Most of us over the age of 25 can remember when the World Wide Web made its debut. We remember the “beep-boop” sound of dial-up and the big chunky computers that were as wide as a television set in the 1990’s. It’s been almost 30 years since the dawn of the Internet. It’s mystifying to look at the impact it still has on our everyday lives. Because of the Internet, e-commerce was born, and the need for flatbed shipping has increased. 

The Beginning of ECommerce

Over time, ecommerce has taken the baton from traditional brick-and-mortar stores, leaving many big-box store retailers high and dry. Since Amazon Prime’s arrival in 2005, online shopping has exploded in the marketplace. The ease and convenience of it have forced many retailers to develop a strong online presence or risk closing their doors for good.

COVID-19 Creates Rapid Growth

Due to health concerns and social distancing practices, COVID-19 rapidly escalated the use of ecommerce. Total online spending in May 2020 was up 77 percent year-over-year (YOY), according to a report on online spending released in June by Adobe. In that report, Vivek Pandya, Adobe’s Digital Insights Manager, states that it would have typically taken 4-6 years to see the level of growth in online shopping that was seen then. Contactless online ordering helped individuals attempt to limit their exposure to the virus by shopping from home, so it’s easy to see why those reported numbers were so high. 

Since the pandemic, the changes in the ways consumers shop have remained. While in-person shopping has increased compared to then, it still lacks in the amount of foot traffic that was received previously. Consumers continue to like the ease of online shopping, and with fewer in-person shoppers, companies are investing less in their brick-and-mortar locations, which has only made people less likely to want to shop in person. In fact, it’s estimated that 40,000 to 50,000 retail stores will close in the next five years, according to the UBS investment bank.

Ecommerce continues to experience growth, with 22 percent of retail sales being online in 2023, the largest U.S. ecommerce sales percentage to date, according to the U.S. Department of Commerce. As e-commerce growth carries on, it’s created a growing need for companies to expand their inventory and improve their ability to distribute their products. What used to be a problem of “too much” storage space for companies before the pandemic has quickly turned into a necessity in today’s time. 

The Need for Storage Space

As online distributors continue to see growth, their need for storage space has grown as well. Prior to Covid-19, one or two warehouses could keep a medium-sized company running efficiently. Now, more space is needed to keep up with the increasing demand of companies. Having more than one distribution center can be a huge benefit to a company’s ability to stay successful these days.

This all trickles down to the construction industry. As demand grows for new or renovated warehousing, the need for building materials to meet that demand has also increased.

How ECommerce Growth Affects Flatbed Shipping

Flatbed shipping has always been a leading mode of transportation for industrial freight. Lumber, stone, racking, and other building materials travel best on an open trailer due to their odd dimensions and additional weight requirements.

Looking for an extensive guide to keep on hand for your over-dimensional shipping?

Usually, flatbed shipping sees an increase in volume in the summer months. Construction companies take advantage of the warmer weather, which is most suitable for outdoor construction work. During this peak shipping flatbed season, it’s not unusual to see tightened capacity and higher freight rates, but any added demand for warehousing can add to that, making securing a flatbed carrier more difficult.

Strong Relationships Help

Having a relationship with a third-party logistics company (3PL can be a benefit to those who coordinate freight to be delivered to a job site. Typically, job site freight is very hands-on and has a perpetual knack for being time-sensitive. Installation crews are on-site to receive and install the material scheduled to be delivered. Even the slightest delay can cause significant ramifications to the completion of the construction project. Having a strong relationship with a 3PL can help companies mitigate risk, reduce costs, and provide peace of mind to those who are coordinating the freight.

Be Ready for Anything

It appears online shopping is here for the long-haul and whether it’s causing you to expand your warehousing or not a 3PL like Trinity Logistics can help you be prepared for any changes that may come your way. With Trinity, you’ll gain a Team of experts that can help you optimize your supply chain and arrange shipping for various of transportation modes, including flatbed, while offering end-to-end visibility of your shipments. No matter what changes the future brings, you can stay one step ahead when you choose to have Trinity Logistics by your side.

The food and beverage industry has faced significant challenges and growth over the past couple of years. After several unpredictable years, many hope we’ll see more stability back in the industry. So, what’s currently affecting the food and beverage sectors? In this blog, we’re going to dive into some of the latest trends in the food and beverage industry.

TRENDS IN THE FOOD AND BEVERAGE INDUSTRY

CONTINUED COLD CHAIN GROWTH

SUSTAINABILITY

LABOR SHORTAGES

CONSUMERS ARE MORE COMPLEX

SUPPLY CHAIN TRANSPARENCY

INCREASED COFFEE PRICES

ARTIFICIAL INTELLIGENCE

LIMITED TEMPERATURE CONTROL SHORTAGE

CONTINUED COLD CHAIN GROWTH

One of the well-known trends in the food and beverage industry is the continued growth of cold chains. Recently, a Grand View Research study shows that the cold chain market was estimated at USD 233.2 billion in 2022. Furthermore, it’s estimated to grow at a Compound Annual Growth Rate (CAGR) of 18.6 percent from 2023 to 2030.

Recently, there’s been an increased demand for temperature-sensitive drugs (think covid vaccines and biologics), rising demand for better food quality, a surging need to reduce food waste, and growing demand for generic drugs. All this is anticipated to drive the market’s growth. 

In light of the pandemic, the risks of COVID-19 have made consumers more interested in healthier, less processed foods that will boost their immune systems. However, less processed foods mean more food products that will need temperature control.

Shipping temperature-sensitive items? Check out our Temperature Shipping Guide for temperature suggestions.

Additionally, the frozen food sector looks to be growing. Besides filling home freezers, frozen foods are growing in restaurants. Restaurants are also providing new menu items for the frozen grocery aisle. In an American Frozen Food Institute report, 72 percent of frozen food consumers said they combine frozen and fresh ingredients in their meals.

