When it comes to our current supply shortage, we typically think about the supplies themselves as the issue. While this is true in some cases, the supplies are not always the primary concern. Perhaps the most pressing issue is a chassis shortage making it impossible to hold all of the arriving cargo. Some ports designed to hold cargo for three to four days to maintain cargo flow sit with the same cargo containers for up to nine days. So how can Dream Logistics warehousing solutions make a difference? First, let’s look at what’s causing this shortage.
These are just a few of the factors involved:
Due to supply shortages, some companies attempt to stock up on products to avoid depletion. However, what happens when all those products arrive and the companies have nowhere to put them? The cargo containers either sit on the chassis costing companies tens of thousands or get moved offshore and sit without a chassis, causing truck drivers a major headache.
As a result of imposed retaliatory duties put on Chinese-made chassis (which make up more than 90 percent of the US’s supply) by the US in 2020, our production of new chassis all but disappeared. Steps have been taken to temper this issue, but the problem remains. So if you want to order new chassis, you’ll have to wait until 2024.
Consider the recent rental car shortage. People would arrive in a city, get their rental car, drive to another city, and eventually drop off the car at a different location. Now the original rental car dealer is out of a rental car. The same is happening with chassis. Trucks are taking them from marine terminals and failing to return them to their original location.
Plenty of steps can take place to try and boost the availability of chassis. Whether it’s repairing deactivated chassis or incentivizing shippers to return chassis to their original location. Even those solutions take time and strategy.
What Dream Logistics offers is a place for companies to store their shipments for a fraction of the price. Rather than paying tens of thousands to have products sit on a chassis, shippers can contact Dream Logistics for the use of our warehouse space. These warehouses can hold the products, allowing chassis to be freed up and made available for other shipments. So not only are you saving money, but you’re also creating space for more products to be shipped.
It’s a win-win.
Contact Dream Logistics today for the best warehousing solution money can buy.