WCL Consulting was kind enough to let us share their informative newsletter on warehouse tenants demand for more trailer yard space. Take a moment to read the key points below and contact Jon DeCesare if you have further questions.
9 Key Demand Drivers for Warehouse Trailer Storage Space
When you consider today’s warehouse operation's dynamics, it becomes clear why warehouse tenants keep pushing for more trailer yard space.
1.) Continued Growth in Transloading - Warehouse facilities which perform transloading and cross-docking operations require additional trailer and container yard staging/storage in order to keep dock workers productive.
2.) Increase Need for Flexibility - Business needs continue to change, so the warehouse design solutions (e.g. trailer staging spaces, etc.) must be flexible to accommodate changes in shipping and receiving operations.
3.) Increase in Flow-Through Operations – An increasing percentage of warehouse facilities are moving toward flow-through operations vs. bulk storage.
4.) Evolution of Mega-Vessels (>10,000 TEUs) – Marine container terminals are no longer offering importers the option to temporarily hold import containers on the dock. Space is needed to handle increased volumes generated by mega-vessels. Now these containers will need to find space at the warehouse.
5.) Pressure on Warehouse Labor Cost Savings - The farther a warehouse facility is located from a port or intermodal rail hub, the more trailer yard spots are essential to make sure dock work crews are not standing by waiting for equipment to arrive.
6.) Truck Driver Productivity Focus - The recent new Truck Drivers' Hours of Service regulations which reduced the hours per day a driver could drive, make the preferred warehouse design with extra yard spots so drivers can quickly drop and pull equipment at a warehouse facility.
7.) Increase in Omni-Channel Warehouse Operations - A recent Logistics Management magazine survey indicated that 85% of survey respondents are operating omni-channel warehouse operations (e.g. shipping orders for: e-commerce, retail stores, wholesalers, specialty retailers, and catalogue). In these types of operations, it is critical to have yard flexibility to accommodate various sales channels and volumes of trailers and containers.
8.) Automated Warehouse Operations – Automated warehouse operations which quickly process shipment loading and unloading must have adequate trailer yard space. For example, Walgreen's highly automated 700,000 sq. ft. distribution center in Moreno Valley, California has 245 trailer/container spots with room for expansion.
9.) Growth in E-Commerce Facilities – We are continuing to see double digit annual growth in E-Commerce volumes and facilities. These super-service centers of 700,000 to 1.5 million square feet require a high ratio of trailer yard spots to support the customer service commitments.
This information is courtesy of Jon DeCesare at WCL Consulting. He can be contacted at 562-435-2600 or by email at jondecesare@wclconsulting.com.