Comparatively, shippers are also using more cold chain services to preserve the shelf life of their products, even when temperature-controlled transportation isn’t needed.

SUSTAINABILITY

Growing climate issues are making sustainability a common trend in almost all industries. However, food waste is a major contributor to greenhouse gas emissions globally, contributing to cold chain issues. This makes sustainability one of the top trends in the food and beverage industry.

In fact, an S&P Global Ratings report says food waste contributes to 10 percent of emissions and that $1 trillion of food is wasted each year. Similarly, according to the U.S. Environmental Protection Agency (EPA), between 73 to 152 million metric tons of food get wasted each year in the U.S. The most wasted foods are fruits and vegetables, followed by dairy and eggs, with over half of all waste occurring in households and restaurants. In addition, the food processing sector generates 34 million metric tons of food waste per year. And over the past decade, the total U.S. food waste has increased by 12 percent to 14 percent.

To put it differently, the EPA said halving food waste in the U.S. would save 3.2 trillion gallons of water, 640 million pounds of fertilizer, 262 billion kilowatt-hours of energy, and 92 million metric ton equivalents of carbon dioxide. According to the Agency, reducing the waste of meats, cereals, and fresh fruits and vegetables would have the most significant impact.

Due to this growing issue, governments and businesses have been working hard to improve sustainability efforts. In July 2021, the Zero Food Waste Act was introduced to provide grants to businesses that significantly reduce their food waste. Additionally, in November 2021, the Food Donation Improvement Act was introduced to lower food waste by making it easier for companies to donate food instead of throwing it out.

Cold chain improvements have seen growing importance even outside the food and beverage industry. One example is UPS Healthcare developing a system and opening facilities to move medicines safely. Part of their plan includes using reusable cold chain packaging. In addition, Amazon is working on insulation packaging to reduce material waste and replace 735,000 pounds of plastic film, 3.15 million pounds of cotton fiber, and 15 million pounds of non-recyclable plastic.

LABOR SHORTAGES

Labor shortages are common among other industries, making this another relatable trend in the food and beverage industry. As a result, hiring workers in the U.S. is becoming near impossible. According to a recent U.S. Bureau of Labor Statistics’ report, 750,000 jobs are unfilled in the manufacturing sector, despite unemployment being at historically low levels. This echoes Deloitte’s prediction that 2.1 million manufacturing jobs will remain unfilled in the U.S. by 2030.

For this reason, advanced technology can help remove some redundant tasks and help supplement amidst labor shortages. Relying on older technologies and manual processes will only grow current challenges for food manufacturers.

CONSUMERS ARE MORE COMPLEX

Over the years, consumers and their choices in food and beverage and their preferred shopping habits, have become more complex. Because of this, there is a greater assortment of products than ever, with more items requiring temperature control as consumers move away from processed foods and look for fresher, healthier items. Consequently, the supply chain for grocery continues to evolve as the message from consumers is clear. They want what they want, when they want it, where they want it, and expect businesses to respond to their demands.

In speaking to consumer shopping preferences, it looks like online grocery shopping, food delivery, and food subscription boxes are here to stay. Many consumers prefer the option to receive food and beverage products at their door. For instance, a recent Forbes article shared that 60 percent of consumers now order delivery or pickup at least once a week, with takeout predicted to rise to 21 percent of restaurant industry sales by 2025. Additionally, it was shared that 73 percent of consumers recently bought groceries online.

Additionally, inflation and rising costs for everyday items, including food and beverages, have consumers rethinking what they buy. Not only are increased prices having consumers rethink how much they buy, but what they buy. For example, a recent study showed categories such as meat, poultry, eggs, and dairy with significant spending declines in 2022 as consumers sought more shelf-stable and affordable items. Private-label brands will continue to see growth as shoppers look to save money whenever possible.

supply chain transparency

Consumers are also becoming more interested in knowing where the products they buy come from. Products with long lists of ingredients are now turnoffs and more natural, less processed food items are what they seek. A study by ADM Outside Voice research found that nearly 70 percent of consumers surveyed looking for food products that have a short, recognizable list of ingredients.

Besides the ingredients list, more consumers also want to know how they products they buy were manufactured. They’re looking for companies who show concern to how their manufacturing affects the planet’s life span and how their product is raised or grown. Consumers want to feel like the products they choose to buy will make a difference.

INCREASED COFFEE PRICES

Recently, coffee prices have reached a 10-year high, with analysts expecting tightness in the market to continue. Currently, the commodity has seen its value surge more than 80 percent this year.

Outside of global inflation, the main blame for the coffee spike falls on the severe drought and unusual frost conditions in Brazil, the world’s largest supplier of coffee beans. This extreme weather has threatened the coffee supply and set off alarm bells in financial markets.

The last time coffee prices rose and hit their highest was in 2011. Brazil faced similar issues that year in growing its coffee crop. Alongside the bad weather faced this year, global supply constraints have had an impact on the coffee market too.

Coffee inflation is the latest example of how extreme weather creates additional nightmares for farmers and makes food more expensive every day. 

ARTIFICIAL INTELLIGENCE

Artificial intelligence (AI) is a buzzword across all industries, but how could it affect food and beverage? One way is through providing clearer insights into shopper preferences, helping companies better market to them to grow brand loyalty. It can help with supply chain optimization, helping businesses better understand consumer demand and optimize production planning and management, reduce overstocking, and minimize waste. Some companies, like Campbell Soup Co., are using AI to help with product development, tracking data and discovering what its customers want next.

The uses for AI in the food and beverage industry is extensive and it will be interesting to see how companies make the most use of it.

LIMITED TEMPERATURE-CONTROLLED STORAGE

The demand for refrigerated warehouses is soaring, but it’s getting harder to both find and build more of them. Temperature-controlled storage is critical to many sectors, from grocery to pharmaceutical companies. The growing demand for cold storage facilities comes from the need to stock temperature-controlled pharmaceuticals like Covid vaccines, and companies that need those warehouses for other perishable goods. Because of this, the total capacity of refrigerated warehouses worldwide increased by 16.7 percent from 2018 to 2020.  By 2025, it’s estimated to reach 627.5 billion.

