In the business world, how you’re getting your product to your customers can be just as important as what you’re selling. Whether you’re distributing household products, food and beverage items, pharmaceuticals, or some other type of product, you need to make sure that these goods are being transported, stored, and fulfilled as safely and efficiently as possible, as this impacts everything from product quality to customer satisfaction to your bottom line.
But as companies grow, the logistics for these processes become increasingly complex, which begs the question: What is the most effective supply chain solution for your business? Does it make sense to invest in growing and improving your internal processes and resources, or should you enlist the help of a third-party logistics (3PL) company?
Every business is different, so you will need to take a look at your company’s unique needs and circumstances to determine which type of solution is right for you. To make the evaluation process easier, here’s a quick overview of how in-house logistics and third-party logistics compare.
3PL stands for third-party logistics and refers to outsourced supply chain services, which can include services such as:
A 3PL company will often provide warehousing locations, a diverse range of services and equipment, and even logistical planning and management in order to remove the burden from the business and deliver a more streamlined process.
With a 3PL provider handling supply chain logistics, a business can divert their attention to other important business needs such as product development, marketing, sales, customer support, and so on.
In contrast, businesses that choose in-house logistics maintain complete ownership and responsibility of the supply chain process, which means they own or lease their own storage facilities, provide their own equipment, hire and train their own staff, package and ship their own orders, and more.
When determining whether 3PL services or in-house logistics are right for your business, there are numerous factors to consider. Here is a 3PL vs. in-house logistics side-by-side comparison to help you make an informed decision.
In-House
Brands and businesses that manage their own logistics have a higher level of control over their processes, from where their warehouses are located to the staff they hire to their shipping timelines and more. This may be desirable to businesses that prefer to be in charge in every step of the process.
3PL
Brands and businesses that work with 3PL companies can provide some direction, but actual day-to-day execution of their warehousing and fulfillment will ultimately be in the hands of the contracted logistics partner. For businesses that work with a 3PL, they should be sure to do their research and choose a reputable provider they can trust.
In-house
When a business brings their warehousing and distribution logistics in-house, they will need to have one or more experts on their team who specializes in these areas so they can plan effectively and implement processes that are needed for establishing facilities and processes that meet regulatory compliance. Most brands are good at selling, producing their product, and advertising their product. High level logistics is usually not a core competency and the larger a business gets the more complex their operational requirements.
The in-house logistics director’s responsibilities may include overseeing land or lease procurement, equipping facilities with the proper racks and shelving, purchasing or leasing equipment, hiring and managing staff, managing warehouse operations and operational expenses (like supplies, utilities, taxes, and insurance), and more.
3PL
Instead of finding and hiring their own in-house experts, a business can find a third-party company that specializes in the areas of warehousing and fulfillment logistics within the business’ specific industry. This should be a partner that has certifications and affiliations with various governmental and third-party safety oversight agencies as needed for compliance purposes.
An example might be a provider of food-grade-certified and HAZMAT-certified warehouses that is prepared to assist with all types of import and export logistics, from ocean ports to rail terminals. With a 3PL, all the responsibilities that come with warehousing and distribution logistics lie with the third-party company, which may allow the customer to dedicate more time and focus on other areas of their business.
In-House
With an in-house solution, logistical efficiency is only as good as the business’ existing resources. If demand suddenly goes up, the business may need to find and secure additional warehouse space (which is typically a long-term investment). If demand suddenly goes down, the business may be stuck maintaining space they are not using. Heavy overhead, from real estate to employees can be a burden on a business that has a dip in sales or is quickly growing.
3PL
Third-party logistics providers already have numerous warehouse spaces available, which clients can tap into as needed. This can make it easier for businesses to scale up or down when their inventory and output are impacted by factors like seasonality or rapid business growth (which may cause inventory overflow issues). The model is transactional, meaning that cost scales linearly up and down with demand.
3PL companies also tend to have a diverse range of logistical services available and deep experience in the sector. Good 3PL warehouses can easily supplement any new needs that arise, whether it is a different type of product storage (such as cold storage) or added layer of logistical support such as freight brokerage.
In-House
The brand or business will need to invest in logistics software and tools for managing warehouse inventory and fulfilling orders and is responsible for keeping their systems up-to-date. One benefit of in-house logistics is that the business will have the freedom to choose their preferred software system.
3PL
The provider may offer their own proprietary technology or have established tech partners that clients can leverage. If you have a specific logistics platform you would like to use but you want to work with a 3PL provider, make sure to choose a company that can integrate with your desired system.
