Bookmark and Share

Extra Storage to Weather the Perfect Shipping Storm

In the wakes of Hurricanes Harvey, Irma, and Maria the freight industry will continue to be challenged by lingering disruptions to the national logistics infrastructure. With 30% of domestic refining centered in the Houston locales devastated by Hurricane Harvey, higher fuel prices are a certainty. Higher shipping costs are just as certain.

Port closures and shutdowns caused by the hurricanes, as well as flood damage to freight facilities inland are likely to cause backlogs leaving freight to pile up on the loading docks. While the major disruptions are likely to be confined locally to areas recovering from direct impact of the storms, ripple effects in shipping will be felt nationwide in the form of higher costs and delays.


ELD Capacity Crunch Looms at the 2017 Year End

On top of all the disruption to the industry caused by these natural disasters, the new Electronic Logging Device (ELD) regulations will go into effect at the end of 2017. ELD use will cause a 10% to 20% reduction in ability to run miles says Todd Amen, president of ATBS, a financial services provider for owner-operators. Statistics from fleets already employing ELD back up his statement. Amen is predicting that the ELD mandate will cause an industry-wide shortage since strict hours of service regulations will remain unchanged. Strict enforcement will be equal to  200,000 to 300,000 trucks taken off the road, according to the report at supplychaindive.com.

That means more trucks and drivers, increasing the demand for already higher priced fuel to move the same amount of freight in 2018. Even before the hurricanes, the industry was warning about an imminent capacity crunch. Now, with the added disruptions from the hurricanes, the freight industry is facing a perfect storm of events. But forward-looking businesses can be prepared.

 

Extra Storage in a Narrow Window of Opportunity

 

Businesses can take advantage of a narrow window of opportunity to stay ahead of the inevitable shipping cost increases by supplementing inventories for 2018 now before rising costs get completely out of hand. Our selection of secure storage containers and mobile semi-trailers can provide the warehouses on demand which businesses will need for surplus inventory, as well as for backlogs of material caused by shipping delays. Our versatile storage leasing options allow access to extra storage for only as long as it’s required, so you’re not eating into your profit margin when it’s not.

If you're looking ahead for your business don't hesitate to contact us at Equipment Leasing Solutions for all of your storage needs.



FacebookTwitterGoogle+Pinterest