Likewise, by 2027, cold storage construction is projected to reach $18.6 billion in value, or an increase of 14 percent per year. Yet, the effort to build new temperature-controlled storage is being held back by rising costs and material shortages. Notably, the pandemic’s impact on cold chain storage cannot be understated. In the U.S. alone, facilities are running at a maximum capacity, according to JLL. Consequently, new construction is usually favored to support demand, but given the shortages and complexity of temperate-controlled storage facilities, many developers are looking at easier projects that need fewer materials, such as adding floors to existing facilities.

STAY AHEAD OF TRENDS IN THE FOOD & BEVERAGE INDUSTRY

No matter the trends in the food and beverage industry, having a logistics resource, consultant, or expert is one way to stay ahead. Whatever phrase you want to use but ultimately, have support on your side for any complex situation. This is where a third-party logistics company (3PL), such as Trinity Logistics, can come in. We can help you find creative solutions to your logistics challenges.

Trinity Logistics has been serving cold chains for 40-plus years, in addition to our parent company, Burris Logistics, that was built on its expertise of handling temperature-controlled commodities. Whether you have a complex challenge or just need help with one shipment, we have the experience and quality carrier relationships to meet your needs.

We also stay knowledgeable on what’s going on in your industry and aim to keep you updated too. We know, even in times of disruption, your industry doesn’t stop, so neither do we.

And lastly, what makes Trinity unique from other 3PLs and what our customers praise the most is our exceptional People-Centric service. We’re a company built on a culture of family and servant leadership, and that culture shines through in our service to you. It’s our care, compassion, and communication that you’ll notice and appreciate.

If you’re ready to have Trinity Logistics on your side for logistics support and expertise, no matter the industry trends, then let’s get connected.

SEAFORD, DE, July 18th, 2023 – Trinity Logistics, a leading third-party logistics (3PL) provider, is proud to share that the company has been named a Top 100 3PL by Inbound Logistics.

Every year, Inbound Logistics publishes its annual 3PL edition including its Top 100 3PL list. The theme of this year’s edition surrounds growth. Outsourcing supply chain, logistics, and transportation solutions to a trusted partner is important to prepare or position companies for times of growth. Hundreds of 3PL companies submitted credentials to be considered this year and IL selected the top 100 3PLs to help companies manage growth, efficiently meet demand, and improve service while holding down costs, with Trinity Logistics selected in that list. 

Trinity Logistics has a long history of providing innovative and customer-focused solutions, offering a wide range of services, including warehousing, multiple modes of transportation, technology, and transportation management. 

“Trinity is committed to providing our customers with the best possible experience to help them grow and succeed,” said Sarah Ruffcorn, President of Trinity Logistics. “This award is a wonderful recognition of the commitment our Team makes to our shipper and carrier relationships. We are honored to be known as a 3PL partner that companies can depend on to support their growth.”

This is the third year Trinity Logistics has earned recognition as a Top 100 3PL by Inbound Logistics. The recognition is a testament to the company’s growing brand of People-Centric service and customized logistics solutions available to businesses of all sizes and growth goals. 

Learn how Trinity Logistics helped these companies grow their business.

Thinking Trinity Logistics might be the 3PL partner to support your company’s growth?

With cold chain logistics, every product that you deal with has very specific temperature requirements that you need to adhere to. These products are ending up on tables across the entire country, so you want to make your product arrives precisely the way it needs to be so it’s safe for human consumption. Because of this, cold chain logistics can be challenging to manage, and finding reliable providers can be frustrating. There are many moving parts of the cold chain that can be hard to follow and track. It would undoubtedly be helpful to find one provider that could offer you end-to-end cold chain management, from production to delivery. And that’s what we’re here to talk about today. Burris Logistics and Trinity Logistics working together could be the solutions you’ve been looking for to simplify your cold chain management. Keep reading to find out how we work better together to serve your complete cold chain.

BURRIS LOGISTICS CAPABILITIES

Let’s start with Burris Logistics. What do they offer that can enable cold chain shippers and their businesses to thrive in the face of its complexities?

Quick Background

Burris Logistics has been around for 96 years. The company started as a produce hauler from southern Delmarva to Philadelphia. They quickly grew and expanded into the frozen food business and found their purpose as a driven food logistics provider. Today, they own 14 cold storage sites up and down the east coast and out into Midwest. Burris Logistics currently has a family of brands including Burris PRW Plus, Honor Foods, and Trinity Logistics.

TRINITY LOGISTICS CAPABILITIES

Quick Background

Trinity Logistics has been around for over 40 years. The company was started by the Banning family in Cambridge, Maryland. Throughout the years, the company grew and expanded as a non-asset-based third-party logistics company (3PL) and was acquired by Burris in 2019. The two companies saw similarities in company culture and future goals, deciding to unite for greater opportunities and offer more supply chain solutions for our customers.

Burris + Trinity = Better TogetherURRIS

What’s great for Trinity being part of the Burris Logistics family of brands is being able to offer more help to Burris customers. Trinity’s support helps Burris better assist some of the existing freight business they have for customers either coming back into their buildings or going to other places.

The addition of Trinity also offers Burris customers a wider variety of options in modes and technology, or even help outside of the cold chain. Trinity is very experienced in heavy haul moves or more complicated hazardous moves for the chemical industry. So, no matter the size of your company or freight, we have a solution for you. But, we’re here to talk about the cold chain, so let’s focus on refrigerated and frozen freight.

