Reliability influences every supply chain officer’s decision making when it comes to how goods enter the United States, are distributed across the country and ultimately reach their end-customers. Reliability is paramount, affecting both cost and speed-to-market, and it has come under attack as a result of the slowdown at the nation’s West Coast seaports. So much so, that JLL’s occupier clients are questioning the long-term implications for the nation’s industrial markets. JLL’s report, What is the long term impact of the LA/LB Port slowdown, explores the issues and give you the answers.
The report concludes:
- Los Angeles and Long Branch are still a major cargo player by 2.5 times
- Cargo has been shifting to the east coast, but much of it is likely discretionary
- A port diversification strategy is ideal: Shippers will call on multiple ports since flexible supply chains are better equipped to deal with potential disruptions
- Imports, population, infrastructure options and labor are big drivers of industrial real estate