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Read Full Article A SPECIAL SUPPLEMENT OF THE JOURNAL OF COMMERCE A SPECIAL SUPPLEMENT OF THE JOURNAL OF COMMERCE PhilaPort A SPECIAL SUPPLEMENT OF THE JOURNAL OF COMMERCE PHILADELPHIA LOGISTICS All articles in this special written by John Powers. Contents Prepared for the unexpected ............................................................4 Infrastructure update ..........................................................................9 Cold chain clout ............................................................................... 15 Maintaining metrics .......................................................................... 23 Overdrive ............................................................................................ 26 Add a decade to double ................................................................. 29 Credit: PhilaPort, AGRO Merchants Group, PhilaPort (above, from left to right); Credit: OldSkillz Photography (below) www.joc.com May 25 2020 | The Journal of Commerce 3 A SPECIAL SUPPLEMENT OF THE JOURNAL OF COMMERCE A SPECIAL SUPPLEMENT OF THE JOURNAL OF COMMERCE PHILADELPHIA LOGISTICS Despite an overall decline in container volumes across US ports, Philadelphia saw a 14 percent container growth in the first quarter of 2020. PhilaPort Prepared for the unexpected ACCUSTOMED TO SUSTAINED growth, household incomes have not yet substantially have hurt everyone in the international trade particularly in their container volumes, US impacted cold chain volumes. community in terms of volumes,” he said. ports will not look back on the first three Of note, also, is the hidden benefit of “Free markets do not mean one-way, no-tariff months of 2020 fondly. With the coronavirus PhilaPort’s current lack of a direct Asian trade. However, the importance of open trade disease 2019 (COVID-19) pandemic hard on service. While port marketers continue to cannot be overestimated.” the heels of a fusillade of tariffs and counter- actively pursue such a carrier, they are not The South Jersey Port Corp. (SJPC) tariffs, circumstances conspired to drive traffic currently feeling the pinch in this trade lane, oversees four terminals on the east side down almost across the board. Lower vessel- which is responsible for the majority of volume of the Delaware River in New Jersey. The load factors and pared-down rotations have losses in other ports heavily dependent on majority of its voluminous steel imports goes unfortunately become the order of the day. their Asian traffic. to final manufacturers, including automakers. One notable exception is Philadelphia, The numbers for the port’s non-container Plant shutdowns are depressing imports which saw 14 percent container growth in the cargoes are, however, not as rosy. “Our steel among the core steel commodities the first quarter of 2020, noted Sean Mahoney, numbers have been particularly hurt by the terminals handle. However, Executive Director director of marketing, PhilaPort. The primary tariffs. Also, the ad valorem tariffs against and CEO Andy Saporito noted a silver lining. driver of the uptick is Philadelphia’s core Europe hurt us. In fact, they were a contributing “We’ve seen an uptick in receipts of steel perishables business, which retained its factor to losing a European container service,” products used in making containers for strength with imports into their hinterland’s Mahoney said. consumables such as cans for food and huge consumption base largely untouched Eric Holt, chief commercial officer for Holt aerosols, which have risen dramatically due by COVID-19 and the trade wars. Despite Logistics, is concerned about the potential to the demand for cleaning and disinfectant the pandemic-induced recession, dwindling impact of lingering trade wars. “Tariff disputes products.” 4 The Journal of Commerce | May 25 2020 www.joc.com A SPECIAL SUPPLEMENT OF THE JOURNAL OF COMMERCE A SPECIAL SUPPLEMENT OF THE JOURNAL OF COMMERCE PHILADELPHIA LOGISTICS Overall, combined volumes for the SJPC you’re a just-in-time (JIT) or lean manufacturer/ COVID-19 than the tariff disputes. “Our terminals topped 4 million tons for the third shipper, supply will typically lag behind business in Philadelphia in 2019 was in year in a row. Year-to-date, business is off demand, so we don’t see a reduction in freight line with our growth expectations. 