HOW WE CAN SERVE YOUR COLD CHAIN BETTER TOGETHER

Experience in Cold Chain

For many reasons, Burris Logistics and Trinity work well together for cold chain shippers. First off is our combined years of experience. There are certain things in cold chain you can only learn from the experience of working with temperature-controlled shipments. For example, things like picking and loading fresh produce, understanding what those temperatures are and what they need to be for storage and transit, and keeping track of those temperatures. Or understanding how to move ice cream from the West Coast and knowing that you can’t go over the mountains; that you must travel around them so as not to cause shrinkage. By having years of experience and understanding of those complex situations and small details that make or break a cold chain shipment, you can trust your temperature-controlled freight is handled safely and correctly with Burris and Trinity.

Technology

Between both Burris and Trinity, we have incredible logistics technology available, but what differentiates us from others is that we keep in mind that logistics is still a “people” business. Technology will always be a tool for our Teams to use and bring logistics solutions to other people who need them. Therefore, we try to stay away from technology just for technology’s sake and make sure what we use and offer is always a valuable solution.

Communication

Because of our years of experience, we are well-versed and experienced in many different situations. We know when and how to pivot quickly and keep business moving forward. When issues arise, we work until they are resolved and keep open communication every step of the way. Having a solid relationship with experts like Burris and Trinity will prove to be your largest asset no matter what supply chain bottlenecks you may face

Flexible, Customized Solutions

Because our two businesses offer many options while keeping business People-Centric, it means you can find a solution that’s customized for your growing business and needs and your solution can be flexible. We know the cold chain and solutions aren’t static, they are ever-changing, so you need a provider that can keep up. By working with Burris and Trinity, you’ll never have to worry about changing up your logistics plan as we’re readily equipped to accommodate any changes you may need. In addition, we can help you stay flexible as one sole provider instead of working with several.

Visibility and End-to-End Cold Chain Management

As the cold chain sector continues to grow, there’s been a growing demand for efficiency and visibility throughout the supply chain. Companies don’t like to be left in the dark when it comes to the logistics of their temperature-controlled freight. Working with Burris and Trinity can not only give you a wide range of technology to gain visibility and provide you with all the logistics services you may need, thus making your cold chain efficient and transparent. We’ll provide you with dedicated, knowledgeable experts, increased productivity and workflows, and reduced complexity by working with Burris Logistics and their family of brands instead of several different providers.

HAVE YOUR COLD CHAIN LOGISTICS TAKEN CARE OF, END-TO-END

Between Trinity and Burris, we have a substantial Team with a lot of experience in cold chain and knowledge about its potential pitfalls. As a result, we’ve created processes and different services so that we get it right the first time, every time we handle a cold chain shipment.

You can find value in our combined companies’ sizes and services offered. Cold chain logistics can be complicated and trying to do it all alone can be frustrating. That’s why we’re here to help you simplify it. You can count on Burris Logistics and Trinity to serve and support your cold chain all the way from production to delivery, and every step between.

Many companies and consumers are waiting and wondering, where are my goods? If you work in logistics, then you know exactly where they are. A significant number of ships are waiting outside of U.S. ports, carrying millions of dollars worth of goods ordered by Americans. What started as a binge in online ordering during the pandemic has had lasting effects on supply chains. There’s continued to be overwhelming demand, creating port delays which then caused higher shipping rates, newly created fees, and so many more issues brought to light among global supply chains. We’ve seen record-breaking highs of imports throughout the year and currently, there’s no end in sight. Many are trying to find solutions and put them into place to get out of this hole we’ve dug, but is it working?

PORT PROBLEMS

Before the surge of imports faced by the ports, containers would wait at terminals for up to four days on average before unloading and delivering to warehouses. For those delivering by rail, it would take less than two days. Now, the average for ships waiting is nine days, if not more. Some have waited weeks. According to reported data by the Port of Los Angeles on November 12th, the average time ships had to wait at anchor was up to 16.9 days.

Besides the growing wait times are the increasing number of ships that are stuck waiting. According to Marine Exchange,before the pandemic, ports would see no more than 17 ships waiting to dock. However, recently it’s been common to find upwards of a hundred or more ships lingering in the ocean near ports, waiting.

It doesn’t seem there is one particular problem that is causing these backlogs and port delays. Rather, many port problems are being highlighted.

Returning Empty Containers is a Struggle

One of the loudest heard complaints adding to the port delays is the struggle truck drivers and companies are facing in returning empty containers. In a survey by the Harbor Truck Association, 15 companies responded that they had a combined 4,251 empty containers sitting. Additionally, 86 percent of them were on wheeled equipment and the rest were in stacks. One motor carrier stated that they had been stuck with empty containers since August 31st because the terminal would not accept them.

Many motor carriers and importers say there are port delays and cargo not getting picked up because the port terminals don’t allow drivers to return their empty containers and make a swap. Meanwhile, the port officials are saying they first need to make room to be able to accept them. Additionally, these sitting empty containers are further adding to these port problems by creating a chassis shortage.

Where are the Chassis?

First off, if the term chassis is new to you, let me briefly explain what it means. The chassis is a special trailer used to carry and transport the ocean container over the road. They are needed for truck drivers to be able to haul and deliver these containers.

A short supply of these chassis is another problem causing the growth in port delays. Typically, a truck driver will go to the port to swap the empty container they have and retrieve a full one to deliver. However, when truck drivers are turned away from the port with their empty containers, they will often park them and the chassis, at truck lots. But, without the chassis and ability to make a swap, they then can’t go pick up a full container from the port. So, currently, most chassis in Southern California are sitting under empty containers, strewn across truck lots.

Simply No Space

Another reason for the port delays is simply a lack of space. Warehousing and truck yards have been so full lately that they have little room to receive a new container of goods. Local officials have indicated some shippers eager at avoiding extended delays, ordered their goods earlier for next year, essentially using the ports as a makeshift warehouse for the time being. And even with the recent implementation of 24/7 operations at the Southern California ports, the ports may be running 24/7, but the warehouses are not. There’s just not a lot of space to put all the containers.

