The issues with the current labor shortage was detailed in our last blog, and those issues have been long reaching. The difficulty with imports and the struggles at the ports of Los Angeles and Long Beach have been ongoing, along with the lack of consistent freight truckers for shipment from the ports. As a result, container costs have increased as much as 7 times the market rate, pre-COVID. A container shipping from China to the U.S., for example, can run anywhere between $20,000 to $30,000. Only the largest companies have the ability to absorb these incremental increases, putting the smaller shippers at a significant disadvantage.
With container prices soaring, companies have to find ways to mitigate the financial blow. A viable solution is to ship their international products broken down into component form, rather than fully assembled. By doing this, more product is able to fit into each container, sometimes up to 3 to 4 times more.
Your Supply Chain Solution
This is where CVAP can provide tangible value to these companies. Fresno is a perfect location, only a 3 to 4 hour drive north of the Greater Los Angeles area. It is close to most major interstate highways, has immediate access to intermodal providers, and is a hub for major distribution routes. Companies can ship their components straight from the SoCal ports up to CVAP, where they can arrive the same day. We can assemble our customers’ products fully, package them, and ship them to their U.S distributors.
The advantages of using CVAP are numerous. Companies have the option to disassemble products before overseas shipment. More volume ships per container and leads to decreased freight classes. Delivery lead times are shortened with CVAP’s ideal geographic location in Fresno. We are close enough to the ports, but outside of the heavy traffic metropolitan areas of Northern and Southern California. Once the products are ready to ship, CVAP has close proximity to distribution routes and intermodal yards.
Central Valley Assembly & Packaging is here to be a partner for companies and assist with the challenges they face. They need to be innovative and think outside the box in order to maintain success in the new business climate. We have become a solution for more and more clients and welcome the opportunity to help your business and its supply chain.