So, as you consider how to proceed with your company’s warehousing and distribution strategy, be sure to think about how much time and resources you want to dedicate internally to planning and managing those logistics. In making your decision between 3PL vs. in-house logistics, you should think about your business’ short-term and long-term goals and any variables that may cause fluctuation in your product volume. Some businesses like the appeal of owning their own warehouse properties and having control over every aspect of the process whereas others are happy to pass over the responsibilities to an external party that already has expertise in these types of logistics and flexibility to adjust capacity as needed.
Porter Logistics is a provider of omnichannel 3PL services that integrates and simplifies the supply chain process for manufacturers, retailers, brands, and direct sellers across a wide range of industries.
With our dedication to impeccable service and seamless process, we offer fully-staffed, food-grade-certified and HAZMAT-certified 3PL warehouses that come with a full scope of logistical services (including warehousing and distribution, order fulfillment, transportation brokerage services, and more). We serve as the supply chain experts so you and your team can focus on what you do best — producing and sourcing your products and serving your customers.
We also offer our own API-enabled technology that automates order and inventory management workflows, and our system has pre-built integrations with more than 50 shopping cards and marketplaces.
Learn more about how Porter Logistics can help your team.
Having an effective cold storage warehouse is non-negotiable for food manufacturers, retailers, and food-service companies that distribute frozen food items. When frozen foods are not stored at the correct temperatures and environments, food products become compromised, which can result in:
…And in the worst case scenarios:
Additionally, inefficiencies within the cold chain distribution process, from transportation logistics to inventory management and data analytics, can result in lost time and money for a food distributor.
This is why it’s critical to choose a reliable cold storage warehouse and logistics company. This should be a frozen food warehouse that not only meets the necessary temperature and capacity thresholds, but also addresses a variety of other business needs that make your frozen food distribution logistics flow as seamlessly as possible.
To assist you in the selection process, here are six considerations to keep in mind when choosing a cold storage and logistics company.
The first and most obvious criteria should be whether the warehouse has temperature-controlled space that meets safety standards for storing frozen foods. Make sure the warehouse has dedicated freezer storage areas that are kept at 0° F or below (with even lower temperature ranges preferred) and that they are monitored around the clock with up-to-date sensors and equipment.
Additionally, when evaluating the size of the frozen food storage space, make sure there is room to grow. Your warehousing solution should meet your cold storage capacity needs both today and over the long term, should you ever expand your inventory of frozen food items.
When choosing a freezer warehouse, consider diversity of space and function. Your freezer storage rooms should include both racked and bulk storage space, and it’s best if your facility is equipped to resolve a variety of food storage needs for your business. A mixed-use food storage warehouse will have a combination of options, such as:
With a more consolidated food distribution warehousing strategy, you can cut down on transportation costs and streamline some of your business operations, which could be helpful for your bottom line.
Your cold storage warehouse should be located in a centralized, easy-to-reach location that simplifies transportation logistics for your team. Look for a warehouse that is located right off one or more major freeways that will serve as a convenient stop for your personnel. You may also want to consider a freezer warehouse that is located near rail lines, which may open up the option of rail transportation for your frozen goods.
The company you choose should offer more than just a place to store your frozen food inventory – it should also be your food distribution logistics partner, assisting with numerous aspects of your cold chain process, from transportation logistics (loading, unloading, stripping and transloading) to order fulfillment and more. There should be utility vehicles and equipment available on-site, which makes it easier to maneuver and organize inventory within your cold storage space.
Asking what value-added services the company offers is a good start. Porter Logistics offers a variety of value-added services including, but not limited to:
You should also pay attention to the company’s dedication to process (or lack thereof). Ask for a tour of their facilities to observe their various services and amenities in action, and get a feel for their warehousing and transportation workflows. You will want a company with buttoned-up processes and hands-on support to help create a more seamless frozen food storage and distribution process for your business.
Food distributors can do better than the status quo when it comes to warehousing and third-party logistics (3PL) solutions. Excessive paperwork and low inventory accuracy simply will not cut it if you truly want to maintain a high level of efficiency within your business operations.
This is why it’s essential to choose a technology-driven company that uses digital tools like software to track and manage inventory and orders in real time and automate warehousing workflows. Advanced technology helps you automate order and inventory management workflows while giving you quick access to detailed reporting and performance trends. A more innovative cold storage and logistics partner will leverage technology that integrates with leading shopping platforms and marketplaces.
