Top Considerations for Evaluating your Supply Chain

There are several considerations to examine when building your supply chain and the process is ever evolving in response to internal and external influences. In recent years, transportation and logistics leaders have navigated the impacts of a global pandemic, geopolitical tensions, capacity constraints and most recently a labor union work stoppage.

These factors and their implications have resulted in creative thinking and revised go-to-market strategies for shippers of all kinds, proving the importance of staying up to date on current affairs and being adaptable in changing environments.

How often are you taking a critical look at your supply chain and evaluating its effectiveness to support your business goals based on the current market?

In this blog, we sit down with Trailer Bridge leaders to review key factors to consider as you prepare for the new year ahead. We discuss recent disruptions that have caused ripple effects in the market and how they may influence future decision making.

Laying the groundwork for the East vs. West discussion

We will start with one of the first points to consider for those operating within the United States -determining which coast to utilize to import or export your freight. In recent years, the East Coast has become a strong option for getting cargo into the U.S. with its quick access to the nation’s growing consumer base and major infrastructure investments in ports from New York to Florida. The initial push east was driven by factors like port congestion at major West Coast ports as well as labor issues. However, the thing about a trend like this is that what works for most, doesn’t work for all. Although this shift has diverted cargo, the West Coast – particularly Los Angeles and Long Beach – still dominates as the leading entry point for U.S.-bound cargo.

The water level concerns at the Panama Canal in 2023 and into 2024, left many shippers contemplating a shift in their shipping route – from the East Coast back to the West to avoid delays in their ability to deliver products. A switch like this can be hard, but an appealing option for some businesses, especially those moving freight from the Far East.

“There’s going to be scenarios where people look at the West Coast as a viable option, even though the final destination is along the East Coast U.S.,” says Zach Monger, Director of Trailer Bridge International.

For Monger, making that choice boils down to a few key factors.

Proximity to destination

It will be hard to offset proximity to the final destination. Ocean travel is less costly than over-the-road transport, so the closer you are to your warehouse or facility at point of entry, the better.

The facility’s infrastructure

Is the port you’re considering able to accommodate your shipment? According to Monger, some key questions you need to ask about the port in question, include:

• What are the capabilities of that port?
• Do they have the capacity to handle the volume of what you’re importing or exporting?
• Does your ocean carrier partner have a routing to that port?
• If necessary, do they have warehousing and storage facilities nearby that would affect your decision?

Regulations and additional costs

“Research industry-specific regulations, certifications, or maybe even tariffs that would impact your shipment,” advises Monger. “Some ports may have restrictions on what you’re shipping.”

Bringing it all together, you’ll need to conduct a cost-benefit analysis. Include Customs fees, transportation costs and allow space for any potential delays.

At the end of the day, understanding your business goals and any special requirements dictated by your freight will help you make the best determination of how to ship your cargo. For some shippers, it may come down to cost and speed, while others may be driven by cost-savings only or partner relationships.

Utilizing intermodal to support supply chain operations

As mentioned, proximity to destination is a major determining factor when building your supply chain. With trucking costs typically higher, intermodal presents a cost-effective option for those looking to move their freight inland from point of entry.

Intermodal is the movement of freight in containers or trailers over two or more modes of transportation such as rail, truck, and ship. This is done by loading cargo into an intermodal container, which is then transferred between multiple carriers during its journey.

Let’s explore some of the benefits of intermodal transportation as compared to trucking.

Ideal for longer hauls

One of the primary benefits of intermodal transportation is the potential for cost savings when shipping cargo 500 miles or more, making it especially appealing to those looking to bring shipments into the West Coast and head East.

“There are more options to ship intermodal off of the West Coast,” says Brent Neary, Director of Intermodal for Trailer Bridge. “If you’re going to run freight on the railroad, you need a longer length of haul because that’s where your cost savings comes in against truckload.”

Since rail is more fuel-efficient than trucking, it keeps operating costs low, so you end up paying less per mile. That’s even considering the drayage costs required to transport freight to and from the rail terminals.

