Shippers to employ port diversification strategies
Shippers still recall the Los Angeles/Long Beach lockdown of 2002 and have since committed to diversification strategies to mitigate their risk.
By splitting their options between multiple ports to protect their supply chain grid, they will have a shield in the event of labor issues or other unforeseen crises. This is boosting East Coast ports such as Savannah and Charleston, which have the critical mass of port infrastructure, rail intermodal and population base to provide a safety valve for large United States retailers and logistics companies.
“The Canal expansion is causing companies in both port and inland markets to re-examine their logistics processes and facility positioning,” says Jones Lang LaSalle’s Carver. “A competitive edge for many companies is becoming increasingly realized through effective supply chain management. We have seen the recent industrial real estate resurgence materialize by way of a ‘coast inward’ recovery. If anything, the expanded canal will give companies access to more options as they contemplate their supply chain strategies and post-2014 real estate requirements.”