Your cold storage warehouse should be audited on a regular basis by government and third-party agencies that are trusted within the industry. Agency certifications and affiliations can serve as a testament of a storage provider’s commitment to excellence in safety and service. Look for a frozen food warehouse that maintains reputable food grade certifications, HAZMAT chemical certifications, and other approvals and affiliations with reputable groups and government entities that are responsible for upholding food safety standards.
Porter Logistics is a premiere warehousing and logistics solution that checks off all the boxes for food distributors that are looking for strategic cold storage spaces, logistical support, and technological innovation.
Porter Logistics offers:
When your food manufacturing, retail, or service companies are already dealing with challenges like rising business costs, labor shortages, and shifting trade regulations, having a reliable frozen food warehousing and logistics partner can help maximize operational efficiency, giving you one less thing to worry about.
Learn more about how Porter Logistics’ cold storage solutions can support your team.
At Porter Logistics, we believe that community and growth are inseparable. Inventory Lead Jamaal Blake exemplifies this philosophy, bringing over a year of experience in logistics and a fresh perspective to his role.
A Commitment to Community
Jamaal values the strong connections he has built with his colleagues, stating, “The community is what makes this place special.” His leadership philosophy centers on empowering both Customer Service Representatives (CSRs) and operations teams, aiming to cultivate self-sufficient units that will drive Porter Logistics’ future growth.
Guided by Mentorship
Inspired by industry leaders and guided by Porter Logistics’ leadership, Jamaal credits CEO Robert Crump and CFO John Foshee for mentoring his entrepreneurial journey. Their guidance has been instrumental in shaping his approach to leadership and operational excellence.
A Renaissance Man
Beyond his professional life, Jamaal is a renaissance man of sorts. He is a skilled home chef who has mastered challenging dishes like Beef Wellington, an aspiring guitarist whose renditions of “Happy Birthday” and “Twinkle Twinkle Little Star” are nothing short of impressive, and a passionate Jacksonville Jaguars fan.
A Multifaceted Individual
When he’s not leading his team at Porter Logistics, you might find him trading stocks, gaming (particularly dominating at Mario Kart), or experimenting in the kitchen. This Jacksonville native brings a unique blend of professional drive and personal passion to his role, embodying the diverse and dynamic culture at Porter Logistics.
At Porter Logistics, we are committed to delivering exceptional customer experiences and staying ahead in the ever-evolving logistics industry. Recognizing the critical role of technology in enhancing operational efficiency, we have partnered with AML to integrate their advanced scanning solutions into our inventory management processes.
In the fast-paced world of third-party logistics (3PL), leveraging cutting-edge 3PL technology is essential for maintaining accuracy, efficiency, and customer satisfaction. Advance scanning devices are pivotal in streamlining inventory management, reducing errors, and improving overall operational workflows.
When evaluating potential partners for our scanning hardware needs, AML emerged as the clear choice. Their Striker Enterprise series offered the ideal combination of durability, affordability, and compatibility with our existing systems.
The AML Striker is an Android-based mobile computer designed for barcode scanning, featuring an antimicrobial housing and an IP65 rating for durability. Its ergonomic design and customizable options, such as 1D or 2D barcode scanners and pistol grip handles, make it versatile for various applications. The integrated dual-beam flashlight ensures functionality even in low-light environments, enhancing operational efficiency.
Integrating the AML Striker into our operations has been transformative. The device’s durability and user-friendly design have streamlined our inventory management processes, reducing errors and enhancing productivity. The ability to customize the device to our specific needs has further optimized our workflows, allowing us to deliver superior service to our clients.
At Porter Logistics, we understand that embracing technology is crucial to staying competitive in the 3PL industry. Our partnership with AML and the adoption of the Striker mobile computer have significantly enhanced our operational efficiency and inventory management capabilities. By integrating advanced tools like the AML Striker, we continue to provide our clients with reliable and efficient logistics solutions.
For more information on Porter Logistics partnership with AML review the AML Case Study. If you would like to talk to us more about how we can help with your 3PL needs so you can experience the benefits of this technology firsthand, contact us at 404-574-641 or [email protected] today. We look forward to showing you how technology makes a difference.
At Porter Logistics, the success of our company is driven by the strength of our team. That’s why we’re excited to introduce Philipp Sdrenka, our Operations Manager, who plays a key role in helping our team grow and innovate.
