Regarding global supply chains, finding the fastest and most economical way to get product from the factory to its destination is essential. This holds true regardless of the company – whether you are a manufacturer, wholesaler, or retailer. The challenge for U.S. importers is that the best solution is seldom obvious, because there are so many choices of ports. Additionally, importers must factor in the distance within the country that product has to move once it arrives. Therefore, developing the most efficient distribution strategy requires a specific understanding of how your choice of port location will affect things like warehousing, drayage, and inland shipping costs, as well warehousing expense and transit-times. Of the many available ports, the Port of Savannah offers many advantages.
An importer’s choice of port needs to consider more than just rates. Relying on ports with poor infrastructure or limited carrier and equipment availability may limit your company’s ability to serve its customers and grow.
Importers should look closer at their options for choosing a port of entry. After consideration, many would realize they’ve made a mistake by overlooking the U.S east coast Port of Savannah. Here are some reasons why.
Port of Savannah advantages
Savannah is the second largest port on the east coast, growing at 25% per annum. It has servicing trade lanes and is first port of call on most strings. As the first port of call, shippers can access sub-continent markets at lower freight costs. With advantages such as lower collect transportation costs for retailers to the DC network and reduced inventory carrying and operating costs, it makes sense that awareness of the Port of Savannah is on the rise for many importers looking to increase their gross margins.
Given the Baby Boomer shift to the southeast and the fact that 66% of the consumer population is located east of the Mississippi river, major retailer distribution centers are also a lot more concentrated in this region. The location’s appeal has further increased because of recent legislative changes made to the Panama and Suez Canals. These changes arose due to the impact they’ve had on decreases in transit time, improvements in costs per TEU, increases in carrier capacity, and quicker turnarounds.
84% of U.S. consumers can be reached within 2 day ground parcel service through this port. Therefore, shippers can hugely benefit from the region’s quicker speed to market capabilities. Additionally, shippers will benefit from the lower freight costs it provides.
Factors like ocean freight cost reductions per TEU, cheaper drayage, and lower real-estate expenses make the Port of Savannah an ideal alternative to less neutral gateways, such as California.
Those unable to make the shift themselves should consider working with a reliable third-party logistics provider. 3PLs, like O’Neill Logistics, have conveniently located facilities by the ports. Therefore, they can save you from having to strain company resources as well as provide invaluable logistics expertise.
About O’Neill Logistics
O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, our services include omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
We have over 2 million square feet which are all state-of-the-art facilities, offer dray services to support the warehouses, and handle distribution to retailers and wholesalers.
Our main drive is to simplify your supply chain by delivering exceptional service and optimizing your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.
O’Neill’s reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.