Articles by Month: June 2021
If you’re seeking affordable Cleveland warehousing space, you might consider teaming with a third-party logistics (3PL) company. Not only will a 3PL be more likely to have a central warehouse location in an increasingly competitive market, it can also handle receiving, storage, inventory control, and reverse logistics with optimal efficiency.
Warehousing is critical for moving goods safely through the supply chain. But warehouse space competition has dramatically impacted industrial rents over the last year. Retailers and logistics firms are routinely paying a premium to lock down the most advantageous spots. CBRE Group Inc. reports industrial rents in 58 U.S. markets were up almost 10 percent in the first five months of 2021 compared to last year. Demand was largely driven by the surge in e-commerce that occurred when pandemic-related lockdowns closed many storefronts, keeping people at home and shopping for goods online.
But even as restrictions have eased, the public and businesses have continued their online ordering habits – along with their expectations for next day or even same-day deliveries. CBRE estimates more than a quarter of all retail sales in the U.S. will be facilitated by e-commerce by 2025. Meanwhile, suppliers stung by the pandemic shortages are trying to guard against a similar scenario by ensuring they have enough on hand to meet a sudden demand spike. That inventory has to be safely stored somewhere – and ready to be moved at a moment’s notice. Select sites in regional hubs near highways and closer to final destinations can dramatically reduce transportation costs.
As the Wall Street Journal reports, this demand for warehousing is likely to create a similar situation to what we’ve seen with the housing market, with limited supply and fierce competition for warehouse properties in strategically key locations. But available spaces – particularly larger buildings with higher ceilings and ample parking lots near urban centers – have become more scarce in recent years.
For many Northeast Ohio companies, the expense of Cleveland warehousing is a considerable one when determining operating budgets. Prices can swing significantly, depending on the type of facility and services one needs. What we can confidently say is lots of businesses don’t require an entire warehouse dedicated solely to their operations. That’s why it often makes sense to partner with a 3PL, one with adequate space, value-added services and the best rates.
Less-than-truckload (LTL) and full truckload (FTL or just TL) are the most common types of freight shipping in most industry supply chains. Unfortunately, Ohio LTL freight shipping prices have risen substantially in recent years.
At On Time Delivery & Warehouse, we pride ourselves on pricing transparency and strive always to provide the most competitive LTL shipping costs in the region. Understanding why costs are higher these days is important to formulating a workable strategy to keep those expenses manageable while still ensuring your shipments are getting where they need to be – intact, on time, every time.
What is Ohio LTL Freight Shipping?
Approximately 54 million tons of freight are moved on trucks daily in this country, according to the U.S. Department of Transportation. A considerable share of this is hauled on LTL loads.
Anytime your shipment takes up an entire truck (typically somewhere around 42,500 lbs. or 24 pallets), it’s called a full truckload. When the weight or size of your shipment is less than that, you have the option of shipping items via less-than-truckload. LTL is sort of like a rideshare service with multiple passengers, but for freight.
On a per-mile, per-unit basis, Ohio LTL freight is often more costly. However, that doesn’t necessarily mean it isn’t the most cost-efficient option for the specific needs of your business.
Some benefits of LTL shipping include:
- Tracking and tracing. Transparency and visibility of shipments is important to our clients as well as their customers. Knowing transit times, the location of shipments, estimated delivery times and more can be invaluable.
- Service options. These can include pick up and delivery, liftgate service, import/export freight handlers, hotshot deliveries and more.
- Earth-friendly. Shipping via LTL allows carriers to use all the room on the truck, meaning each shipment is efficient and eco-friendly.
These should be factored when considering whether LTL makes the most financial sense for your firm.