With 8 years of experience in logistics, Philipp has held various roles, including Director of Operations, Warehouse Manager, and Warehouse Supervisor at a 3PL and a motorsports company. This diverse background gives him a solid understanding of the logistics challenges and opportunities that he applies in his role at Porter Logistics.
For Philipp, the best part of his job is coaching his team to reach their full potential. “Helping team members grow and develop is both rewarding and essential for the company,” he says. His main goal as a manager is to build a high-performing team that drives innovation and fuels company growth. By empowering his team, Philipp ensures that Porter Logistics stays ahead in the fast-evolving logistics industry.
Philipp draws inspiration from the people around him. “My friends and family are always pushing themselves to achieve, which motivates me to do the same,” he shares. This support fuels both his personal and professional growth.
When he’s not managing operations, Philipp is an avid foodie who loves exploring Italian, Chinese, Thai, and Vietnamese cuisines with friends and family. He also enjoys riding motorcycles and dirt bikes, even testing his skills on the racetrack. Whether it’s outdoor adventure or relaxing with his 9-year-old dog (who plays “sheriff” at the dog park), Philipp knows how to balance excitement and relaxation.
Philipp imagines the perfect day as a vacation in Italy with his wife, starting with a café breakfast, followed by exploring museums, enjoying a long lunch, shopping for keepsakes, and finishing with a gourmet dinner and live music.
Philipp’s passion for coaching, performance, and adventure shines through in his role at Porter Logistics. His leadership helps nurture a highly skilled and motivated team, pushing the boundaries of what’s possible in logistics. We’re proud to have Philipp as part of our team, where his energy and drive fuel our growth and innovation.
Stay tuned to our blog for more stories from the people behind Porter Logistics and the work we do to provide seamless, efficient logistics solutions.
The rise in lithium-ion batteries has been a game-changer for industries ranging from electronics to electric vehicles. However, with this surge in use comes an increased risk of fire hazards, especially during the transportation of these potentially volatile materials. The recent fire at a lithium battery recycling plant in the U.S. has drawn attention to these risks, highlighting the critical importance of public safety and proper handling of dangerous materials during transport.
At Porter Logistics, we understand the gravity of these risks and take pride in our commitment to safety when handling hazardous materials. In this post, we’ll discuss the fire at the lithium battery plant, explore the dangers associated with lithium battery transportation, and showcase how Porter Logistics is leading the way in safeguarding people and property during these critical operations through compliance.
On January 16, 2025, according to Transport Topics News, a massive fire broke out at a battery storage facility in Moss Landing, California. The blaze, which involved large-scale lithium-ion batteries resulting in a catastrophic blaze that took days to control. This fire led to the evacuation of nearby residents, significant damage to the facility, and an increased focus on the risks associated with lithium battery storage and transportation.
Lithium-ion batteries can be highly volatile when damaged or improperly handled. If a battery is punctured or short-circuits, it can lead to thermal runaway—a chemical reaction that generates intense heat, potentially causing a fire or explosion. Transporting these batteries, particularly in large quantities, poses significant safety challenges for logistics companies.
This incident is a stark reminder of the inherent dangers in dealing with lithium-ion batteries. As the demand for these batteries continues to grow, it is essential to prioritize safety measures at every stage of the supply chain—from manufacturing to recycling to transportation.
Lithium-ion batteries, especially those used in electric vehicles, consumer electronics, and energy storage systems, are categorized as dangerous goods by international transport authorities due to the potential fire risks. According to the U.S. Department of Transportation, transporting lithium batteries requires specific packaging, labeling, and shipping protocols to minimize the chances of incidents like fires and explosions.
The transportation of these batteries often involves a range of risks:
These dangers have prompted regulatory bodies like the International Air Transport Association (IATA) and U.S. DOT to establish stringent guidelines for the safe transport of lithium batteries. While regulations have become more robust, there are still significant concerns regarding how well these guidelines are followed and the overall safety of those handling these materials.
At Porter Logistics, we pride ourselves on our unwavering commitment to safety. We take every necessary precaution to ensure the safe handling and transport of hazardous materials, including lithium-ion batteries. Our approach goes beyond compliance with regulations; it is about cultivating a culture of safety at every level of our organization.
Here’s how we lead the way in safety:
Public safety is always top of mind at Porter Logistics. We recognize the impact that an accident involving hazardous material could have on communities, and we take every step to prevent such incidents from happening. By investing in the highest standards of training, equipment, and procedures, we ensure that hazardous materials are handled safely and responsibly, minimizing the risk to both our employees and the public.
