Where does it make sense to operate your supply chain?

Andrew Lockwood - Senior Director, managed Logistics - Suddath Global Logistics I've done some research, cross-referencing 2022 Port TEU data, market warehouse vacancy rates, and current warehouse construction by sq feet to try and figure out what's the best/optimal supply chain approach in 2023 and beyond with regard to where the best places are to import containers relative to US population, which warehouse markets are the tightest for space and where shippers can drive down overall costs in their supply chain. Think of it as what Clark Howard would do to help your supply chain save a buck. A few fun facts: as of this morning, it costs a mere $1400 more to ship from China to East Coast vs. to the West Coast. Based on this year's census data, only roughly 20% of the population lives in the Western third of the US vs. the 28% in the central US and 51% on the east coast. If you're selling to the entire US, the most under-utilized ports are Houston and Norfolk. Why pay the $4000 cross-country rate from LA to Norfolk when you could pay $1400 extra to the ocean line + drayage? Looking to store things at the cheapest rate? Try the cities with the loosest vacancy rates and lowest rates (Memphis TN, Cincinnati, Dallas, and Atlanta)

An episode of the FreightWaves NOW podcast, hosted by FreightWaves, titled "Where does it make sense to operate your supply chain?" was published on February 24, 2023 and runs 11 minutes.

February 24, 2023 ·11m · FreightWaves NOW

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Summary

Andrew Lockwood - Senior Director, managed Logistics - Suddath Global Logistics I've done some research, cross-referencing 2022 Port TEU data, market warehouse vacancy rates, and current warehouse construction by sq feet to try and figure out what's the best/optimal supply chain approach in 2023 and beyond with regard to where the best places are to import containers relative to US population, which warehouse markets are the tightest for space and where shippers can drive down overall costs in their supply chain. Think of it as what Clark Howard would do to help your supply chain save a buck. A few fun facts: as of this morning, it costs a mere $1400 more to ship from China to East Coast vs. to the West Coast. Based on this year's census data, only roughly 20% of the population lives in the Western third of the US vs. the 28% in the central US and 51% on the east coast. If you're selling to the entire US, the most under-utilized ports are Houston and Norfolk. Why pay the $4000 cross-country rate from LA to Norfolk when you could pay $1400 extra to the ocean line + drayage? Looking to store things at the cheapest rate? Try the cities with the loosest vacancy rates and lowest rates (Memphis TN, Cincinnati, Dallas, and Atlanta) Learn more about your ad choices. Visit megaphone.fm/adchoices