GIRD YOUR LOINS W 12 SEP/OCT 2022 DEPARTMENTS/ INDUSTRY EXPERTISE CHOOSE YOUR POISON PILL A glut of inventory and lack of storage space force shippers to decide whether to leave full containers aboard ships, at ports, in warehouses or on chassis. CREDIT: Courtesy of NEXT Trucking SHIPPING SEASON 2022: A PEAK LIKE NO OTHER have been operating at “peak capacity” for more than a year, with Los Angeles, Long Beach, Savannah, and New York each surpassing freight records. But the constant barrage of inbound freight for the past 12 months has created several unique challenges for retailers and importers. The first is storage and warehousing capacity being incredibly tight. Los Angeles warehouses are nearly 99% filled, and this issue has forced many large retailers to liquidate existing inventory to create more storage room. BY MIKE BUSH HEAD OF COMMUNICATIONS & BRAND , NEXT TRUCKING e should be in the early phases of a typical peak season right now. Steamship line vessels would be gliding toward ports across the U.S., warehouses would aggressively be lining up seasonal staff to accept goods, and consumer spending would increase for the back-to-school season and the holiday rush. This year, however, has been weighed down by uncertainty. The ports For example, Target discussed sacrificing their margins and moving goods at near cost to ensure they have room for seasonal merchandise. Meanwhile, the pandemic-induced shift to 24/7 operations at the ports had mixed results. While it allowed terminals to utilize staging areas and approaches more aggressively, it wasn’t the panacea that opened up capacity and limited congestion as intended. Disrupting things further are the frequent labor disputes happening across the globe, with ports, terminals and motor www.globaltrademag.com
Global Trade September/October 2022: Page 12
