<div class="phx-topic abstract-wrapper">The industry is working on solutions to the port congestion issue, from gray chassis to port enhancements. Still, smart retailers should look strategically at their supply chains, both to gain added value and avoid the pitfalls experienced in 2014.</div>

The industry is working on solutions to the port congestion issue, from gray chassis to port enhancements. Still, smart retailers should look strategically at their supply chains, both to gain added value and avoid the pitfalls experienced in 2014.

3084946_FI.jpg

<div class="phx-topic">It’s been described as the “perfect storm.”<ul><li>Contract negotiations with the International Longshore and Warehouse Union at a standstill, affecting 13,600 workers at 29 West Coast ports.</li><li>Pacific Maritime Association claims of worker slowdowns and reduced port productivity.</li><li>Mega-ships anchored off the coast, awaiting berths at congested ports.</li><li>Mammoth container ships that take longer to unload and trouble ports built for ships a third their size.</li><li>Chassis shortages for moving containers from the ports to inland warehouses.</li><li>Driver shortages that plague supply chains at the ports and across the nation.</li></ul>Large retailers, with big transportation departments, sophisticated supply chain systems and greater flexibility, started planning in mid-summer to avoid inventory shortages during the crucial holiday selling season. They brought inventory into warehouses earlier in the year, diverted cargo to East Coast ports, and, in some cases, paid extra for priority at the docks.It’s small and midsize retailers that felt the pain of port congestion the most this holiday season. With inventory on backorder, they lost sales and damaged relationships. They exceeded budgets to get merchandise in on time, using air freight and premium ground services. Inventory that arrived after the holidays is now fodder for massive markdowns and further reduced margins.Global logistics companies can help retailers redesign their supply chains for optimum operations in good times and bad. Supply chain analysis, coupled with in-country expertise, carrier relationships, state-of-the-art transportation systems, and inventory management programs, can help small and midsize companies gain many of the advantages large retailers enjoy from their in-house operations.The industry is working on solutions to the port congestion issue, from gray chassis to port enhancements. Still, smart retailers should look strategically at their supply chains, both to gain added value and avoid the pitfalls experienced in 2014.John Carr, President and CEO, MIQ Logistics</div>

It’s been described as the “perfect storm.” Contract negotiations with the International Longshore and Warehouse Union at a standstill, affecting 13,600 workers at 29 West Coast ports. Pacific Maritime Association claims of worker slowdowns and reduced port productivity. Mega-ships anchored off the coast, awaiting berths at congested ports. Mammoth container ships that take longer to unload and trouble ports built for ships a third their size. Chassis shortages for moving containers from the ports to inland warehouses. Driver shortages that plague supply chains at the ports and across the nation. Large retailers, with big transportation departments, sophisticated supply chain systems and greater flexibility, started planning in mid-summer to avoid inventory shortages during the crucial holiday selling season. They brought inventory into warehouses earlier in the year, diverted cargo to East Coast ports, and, in some cases, paid extra for priority at the docks. It’s small and midsize retailers that felt the pain of port congestion the most this holiday season. With inventory on backorder, they lost sales and damaged relationships. They exceeded budgets to get merchandise in on time, using air freight and premium ground services. Inventory that arrived after the holidays is now fodder for massive markdowns and further reduced margins. Global logistics companies can help retailers redesign their supply chains for optimum operations in good times and bad. Supply chain analysis, coupled with in-country expertise, carrier relationships, state-of-the-art transportation systems, and inventory management programs, can help small and midsize companies gain many of the advantages large retailers enjoy from their in-house operations. The industry is working on solutions to the port congestion issue, from gray chassis to port enhancements. Still, smart retailers should look strategically at their supply chains, both to gain added value and avoid the pitfalls experienced in 2014. John Carr, President and CEO, MIQ Logistics

<topic id="e9e2e668-e015-4f46-a8d3-a2172262b892"><title>John Carr, President and CEO, MIQ Logistics</title><summary>The industry is working on solutions to the port congestion issue, from gray chassis to port enhancements. Still, smart retailers should look strategically at their supply chains, both to gain added value and avoid the pitfalls experienced in 2014.</summary><body>It’s been described as the “perfect storm.”<ul><li>Contract negotiations with the International Longshore and Warehouse Union at a standstill, affecting 13,600 workers at 29 West Coast ports.</li><li>Pacific Maritime Association claims of worker slowdowns and reduced port productivity.</li><li>Mega-ships anchored off the coast, awaiting berths at congested ports.</li><li>Mammoth container ships that take longer to unload and trouble ports built for ships a third their size.</li><li>Chassis shortages for moving containers from the ports to inland warehouses.</li><li>Driver shortages that plague supply chains at the ports and across the nation.</li></ul>Large retailers, with big transportation departments, sophisticated supply chain systems and greater flexibility, started planning in mid-summer to avoid inventory shortages during the crucial holiday selling season. They brought inventory into warehouses earlier in the year, diverted cargo to East Coast ports, and, in some cases, paid extra for priority at the docks.It’s small and midsize retailers that felt the pain of port congestion the most this holiday season. With inventory on backorder, they lost sales and damaged relationships. They exceeded budgets to get merchandise in on time, using air freight and premium ground services. Inventory that arrived after the holidays is now fodder for massive markdowns and further reduced margins.Global logistics companies can help retailers redesign their supply chains for optimum operations in good times and bad. Supply chain analysis, coupled with in-country expertise, carrier relationships, state-of-the-art transportation systems, and inventory management programs, can help small and midsize companies gain many of the advantages large retailers enjoy from their in-house operations.The industry is working on solutions to the port congestion issue, from gray chassis to port enhancements. Still, smart retailers should look strategically at their supply chains, both to gain added value and avoid the pitfalls experienced in 2014.John Carr, President and CEO, MIQ Logistics</body></topic>