Lack of Labor

The labor shortage has affected every industry, but the ports are having a tough time clearing out all the freight due to a lack of labor. A shortage of dockworkers and truck drivers is one reason for port delays. Being that two-thirds of the cargo at the two ports in Southern California is hauled by trucks, these terminals are saying that the driver shortage may be to blame.

Inefficient Appointment Booking

Others are blaming the ports’ outdated booking system for the growing port delays. Usually, truck drivers must make an appointment to return an empty container and pick up a full one. But with the surge of freight and no space, port terminals have placed new restrictions. Every terminal has its own set of rules on when and where containers can be returned and picked up. This even pertains to the color of the container. With no centralized database, truck drivers are making bets by placing multiple appointments at different terminals in hopes they’ll meet requirements somewhere and get to return an empty container. Yet lately, the marine terminal could decide last minute that the terminal is full or that they aren’t accepting a certain color container that day and turn the truck driver away, usually after they have already waited a while. Terminals are saying that there are more no-shows lately with the truck drivers, stating that they just don’t show up 50 percent of the time.

Too Much to Handle

What may be the biggest problem with the port delays is that there is too much freight to be handled. Gene Seroka, the executive director at the Los Angeles port recently told 60 Minutes that the entire system is overwhelmed with the tsunami of orders that are flooding in from Asia to the U.S.

There can be many reasons to attribute to the growth in port delays. With everyone pointing fingers, one of the questions is, how do we get everyone to take some time off from playing the blame game and instead talk through a plan to clear out the backlogs at the ports? Because until then, the number of ships waiting off the coast of the ports is repeatedly breaking record highs.

PORTS HITTING RECORD HIGHS

Los Angeles and Long Beach

The number of ships waiting in the San Pedro Bay to dock at the port of LA and the port of Long Beach broke the previous record of 87 ships on November 15th, according to cFlow. To put that into perspective, the number of containers on those waiting ships is roughly 24 percent more than the port of Los Angeles imported during the entire month of September.

Back around October 14th, the cargo waiting off the two Southern California ports was worth around an estimated $25.5 billion, which is more than the annual revenues of McDonald’s.

At the start of November, there were nearly 60,000 containers at these ports that had been there for more than nine days, according to reported data by American Shipper.

Both Southern California ports are moving 19 percent more containers than in 2018, which held the previous record. Currently, the ports look to outpace 2018’s record of 17.5 million containers processed in 2018. This year alone, the two ports are looking to handle a combined 20 million twenty-foot equivalent units (TEUs).

Virginia

In October 2021, both the ports of Charleston and Virginia achieved container volume records. The Port of Charleston reported 234,923 TEUs handled, while the Port of Virginia’s new record was 318,000. That’s about a 16 percent increase year-over-year (YOY).

Combined, the Virginia Port Authority said that since August 2021, 444,600 imported TEUs had been processed, which is a 19 percent increase YOY. Additionally, there was a nine percent increase in exported TEUs, with a volume of 254,600.

South Carolina

Since the start of the fiscal year, South Carolina ports have faced a 15 percent increase in processed containers YOY, having handled 919,440 TEUs. In October, South Carolina ports handled 107,773 imported TEUs, a 12 percent increase, with furniture imports rising 55 percent YOY and vehicles up 5 percent.

Georgia

In October, the Georgia Port Authority announced that, for the first time ever, the Port of Savannah had processed more than 500,000 TEUs in a single month. The previous record was 498,000 TEUs in March 2021, with the new record being 504,350 TEUs, an increase of 8.7 percent YOY.

TRYING TO SOLVE THE PORT CRISIS

24/7 Southern California Operations

In October, the Biden administration unveiled its plan to help the port delays in Southern California. Since the ports of Los Angeles and Long Beach account for 40 percent of the sea freight in the U.S., they wanted those two ports to be running 24/7. Having round-the-clock operations and pushing truck drivers to make appointments outside of peak times should help address some of the backlogs there.

Southern California Implements Fees

Also in October, the two ports announced that they would begin fining shipping companies $100 a day for every container left on the docks, past an allotted time. In their guidelines for the fees, shipping companies have six days to move containers if their next step is rail or nine days if the next step is by truck. Every day over, the fee would be increased by $100; so $100 the first day, $200 the second day, and so on.

The fees were initially supposed to go into effect November 1st, but it was then delayed to November 15th to give shippers and carriers more time to avoid the new fees. Even with the delay, the ports started keeping track of containers waiting on the docks on November 1st. As of publishing this article, the charges are delayed to November 22nd.

These emergency port fees were aimed at getting containers moved out of the ports faster. The charges will go to the carriers who would then pass it along to the shippers. These charges, if they go into effect, could become millions of dollars in fines. According to port data. as of Friday, November 12th, the Port of Long Beach had 17,314 containers for trucks over nine days and 575 containers by rail over six days. If the fees had gone into effect that day, ocean carriers would owe at least $1.8 million in combined fees.

Port of Long Beach Ups Container Stacking

The City of Long Beach also recently loosened zoning restrictions on container stacking temporarily. It used to be that only two containers could be stacked together at container yards and warehouses, but now they are allowing up to five to be stacked. The higher stacking could help free up some space.

The State of California Makes Efforts

The state of California has been working on its own efforts to improve the backlogs and port delays. Governor Gavin Newsom recently directed agencies to find any state-owned properties that could store containers near the ports by December 15th.

Additionally, starting November 17th, Newsom announced that California will increase weight limits for trucks carrying goods in and out of ports. The weight restriction has increased from 80,000 pounds to 88,000 pounds in hopes it will help speed up the processing of containers. This will be applicable through June 30th.

By the end of this year, the California Labor and Workforce Development Agency also have a plan to help the labor shortage affecting the ports. They plan to name an industry panel to explore how to increase training and education programs for port workers and others in the supply chain who could lose jobs with automation and the transition to clean-fuel vehicles.

