Meanwhile, other dynamics are taking place. And this leads to orders not being shipped and delivered on time, resulting in out-of-stock items on grocery stores’ shelves-a story all too common over the last couple years.
“Importers are having to look further inland to solve their warehousing needs, which presents additional challenges and costs.” Those include traffic congestion and truck driver shortages. “Available warehouse space at ports is almost nonexistent,” adds Daly. Above: Forklift operators play a key role in Americold’s 160+ temperature-controlled warehouses that encompass more than 1 billion cubic feet of storage. (Photos courtesy of Americold.) “And when space does become available, importers are taking what they can to get their products into the United States, regardless of the port of entry.” And as a result, warehouse space is at a premium and limited especially in and around seaports.Īutomation is at the heart of every Americold operation. “They are waiting longer to unload,” says Daly.
Contributing to these problems are the number of container ships at anchor, particularly off the West Coast. However, today companies find it difficult to make forecasts given difficulties in making container bookings. “Over the last two years, the cost of an individual import container has skyrocketed, and the ancillary costs associated with importing-such as demurrage, per diem, chassis and fuel-have also risen and contributed to declining margins,” says Kevin Daly, chief commercial officer at East Coast Warehouse & Distribution.įor many years, firms relied on consistent and reliable supply chains and solid customer import forecasts.
Retailer, food supply distributors, and manufacturers all have been stretched by the pandemic and are under pressure to make sure the right product is in the right place at the right time. Like other aspects of the supply chain, cold chain managers continue to face many challenges that include rising costs, tight container capacity, and limited warehouse space.
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