10C — September 14 - 27, 2018 — Pennsylvania Experts — M id A tlantic

Real Estate Journal


P ennsylvania E xperts

By Mike Capobianco, SIOR, Markward Group State of Global Logistics & Trends to Watch

That’s our j ob” , c i tes R y d e r ’ s third party t r a n s p o r - tation and l o g i s t i c s group. F r e i g h t forwarding, air and sea "D

on ’ t over think transportat ion and l o g i s t i c s .

ful planning, attention to detail and good partnerships are all key to efficient cross- border transit. Preparation and experience pay off. Other fascinating points of interest include more auto- mation which can increase storage density in a ware- house and reduce labor over- heads thereby also reducing the need for more labor in already tight markets. On-demand delivery|ride- hailing will cause its version of disruption in the trucking industry wherein companies buy and sell space on trucks pushing utilization up and costs down. In the parcel delivery seg- ment of the market, which is growing in leaps and bounds, there are crowd- sourced last-mile delivery services allowing commut- ers, taxi drivers and stu- dents to pick up parcels and drop them as part of their regular journey. And lastly, voice recogni- tion technology in the ware- house in concert with a com- pany’s Warehouse Manage- ment System (WMS) helps to assess orders coming in, create optimal batches and pick paths with less walk- ing, leading to more picking. For example, Talbots, one of the largest women’s fashion retailers in the U.S., had experienced 150 mispicks a day in one of their Dis- tribution Centers. They added Voice Recognition which resulted in decreas- ing the number of mispicks to single digits. This case study improved Talbots productivity and accuracy while reducing warehouse employee training time. “We have sustained 12% growth in our Direct-to-Consumer Business”, according to their general manager. Unde r s t and i ng t he s e trends can help you differen- tiate yourself as a Logistics and Transportation Real Estate Broker/Advisor. How rent figures into the calcula- tion, given the high rates projected, is yet to be fully understood; but, likely not detrimental to making deals since freight costs have al- ways been about 55% of the clients’ total occupancy costs and real estate only 5% - 10%. MikeCapobianco, SIOR is an Associate Broker at Markward Group. 

ing, environment and ethics all play a role in the state of Global Logistics. Here are some trends to watch: • Trucking sees its best carriers gear up for a hot freight market shaped by tight capacity for equip- ment and labor. We are short 50,000 truck drivers this year. More than ever, carriers have and are plan- ning investments of a high magnitude and more strate- gic operations to best serve their shippers during the huge boom in business, driv-

LEASED Valley Forge Towers 3000 Valley Forge Cir King Of Prussia, PA 19406 en by 3PLs, extraordinary growth and e-commerce on line sales growth. • Parcel growth trends are causing logistic operations to re-adjust to ever-shifting changes like surcharges, based on established factor of dimensions and weight and new entrants to the market, especially in last mile deliveries. • Resources are tight and customer expectations are high, thereby making logis- tics more important than ever to an organization’s success, profitability and

ability to serve customers. These events are creating a tight TL (truck load) Market with respect to capacity and rising rates. • “Uber for freight”. “On- demand” trucking is caught up in stiff competition to de- velop mobile apps to match an available truck with a pending load and the stake- holders are well funded. • Tariffs … cross-border trade … political bluster aside, no matter who’s in the White House, logistics professionals on all sides of the border concur that care-

Mike Capobianco, SIOR

freight expect high growth in these trade lanes. Mean- while, motor carriers, ex- press shippers, warehous-

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