Warehouse Demand Growth Meets the STG Difference

January 6, 2023

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STG Logistics is the nation's largest provider of port-to-door services for cargo owners and logistics providers. We hold the top spot because of the successful combination of our people, our technology and the large number of facilities we operate and maintain at major coastal and inland ports of entry. Each of those facilities is tailored to handle cargo that the local market sees most frequently - sea freight, air freight, domestic cargo or e-commerce and omnichannel fulfillment. Managing that portfolio of properties takes a team that is experienced in negotiating leases, designing buildings and calculating and optimizing costs to operate efficiently. 

 

For most cargo owners, the work of site selection, lease negotiation and setting up a warehouse isn't core to their businesses. This means they might not wind up in the best location, with the best deal and the timeline and costs will exceed their initial scope and budget. STG is engaged in this process year-round and our full-time experience is something that part-time seekers of warehouse space can benefit from.

 

As the demand for e-commerce continues to grow, warehouses and distribution centers are facing a space crunch. This is particularly true in California, where the new Clean Fleet Drayage Rule has led to a decrease in imports and a corresponding reduction in capacity at the ports.

 

According to the JOC, "with fewer import containers arriving at the ports, there is less need for drayage capacity, which in turn means less demand for warehouse space to store those containers." This has resulted in a surplus of warehouse space in the region, leading to lower rents and increased competition among landlords.

 

For beneficial cargo owners who elect to operate their own warehouses and have changed their shipping and receiving patterns, this under-utilization translates into a drag on the bottom line. The best solution is to stay out of the warehousing business and rely on a competent company to manage the physical handling of cargo. 

 

This is where partnering with a third-party logistics (3PL) provider like STG Logistics is a smart decision. A 3PL partner like STG can help companies manage their warehouse and distribution needs, providing flexible solutions that can adapt to changing market conditions.

 

In addition to offering transload, warehouse and distribution services, STG also provides transportation and logistics consulting. With freight costs soaring during the pandemic but returning to earth, logistics is a visible line on a company's balance sheet, and one to which CEOs are increasingly tuned. STG's consulting helps businesses optimize their supply chains, improving efficiency and reducing costs. STG's team of logistics experts can help companies identify areas for improvement and implement strategies to increase efficiency and reduce costs.

 

Warehousing and inventory management is a complex and expensive part of the supply chain, whether for cargo owners processing import and export cargo or for logistics companies seeking to offer final mile services to small to medium-sized shippers. By partnering with a company like STG Logistics, our scale, negotiating power and expertise can help companies reduce their overall transportation spend and bring more to their bottom lines. 

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