3PL Central - A Year in Review for 3PL
The 2020 Third-Party Logistics (3PL) Warehouse Benchmark Report is the first report of its kind released by , a leading provider of cloud-based warehouse management systems (WMS), specifically designed to meet the unique needs of 3PL warehouses. The report itself contains a lot of statistical information from over 250 3PL warehouse industry professionals and covers more than 30 industry-specific topics in total, ranging from best practices, trends, current issues, and opportunities facing 3PL warehouses.
Rachel Trindade, chief marketing officer at 3PL Central, spoke about the survey: “As a partner for growth in the third-party logistics industry, 3PL Central designed this survey and the subsequent report to highlight the best practices of the fastest-growing companies in the industry.”
- 50% of respondents reported running above their recommended warehouse capacity, with limited room for expansion
- 82% recorded B2B to be their top type of order fulfilment offered
- 62% have less than 250,000 sq. feet of warehousing space available
- 27% reported that finding and acquiring additional warehouse space was their top priority
- 87% of participating warehouses use warehouse management software (WMS)
As previously mentioned, the report itself covers a lot of topics in total and is a valuable data resource for 3PLs to use, whether they’re start-ups or high-end practices.
“We want to advocate for the industry and provide insight and expertise to those 3PLs planning to accelerate their growth and to meet the demands of a rapidly changing landscape. For example, providing data that omnichannel fulfilment warehouses were 271% more likely to fall into the fastest-growing 3PL warehouse’s category (25%+ growth) can help warehouses develop strategies for diversification in 2021,” Trindade concluded.
The report brief itself notes that businesses have had to turn to 3PL warehouses to fulfil demand in this tumultuous time and that the 2020 peak season will need to be learned from is future 3PL warehouses are to survive the uncertainty of 2021. What is the future for 3PL warehouses? Will they grow in numbers, more ready than ever to meet the demand of an ever-shifting e-commerce sector? Only time will tell.
Suez Canal expansion plans greenlit by Egyptian president
The Suez Canal is to undergo a two-year expansion project, following the weeklong closure of the channel by the stranded Ever Given container ship in March.
Plans set forth to expand narrow sections of the Suez Canal have been greenlit by the Egyptian president to safeguard against future blockages.
Dredgers will widen and deepen the single-lane stretch close to the southern mouth of the canal, near where the 400m container ship got wedged earlier this year, while a second lane opened in 2015 will be extended to promote two-way traffic and alleviate the impact of bottlenecks.
President Abdel Fattah al-Sisi gave the order to “immediately start implementing the proposed development plan and put in place a timetable for completion as soon as possible”, according to reports. It is understood he expects the work to be fully completed within two years.
Ever Given negotiations rage on
The Ever Given left hundreds of ships stranded and disrupted an estimated $9.5bn in goods each day when it became wedged across a narrow passage of the trade route in March. After a week of dredging, towing and manoeuvring, it was eventually freed from the banks of the Suez Canal in the early hours of 29 March and set course of the Bitter Lakes holding area.
There the vessel, its crew and its cargo have remained ever since, while legal action between Egyptian authorities and the ship’s owners rages on, though SCA chairman and Managing Director, Admiral Osama Rabie, refutes allegations that crew have been detained.
“[There] is no truth in the allegations of detaining the ship crew, pointing to that the SCA does not mind the departure or recrew operations provided the presence of the sufficient number of sailors to secure the vessel and in the light of the presence of the ship captain as he stands as the juridical guardian of the ship and the cargo aboard,” Rabie said in a statement.
The SCA initially sought $916m in compensation to cover refloatation costs, including repairs where the channel was damaged to move the vessel, bonuses for the rescue crews who worked throughout the jam, and a package for “loss of reputation”.
Now the SCA and its chairman and Managing Director, Admiral Osama Rabie, have agreed to reduce the bill by a third. The authority has reportedly offered payment terms for the $600m to the Ever Given’s owner Shoei Kisen. Shoei Kisen has also declared a general average on the goods on board, with shippers liable to shoulder a significant outlay to get the 18,000-plus containers aboard to their final destination in the Nertherlands.