2020 has some 9 percent, primarily due to the slowdown volumes until after the fact. Conversely, we experienced some headwinds due to the in the steel sector. However, the recent will see the uptick in volumes before anyone coronavirus pandemic. We really have not addition of a new pipe importer to its client declares this recession over,” he said. “My experienced an impact from the tariffs because roster should help drive business back toward feeling is that the world economy has a the product here is not coming in from China. customary levels. tremendous amount of pent-up demand Most is coming up from South America,” CEO We really have not experienced an impact from the tariffs because the product here is not coming in from China. Most is coming up from South America. Lawrence Antonucci, president of 721 waiting to be unleashed that we’ll see come Jamie Overley said. The company has seen Logistics, explained that his business grows through in the form of increased freight vessel schedules altered somewhat, but traffic with his clients’ business. Just as 2019 was volumes, vessels being put back in service, in Philadelphia’s core agriculturals business a good year for everyone, 2020 is likewise and a surge in supply chain activity a month or has precluded any dramatic drop-off. “From a challenge across the board. “Everything is two before we’re officially ‘back in business’.” an activity standpoint, we work with a lot of impacted, and it’s impossible to predict when Caution is the order of the day at East businesses that are deemed essential, so our this ends and what it will look like. Unless Coast Warehouse, more a function of activity levels have remained consistent. We FIRST CHOICE — OUR NAME SAYS IT ALL OSHA-compliant warehouses have the most modern safety features, and we are FIRST CHOICE FREEZER & Cold Storage integrated supply chain execution capabil- regularly inspected by the FDA, USDA, and is dedicated to handling, blast freezing, ities and efficiencies in distribution, fulfill- third-party entities to ensure we meet the storing, and transporting your inventory in a ment, and public refrigerated warehouse strictest food safety standards. We have modern, temperature-controlled warehouse, operations that are second to none. Total a certified HACCP plan in place for every using the safest and most efficient means. visibility and tracking capabilities allow for critical control point of our operation. Our team’s mission, backed by state-of-the- complete control of your inventory. RF-driv- First Choice Freezer & Cold Storage art equipment, is to provide you with excel- en capabilities allow real-time tracking and and M&O Freezer & Cold Storage are both lence and complete customer satisfaction. reporting, minimizing cost while increasing owned and operated by The Levari Group, a First Choice and its sister company, productivity. We also operate a dedicated family business that has experienced signifi- M&O, are both located in Vineland, New fleet of refrigerated and dry trucks that run cant growth since it was formed in 2001. Jersey, convenient to the Port of Phila- shuttle services daily to points between Representing over three generations of ex- delphia. Together, they provide a unique customer locations. pertise in the agriculture transportation and advantage — a large volume of storage We are members of the Global Cold warehousing industry, First Choice Freezer space within proximity to major cities on the Chain Alliance, adhering to its best practic- & Cold Storage is your choice. n East Coast. es and industry standards for safety. Our First Choice (396 N Mill Road): This facility was purchased in 2001, with major renovations and expansions completed in 2007, 2014, and 2017. It now offers over 300,000 square feet of storage. M & O (1200 N Mill Road): This facility was built in 2018 and opened in January 2019. Its addition was opened in January 2020, for a total offering of 190,000 square feet of storage. Our facilities utilize the latest in cut- ting-edge inventory management, providing www.joc.com May 25 2020 | The Journal of Commerce 5 A SPECIAL SUPPLEMENT OF THE JOURNAL OF COMMERCE A SPECIAL SUPPLEMENT OF THE JOURNAL OF COMMERCE PHILADELPHIA LOGISTICS ensure their safety, we addressed the needs of our customers. We have found that our customers are producing more product than they are selling, which has caused a strain on the already tight storage capacities in the region. Until outbound shipments increase, The Levari Group anticipates the strain continuing.” Shipments of cocoa beans, a staple of the port’s freight mix, remain robust. “The cocoa bean business had several years of bumper crops, so volumes were unusually high. Now we are returning to the norm. The tariffs and trade disputes have not affected our business,” Harvey Weiner, president of Dependable Distribution Services (DDS), said. Courtesy of PhilaPort DDS reported no interruption of do not expect to see a material deviation in Its enterprises have definitely suffered in the vessel or warehouse operations. The nature volumes this year,” Overley said. current environment, Chief Financial Officer of perishables handling includes some built-in The Levari Group is a major warehousing Eugene G. Taormina
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