Hello, retail supply chain nerds.
Happy Tuesday!
Just wanted to remind everyone that we will not have a new episode of Point of Sale this week.
INSTEAD, we have a dynamic webinar with our sponsor, ArcBest, on Wednesday so you can ask them all of your retail-related questions as they share their outlook on logistics for 2022.
Be sure to register at this link and join us on Wednesday at 2 p.m. EST to hear from ArcBest Chief Customer Officer Dennis Anderson.
Also, in the spirit of the holidays, INVITE YOUR FRIENDS.
The more the merrier!
As for today:
- Retailers say bye-bye to just-in-time and hello to “buffer stock.”
- Airlines continue to convert passenger aircraft to freighters.
- Over 300,000 square feet of warehouse space is bought in Pennsylvania.
Retailers can’t find space
This week, FreightWaves’ Brian Straight spoke with RK Logistics Group about the issues the company’s global shipping clients have recently experienced at the ports.
The 3PL, which also arranges warehousing services for its industrial and e-commerce customers, explained that its available space in New Jersey is currently operating at 100% capacity utilization, including space that is still physically empty waiting for products to come into the port.
“We have clients who are holding on to space they might previously have let go, even if it’s empty and not immediately being utilized, because they want the assurance of capacity going forward. They don’t see the market loosening anytime soon,” said RK Logistics Group President Rock Magnan.
To create a more resilient supply chain to keep up with unprecedented customer demand, many of its retailers are working toward building “buffer stock,” excess stock of critical or single-sourced items to avoid further supply chain breakdowns.
To read more about how retailers are changing from the traditional just-in-time supply model to building up buffer stocks, check out Straight’s article here.
Australian airline converts two Airbus A330-200s to accommodate freight demand
On Tuesday, Australian airline Qantas announced its plans to convert two passenger aircraft, Airbus A330-200 medium widebodies, to begin moving its cargo volume.
The two converted aircraft will soon be joined by a third Airbus A321 to help with cargo deliveries for the Australian Post.
According to Australian Post CEO Paul Graham, Australia has seen 76% growth in e-commerce since 2019. While the Post delivered a record 52 million parcels during December last year, he explained to FreightWaves that the company will beat that volume this year.
To learn more about Qantas’ plans for converting its passenger aircraft for much-needed freight space, check out FreightWaves’ Eric Kulisch’s article here.
Realterm acquires final-mile warehouse space in Easton, Pennsylvania
Another week, another large real estate purchase!
Real estate operator Realterm announced Tuesday it has purchased 307,290 square feet of warehouse space in Easton, Pennsylvania, adding to the company’s $9 billion in assets ranging from airport real estate to logistics parks.
The facility, on 28.47 acres, consists of 4,800 square feet of freezer space, 32 loading positions, 58 trailer stalls, three drive-in doors and 370 parking spaces, along with racking, conveyor, and pick and packing systems.
“3747 Hecktown Road offered the opportunity to acquire an extremely well-located final-mile warehouse in an established and growing warehouse and distribution market,” said Ben Andreycak, vice president, Realterm. “The Lehigh Valley industrial market offers the unique combination of interstate access, limited traffic congestion, and a deep and affordable labor base.”
The location is in proximity to major parcel carrier distribution hubs and airports, and it provides immediate access to Interstates 476 and 78, giving carriers a direct route to Baltimore, Washington, Philadelphia and New York City within a two-hour drive.
I have an idea what you are thinking …
How much would it cost to route a full truckload from this warehouse to one of these cities?
Well we have that answer for you in …
TRAC’s Lane of the Day
Lanes along the East Coast are always “fun” to quote.
Issues with traffic congestion, available parking and tolls only add to the confusion, which is why FreightWaves’ SONAR has developed TRAC to help you quote these shipments for your customers.
The first thing to note in the top left corner is a lane score of 31.
Typically any score with lower than 50, the negotiation power is in the hands of the shipper.
As the logistics provider, you are WINNING.
Carriers are having issues finding loads out of Easton, so you are going to be their savior.
You can also see the destination market is tightening, which may steer a driver away from wanting to go to Baltimore.
ALTHOUGH as mentioned in the article, Easton is an epicenter of distribution, which means you should be able to find a full shipment coming into the Port of Baltimore that needs to head toward Easton too.
If you have an outbound Baltimore load available, start by offering the lower rate at $6.02 a mile.
If you have not secured that round-trip shipment, be prepared to offer rates on the high end, close to $7.17 a mile.
Pro tip: Truck parking on the East Coast is THE WORST.
If you can secure a round trip and offer up one of those 370 parking spaces in Easton, use that to strengthen your negotiation power if you send the carrier back to Pennsylvania.
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