A recent post on Reddit titled “The Supply Chain Keeps Getting Worse” discusses the harsh reality that many small business owners are facing in today’s manufacturing climate – you can’t sell your way out of this. One respondent stated, “it’s change or die.” This is a sentiment echoed by many other posts on the subreddit as well.
The supply chain issues in America’s manufacturing industry are a serious problem for small businesses, and it seems like they’ll only get worse. The current situation is having an increasingly negative impact on both short-term profitability as well as long term sustainability.
Small Business and Freight
One of the most challenging aspects of owning a small business is shipping goods. While it may not always seem like an area that requires expertise, confusion reigns and costly mistakes are made.
Several shipping methods are available to send your goods, and the one that is best for you depends on several factors.
- Where is the freight headed?
- What type of products will you be shipping?
- How frequently will you be shipping?
- Do you have storage capabilities at your location or offsite?
- What size is your company?
- How much freight can you expect to ship at one time?
- Do you have an existing relationship with a carrier that provides the best rates or service for your business type and size
Keeping your shipments together and stacking them efficiently is the best way to make sure they arrive on time and transloading can help with this. A transload facility is a great resource for companies looking to move their freight between modes of transportation.
Why Transloading Is Important to Your Supply Chain
The way we do business is changing, which means the mode of transportation for moving products needs to change too. Freight carries may not be available to pick up and deliver the freight, as many will not run a load at all if it is less than a full container (20ft or 40ft).
The ongoing event with our supply chain is being felt throughout the country. The Port of Los Angeles and the Port of Long Beach are responsible for receiving more than a third of U.S. imports. The average shipment delivery is now taking an estimated 35.5 days due to the cargo vessels being unable to berth. Once a vessel can department, containers are sitting, on average, for 5.94 days because of the lack of drivers and chassis.
Drayage is increasing in cost and being impacted by the congestion at the railyards. The railyards are the epicenter for Drayage, and there’s no relief to be seen anytime soon. Every day more containers are lining up at either end of this bottleneck – waiting on empty rail cars or loaded onto other ships. The rates will continue to go up and carriers are going to need more money from shippers – the only question is how much?
The Benefits of Transloading – Partnering with the Right 3PL Provider
Small businesses can save money on their freight as transload facilities can consolidate freight onto common equipment, handle all aspects of intermodal freight, and charge for services only when they are needed.
If you’re transloading your product, it’s important to ensure you are transloading with a reliable 3PL partner. This is because transloading is complex and involves checking off many boxes within the supply chain management process ranging from storage of goods, transloading between carriers and transportation operators, providing security for cargo while in transit, custom clearance procedures at borders, and more. Transloading also requires the ability to track all shipments in real-time.
Transloading is a great alternative for transporting product because it enables companies to bypass many hassles associated with traditional shipping methods, including packaging requirements and cargo management challenges. Despite all these benefits transloading does come at an additional cost, but if done properly this method will allow you to have more control over your supply chain, which can ultimately save costs down the road when compared against other alternatives.
MVP Logistics provides a wide range of solutions to all clients, big and small. We think that our level of expertise and customer-focused solutions are what sets us apart in the logistics industry. Learn more about how we do business by clicking here or give us a call at (833) GO4-MVP1 today.
