Welcome to Logistics Lens: Your Monthly Deep Dive into Logistics Trends

Welcome! We're excited to announce the launch of our new monthly feature: Logistics Lens. We hope this becomes a go-to source for logistics market news and practical insights that you can immediately apply to your business. We're committed to providing timely, unscripted, and behind-the-scenes looks that will keep you informed and aid your warehousing and distribution decisions.

Ready for a glimpse of what we have in store??

• Video thought-starters from our team (and maybe a surprise special guest or two!)
• Freight Markets and Supply Chain Activity: All the latest - and sometimes-the-not-so-greatest - market happenings that may affect your supply chain
• Capacity and Demand Trends: Info to help you optimize your freight management and inventory strategies
• Warehousing Capacity and Utilization: Pointers to aid your warehousing and domestic distribution decisions
• Wild Card: Who knows? You'll just have to open our email monthly and scroll all the way to the end to find out. ?

Four Must Haves in 3PL Customer Service

We've got a short video for you this month, starring ?? our Director of Customer Experience, Nicole Butcaris. She's sharing four customer service must-haves that every top-notch 3PL partner should prioritize. Is your 3PL partner checking all the boxes? If not, give us a call and let us know how we can help.

Freight Market Gossip Alert!

Well, well, well... the freight market sure knows how to keep us on our toes! We've rounded up the latest happenings that could have an impact on your supply chain just in time for peak season. Let's dive in!

• Tentative Agreement Reached Between International Longshore and Warehouse Union, Pacific Maritime Association: We're sure you heard about the tug of war that was going on over at the West Coast ports between the dockworkers, under the International Longshore and Warehouse Union, and their employers. Well, we've got some good news to share! After 13 months of negotiations, maritime employers and the International Longshore and Warehouse Union (ILWU) have finally reached a tentative six-year contract. This covers all 29 ports along the US West Coast, ending job actions that disrupted port operations and redirected cargo volumes. Thanks to this new deal, we can expect stability in our west coast port operations. However, please note that the deal still requires ratification, which typically takes about a month. We'll keep an eye on how this progresses. You can learn more about how this agreement came about, who played a role, and how it might impact our industry in the long run. Read more.
• I-95 Collapse: A major section of the I-95 highway in Philadelphia has catastrophically collapsed following a fiery tractor-trailer incident, forcing a weeks-long closure of the crucial north-south route. With an anticipated widespread disruption of daily commutes and commercial activities, we are expecting significant impact on freight transportation in the area. Read more.
• A Drying Panama Canal: Drought conditions in Central America are reducing the capacity of container ships and escalating the costs of transit via the Panama Canal. If water levels continue to decline this could trigger a resurgence of freight to the US West Coast. Make sure you stay close to our team to help align around demand forecasting challenges and revised distribution strategies to ensure we can keep supply and demand matched as closely as possible. If you'd like to read an easy to digest twitter thread on the situation, check out what Morning Brew had to say on this?? here.
• Suez Sand Storm: A huge sandstorm swept across the Suez Canal last week, as well. Thankfully, this issue has resolved, but the incredible footage from this viral video of the massive dust storm hitting a container ship is worth the click.

What Will Peak Season Look Like?

Uncertain economic times have some US importers proceeding cautiously, continuing the 'Great Destocking of 2023' and delaying their restocking activities. The changing consumer demand landscape, coupled with inflation, has forced many retailers to reconsider their inventory strategies. Here's the scoop on how we can support you through these uncertain times.?

1. Inventory Optimization: We can help manage your inventory levels to ensure you have the right stock at the right time. Partnering with us on forecasting and drawing upon historical data, we can better predict future demand to help prevent overstocking and understocking.
2. Agile Supply Chain Management: Our expertise and wide network can enhance your supply chain's flexibility. We can assist in identifying alternative suppliers or strategies to reduce disruption, helping you to navigate rapidly changing market conditions effectively.
3. Cost Reduction Strategies: We are committed to optimizing your logistics costs. Whether it's through process improvements, better negotiation with carriers, or consolidation of freight, we aim to deliver efficient and economical solutions tailored to your needs.
4. Product Diversification Support: If you're looking to concentrate on your consistently well-performing products, we can assist with the logistics adjustments this might require, ensuring your core products are always available to your customers.
5. Keeping You Informed: We're dedicated to keeping you updated on critical market trends and economic indicators. We hope our insights can empower you to make informed decisions and react swiftly to changes in consumer demand or the economic climate.
6. Just-In-Time (JIT) Implementation: If you're considering a JIT approach to reduce the costs associated with holding excess inventory, we have the expertise to help implement this. We can ensure goods are delivered exactly when they're needed in your production process.

We understand that each business is unique, and we're committed to providing personalized solutions that align with your specific goals and circumstances. Let's navigate these uncertain times together, optimizing your supply chain for resilience and success. Check out this full article for detailed insights and analysis about peak season.

What do you think about this year's peak season? Drop us a reply and let us know.?

Is Greater Supply Chain Efficiency on the Horizon?

The Federal Maritime Commission (FMC) is expected to introduce a final rule on detention and demurrage billing practices as part of the Ocean Shipping Reform Act of 2022 (OSRA-22), aiming to boost supply chain efficiency. A key provision is to restrict detention and demurrage billing to contracted parties only, a measure supported by a broad range of stakeholder groups including the Association of Bi-State Motor Carriers, the Harbor Trucking Association, and the Intermodal Motor Carriers Conference, among others. Currently, motor carriers often receive demurrage and detention bills, even though they are not privy to the contract under which the container was shipped. The new rule will help avoid legal issues by preventing non-contracted parties from being billed. Despite concerns raised by a few, most agree that restricting billing to contractual parties will increase transparency between shippers and ocean carriers, decrease administrative costs from incorrect invoicing and lengthy dispute resolution processes, and ultimately enhance supply chain efficiency. Read More.

Inventory Overhang Dissipation

The JOC released their Top 100 Importer/Exporter Rankings. Delve into the lists and challenges faced by US importers and exporters due to changing demand sentiment and a shift in shipping timelines that lead to an inventory glut which continues to affect freight flows and demand in 2023. The US Retail Trade Inventory/Sales Ratio through March highlights the worsening overstock situation from mid '22 when ocean freight rates began to crater.

Space Available in Linden near NY/NJ Ports

Shipping through the Big Apple? We now have racked and floor distribution space available at our WDS Linden facility in NJ. With docks spanning two sides of the building, this new Class A space is primed for speedy cross docking to get your goods in, out, and on their way faster. Learn more here.??

PNW Spotlight: Tacoma, WA

The Puget Sound gateway is the West Coast's best open secret. Our newest facility brings expedited transload and distribution capacity to the PNW with in-house drayage and intermodal on-carriage services on offer for the quickest Asia to Midwest transits in the industry.

#ICYMI Recent WDS Stories

• WDS Builds Customer-Focused Leadership Teams with Two New Hires
• Blog: Streamlining your Supply Chain with Cross Docking
• Blog: 5 Benefits of Outsourcing Your Distribution and Fulfillment to a 3PL
• WDS Announces Capacity Availability at its Newark-Area Distribution Center
• WDS Celebrates Grand Opening of New Distribution Center in Tacoma