Washington Also Implements Fees

In early November, the Port of Tacoma and Washington United announced one-off long-term dwell fees of $315 and $310 for loaded containers that sit at the terminals for more than 15 days. This is in addition to their current late fees of $230 every day for any that are waiting more than four days.

Pop-Up Container Yard Projects

Georgia‘s Port Authority is reallocating $8 million o open five pop-up container yards in Georgia and North Carolina. This will free up dock space for the Port of Savannah, which leads the U.S. in agricultural exports.

Cargo congestion has been so bad at the Port of Savannah, those officials are planning to use a small airport in Georgia as their temporary overflow yard. Containers will move to these pop-up yards by truck or rail to create more space for cargo coming off ships.

Infrastructure Bill

Lastly, there’s also the $1.2 trillion infrastructure package to help aid U.S. ports. This package contains funding for port equipment and upgrades, dredging and channel maintenance, marine highways, rail needs, safety improvements, and emissions lower projects. This includes $5.2 billion in direct funding for any ports that handle 90 percent of internationally bound cargo, according to the American Association of Port Authorities.

GOOD NEWS

Even though the port delays seem like there is no end in sight, there has been much good news on the situation recently. For one, the recent shift to 24/7 operations at the Southern California ports has already improved service times for container ships. The LA and Long Beach ports have seen a 20 percent reduction in the number of container ships spending more than nine days as more shippers have agreed to move cargo during off-peak hours.

Additionally, the recent fees announced by the Ports of LA and Long Beach have been delayed to November 22nd. This is because the port of Los Angeles has seen a 32 percent decline in the number of containers qualifying for the fee compared to October 28th. Both ports reported a combined 26 percent decline in aging cargo. Because of the significant improvement in clearing containers, the ports decided to push back the fee another week to give shippers and carriers an extended grace period. They will continue to track the data to see what steps to take next.

Since September 1st, the Port of Savannah has seen a decrease of 60 percent in waiting containers, as retailers have been picking up cargo more quickly. Because of the extra space for dockworkers, Savannah reduced the number of ships waiting by 40 percent. As a result, their turnaround times have been much quicker, around 41 minutes for a single move and an hour when dropping an empty container to pick up an import load.

ADVICE FOR SHIPPERS

Even still, experts don’t foresee a large slowdown anytime soon. Instead, port problems and delays will continue into 2022 because of all the challenges supply chains have faced and some of the solutions are longer-term.

What we’re seeing is more cargo owners working with their ocean carriers to try to diversify their supply chains. Some of this includes rerouting to less busy and backlogged ports or ordering only what is needed to give the ports more time to move containers instead of creating more backlogs by ordering too early.

The best advice we can give you when working with your logistics provider is to make sure you are communicating your shipments early on. Giving AT LEAST two weeks or more notice (more is better here!) will help you secure any type of capacity.

You should also prepare for any extra costs. This includes demurrage, port wait time, per diem, or other fees and charges.

Lastly, make sure you work with a provider who helps you with more than just arranging your shipments. Find a provider who also works as your logistics consultant. You want someone who has eyes and ears on the market and can communicate and help you navigate any current or future disruptions so you can get ahead.

LOOKING FOR A LOGISTICS CONSULTANT?

Trinity Logistics is here and ready to help you. We stay updated on the freight market and help you pick up on any early warning signs of disruptions or delays, finding ways to help you prepare for potential constraints to your shipping.

We treat your shipments as our own and work with you to find the best alternative solutions when needed. We stay dedicated and do not stop working until we can help resolve any challenges you may face with your logistics.

Our Team Members are true experts in the logistics industry. We’ve been in business for more than 40 years and have been through many cycles of the logistics market. Because of that, we do more than just arrange your freight. When you choose to work with Trinity, you’ll find you have a whole Team of logistics partners invested in your business. Our only goals are to simplify your logistics so you can succeed and see growth.

Author: Christine Morris

Shipping freight is often a large and crucial part of a company. To make a profit, you need to get your customers the right product at the right time, and for the best cost. If not managed properly, your transportation can cost you substantial money. With costs rising recently, it’s easy to see why the challenge for many companies has been to reduce their transportation costs. Are you taking the proper steps to do so?

WHY COSTS ARE RISING

Before we jump into how to reduce your transportation costs, it’s essential to understand what factors are causing them to rise. 

CUSTOMER EXPECTATIONS CONTINUE TO INCREASE

Consumers’ demand for faster delivery times is affecting everything from food and more. It’s forcing shippers to try to keep up to retain their customers. The so-called “Amazon effect” is alive and well as the world of e-commerce and faster shipping times grows. 

HIGHER DEMAND

As noted, e-commerce was growing steadily before, but the pandemic only accelerated it. Consumers are ordering and demanding more, delivered right to their doors. Demand is far exceeding supply, and this trend is expected to continue through the rest of 2021. 

TIGHTER CAPACITY

With such overwhelming demand, there are not enough drivers or labor to keep up. These shortages are impacting every mode of transportation, causing delays, and raising rates higher. 

RISING COSTS FOR DRIVERS

Drivers are also experiencing rising costs. Fuel prices have been increasing, and tolls have risen; truck costs and insurance prices have gone up. All these costs roll over to their trucking rates. 

STEPS TO REDUCE TRANSPORTATION COSTS

There are several ways to reduce transportation costs while also improving your logistics.

CUT YOUR MANUAL PROCESSES

Chances are, you’ve been doing things the same way for so long, you don’t even recognize there’s a better way to do them. We’ve all been there, and while change can be challenging, noticing you have room for improvement is the first step towards growth.

Automating your manual processes will help reduce your transportation costs. With automation, you’ll streamline your operations, allowing for better management while creating and improving your efficiencies. As a result, you’ll end up saving time and becoming available for your more important tasks.

USE ANALYTICS TO IMPROVE OPERATIONS

Reviewing historical records and analyzing trends can help uncover any slow processes and extra costs. For example, you may discover that one carrier consistently adds accessorial charges while another compatible carrier does not.

