7 charts show Southern California’s warehouse crunch
Easing the chokepoint is a “balancing act” of labor, warehouse space and goods movement…
As shipping containers clog the ports of Los Angeles and Long Beach, many importers are running into similar problems: There isn’t enough warehouse space to store incoming freight.
This lack of capacity prevents many containers from advancing through an already congested supply chain. Stakeholders are attempting to provide relief in several ways, such as filling parking lots with drop trailers, securing warehouse space outside port markets or even diverting freight to the East Coast. It’s often not enough for companies attempting to meet high demand without enough workers.
“As you’re getting backed up, space becomes limited,” said Piyush Golia, president of PCA Group, which handles distribution and logistics for beauty brands. “Space becomes limited, and now you’re no longer efficient. It’s a series of dominoes. If one falls, the rest keep falling.”
Here are seven charts that outline the extent of warehouse capacity constraints near the San Pedro Bay ports and why this issue persists.