Hemisphere. Over 5.8 million TEUs passed through the ports, an increase of over 8% volume from the previous year. This whopping total, which represented almost 22% of all container trade along the U.S. East Coast, also equaled 12% of all U.S. containerized shipments in 2022. One of the largest Port of Savannah drayage providers that works the Savannah ports is Port City Logistics, handling over 90,000 containers in 2022 alone, or about 246 containers per day on average. 

The automotive industry has probably one of the most elaborate and complex supply chains on the planet. Just stop and think about all the different components that go into the manufacturing of a vehicle: metals, plastics, semiconductors, tires, batteries, light bulbs, and speakers; brake systems, engine components, safety features, cooling units, gas tanks, exhaust systems, and everything else that goes into a car. All of this is sourced by literally thousands of companies that make up the various tiers within automotive production. Many of these materials are manufactured overseas or cross-border in cities across Mexico and Canada. And when the vehicles are finally assembled, they are transported elsewhere for various consumers across the globe.