TRY DIFFERENT MODES OF TRANSPORTATION

Trying different modes of transportation could help you offset your costs. Shipping freight by sea could be less expensive than by air. Intermodal transportation is another option that you may not have considered. Shipping intermodal is usually less expensive than trucking. Even using a combination of the two could reduce your cost. Keep an eye on the transportation costs for different modes and don’t be afraid to make the switch. Being more flexible with your freight shipping could give you some financial benefits. 

SEE IF YOU CAN CONSOLIDATE

Are you making the most of every truck moving your freight? Your shipment planning team should analyze current and future orders to build your shipments in the most cost-effective manner possible. Less-than-truckload (LTL) shipments are cost-effective for smaller weights. Yet, consolidating your shipments into one full truckload could have you seeing savings. With consolidation, there will be fewer trips, meaning you’ll see lower rates on one bulk shipment versus many small ones. 

BID MORE OFTEN 

To offset tight capacity and rising shipping costs, shippers should go out to bid for new transportation contracts more than annually. This allows you to find the best rates and avoid potential disruptions from transportation shortages.

GAIN CONTROL OF YOUR VENDOR-ROUTED OR CUSTOMER-ROUTED SHIPMENTS 

Depending on your customer, sometimes you have your hands tied when it comes to logistics. For example, you may be required to use their specific providers as a condition of doing business with them. However, there are instances where you may be able to gain control of these opportunities for savings. Don’t you wonder about the potential for savings if you controlled this section of your business? 

By leveraging ALL of your volume, you could qualify for some decent savings with LTL and truckload providers. Additionally, you’ll gain control of your shipments, which equals control of the quality of the provider, saving you money by retaining happy returning customers. You can better measure service performance and rates to ensure your best interests are being cared for when the ball is in your court.

INCREASE VISIBILITY 

Without visibility, costs can begin to sneak in like stealth monsters that eat away at your bottom line. True visibility is using a best-in-class TMS that enables you to see all your transportation network. You can track and manage control over your products, see service disruptions or shipment delays in real-time, find optimized routes, and work with the best carriers. You’ll not only reduce your costs but increase your service levels and improve your relationships with all stakeholders. 

PREPARE AHEAD

The more time you have before your shipment gives you more options in carrier selections and the chance to find a decent rate. Or look into another mode, as mentioned earlier. It also gives your provider more time to prepare themselves and let you know of any upcoming circumstances that may increase your logistics costs, giving you more time to consider making any changes. It also helps you alleviate delays and missed deadlines. 

CONSIDER WAREHOUSING SERVICES

If you do a lot of shipping to and from the same lane, especially if it’s over a long distance, it may be a good idea to warehouse your goods closer to your customers so you can reduce those long-haul transportation costs. 

BECOME A SHIPPER OF CHOICE

It’s never a bad thing to be a shipper of choice. Carriers are in the position of choosing which shippers they want to work with. Those shippers who provide better experiences for them can not only reap the benefits of better rates but higher service levels and fewer claims. To become a shipper that carriers will want to work with, it’s important that you run efficient and friendly dock operations, reduce driver wait times, provide comfortable breakroom and restroom accommodations, and pay your carriers quickly. 

GET DATA-DRIVEN INSIGHTS

Data has quickly become one of the world’s most valuable resources. With a best-in-class TMS and proper reporting that you can analyze, you’ll be able to better manage disruptions, reduce downtimes, and effectively plan and budget your logistics spend. By using data analytics, you’ll be able to recognize which carriers are the most likely to have the capacity and ensure proper rates for shipments. 

CONSIDER OUTSOURCING

In business, any activity that isn’t directly tied to securing more business deflects attention away from your goal of making a profit. That means the hours you can spend sourcing transportation providers and managing your logistics are not considered a profitable way to spend your time. By outsourcing your logistics and partnering with a third-party logistics company (3PL), like Trinity Logistics, you gain back all those hours to focus on what you do best – make a profit! 

According to the 2020 Annual Third-party Logistics Study, 67 percent of shippers stated that using a 3PL contributed to reducing their overall logistics cost, while 83 percent said using a 3PL has improved their service. By utilizing Trinity Logistics, you won’t have to worry about any of the steps above because we’ll take care of them for you.

We’re listed as a Top 100 3PL by Inbound Logistics, and through our People-Centric service, we can help you find one or more customized solutions to meet your business needs. The first step to finding out exactly how we can help you reduce your transportation costs and improve your service is by having that initial conversation. 

Will you choose to take that step today? 

Updated September 16, 2021 by Christine Morris.

Cold chain warehousing solutions are mostly used by bigger companies that are dealing with perishable items. For example, manufacturers in the food industry use them to warehouse their products until they make their way to end-users. This kind of warehousing is used for storing items that need cool surroundings to prolong their life and keep them from spoiling. There are many more benefits that come with cold chain warehousing solutions, thus, if this is something that may interest you, keep on reading.

Different Types of Cold Warehousing Solutions

One of the benefits of cold chain warehousing solutions is that there are many different types to choose from. For example:

• Refrigerated Containers – small, basic, and mobile.
• Blast Freezers – used by restaurants and catering companies.
• Blast Chillers – used in supermarkets for keeping the foods fresh and chilled.
• Cold Rooms – big, versatile, climate-controlled rooms.
• Pharmaceutical Grade Cold Storage – used in hospitals and research labs
• Custom Cold Storage – warehousing that can be adjusted to your needs in terms of size, temperature, different features, etc. Also a great solution for shipping hazmat.

These are just some of the many different types of cold chain warehousing solutions. You, as an individual or a company, should choose one that best suits your needs and budget. 

Versatile Use

It is important to mention that cold chain warehousing solutions are rather versatile. For example, you can use them when storing or transporting perishable foods, as mentioned before. Those can be fruits, vegetables, all types of meat and seafood, as well as all types of dairy products. You can also use them for plants and flowers if you are their manufacturer, distributor, or seller. Finally, you can use them for biopharmaceutical products should you own a clinic or a lab. Many different businesses can benefit from their use.