We are also committed to transparency in our operations. In the case of any potential hazard, we have clear emergency response procedures in place. These procedures are designed not only to protect our employees but also to safeguard local communities and the environment.
The risks associated with handling not only lithium-ion batteries and other hazardous materials are real, but they are not insurmountable. At Porter Logistics, we take every necessary measure to ensure that our operations adhere to the highest safety standards. By investing in rigorous training, advanced safety protocols, and cutting-edge equipment, we not only protect our employees but also contribute to the safety of the public at large.
As the industry continues to evolve and the use of lithium-ion batteries expands, safety will remain our top priority. We are committed to continuously improving our practices and ensuring that the transport of hazardous materials, including lithium-ion batteries, is handled with the utmost care.
For more information on how we can assist with your logistics needs, please contact us at 404-574-641 or [email protected] today. Together, we can help make transportation safer for everyone.
President-elect Donald Trump has announced plans to implement significant tariffs on imports from Canada, Mexico, and China immediately upon taking office on January 20, 2025. The proposed measures include a 25% tariff on all products entering the United States from Canada and Mexico, as well as an additional 10% tariff on goods originating from China.
FREIGHTWAVES
The tariffs targeting Canada and Mexico are intended to address concerns over illegal immigration and drug trafficking into the U.S. Trump stated that these tariffs would remain in effect “until such time as illegal migrants coming through Mexico, and into our Country, STOP.” Regarding China, the additional tariffs aim to pressure Chinese authorities to halt the flow of fentanyl into the United States.
These proposed tariffs could have significant implications for international trade and supply chains, potentially leading to increased costs for businesses and consumers. They may also strain trade relations, particularly with Canada and Mexico, which are key partners under the United States-Mexico-Canada Agreement (USMCA). The imposition of such tariffs could be viewed as a violation of the USMCA trade pact.
FREIGHTWAVES
As a logistics company, Porter Logistics is closely monitoring these developments to assess their potential impact on our operations and the services we provide to our customers. We are committed to navigating these changes effectively and will continue to keep our customers informed as more information becomes available.
For more detailed information, please refer to the original article on FreightWaves.
Why McGee Storage and Handling is Our Go-To for Racking Solutions
In the fast-paced world of logistics and warehousing, having reliable and efficient storage solutions is paramount. For over seven years, we have trusted McGee Storage and Handling for all our racking needs, and they have consistently delivered stellar results. Here’s why McGee Storage and Handling is our go-to provider for racking solutions.
Comprehensive Racking Solutions
McGee Storage and Handling offers a wide range of racking solutions tailored to meet the diverse needs of modern warehouses. Whether it’s pallet racking, cantilever racking, or specialized storage systems, their offerings are designed to maximize space efficiency and improve operational productivity. We have utilized their versatile racking systems across multiple installations, and each time, they have perfectly met our requirements.
Quality and Durability
When it comes to storage solutions, quality and durability are non-negotiable. McGee Storage and Handling consistently delivers high-quality racking systems that withstand the test of time. Their products are built to handle the rigors of a busy warehouse environment, providing reliable storage solutions that keep our operations running smoothly. Over the years, their durable racking has proven to be a valuable investment, offering longevity and consistent performance.
Outstanding Customer Service
Customer service is a critical aspect of any successful business relationship, and McGee Storage and Handling excels in this area. Their team is always responsive, addressing any concerns or questions we may have promptly and professionally. Their commitment to exceptional service has fostered a strong partnership, making the process of purchasing and installing racking systems smooth and hassle-free.
Competitive Pricing
McGee Storage and Handling offers competitive pricing without compromising on quality. Their transparent pricing structure and value-for-money solutions have helped us optimize our storage investments. The cost-effectiveness of their racking systems, coupled with their superior service, makes them a preferred choice for our warehousing needs.
Reliable Partner for Over Seven Years
For over seven years, McGee Storage and Handling has been our trusted partner in providing top-notch racking solutions. Their consistent performance, from the initial consultation and design to the final installation, has made them an integral part of our operations. Each racking purchase and installation has reinforced our confidence in their ability to deliver exceptional results.
Innovative Solutions for Modern Warehousing
In an industry that constantly evolves, McGee Storage and Handling stays ahead by offering innovative racking solutions that cater to the changing demands of modern warehousing. Their forward-thinking approach and commitment to innovation ensure that we are always equipped with the best storage systems available.
