Port Disruption Requires Quick Dray and Warehouse Plan

Background: Discount Retailer Left Mid-Contract Without a Port Dray Carrier

port-disruption-01 Because of an unexpected mid-contract carrier departure, a discount retailer was left without a transition strategy and a big problem: mounting freight sitting at the Los Angeles/Long Beach, Calif., port. This caused increased port fees, service failures and continual disruptions in reliably getting product out of the port, onto store shelves and into customers’ hands.

Situation: Moving Big Freight Backlog

With the loss of its carrier, the retailer accrued a 200-container backlog and daily demurrage fees. To address immediate needs and mitigate the delay of moving incoming containers, the retailer sought a carrier with the flexibility, capacity and market knowledge to implement a quick and aggressive solution.

Schneider's Solution: Create an Immediate and Clear Action Plan

To accommodate the time-sensitive situation, Schneider implemented an all-hands-on-deck approach for immediate action to move the sitting freight and navigate the shipper through additional incoming orders. Schneider administered an operational plan and reporting schedule to ease the retailer’s stress while showing progress and results. Through a combination of Schneider’s own assets and verified third-party carriers, freight was quickly drayed from the port to a warehouse in Rancho Cucamonga, Calif., where it remained until it was transferred for delivery to the customer’s retail stores’ distribution center.

Results: Eliminated Sitting Freight and Kept Pace With Incoming Orders

Over the course of 4 weeks, Schneider:port-disruption-02

  • Eliminated a 200-container backlog within 4 weeks
  • Concurrently moved an additional 70 containers over the course of 4 weeks, resulting in $7 million in profitable sales
  • Saved the retailer over $50,000 in potential demurrage fees
  • Moved the first container in under 72 hours
  • Provided clear, consistent reporting for the shipper to assess progress
  • Demonstrated a nimble and reactive approach to serve the retailer
  • Schneider is now a go to for port solutions

At the end of the 4 weeks, Schneider had proven its ability to rise to even the most difficult challenge while delivering sales – and peace of mind – for the customer.

Published March 2016

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