Freight Logistics: From Multiple Contractors to One-stop Providers

Categories: BCO/Shipper, Warehouse.

Warehousing and storage in the United States is currently a $22 billion industry employing over 600,000 people. Add in another $9 billion and 60,000 employees that handle order fulfillment and you’re looking at a major industry.

But things are changing in the world of freight logistics, and one familiar word keeps cropping up in every conversation about the future: Transloading. The industry is taking note of the key advantages that come with utilizing a third-party logistics provider for transloading, deconsolidation, warehousing, and fulfillment services.

The Shift to 3PLs

Recent advances in technology have allowed 3PL (third party logistics provider) companies to offer an unrivaled range and depth of services to their clients, making them an increasingly attractive logistical solution for results-oriented beneficial cargo owners (BCOs).

Moving your freight from the point of manufacturing to the shelves of retail stores quickly and efficiently is absolutely essential in keeping profit margins healthy. And today’s BCOs are partnering with 3PL providers that deliver on the promise to provide a unified freight solution from port to shelf: cutting down on inefficiencies, ensuring cargo is well-handled and delivered on-time.

Whether it’s by rail, road, or sea, once your cargo is deconsolidated and warehoused by the 3PL company it can be sent directly to your stores by whichever method is most efficient.

From Multiple Contractors to One-stop Providers

Movement away from traditional freight systems has been driven by a desire to simplify, lower costs, and increase flexibility in the face of the challenges that come with:

  • contracting with many assorted companies for transportation
  • owning warehouses
  • managing the huge staff required to keep all the parts running smoothly
  • letting freight forwarders dictate the terms of your order fulfillment

In our increasingly connected business world we expect integrated solutions, flexible partners, and electronic systems that communicate with one another and provide the information we need to make operational decisions in real time.

If you’re a logistics manager and need a partner to help you strategically manage and successfully move your products out of the port and onto their final destination, feel free to reach out to us to discuss your needs.

And for detailed information, maps, and contact information for the ports of Los Angeles and Long Beach, be sure to download a free copy of our Comprehensive Port Service Guide.