In conclusion, McGee Storage and Handling has been a cornerstone of our warehousing operations for over seven years. Their comprehensive racking solutions, expertise, quality products, outstanding customer service, and competitive pricing have made them an indispensable partner. For businesses looking for reliable and efficient racking systems, we highly recommend McGee Storage and Handling.
Visit their website at McGee Storage and Handling to learn more about their offerings and how they can support your storage needs.
For over three years, Atlanta Forklifts has been an essential partner in meeting our material handling equipment needs. From the purchase of specialized narrow aisle combilifts to reliable sit-down Toyota and Combilift forklifts, their offerings and services have consistently exceeded our expectations.
Our relationship started when Atlanta Forklifts acquired our existing provider. We were immediately impressed by the size and sophistication or Atlanta Forklifts, being much larger with more diversified offerings. We have used them for everything from material handing equipment to safety certifications for our drivers.
Here’s why Atlanta Forklifts stands out as a critical provider for our operations.
Diverse Range of Forklift Solutions
Atlanta Forklifts offers a comprehensive range of forklift solutions tailored to diverse operational needs. Their inventory includes top-tier brands such as Toyota and Combilift, known for their reliability and performance. Whether we need sit-down forklifts for general use or specialized narrow aisle combilifts for tight spaces, Atlanta Forklifts has consistently provided the right equipment to enhance our efficiency and productivity.
Reliable Rental and Financing Options
In addition to purchases, Atlanta Forklifts offers flexible rental and financing options that are crucial for our business. Their rental services provide us with the flexibility to scale our operations based on demand, ensuring that we always have the necessary equipment without the long-term commitment. Furthermore, their financing options have made it easier for us to acquire critical material handling equipment without straining our budget.
Outstanding Customer Service
Customer service is a cornerstone of Atlanta Forklifts’ success. Their team is always responsive, knowledgeable, and ready to assist with any inquiries or issues we might have. This level of support ensures that our operations run smoothly and that any potential downtime is minimized. Their commitment to exceptional service has built a strong and trusting relationship over the years.
High-Quality and Reliable Equipment
Quality and reliability are paramount when it comes to material handling equipment, and Atlanta Forklifts consistently delivers on both fronts. The forklifts we’ve purchased, including the robust Toyota and Combilift models, have proven to be durable and efficient. This reliability translates to improved operational uptime and reduced maintenance costs, adding significant value to our investment.
A Trusted Partner in Material Handling
For over three years, Atlanta Forklifts has been more than just a supplier; they have been a trusted partner in our material handling operations. Their ability to provide high-quality forklifts, flexible rental and financing solutions, and exceptional customer service has made them indispensable to our business. Each purchase and rental experience with Atlanta Forklifts has reinforced our confidence in their ability to support our evolving needs.
Comprehensive Material Handling Solutions
Atlanta Forklifts understands the complexities of modern material handling and offers solutions that address these challenges effectively. Their commitment to staying ahead of industry trends and continuously improving their offerings ensures that we are always equipped with the best tools to meet our operational goals.
Atlanta Forklifts has been a critical provider for our material handling equipment needs. Their diverse range of high-quality forklifts, specialized solutions, flexible rental and financing options, and outstanding customer service make them our preferred partner. For businesses seeking reliable and efficient material handling equipment, we highly recommend Atlanta Forklifts.
Visit their website at Atlanta Forklifts to explore their offerings and discover how they can support your material handling needs.
The potential disruptions looming for the U.S. supply chain due to a dockworkers’ strike at East and Gulf Coast ports are the largest since the 2020-2022 COVID-19 pandemic. Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have reached a deadlock. With the current labor agreement set to expire on September 30, a strike could begin as early as October 1. This would affect 43% of U.S. imports, leading to significant delays, higher shipping costs, and disruptions across industries relying on these ports.
Efforts from the Biden administration to encourage both sides to negotiate in good faith are ongoing, but there are no plans to intervene using the Taft-Hartley Act, which could temporarily halt the strike. If the strike goes ahead, the economic impact could be staggering, with estimates of losses reaching up to $5 billion per day. Companies, including those in the 3PL industry like Porter Logistics, should consider alternative transportation routes and preemptive measures to mitigate the effects of potential delays.
For Porter Logistics, staying prepared with contingency plans, such as diverting shipments to West Coast ports or adjusting inventory levels, will be essential to maintain service levels during this period.