Offers additional capacity

Currently, Neary estimates about 10 percent of the nation’s freight is being moved on the railroad. An intermodal train can carry the load of 280 trucks, giving shippers a viable option for shipping their cargo. Containers can also be double stacked on well cars to create additional intermodal capacity, making it ideal for high-volume shippers.

Rail provides a reliable method of transportation which can be used as an alternative when demand for trucking is high.

Presents a more sustainable option

Railroad transportation makes intermodal a more environmentally friendly option because it fuels efficiencies over transportation by truck.

It has been found that switching your freight from truckload to intermodal can reduce Co2 emissions by 30 percent, according to an article published in the Flexible Services and Manufacturing Journal.

Creating flexibility and resiliency in your supply chain

The ramifications of the COVID-19 pandemic can still be felt throughout the supply chain. Attacks in the Red Sea in 2024 have caused shipping vessels to divert around Africa causing significantly longer transport times. Capacity issues, labor negotiations, geopolitical unrest, natural disasters causing widespread devastation – the list of disruptions impacting supply chains is long, pushing leaders to be nimble and continuously adapt to develop stronger organizations.

“The ultimate thing is shippers must remain vigilant, but flexible,” says Monger. “In today’s market, flexibility is key.”

Working to diversify your supply chain is a great first step to creating that flexibility.

By implementing carrier diversity, you will create relationships with a range of transportation partners, spanning modes, companies and geographical locations.

“There’s a value in diversifying and protecting yourself for when things go wrong,” adds Neary. “Being proactive and being prepared is wise.”

From managing all Trailer Bridge efforts in the intermodal space, Neary has a closer perspective on the various options available for moving freight and the importance of having various relationships in place.

In addition to providing options between shipping lanes, adding this diversity will help mitigate risks. Beyond the global events referenced above, you must be mindful of other factors that could impact service including increasing demand for transportation, rising prices, or more general capacity limitations.

Diversifying is just one of the many options to building a resilient supply chain. Investment in technology is also at the forefront of the conversation.

“You’re seeing a lot of companies heavily invested into technology, digital platforms, data analytics,” says Monger. “This helps improve visibility and efficiency in the supply chain.”

Though technology is only part of the equation. There’s a human element as well.

“I think you’re seeing a lot of customer collaboration,” adds Monger. “Carriers are working with their customers to build stronger partnerships and collaboration to figure out how we can address challenges going forward.”

Finding a partner you can trust

With so many moving pieces, a single point of contact for all your transportation needs is worth considering.

Their expertise can help you quickly establish a carrier strategy that is right for your business, whether you are shipping locally, nationally or globally.

There are numerous options in the space, but for Trailer Bridge, the people are what make the difference.

“A lot of customers like to shop things around or bounce around just based on the cheapest rate, but I’m a strong advocate for building relationships,” says Monger. “I think ultimately that’s what matters – It’s about building strong relationships across the board to support you in good times and bad.”

That certainly goes for the team of experts you rely on to help with your transportation needs.

“When times get tough, it helps when you have somebody you trust to walk you through it,” says Monger. “They can help you when you don’t understand why the rates are spiking or give you real-time feedback based on changes in the market.”

For the Trailer Bridge team, that job is simple.

“We exist to make our customers lives easier,” says Monger. “Business leaders don’t necessarily have the time in their day to consider all the various aspects of their supply chain on a day-to-day basis. A trusted partner can – providing up-to-date information on compliance and regulatory needs, economic issues or transportation issues happening around the world.”

Shippers can lean on Trailer Bridge for it all. With a solid foundation and industry expertise, this team knows how to create artful and effective customer solutions.

“We can create very unique supply chain solutions,” says Monger. “Trailer Bridge is large enough to do that, but we’re also still small enough to give the customers extremely tailored solutions. My customers can call any person on my team, and they know who they are, they know the commodities, the lanes that they ship, their requirements behind their operations.”