Whether you are starting your business that deals with perishable products or relocating a business operation that deals with perishable items, choose a warehousing solution that suits your needs. 

Customized To Fit Your Needs

Another thing that makes cold chain warehouse operations great is that they also vary in features they provide to their users. Depending on your needs, the warehousing you choose can be either fixed or portable, or even both if that is what you need. 

Moreover, if you need to store and ship frozen food, you’re not the one who will be shivering.  But the temperature inside them is not the only thing you can control. You can control its humidity and the circulation of air. We all know how important those two are for keeping perishable items fresh and of good quality. Thus, it does not matter what kind of items you are working with. If you get custom cold storage, you can easily adjust its features to suit your needs.

Use of Technology 

We live in the age of technology. Thanks to it, we are able to control almost anything with our phones, for example. You can turn the washing machine on, check whether everything is okay in your office, and even manage your cold chain warehousing. 

Yes, using your phone, you can monitor your warehousing. You can constantly check the condition of your perishable items inside, as well as adjust the features from your phone or computer, etc. The possibilities are endless.

What interests most companies when it comes to technology and warehousing is the data that can be analyzed. For example, you can monitor the condition and quality of your perishable items based on the effects they exhibit and which were obtained from traceability. What this does is improve the overall management of perishable products.

Have Backup

New technology and cold chain warehousing solutions save you time, energy, and money. They extend the life of your perishable products, keeping them at their best quality for your customers. Finding those warehousing solutions can be difficult, which is why working with a logistics provider, like Trinity Logistics, can make your work easier. With over 40 years of experience as logistics problem solvers and being a part of the Burris Logistics family, Trinity can help you find the warehousing solution you need.

Looking to get started with Trinity Logistics for your warehousing needs?

All businesses want to grow, but growing a business isn’t an easy task. It is one of the toughest challenges that a company can face. And there are many ways to go about assisting and capturing on that growth. One option that I’d like to talk about today is on improving your logistics.

You may be the best at being the business idea maker, the manufacturer, the seller, but logistics and the supply chain can be confusing and complex. Trust us, we know. Choosing to work with a third-party logistics company (3PL) can help in removing those confusing and complex tasks, as well as aid in your company’s growth.

What is a 3PL?

Depending on the capabilities of your logistics provider, a 3PL is a service company that can handle several or every aspect related to logistics in your supply chain. This can include fulfillment, transportation, supply chain management, transportation tracking and tracing, inventory management, and more. 3PLs can either be asset based or non-asset based.

Not quite sure what that means? Click here to learn more.

3PL’s are a flexible service, meaning you can choose for help in one piece of your logistics puzzle, or have the 3PL assist with the whole enchilada that is your supply chain and logistics. This also makes 3PLs an affordable service because you can choose to get help on only what you need.

You can quickly see how working with a 3PL can help you with any logistics challenges you may be facing. But how can a 3PL improve your logistics overall? And how does that help with your company’s growth?

Lower Costs

This one is easy. Since all 3PLs handle logistics, they have the experience and relationships built within their networks to better run that aspect of your business. They are able to negotiate lower shipping rates and discounts on the services they use. Not to mention, 3PLs offer access to technology that you would otherwise have to pay for yourself. Without a 3PL, it can take you years to find the best shipping providers and services you need to run your logistics smoothly. Working with a 3PL expedites that process while reducing your costs.

Warehousing & Distribution

Need warehousing space? Rather than setting aside money every month on rent for warehousing that you may not always need, take advantage of a 3PLs connections and get warehousing when and where you need it. This means you could have stock warehoused in several locations, expediting your deliveries. Faster distribution means you’ll have happier customers.

Flexibility

3PLs offer flexibility in your logistics by being able to service you on-demand. You can cut costs by removing or reducing transportation and warehousing assets and outsource when demand increases. Companies that have products with a peak season, or increased demands during the holidays can call upon a 3PL as needed during the rollercoaster that is consumer demand.

Additionally, working with a 3PL gives you the flexibility to try different services to see what works best for your company. You can ship your products via truckload, try out intermodal shipping, or have the 3PL help manage your whole logistics operations with a TMS (transportation management system). You get to choose what works best for you company.

Experience

Speaking of what works best for your company, a 3PL will have that experience and insight. They know how to run and manage logistics operations efficiently and help you with that. Looking to expand into a new geographic region or try e-commerce? A 3PL can help by making recommendations on how to best move forward. Regardless of your challenge, a 3PL provider will have the necessary expertise to guide you on the most beneficial path.

Free Up Resources

When growing your business, you need to invest your time and money into where it would make the biggest impact. Logistics can take a lot of capital when doing it all yourself, so outsourcing to a third party can free up your resources. By focusing on what your team and company is best at and outsourcing the logistics, you’ll be able to provide your customers better products and service with your more efficient operations.

3PL Statistics

If you’re still not convinced about outsourcing to a third-party for your logistics, here are some statistics from the 2019 23rd Annual Third-Party Logistics Study. These go to show that improving your logistics can help your business in many ways.

• 75% of shippers said the use of 3PL services has contributed to overall logistics cost reductions.

• 91% of 3PL users report their relationships with 3PL providers are successful and their work has positive results

• 86% of shippers said the use of 3PLs has contributed to improved customer service.

• 58% of shippers indicate they are increasing their use of outsourced logistics services this year.

• 73% of 3PL users agree that 3PLs provide new and innovative ways to improve logistics effectiveness.

These are some of the ways a 3PL can help with improving your logistics and growing your business. Every company is unique and faces its own challenges. The first step in finding out exactly what can your company can improve upon is by having that initial conversation with a 3PL.

With 40 years of experience, a relationship-driven team, and the added benefit of being part of the Burris Logistics family, Trinity Logistics is the 3PL to help your business thrive.